biote (BTMD)

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biote (BTMD) - 2024 Q4 - Earnings Call Transcript
2025-03-13 01:33
Financial Data and Key Metrics Changes - Fourth quarter revenue was $49.8 million, up 9% from the prior year period [21] - Fourth quarter gross profit margin was 71.8%, a 247 basis point increase from the fourth quarter of 2023 [25] - Net income was $3.5 million, down from $12.1 million in the fourth quarter of 2023 [26] - Adjusted EBITDA increased 11.4% to $15.1 million, with an adjusted EBITDA margin of 30.3% [27] - Cash flow from operations for fiscal year 2024 was $45.2 million, compared to $26.9 million for fiscal year 2023 [28] Business Line Data and Key Metrics Changes - Procedure revenue growth increased 5%, primarily driven by growth of established top-tier clinics [21] - Dietary supplement revenue increased 10.2% year-over-year, benefiting from the transition to the Amazon channel [24] Market Data and Key Metrics Changes - The company expects 2025 procedure revenue to increase approximately 2% to 4% from 2024 [29] - Dietary supplement revenue is expected to increase approximately 5% to 10% from 2024 [29] Company Strategy and Development Direction - The company has focused on strengthening its competitive moat through new and enhanced proprietary offerings [13] - The acquisition of Asteria Health in 2024 has allowed for vertical integration of manufacturing, generating cost efficiencies [14] - The launch of the BioteRx wellness platform is seen as a key competitive differentiator [15] - The company aims to expand its share of internally manufactured pellets as it gains additional state licenses [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that procedure revenue growth was negatively impacted by a reduction in procedure volume during the transition to upgraded software [22] - The company is confident about the benefits of its clinical decision support software but expects new customer growth to slow in the first half of 2025 [23] - Management believes Biote has entered 2025 with a position of strength, underpinned by strategic assets that enhance capabilities [18] Other Important Information - The company has trained over 8,000 practitioners, representing a fraction of the total available patient and practitioner population [33] - Management emphasizes the importance of maximizing value from top-tier providers and adding new practitioners to broaden the network [36][37] Q&A Session Summary Question: Can you help reconcile the procedural revenue growth guidance? - Management indicated that new customers are a material part of the business, and growth in new customers is essential for future growth [44] Question: Can you provide more color on the three areas of focus mentioned? - Management highlighted the need to service existing accounts, focus on new clinic starts, and improve execution within the commercial organization [49][50][53] Question: Are patients being lost to GLP-1 offerings? - Management stated that they do not see a lack of interest in hormone optimization despite the growth of GLP-1s [61] Question: What is the current status of the onboarding process for the new software? - The rollout of the new software is complete, but it will be a continuous improvement project [77] Question: Do you expect gross margin to stay in the low 70 range in 2025? - Management confirmed that they are seeing solid benefits from Asteria, which is included in the guidance [80] Question: Has there been any uptick in churn among productive clinics? - Management reported no loss of customers or clinics due to the new software [85] Question: How is the Amazon channel performing for dietary supplements? - Management indicated that they are progressing well with the Amazon channel and do not see any issues [88] Question: How big is the clinical network today? - Management reported over 8,600 providers and emphasized the importance of training and onboarding new practitioners [91]
biote (BTMD) - 2024 Q4 - Annual Results
2025-03-12 20:20
[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Q4 & Full Year 2024 Financial Highlights](index=1&type=section&id=Q4%20%26%20Full%20Year%202024%20Financial%20Highlights) Biote reported a 9.0% revenue increase in Q4 2024 to $49.8 million and a 6.4% increase for the full year to $197.2 million. The company achieved a net income of $3.5 million in Q4 and $0.05 million for the full year. Gross profit margins improved in both periods, primarily due to efficiencies from the vertical integration of its 503B manufacturing facility. The company ended the year with $39.3 million in cash Fourth Quarter 2024 Financial Highlights (vs. Q4 2023) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $49.8 million | $45.7 million | +9.0% | | Procedure Revenue | $36.6 million | N/A | N/A | | Gross Profit Margin | 71.8% | 69.4% | +2.4 p.p. | | Net Income | $3.5 million | $12.1 million | -71.1% | | Diluted EPS | $0.10 | $0.18 | -44.4% | | Adjusted EBITDA | $15.1 million | $13.6 million | +11.0% | | Adjusted EBITDA Margin | 30.3% | 29.7% | +0.6 p.p. | Full Year 2024 Financial Highlights (vs. FY 2023) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $197.2 million | $185.4 million | +6.4% | | Procedure Revenue | $150.3 million | N/A | N/A | | Gross Profit Margin | 70.5% | 68.8% | +1.7 p.p. | | Net Income (Loss) | $0.05 million | $(2.8) million | N/A | | Diluted EPS | $0.09 | $0.13 | -30.8% | | Adjusted EBITDA | $58.2 million | $55.3 million | +5.2% | | Adjusted EBITDA Margin | 29.5% | 29.8% | -0.3 p.p. | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted significant progress in 2024, strengthening the company's foundation for future growth. Key achievements include the launch of the BioteRx platform and upgraded software, which enhance their competitive position. They also noted improved manufacturing efficiency through the integration of Asteria Health. Despite a temporary slowdown in procedure volume due to the software transition, the company maintains a strong financial position and cash flow generation - CFO Bob Peterson noted that full-year **2024 revenue increased 6.4%** and gross profit margin improved due to the vertical integration of their 503B manufacturing facility[3](index=3&type=chunk) - The transition to upgraded clinical decision support software impacted Q4 procedure volume, but the company is providing additional training to practitioners[3](index=3&type=chunk) - CEO Bret Christensen stated that the launch of the BioteRx platform and upgraded software have strengthened the company's competitive moat and capabilities in hormone optimization[5](index=5&type=chunk) - The integration and growth of Asteria Health have optimized manufacturing efficiency and strengthened the supply chain[5](index=5&type=chunk) [Detailed Financial Review](index=2&type=section&id=Detailed%20Financial%20Review) [Fourth Quarter 2024 Financial Review](index=2&type=section&id=Fourth%20Quarter%202024%20Financial%20Review) In Q4 2024, revenue increased 9.0% to $49.8 million, driven by 5.0% growth in procedure revenue and 10.2% growth in dietary supplement revenue. Procedure growth was tempered by a software transition and a focus on training existing practitioners. Gross margin improved to 71.8% from 69.4% due to vertical integration. However, operating income fell to $2.8 million from $5.5 million, impacted by higher employee-related and legal expenses. Net income decreased to $3.5 million, largely due to a $0.8 million loss from fair value changes of earnout liabilities, compared to a $5.4 million gain in the prior-year period - Q4 revenue grew **9.0% to $49.8 million**. Procedure revenue grew **5.0%**, while dietary supplement revenue grew **10.2%**, benefiting from a transition to an Amazon e-commerce platform[6](index=6&type=chunk) - Procedure revenue growth was negatively impacted by a reduction in volume as clinics transitioned to new software and a focus on training existing practitioners, which slowed the addition of new clinics[6](index=6&type=chunk) - Gross profit margin increased to **71.8% from 69.4%** in Q4 2023, attributed to the vertical integration of the 503B manufacturing facility and cost management[7](index=7&type=chunk) - Operating income decreased to **$2.8 million from $5.5 million** due to employee-related investments and additional legal expenses[7](index=7&type=chunk) - Net income for Q4 2024 was **$3.5 million**, compared to **$12.1 million** in Q4 2023. The decrease was significantly influenced by a loss on the change in fair value of earnout liabilities versus a gain in the prior year[8](index=8&type=chunk) [Full Year 2024 Financial Review](index=2&type=section&id=Full%20Year%202024%20Financial%20Review) For the full year 2024, revenue grew 6.4% to $197.2 million, primarily driven by procedure revenue growth. Gross profit margin expanded to 70.5% from 68.8% in 2023, thanks to manufacturing integration and cost controls. Operating income rose 10.3% to $31.6 million. The company reported a net income of $0.05 million, a significant turnaround from a net loss of $2.8 million in 2023. Adjusted EBITDA increased to $58.2 million, though the margin slightly decreased to 29.5% Full Year 2024 vs. 2023 Performance | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $197.2 million | $185.4 million | +6.4% | | Gross Profit Margin | 70.5% | 68.8% | +1.7 p.p. | | Operating Income | $31.6 million | $28.7 million | +10.3% | | Net Income (Loss) | $0.05 million | $(2.8) million | N/A | | Adjusted EBITDA | $58.2 million | $55.3 million | +5.2% | - The increase in gross profit margin for 2024 was primarily due to the vertical integration of the 503B manufacturing facility and effective cost management[11](index=11&type=chunk) - The improvement in operating income was driven by revenue growth and higher gross profit, which offset higher operating expenses[11](index=11&type=chunk) [2025 Financial Outlook](index=3&type=section&id=2025%20Financial%20Outlook) [Management Strategic Focus for 2025](index=3&type=section&id=Management%20Strategic%20Focus%20for%202025) For 2025, management will focus on three key commercial execution strategies to drive accelerated growth. These include maximizing value from top-tier providers, intensifying efforts to add new practitioners to the network, and strengthening accountability and discipline within the commercial organization. While these changes are expected to be implemented quickly, management anticipates a lag before results manifest in accelerated revenue growth later in the year - The company has identified several areas of emphasis for 2025 to drive accelerated growth[13](index=13&type=chunk) - Strengthening efforts to maximize the value of top-tier providers - Intensifying focus on adding new practitioners to broaden the network and reinvigorate procedure revenue growth - Driving revenue growth by improving accountability and discipline throughout the commercial organization[13](index=13&type=chunk) [2025 Guidance](index=3&type=section&id=2025%20Guidance) Biote projects fiscal 2025 revenue to be between $202 million and $208 million, with Adjusted EBITDA in the range of $59 million to $64 million. Procedure revenue is expected to grow 2-4%, while dietary supplements revenue is forecasted to increase 5-10%. For Q1 2025, revenue is expected to be slightly higher than Q1 2024, but Adjusted EBITDA is projected to be about 5% lower due to increased sales and marketing activities Fiscal 2025 Guidance | Metric | 2025 Guidance Range ($ in millions) | | :--- | :--- | | Revenue | $202 - $208 | | Adjusted EBITDA | $59 - $64 | - **2025 procedure revenue** is expected to increase approximately **2-4%** from 2024[13](index=13&type=chunk) - **2025 dietary supplements revenue** is expected to increase approximately **5-10%** from 2024[14](index=14&type=chunk) - Q1 2025 revenue is expected to be slightly higher than Q1 2024, while Q1 2025 Adjusted EBITDA is expected to be approximately **5% lower YoY** due to increased sales and marketing activities[15](index=15&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, Biote's balance sheet shows total assets of $122.4 million, a decrease from $155.3 million at year-end 2023, primarily due to a reduction in cash and cash equivalents from $89.0 million to $39.3 million. Total liabilities increased significantly to $224.6 million from $191.8 million, driven by new share repurchase liabilities. This resulted in an increased total stockholders' deficit of $102.2 million compared to $36.5 million in the prior year Selected Balance Sheet Data (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $39,342 | $89,002 | | Total current assets | $68,127 | $122,343 | | Total assets | $122,370 | $155,295 | | Total current liabilities | $51,514 | $22,215 | | Total liabilities | $224,570 | $191,841 | | Total stockholders' deficit | $(102,200) | $(36,546) | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For the year ended December 31, 2024, Biote generated total revenue of $197.2 million, up from $185.4 million in 2023. Income from operations grew to $31.6 million. Despite higher interest expense and a significant loss from the change in fair value of earnout liabilities, the company posted a net income of $46 thousand, a positive shift from a net loss of $2.8 million in the prior year. Diluted earnings per share attributable to stockholders was $0.09 Consolidated Statement of Operations Highlights (in thousands) | Account | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Total revenue | $197,191 | $185,360 | | Gross Profit | $139,061 | $127,483 | | Income from operations | $31,611 | $28,657 | | Net income (loss) | $46 | $(2,805) | | Net income attributable to biote Corp. stockholders | $3,157 | $3,316 | | Diluted EPS | $0.09 | $0.13 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the full year 2024, net cash provided by operating activities was $45.2 million, a significant increase from $26.9 million in 2023. Net cash used in investing activities was $18.8 million, mainly for acquisitions. Net cash used in financing activities was substantial at $76.1 million, driven by payments on repurchase liability ($62.2 million) and term loan repayments ($6.3 million). This resulted in a net decrease in cash and cash equivalents of $49.7 million, ending the year with a balance of $39.3 million Summary of Cash Flows (in thousands) | Activity | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45,243 | $26,883 | | Net cash used in investing activities | $(18,798) | $(2,713) | | Net cash used in financing activities | $(76,083) | $(14,380) | | Net (decrease) increase in cash | $(49,660) | $9,771 | | Cash and cash equivalents at end of period | $39,342 | $89,002 | [Non-GAAP Financial Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Discussion of Non-GAAP Financial Measures](index=4&type=section&id=Discussion%20of%20Non-GAAP%20Financial%20Measures) Biote uses Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP measures, to evaluate operating performance and generate future plans. The company defines Adjusted EBITDA as net income before interest, taxes, depreciation, and amortization, further adjusted for items like stock-based compensation, litigation expenses, and fair value adjustments. Management believes these measures provide useful, comparable information to investors, but acknowledges their limitations and advises considering them alongside GAAP results - Biote discloses Adjusted EBITDA, a non-GAAP measure, calculated as net income adjusted for interest, taxes, depreciation, amortization, stock-based compensation, litigation expenses, and other specific items[18](index=18&type=chunk) - Management uses Adjusted EBITDA as a key measure to evaluate operating performance, generate future operating plans, and determine compensation[19](index=19&type=chunk) - The company does not provide a reconciliation for forward-looking Adjusted EBITDA to GAAP net income due to the unreasonable effort required to predict uncertain items like share-based compensation and legal expenses[22](index=22&type=chunk) [Reconciliation of Adjusted EBITDA to Net Income](index=10&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20to%20Net%20Income) For the full year 2024, Biote's net income of $46 thousand was reconciled to an Adjusted EBITDA of $58.2 million. Major adjustments included a $19.6 million loss from the change in fair value of earnout liabilities, $11.0 million in net interest expense, and $8.7 million in share-based compensation. For Q4 2024, net income of $3.5 million was reconciled to an Adjusted EBITDA of $15.1 million, with key adjustments including legal settlement losses and litigation expenses Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income (loss) | $3,483 | $12,078 | $46 | $(2,805) | | Adjusted EBITDA | $15,123 | $13,574 | $58,225 | $55,256 | | Net income (loss) margin | 7.0% | 26.4% | 0.0% | (1.5)% | | Adjusted EBITDA margin | 30.3% | 29.7% | 29.5% | 29.8% | - Significant adjustments for FY 2024 included a **$19.6 million loss** from change in fair value of earnout liabilities, **$11.0 million** in net interest expense, **$8.7 million** in share-based compensation, and a **$5.0 million** legal settlement loss[33](index=33&type=chunk)[34](index=34&type=chunk)
Is biote Corp. (BTMD) Stock Outpacing Its Medical Peers This Year?
ZACKS· 2024-12-18 15:40
Company Performance - biote Corp. (BTMD) has returned approximately 28.5% year-to-date, significantly outperforming the average loss of 2.4% in the Medical sector [4] - The Zacks Consensus Estimate for BTMD's full-year earnings has increased by 46.2% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - biote Corp. is currently ranked 2 (Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions [3] Industry Context - biote Corp. is part of the Medical - Products industry, which consists of 87 companies and is currently ranked 80 in the Zacks Industry Rank [6] - The Medical - Products industry has seen an average gain of about 11.4% year-to-date, with biote Corp. outperforming this group [6] - In contrast, the Medical Services industry, which includes another outperforming stock, Doximity (DOCS), is ranked 132 and has declined by 12.3% year-to-date [6][5]
Should Value Investors Buy biote Corp. (BTMD) Stock?
ZACKS· 2024-12-16 21:36
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...
Does biote Corp. (BTMD) Have the Potential to Rally 43.89% as Wall Street Analysts Expect?
ZACKS· 2024-12-04 15:56
Core Viewpoint - Biote Corp. (BTMD) has seen a 27% increase in share price over the past four weeks, closing at $6.63, with analysts suggesting a potential upside of 43.9% based on a mean price target of $9.54 [1] Price Targets - The average price target consists of five estimates ranging from $8 to $11, with a standard deviation of $1.12, indicating a potential increase of 20.7% to 65.9% from the current price [2] - A low standard deviation suggests a strong agreement among analysts regarding the price targets, which can be a useful starting point for further research [7] Analyst Sentiment - Analysts show strong agreement in revising earnings estimates higher for BTMD, which correlates with potential stock price increases [9] - The Zacks Consensus Estimate for the current year has risen by 44.8% over the past month, with two estimates increasing and no negative revisions [10] Zacks Rank - BTMD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [11] Caution on Price Targets - While price targets are a common metric, they should be approached with skepticism as they may not reliably indicate actual stock price movements [5][8]
Are Investors Undervaluing biote Corp. (BTMD) Right Now?
ZACKS· 2024-11-29 15:40
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and ...
biote Corp. (BTMD) Forms 'Hammer Chart Pattern': Time for Bottom Fishing?
ZACKS· 2024-11-22 15:56
Shares of biote Corp. (BTMD) have been struggling lately and have lost 6.5% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the ...
Wall Street Analysts Predict a 76.99% Upside in biote Corp. (BTMD): Here's What You Should Know
ZACKS· 2024-11-18 16:00
Core Viewpoint - Biote Corp. (BTMD) shares have increased by 1.3% recently, closing at $5.39, with a potential upside indicated by Wall Street analysts' mean price target of $9.54, suggesting a 77% increase [1] Price Targets and Estimates - The mean price target is based on five short-term estimates with a standard deviation of $1.12, where the lowest estimate is $8 (48.4% increase) and the highest is $11 (104.1% increase) [2] - A low standard deviation indicates a strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [7] Earnings Estimates - Analysts are optimistic about BTMD's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which has shown a strong correlation with near-term stock price movements [9] - Over the past 30 days, two earnings estimates have increased, leading to a 46.2% rise in the Zacks Consensus Estimate for the current year [10] Zacks Rank - BTMD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [11] Conclusion on Price Targets - While consensus price targets may not reliably indicate the extent of BTMD's potential gains, they do provide a useful guide for the direction of price movement [12]
Is biote Corp. (BTMD) Stock Undervalued Right Now?
ZACKS· 2024-11-13 15:45
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are unde ...
biote (BTMD) - 2024 Q3 - Earnings Call Transcript
2024-11-13 07:56
biote Corp. (NASDAQ:BTMD) Q3 2024 Earnings Call November 12, 2024 5:00 PM ET Company Participants Szymon Serowiecki - Investor Relations Terry Weber - Chief Executive Officer Bob Peterson - Chief Financial Officer Conference Call Participants Jonna Kim - Cowen Jeff Van Sinderen - B. Riley Kaumil Gajrawala - Jefferies Les Sulewski - Truist Securities George Kelly - ROTH Capital Partners Operator Welcome to the biote Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event i ...