Nu Skin Enterprises, Inc.

Good day and thank you for standing by. Welcome to the Q1 2021 New 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 will 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 0. I would now like to hand the conference over to your speaker today. Kyle Pond, please go ahead.

Thanks, Peter, and good afternoon, everyone. Today on the call with me are Rich Wood, Chief Executive Officer, Ryan Napierski, President and CEO-elect, 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 release 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 numbers. And with that, I'll turn the time over to Rich.

Thank you, Scott, and good afternoon, everyone. We really appreciate that you join us today. I'm so pleased with our progress in becoming a customer-obsessed, socially-enabled business that has generated record results in this first quarter. Our strategy has positioned us well for success amid powerful macro trends and associated shifts in consumer behaviors. I want to recognize our amazing and talented sales leaders and dedicated and loyal employees who are responsible for the great results we are reporting today. We made critical enhancements to our business as we implemented our strategy over the past few years. For example, we refined the cadence of our product launches. We increased our focus on attracting and retaining customers. We aligned our sales compensation structure to enable social commerce. And we invested in manufacturing companies to secure our supply chain. These and other strategic enhancements helped us drive 31% revenue growth and 153% earnings per share growth in the first quarter. As a result, we're reporting the best first quarter in Nu Skin's history for both revenue and earnings per share, and we are raising our guidance for the year. As Ryan and I continue to work closely together on developing and leading the execution of this strategy, the transition of leadership responsibilities is progressing well. I am so confident that the business is in great hands. This is the right team to build on the existing foundation and drive continued growth and success in the future. I would like to highlight progress on a few of our key initiatives. First, we continue to build upon our 37-year history of developing world-class beauty and wellness products that help people look and feel their best. For example, as people look for ways to enjoy a spa-like experience at home, our beauty devices, including Ageloc Luma Spa and Boost, continue to grow in popularity. In fact, Euromonitor recently named Nu Skin the world's number one beauty device systems brand for the fourth consecutive year. As consumers become increasingly mindful of what goes into the products they use, we extended our product philosophy with NutriEssentials BioAdaptives that feature clean formulas and sustainable packaging. And I'm really excited about the potential of our robust product pipeline, which we will share more details about later in this call. Next, even as the world moves towards a new normal, our social commerce strategy is here to stay. We recognize the trend of consumers moving to digital platforms long before COVID-19, which accelerated this transition. Our triple-digit growth in the West is a result of our brand affiliates embracing our social commerce model. We're reaching a larger and younger demographic, and the business continues to gain momentum with 34% customer growth and 22% sales leader growth in the first quarter. I'm encouraged also by our improving geographic balance, which Ryan will speak to in more detail in a moment. I would like to highlight the growth in our manufacturing segment, which achieved record results and reported 69% revenue growth. We continue to lean into our sustainability efforts with ongoing initiatives to reduce the environmental impact of our business operations, provide more eco-friendly packaging, and strengthen our commitment to responsible sourcing, including our investments in controlled environment agriculture. Given our first quarter performance, increasing sales leader interest in our planned new product introductions, and strong customer and sales leader growth, we are raising our 2021 guidance. The midpoint of our adjusted guidance points to growth of about 10% for revenue and 15% for earnings per share. We are confident in our strategy and we're optimistic about our future. And with that introduction, I'll turn the call over to Ryan.