Nu Skin Enterprises, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Q2 2020 Nu Skin Enterprises Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Mr. Scott Pond, Vice President of Investor Relations. Please go ahead, sir.

Thanks, Sarah, and good afternoon, everyone. Today on the call with me are Rich Wood, Chief Executive Officer, Ryan Napierski, President, and Mark Lawrence, Chief Financial Officer. On today's call, comments will be made that include some forward-looking statements. These statements involve risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings reviews and our SEC filings for a complete discussion of these risks. Also, during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP financial numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor page at ir.newskin.com for any required reconciliation of non-GAAP. And with that, I'll turn the time over to Rich.

Thank you, Scott, and welcome everyone to our conference call. Thank you for joining us today. We're pleased to report constant currency revenue growth in the second quarter and results well above our guidance with $612.4 million of revenue and earnings per share of 81 cents. These results were driven by the strength of our socially enabled business model, strategic investments in technology and digital tools, our balanced product portfolio, and strength in our manufacturing segment. I'm particularly proud of the way our global sales leaders are embracing digitally enabled commerce, which is empowering them to accelerate customer acquisition and increase their productivity. This is evidenced by customer growth of 29%, and also by the percentage of digitally enabled transactions, which reached more than 85% for the quarter. We continue to focus on customer growth, believing it will lead to increased sales leader productivity and ultimately sales force expansion. We are encouraged by the strong growth in customers this quarter and the sequential improvement in sales leaders. We believe our planned product introductions of Ageloc Boost and Nutri-Essentials will further drive these key metrics in the back half of the year. Our strong revenue growth in the quarter came primarily from the West with double-digit gains in our Americas Pacific and EMEA regions. Our China business showed stabilization with sequential growth in customers, sales leaders, and revenue. I want to provide a few more details regarding how we are working through this global pandemic. We continue to focus on the health and wellness of our customers, our sales leaders, and our employees as our top priority. The majority of our employees around the world continue to work remotely. Travel remains restricted, and we are leveraging technology to the very best of our ability to keep optimal communication and interaction with our global sales force and our employee base. During the past 18 months, we've navigated many challenges. and learned lessons that have accelerated adoption of digital technology and tools. For example, we began transitioning many of our global in-person meetings to online virtual experiences last year, and this is an essential part of our success today. We will continue to invest further in technology to amplify the power of social sharing of our products through a robust digital infrastructure. Expanding the reach of our sales leaders to more customers. We believe our business is very well positioned to succeed with our strong product offering, the flexibility of our velocity compensation program, and the technology improvements we have made to enhance the abilities of our sales force to work remote. In the West region, where our sales leaders are more mature with social sharing practices, we have seen an acceleration of the business. Even with the impact of COVID and associated economic uncertainty, we believe we are now beginning to see early signs of this adoption in some of our Asia markets as well, which Ryan will address in more detail in a few moments. Our manufacturing segment performed well, reporting growth of 20%. These manufacturing companies have provided significant benefit to our global business by helping us work through supply chain challenges associated with COVID. We see continued growth potential in this segment as we plan to make further strategic investments in our manufacturing capabilities. For example, in the past few months, we have added new capacity to produce liquid pouches and powders and have also significantly increased our capability around the growing sanitizing and cleansing category. Also, we reported revenue in our GrowTech division in the quarter, and while small, we continue to make progress in developing our indoor grow lighting and technology and believe this will provide additional opportunities for growth in the future. In the first half, we generated strong cash from operations, raised our dividend, strengthened our balance sheet, and reduced our outstanding shares by nearly 8%. Looking ahead, due to the trends we are seeing in customer growth, Ryan Napierski,