biote (US:BTMD)2025-05-07 22:00Financial Data and Key Metrics Changes - Total revenue increased by 4.7% to $49 million compared to the first quarter of 2024 [14] - Procedure revenue decreased by 3.6% to $36 million, primarily due to reduced commercial effectiveness and a slowdown in new clinic additions [14] - Dietary supplement revenue increased by 25.5% to $9.3 million, driven by growth in the e-commerce channel [14] - Gross profit margin improved by 300 basis points to 74.3% due to vertical integration of the 503B manufacturing facility [7][15] - Adjusted EBITDA decreased by 3.4% to $13.8 million, with an adjusted EBITDA margin of 28.1% [17] - Net income was $15.8 million, including a $10.7 million gain from changes in fair value of earn-out liabilities [16] Business Line Data and Key Metrics Changes - The dietary supplements business showed strong performance, particularly in e-commerce, with no one-time items affecting results [23][24] - Procedure revenue decline was attributed to a slowdown in new clinic additions and a minor decrease in procedure volumes [7][14] Market Data and Key Metrics Changes - The company experienced competitive pressures impacting procedure revenue, but no significant changes in the marketplace were noted [25][26] - The attrition rate remained stable at around 5%, with a slight uptick believed to be temporary [50] Company Strategy and Development Direction - The company announced a strategic organizational restructuring aimed at driving sustainable profitable growth and creating long-term value for shareholders [9][10] - Key objectives include accelerating new provider wins, strengthening relationships with existing top-tier providers, and improving financial performance through enhanced accountability [10][12] - The company is focused on expanding its nationwide network and improving sales productivity by increasing the field sales team by approximately 25% [10][11] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be a transition year financially, with confidence in the actions taken to accelerate growth and realize full potential [13][20] - The company maintains its guidance for 2025 revenue between $200 million to $208 million and adjusted EBITDA of $59 million to $64 million [18] Other Important Information - The company expects to incur a one-time charge of approximately $600,000 to $800,000 in the second quarter of 2025 due to restructuring [18] Q&A Session Summary Question: Can you talk more about the supplements business and if there was anything one-time in it? - Management confirmed solid performance in the e-commerce business with no one-time items affecting results [23][24] Question: What happened with the procedures, and is there anything changing in the marketplace? - Management noted that the decline in procedure revenue was mainly volume-related, with no significant changes in the marketplace [25][26] Question: What is different about today's sales force realignment announcement? - The current realignment is focused on growth, not cost-cutting, and aims to increase sales productivity [34][35] Question: Can you elaborate on the decline in volume from the base business? - The decline was mainly due to lower contributions from new starts and a slight uptick in attrition, which is expected to stabilize [50][52] Question: What gives you confidence in the 2% to 4% procedure revenue growth guidance? - Management acknowledged potential risks but expressed confidence in the overall guidance for revenue and EBITDA, emphasizing the need for effective execution of changes [75][76]