OneSpaWorld Holdings Limited (OSW) reported record financial results for the third quarter of fiscal 2024, surpassing Wall Street expectations and boosting its full-year guidance. The company's strong performance was driven by robust demand across its cruise ship and destination resort health and wellness operations.

For the quarter ended September 30, 2024, OneSpaWorld reported total revenue of $241.7 million, a 12% increase from the prior-year period and exceeding analyst estimates of $239.4 million. The company's service revenue jumped 11% to $194.4 million, while product revenue rose 17% to $47.3 million.

Adjusted net income for the quarter came in at $27.3 million, or $0.26 per diluted share, surpassing analysts' expectations of $0.23 per share. The company's adjusted EBITDA climbed 33% to a record $33.0 million, reflecting strong operating leverage and productivity gains across its network.

During the quarter, OneSpaWorld operated health and wellness centers on 196 cruise ships, up from 189 ships in the year-ago period. The company's average weekly revenue per ship increased to $91,019, compared to $84,749 in Q3 2023. Additionally, OneSpaWorld operated 52 destination resort health and wellness centers, with average weekly revenue per resort rising to $11,860 from $13,550 a year earlier.

Based on its robust third-quarter performance and positive outlook, OneSpaWorld raised its fiscal 2024 guidance. The company now expects full-year revenue in the range of $888 million to $893 million, up from its previous guidance of $870 million to $890 million. Adjusted EBITDA is projected to be between $110 million and $112 million, an increase from the prior range of $102 million to $108 million.

Leonard Fluxman, Executive Chairman, Chief Executive Officer, and President of OneSpaWorld, commented: "We delivered exceptional third quarter results, achieving all-time records for total revenues, income from operations and adjusted EBITDA that once again surpassed our expectations. Our sustained strong performance continues to evidence the talent of our team to leverage our complex operating model and competitive strengths to deliver outstanding guest experiences for our cruise line and destination resort partners, positioning us well to continue achieving outstanding results for our Company and our partners."