OneSpaWorld's Q4 2024: Unpacking Contradictions in Medi-Spa Growth, Margins, and Revenue Strategies

These are the key contradictions discussed in OneSpaWorld Holdings Limited's latest 2024Q4 earnings call, specifically including: Medi-Spa growth drivers, gross margin trends, prebooking trends and concentration, and revenue growth and strategic focus:



Strong Financial Performance and Revenue Growth:
- OneSpaWorld reported record revenue of $217.2 million for Q4 2024, up 11% year-over-year.
- This growth was driven by fleet expansion, higher guest spend, and increased onboard penetration.

Increased Onboard Penetration and Service Usage:
- Total revenue per passenger per day increased, with a 5% improvement in onboard penetration due to more guests availing health and wellness services.
- This increase was supported by greater staff experience and higher staff retention, leading to more effective recommendations.

Medi-Spa Expansion and Revenue Growth:
- Medi-Spa services contributed to a 30% year-over-year increase in same spa revenue, with services now available on 147 ships, up from 139 ships.
- Growth in Medi-Spa revenue was driven by increased passenger participation, higher prices per service, and expanded offerings.

Capital Structure and Financial Position:
- OneSpaWorld reduced its debt to $100 million and increased its public float, enhancing its capital structure and financial stability.
- This was achieved through debt repayment and investments in share repurchase programs, supported by strong cash flow generation.

Operational Efficiency and Staffing Strategies:
- Revenue per staff per day improved due to greater experienced staff members, contributing to higher revenue per staff.
- This was a result of initiatives to attract, train, and retain staff, with a focus on empowering the culture to boost operating metrics.