Good morning. Welcome to Day 2 of the ICR Conference. My name is Allison Malkin, and I'm a partner at ICR. It gives me great pleasure to introduce our first presentation of the day, AirSculpt. AirSculpt has an advantageous business model and a proven track record, providing minimally invasive body contouring procedures, which it offers through a welcoming experience across 31 centers in the United States and one in the U.K. Here to share more about the company's business and its long-term opportunities are Yogi Jashnani, CEO, and Dennis Dean, CFO. Before I turn it over to Yogi, I would like to first make sure everyone reads the Safe Harbor Statement, including the company's press releases and in its SEC filings with the SEC. With that, I'll turn it over to Yogi.
Thank you, Allison. Good morning, everyone. I'm Yogi Jashnani. I just joined as the CEO for AirSculpt last week, so this is week two on the job. Thrilled to be here. This is a phenomenal brand with a very effective procedure. What I wanted to do initially is just give a little bit of my background, talk about what attracted me to AirSculpt, and then how we're going to win in the coming quarters. So a little bit about me. My background is primarily in accelerating profitable revenue growth. I've done that primarily in the consumer space, across industries and across company sizes, from Capital One credit cards, where I led consumer acquisitions, to most recently ours at a privately-held trampoline park company, the largest in the U.S.
Probably my experience, which is in the broader aesthetics field that might be relevant in this space, is I was also part of Ideal Image med spas. At the time, it was the largest chain of med spas in the U.S. at about 170 locations. It was there for just under four years, and during that time, we were able to nearly double revenue and grow margins. Did that by revamping marketing, the sales, and go-to-market strategy, introducing new products, and introducing recurring revenue as a significant source of revenue stream. So a lot of parallels as we go through with the opportunity at AirSculpt, and that's what excites me about AirSculpt. If you think about it, there's a lot of positives in the brand. We've been around for over 10 years. We're up to 32 centers right now. We've done 70,000 procedures and counting.
If I step back from that, the thing that stands out to me is it's a powerful brand, first. Secondly, it's a highly effective procedure. I believe our procedure is the best at removing fat, bar none. And thirdly, there's a huge TAM. In our estimates, it's about $11 billion TAM, and we're just under $200 million of that. So if we combine the fact that we have a phenomenal procedure, a phenomenal service, with a strong brand, and the TAM that's available to us, there's a lot of growth to be had, and there's a lot of runway for the business. Just as a quick refresher for people on what is AirSculpt, so as I said, we are premier body sculpting, body contouring. Effectively, what that means is we remove fat, we transfer fat, and we tighten skin. That's what I would boil it down to.
There's a lot more in there, but it's fat removal, fat transfer, skin tightening, our broad categories where we play in. And our procedure is minimally invasive, so there's no scalpel, no stitches, no general anesthesia. Most of the people who get the procedure are back to their routine. Many of them are back to their routine within 24 hours, and it is permanent removal. All you have to do is look at the social media postings of some of our patients who have gotten the procedure. Just the joy and happiness that comes across and the visible results that come across is more than enough to convince you of the effectiveness of the procedure. It is a patented procedure. It is a highly scalable model. It's something that you can only get done at AirSculpt.
And just from an economics perspective, this is all upfront cash payments, so there is little to no AR, no insurance involved. Just keeps things a little bit cleaner for Dennis, who will talk in a minute. And as I mentioned, lots of different procedures that we do, they broadly fit in the fat removal, fat transfer, skin tightening kind of an area. Just if you think about aesthetics and where there is opportunity, the biggest opportunity in aesthetics is in these areas. Many a times, there's questions around, what about GLP-1s as well? We believe that's a complementary service to what we are doing because as people see results from GLP-1, there are skin tightening needs, and that's where we play. As people get GLP-1 services, there is potential for the weight loss to be uneven or from areas where you wouldn't want it.
So that's where fat removal for aesthetic purposes and fat transfers also comes in. So there's a lot that we do in this space, which is what I would consider bullseye for what consumers are looking for now and in the future. And how do we do it? So we do it through elite surgeons. All of our surgeons are cosmetic or plastic surgeons. They are highly trained. We have 31 centers in North America and one more globally, so 32 total centers. It's a lead generation business of sorts, so we do have consumers who raise their hands. We connect with them through marketing. They connect with us through our results. And that leads to a consultative sales process, which leads to the consumer coming in and getting the procedure done. It's a one-sitting procedure.
We do have third-party credit providers as well to help those consumers who would prefer that kind of service. Just a couple of other things on what works for us. As I mentioned, we have a patented process. We have a patented method that works really, really well for us. Significant runway for growth as it relates to the TAM. Again, going back to strong brand, phenomenal procedure that's effective, and a huge TAM in the market, and we are barely scratching the surface of that. We've got strong positive cash flow generation in our centers. So with all of that, we believe we are very well set up on winning in this space and getting a bigger slice of the aesthetics market. With that, I'm going to turn it over to Dennis to talk a little bit about the financials. Dennis.
Thank you, Yogi. As Allison said, I'm the CFO of the company. I joined AirSculpt in 2021. Prior to joining AirSculpt, I was primarily in the physician practice management outpatient surgery sector in traditional healthcare. And when I was introduced to AirSculpt, there was something that was just so attractive about its fundamentals and its business economics. It was something I just had to pay a little bit of attention to, and I was glad I joined. We did our IPO in 2021 and have been public, obviously, ever since. One of the things that we are a luxury business offering. We are located primarily in metropolitan cities, and we seek to go after the high-end retail area of the city. And that tends to be where we see most of our traffic from that standpoint. Our average revenue per case, it is a considered purchase.
We range about $12,000-$13,000 a case, so it's a very high-end procedure, but we believe that it's a very fair price given the value, as Yogi talked about, and the services that we offer to our patients. We have had a consistent history of opening new centers. We've been very active in that space. Our de novo centers are extremely attractive. This is one of the areas that really, really drew me to AirSculpt, was that it cost us about $1.5 million to open up a center in a market. It usually takes us about three to four months to be cash flow positive. Historically, on an average basis, all of our centers generate 100% of return on capital in the first year. We don't consider a center fully grown until about three years of operation.
Incredible economics and return on the investments we've made from our de novo centers. Mature facilities, once they've grown up, that doesn't take a lot of capital to keep them running. There's very little working capital needs. It's very modest from that standpoint. We also have an extremely high variable cost structure. So all of those aspects build a great business model that generates significant cash flow for us. Giving you a snapshot here of the 2023 results, we are approximately $196 million of revenue, and that was about 16% year-over-year growth, $43 million approximately in EBITDA, and our EBITDA margins are around 22% in 2023. This just gives you a little bit of a picture of a de novo. It takes us about 12 months to open up a center.
Top part of the slide is just kind of tell you the process that we go through as far as identifying markets, building out the site, training physicians, recruiting and training physicians in the team, and then opening the centers, obviously. Here's a picture of our average economics for average centers on a historical basis. As I said, it generates about 100% return of capital in year one. You can see in year one, $4.5 million of revenue, $1.5 million of EBITDA, so very, very strong operating results, something that I've never seen in my career, which, again, really, really attracted me to AirSculpt, and you can see in year three, our centers average about $9 million of revenue per year and roughly $4 million of EBITDA. Some centers are larger, some are smaller, but the interesting thing about that is that we are located in New York City.
We are located in Beverly Hills, but we're also located in smaller markets like here in Orlando and Nashville, Tennessee, and those markets are all part of this average that we're doing, so the exciting thing for a CFO that's kind of conservative is that I'm not really tied to one or two centers that drive the business. It's very dispersed across the organization. It just tells us the ability to open up in new markets is something that's very attractive, and on the right bottom-hand side of the slide, that is the five centers that we've opened in 2024, and we've been quite busy. We opened up all these in the back half of the year, and so all those are just getting started, but again, just gives you a picture of how active we've been in the de novo space.
This is just sort of a picture of how we've grown since 2019. I apologize. We started in 2019 at roughly $41 million of revenue. We've grown that in 2023 to $196 million, 37% compound annual growth rate, so very strong top-line growth. EBITDA has been very strong as well, $7 million in 2019, up to $43 million in 2023. Again, extremely strong profitability metrics there from that standpoint. If you see in the slide, we did do a step down in 2022. We went public at the very end of 2021, and so 2022 results reflect the additional public company costs that we had to incur as we went to be in a public company. So again, very strong profitability metrics from that standpoint. Gross profit, we're about 62.5% roughly on average of gross profit margin.
And on each procedure we do, we generate approximately $8,000 of gross profit for every case that we do. So again, the economics of the business model are extremely attractive. And then generating free cash flow, all those sorts of things show that we're able to generate positive free cash flow. And I will say also, just for educational purposes, and it's down in the footnotes and it may be difficult to see, is that this free cash flow includes the results of us paying for our de novo facilities. So we fund our own growth. We haven't gone out and bought companies. We open up and fund our own de novos with free cash flow. Yogi talked about the TAM, some estimates up to $11 billion. This just kind of gives a little bit of a white space story here in the U.S. primarily.
We did a study in 2023 that would suggest there are well over 130 markets just in the U.S. alone that we could go into that fit our consumer dynamics, and so that's a very attractive business from that standpoint. We only currently have 30 in the U.S., 32 total, one in London, one in Toronto, so a lot of runway for us from a growth perspective, and then globally, should we continue down that path, there's just significant opportunity for further growth there, and primarily, that is just the space and the growth rates out there for body contouring and fat removal are extremely strong, and there's an extreme long projection out there for growth rates, which is why we really like the space that we're in, and then the last slide I'll cover here is, we did give an updated outlook on our 2024 results.
As you can see, our revenue numbers were approximately $180 million, adjusted EBITDA approximately $20.5 million. And we did, as we said, opened up our five centers. We did see a decline, as you can tell from our results from 2024. Primarily, what we attribute that to is there's been a very broad reduction in challenges in the aesthetics space, particularly in this past year or two. And obviously, that has impacted our business because we're heavily in the aesthetics business. We are a considered purchase, $12,000-$13,000 a case. And so the macroeconomic factors that have impacted some of our core consumers have kind of led to this sort of decline in this current year. But we believe we have a strong business model. There's a lot of activity out there.
There's a lot of interest continued in AirSculpt as I look through our leads and our leads activities. Some of our conversion rates have deteriorated slightly as we've kind of seen some challenges within our core consumer, and with that, I think I'll turn it back over to Yogi, and he'll.
Perfect. Thank you, Dennis. So folks, just to recap, again, strong fundamental business, strong fundamental economics. We've had a challenging 2024. And I'm confident we can continue to deliver strong financial results. Coming in, again, this is week two, but coming in, my focus is going to be on a couple of areas. One is culture of the company, and the second is revenue. I'll start with revenue and then work my way back to the first one. Primarily on the revenue side, how do we get back? How do we get our revenue growing again over time? And that's by changes to our go-to-market strategy. As I look at it, there are multiple areas where we have opportunity to improve our go-to-market strategy. There are five that are listed out. They're in consideration right now and building out what our plans would be for 2025.
But particularly, five areas of evaluation right now. One is around marketing and how do we make sure that the returns-based approach for each marginal dollar works out really well. Marketing is a mid-teens-ish expense for us. So that's definitely one where making sure that that's working as hard as it can. As I mentioned earlier, as we attract consumers with interest, we work with a consultative sales group and making sure that our sales processes are set up in a way that we are recruiting, training, and delivering on the best experiences for our consumers. So how do we revamp some of our sales processes? Underlying all of that, jumping to number four, what's the technology underlying all those things? What are the capabilities in past earnings calls and presentations?
We have talked about implementing more robust technology as it relates to working with our consumers, making lives easier for our marketing and sales teams, and implementing capabilities to drive deeper consumer relationship management. Another key area of evaluation is around product and sales innovation. As we sit here, as I mentioned, we do fat removal, fat transfer, and skin tightening. Today, we do many of those together within one procedure. There's opportunity for us to look at those individually as well and introducing other new services. We have our centers. We have access to what I would call some of the best surgeons out there. We have the entire infrastructure of nursing, clinics, clinic managers, sales. What else can we leverage so that we can expand the top of the funnel, we can expand the TAM, and we can grow same-store sales by doing all of that?
And then the last one is we have a track record of opening new de novos. And that's been successful for us to look at how do we further refine, where are we going with our de novo strategy, what's timing of our de novo strategy? We're committed to capture the TAM. We would need new locations over time. What does that look like over the next four to six quarters in terms of timing? That's what's under evaluation right now. So all of this speaks to our go-to-market strategy. If this looks more like a direct-to-consumer approach, it is. Our service is a healthcare service. Our approach on how we work with consumers is what I would consider direct-to-consumer. That's been my background. That's been an area of expertise, and I'm looking forward to bringing that expertise on all of this.
As you look at this, you might wonder, well, that's a lot of areas, that's a lot of change that would come in, and that's really where the culture comes in. Look, we have a phenomenal team in place, is my read thus far. We've spent some time in our centers already, and the passion that's there within our centers, within our sales team, within the corporate team is phenomenal. People are passionate about the brand. People are passionate about what we do for our consumers and the results that we generate. How do we harness that passion? Change management always requires focus and attention.
As we improve our go-to-market strategy, it is top of mind for me to make sure that the team is brought along, that we are aligned on one vision, that people understand what are the changes we're making, why we're doing that, and what it means for them. That's why team culture is going to be another big area of focus for me. Just to recap, two areas of focus for me coming in. One is the culture for the sake of making sure that we bring the team along and we are able to execute the changes that we need to do to turn around the revenue of the company. Within revenue itself, how do we improve our go-to-market strategy with a focus on direct-to-consumer? There is no third priority.
These are the two priorities coming in, and that's where we're going to be focused. As the quarters go along, we would want to share our transformation story with all of you, with the broader audience, talk about what are we seeing in the business. Look, we believe that the macro will turn. That's an inevitability. But with all of the changes that we're talking about, with all of the improvements that we are talking about, it is a transformation of the business. So we're not waiting for the turn. We are taking proactive action over here. And when the turn comes, that's a double positive for us. Transformations are rarely linear. I understand that. I've been part of high growth. I've been part of transformation and turnarounds. They're rarely linear.
But just the upside that's available to us and the different ways in which we can get to that upside is exciting. So I think I would probably end over here and just let the group know again, I'm thrilled to be here. This is week two, but already I'm seeing phenomenal strength in the brand, phenomenal strength in just the effectiveness of our procedures, a huge TAM, and a team that is excited, energized, and passionate about where the company is going. So all of that creates a huge opportunity for us, and we expect to tap into that opportunity in the coming quarters. Okay. Anyone else? I'll turn it over to Allison to bring us home.
Sure. So we'll have a breakout session in the Coquina Ballroom, but we probably have time for one question if there's one question from the room. Because, well, I saw your hand first. Sorry.
Can you talk about how you help patients after the procedure? Do you do anything to them to help change their lifestyle or anything in the way in order to help keep, I guess, keep the fat off or anything along those lines? I'm just curious about that.
You know, it's something that we do encourage. I mean, we want people not only to just have AirSculpt, but we want them to have a higher quality of life. So we encourage them. We tell them this is not a guarantee. It's not like you can just continue on with bad habits of eating and those sorts of things. Currently, we don't have a revenue source or a stream to where we're looking at opportunities around whether it's fitness or dietary or those sorts of things. But those are things we try to educate the patient on. And it's really part of us setting expectations on what they should expect to see. We do take the fat out immediately, but it does take a few weeks and months for the results to begin to materialize as your body metabolizes through that.
And so we want them to be very satisfied patients. So part of that is encourage them to go on and live a much healthier life.
In the 39 seconds left, Yogi, if there's something that you can share with us in terms of your prior experience that you're going to apply to AirSculpt, that would be great.
Yeah, yeah, absolutely. So I learned with this, which is from prior experience. I've worked with consumer-facing businesses. There is a lot around whether it's marketing, sales, technology, analytics. All of those have been areas of expertise for me and areas where I expect we'll be making enhancements to the business as part of the transformation. So I look forward to that. Thank you, everyone. And we have a breakout.
Right now, right after this in the ballroom area at table C5. So, look forward to catching up over there. Thank you, everyone.