Nu Skin Enterprises, Inc.

All right, good day and thank you for standing by. Welcome to the NuSCAN conference call. At this time, all the 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 11 on your telephone, and you will then be prompted with an automated message advising you to raise your hand. Please be advised that today's conference is being recorded. I would like now to hand the conference over to Scott Pond.

Thanks, Corey, and good afternoon, everyone. Today on the call with me are Ryan Napierski, President and CEO, and Mark Lawrence, CFO. 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 website or any required reconciliation of non-GAAP numbers. And with that, I'll turn the call over to Ryan.

Hey, thanks, Scott. Good afternoon, everybody, and thanks for joining us on today's call. As we've discussed with you over the past few quarters, we're actively engaged in New Vision 2025 and our multi-year transformation to becoming the world's leading integrated beauty and wellness company that's powered by our dynamic affiliate opportunity platform. We're making progress on our vision despite ongoing macro challenges that are causing near-term disruptions in several regions, including the extended lockdowns in mainland China, ongoing distractions in the MEA, and the economic uncertainties, particularly in emerging markets like Latin America. While second quarter revenue was lower than planned due to these headwinds, we delivered non-GAAP EPS within our previous guidance range, reflecting the agility of our model and entire team to adapt quickly to environmental challenges. In addition, we delivered our ninth consecutive quarter of growth in the U.S., driven by our recent product launches and broader adoption of social commerce, which bodes well for our future growth aspirations in this market and our other regions. We've also established the momentum in both Southeast Asia and Taiwan through our new Ageloc Meta and Beauty Focus Collagen Plus product launches, and we're gaining some traction with our social commerce model in these markets as well. Over the past several months, we've continued to advance our three strategic imperatives that underpin New Vision 2025, including Empower Me personalized beauty and wellness, affiliate-powered social commerce, and our digital-first ecosystem. These strategies support Nu Skin's transition from being identified largely by our traditional direct selling channel to being a leader in integrated beauty and wellness. We remain confident in our direction along with our ability to accelerate future growth and drive significant value for shareholders. Let me quickly update you on each of the three strategic imperatives. First, we're thrilled to be approaching the introduction of Empower Me Personalized Beauty and Wellness with our first IoT device system, LumaSpa IO. It will be introduced beginning in the third quarter with global availability later this year. Connected input-output devices are central to this strategy as we transition to a more holistic approach of providing integrated beauty and wellness solutions. By offering deeper insights into every customer's unique beauty and wellness journey, we will empower them to better understand their personal needs, which will lead to higher levels of customer engagement and improved lifetime value. This is a significant step forward as we connect with our customers in a more personal and integrated manner. We plan to follow it up with additional connected devices in 2023 and beyond. Second, we continue to build momentum in our affiliate-powered social commerce strategy led by the US with encouraging signs in Taiwan and parts of Southeast Asia. Nano influencers in these markets are embracing social media and leveraging their personal brands to reach more customers in an authentic and scalable manner. While EMEA was an early adopter of social commerce, we are looking to rebuild momentum that has been lost due to ongoing distractions caused by geopolitical factors. We're also accelerating the early earning potential of social commerce for affiliates with a new global one-price model. We believe this model, which we are introducing with LumaSpa IO and other select products, will promote affiliate productivity and retention. And third, we continue to advance our digital-first ecosystem by expanding the reach of our recently introduced Vera and Stella apps. We continue to add new features and languages to our Vera consumer app that enable our Empowered Me personalization strategy and foster deeper relationships with our customers. We expect accelerated adoption of Vera with the upcoming launch of LumaSpa IO as customers connect to their devices via this app. The Stella app makes it easier for our brand affiliates to manage their businesses from their mobile devices and facilitates the cultivation of customer relationships through unique features like Connect, our CRM campaign tool. We will further drive Stella adoption in the second half as we enhance its feature set through the consolidation of other legacy tools. In China, we continue to invest in our digital ecosystem with the introduction of our new MyShop storefront in Q3. This is an individual version of the WeShop social commerce corporate storefront we rolled out last year, which drove new customer acquisition in this past quarter. These three strategic imperatives are foundational to new vision 2025. and the transformation of our company over the next few years. Next, let me share with you some additional insights on market performance over the quarter. We had the opportunity to meet with many of our top global leaders in London last May for the first time since COVID, spending time together aligning around New Vision 2025 and our second half goals. While we are heavily investing in our digitally enabled future, these face-to-face opportunities are critical to engaging, motivating, and training our teams. Also, with growing global complexities, we continue to seek additional opportunities to balance our market portfolio and provide greater stability to our geographically diverse business, which will help to improve stability of our business moving forward. Mainland China continues to be very challenged reflecting the extended impact of COVID-related factors on our selling and promotional activities. The extended lockdowns halted business momentum for several quarters now, which significantly impacted our affiliate and sales leader numbers. For the quarter, revenue was down 42% in local currency, and we anticipate ongoing uncertainty in the region through the remainder of the year. Nevertheless, we continue to invest in this market and look forward to the introduction of Loomis Fah IO and MyShop, both effective tools to stimulate new activity in the market as we lead further into our digital first strategy there. Hong Kong and Taiwan grew 6% in constant currency, reflecting continued strength in Taiwan as our product launches and social commerce model gather momentum. The Americas continue to be led by the U.S., where we delivered our ninth consecutive quarter of growth, with year-over-year revenue up 6%, atop strong double-digit growth in 2020 and 2021. We've established an effective cadence for new product launches in this market, and our affiliates continue to become more immersed in social commerce as we go. However, in Latin America, macro conditions remain challenging. We continue to believe our pathway to return to growth is tactically aligned with our approach in the U.S. market, including leveraging our Collagen Plus learnings, along with the training and support to expand social commerce, adapted for local market economic conditions there. The ongoing conflict in Russia and Ukraine continues to cause distraction and uncertainty across EMEA region, resulting in segment revenue down 31% in constant currency. We look forward to the upcoming product introductions in this region, but remain cautious in the near term given the macro environments. Japan continues to perform in line with expectations, down around 3% in local currency. However, South Korea was down 12% in local currency due in part to lower performance in their quarterly promotions cadence. Both markets were significantly affected by unfavorable foreign currency pressures leading to double-digit impact. Nevertheless, we're optimistic in our awaiting of LumaSpa IO that comes in the second half. In Southeast Asia and Pacific, momentum from Ageloc Meta helped drive a 16% increase in constant currency revenue. We are seeing positive trends in Indonesia and Singapore in particular and are encouraged by the energy of our teams in these high potential markets. So overall, with the global macro environment worsening the past few months, we expect to face continued headwinds in several regions over the near term, and have adjusted our 2022 outlook accordingly. This is reflected in our revised guidance that Mark will cover in just a moment. To help mitigate the impact of these macro factors, we are taking several actions to proactively align all capabilities and resources to enable new vision 2025 and to continue transforming our organization to optimize future growth and profitability, as well as maximize shareholder value. These actions will result in a restructuring event in the second half and an estimated $100 million in cost savings in the coming year. Looking toward the balance of the year, we are acutely focused on furthering New Vision 2025 with the introduction of Empower Me Personalized Beauty and Wellness, beginning with LumaSpa IO, and we're optimistic that momentum will begin to build sequentially throughout the remainder of this year. We continue to gain solid traction with our newest product innovations and favorable social commerce adoption across several markets, reflecting the potential of our model and the direction of our vision. Nu Skin is well-positioned to capitalize on the tremendous opportunities in beauty and wellness space as we execute Nu Vision 2025 by leveraging our global brand, scalable platform, and our strong balance sheet. And with that, let me turn the time over to Mark to talk through our financials in more detail. Mark. Thank you, Ryan.