biote (US:BTMD)2025-11-05 23:00Financial Data and Key Metrics Changes - Third quarter revenue was $48.0 million, a decrease of 6.7% compared to the same period in 2024 [12] - Procedure revenue declined 10.4%, while dietary supplements revenue grew 8.4% to $11.2 million [12][14] - Gross profit margin improved to 71.8%, a 150 basis point increase due to cost savings from vertical integration [14] - Net income was $9.2 million, with diluted earnings per share of $0.22, down from $12.7 million and $0.33 respectively in the prior year [15] - Adjusted EBITDA decreased 20.5% to $12.9 million, with an adjusted EBITDA margin of 26.9% [16] Business Line Data and Key Metrics Changes - Procedure revenue was primarily impacted by a slower rate of new clinic additions and lower procedure volume [12] - Dietary supplements revenue growth was driven by the continued growth of the e-commerce channel [13] - The company anticipates mid-teens revenue growth from the dietary supplements business for the 2025 fiscal year [13] Market Data and Key Metrics Changes - The company has secured 44 state licenses for its primary pellet production facility, Asteria, which is currently supplying over 50% of the pellets ordered by practitioners [14] - The ongoing transformation of the commercial team has created headwinds for procedure revenue in the short term [12][16] Company Strategy and Development Direction - The company is focused on three strategic priorities: accelerating growth from new providers, maximizing value from top-tier clinics, and improving financial performance through greater accountability [5][10] - The company hosted its annual marketing event, which attracted over 800 attendees, reinforcing its leadership in hormone optimization therapy [9][10] - The company is committed to enhancing its sales team and improving internal processes to support operational excellence and long-term value creation [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic path set for the company, emphasizing the need for disciplined execution and alignment on vision [19] - The company reiterated its fiscal 2025 revenue guidance of above $190 million and adjusted EBITDA guidance of above $50 million [18] Other Important Information - The company repurchased approximately 1 million shares of its Class A common stock at an average price of $3.28 per share [17] - The company amended its settlement agreements with key shareholders, resulting in significant cash flow savings [17][45] Q&A Session Summary Question: What is the current pace of hiring sales personnel? - Management indicated that hiring has improved, with approximately 85% of the targeted sales rep headcount expected to be reached by the end of the year [22][23] Question: How is the transition impacting the number of procedures? - The transition has led to lower volumes due to slower new starts and higher attrition, but efforts are being made to remedy these issues [24][25] Question: What feedback was received from practitioners at the marketing event? - The event was well-received, with positive feedback on the speakers and the overall experience, reinforcing the company's value proposition [34][35] Question: Has the attrition rate stabilized? - The attrition rate remains elevated, similar to previous quarters, with competition and internal changes contributing to the situation [41][42] Question: Can you provide details on the Donovitz transactions? - The company achieved significant cash flow savings through the amended agreements with Marcy and Gary Donovitz, which also included extended non-compete clauses [45][70]