biote Corp. Q3 FY2024 earnings call

• Biote delivered double-digit growth in revenue and adjusted EBITDA in the third quarter, with revenue driven by procedure growth and dietary supplement business growth on Amazon. • Continued to focus on top-tier accounts, strengthened engagement with practitioners, expanded offering and treatment protocols, and enhanced research, training, and educational programs. • Introduced targeted enhancements to proprietary Clinical Decision Support software, which expanded product portfolio recommendations and patient care but caused temporary procedure volume disruption. • Total number of BioteRx enrolled clinics exceeded 1,100, with the BioteRx formulary being expansive and essential for competitive offerings. • Continued integration of Asteria Health, strengthening supply chain and yielding cost savings, with focus on expanding Asteria Health licenses to additional states.

In the third quarter, total revenue was $51.4 million. Procedure revenue growth increased 7.1%, driven by growth in established top-tier clinics and new clinics. Dietary supplement revenue increased 21.7% year-over-year. Adjusted EBITDA was $16.2 million with an adjusted EBITDA margin of 31.5%. The procedure segment contributed a significant portion to revenue, with dietary supplement revenue showing strong growth, though specific revenue contribution percentages weren't explicitly stated but dietary supplement growth was a key driver in the quarter.

• Adjusted 2024 revenue forecast to $197 million to $201 million and adjusted EBITDA to $58 million to $61 million, down from previous guidance of $200 million to $204 million in revenue and $60 million to $63 million in adjusted EBITDA. • Residual impact on fourth quarter procedure revenue due to software workflow support/training and hurricane-related clinic closures delaying revenue into early 2025. • Anticipate continued growth within top-tier accounts, network expansion, and contribution from QuickStart-status clinics, along with continued dietary supplement sales growth in Q4, and cost savings from vertical integration will support margins in Q4.

• Temporary disruption in procedure volume due to practitioners adjusting to updated Clinical Decision Support software and workflow. • Clinic closures in core states due to hurricanes delaying certain procedure revenue. • Uncertainties related to macroeconomic conditions and regulatory processes that could affect actual results.

Q: Could you quantify how big the BioteRx business is now and where it's trending, and color on Amazon storefront progress?

A: BioteRx is a small contributor now but has expansive value for competition, with Amazon storefront conversion going according to plan and expected accelerated growth in 2025.

Q: What happened with the decision support software disruption and how are clinics being helped to get up to speed?

A: Workflow adjustment with new CDSS caused temporary procedure volume impact, but seeing bounce back in last few weeks, with assistance through training and support provided to practitioners.

Q: Specifics on the new software's offerings and what it allows to do now that everyone is accustomed?

A: The software treats specific patients across decades of life, makes recommendations across the whole product portfolio, broadens appeal to mainstream doctors, and enhances practitioner offerings to patient bases.

Q: Hurricane impact on clinic closures and patient procedure delays, GLP-1 competitive pressure, and BioteRx product offerings?

A: Procedures don't go away, expected to come back in Q4 and early 2025; no loss of patients to GLP-1 clinics as BioteRx offering is competitive; innovating in areas like stepping people down from GLP-1 while focusing on hormone optimization and therapeutic wellness for aging patients.

Q: Asteria Health state licensing progress and 2025 procedure revenue growth outlook?

A: Obtained licenses in approximately 30 states, on track to continue obtaining licenses, and procedure revenue growth expected to reaccelerate in 2025 with patient demand and practitioner loyalty remaining strong once software issues are resolved