biote Corp. Q4 FY2024 earnings call

• Welcomed Bret Christensen as the new Chief Executive Officer, highlighting his experience in women's health care and broader health care sector.
• Acquired Asteria Health in 2024, strengthening supply chain, product quality, and enabling vertical integration of internal manufacturing for cost efficiencies and enhanced gross profit margin.
• Launched BioteRx wellness platform, providing Biote-certified practitioners with product ordering, inventory management, technical support, training, and educational resources.
• Improved clinical decision support software with proprietary dosing algorithms, following evidence-based medical literature to elevate patient care and create a competitive moat.
• Focused on serving existing practitioners and ramping up new practitioners, with efforts to maximize value from top-tier providers and expand the network.

Fourth quarter revenue was $49.8 million, up 9% from the prior year period. Procedure revenue growth increased 5%, driven by established top-tier clinics but impacted by clinic transition to upgraded clinical decision support software and focus on training existing practitioners. Dietary supplement revenue increased 10.2% year-over-year,受益于向亚马逊渠道的业务转型。 Fourth quarter gross profit margin was 71.8%, a 247 basis point increase from the prior year, due to cost savings from vertical integration of 503B manufacturing facility and effective cost management. Procedure revenue contributes significantly to the overall revenue, with dietary supplement revenue also being a notable segment.

• Company expects 2025 revenue of $202 million to $208 million and adjusted EBITDA of $59 million to $64 million.
• 2025 procedure revenue expected to increase approximately 2% to 4% from 2024, and dietary supplement revenue to increase approximately 5% to 10% from 2024.
• First quarter 2025 revenue expected to be slightly higher than first quarter 2024 as training and onboarding of new practitioners ramps up, but first quarter 2025 adjusted EBITDA expected to be approximately 5% lower due to increased sales and marketing activities to reaccelerate new customer growth.

• Forward-looking statements are subject to risks and uncertainties beyond the company's control, including macroeconomic factors, regulatory process operations, and competitive position. Actual results could differ from forward-looking statements. Risks are detailed in SEC filings and earnings release.

Q: Can you reconcile the 2-4% procedural revenue growth guidance, specifically the portion from new practitioners versus current base?

A: Bob Peterson mentioned new customers are key in an annuity-driven business, growth in new customers was strong until launch of CDSS, and now goal is to shift back to driving new customers, though breakdown of new vs current base not provided.

Q: What is the impact of GLP-1 offerings on Biote's patient interest?

A: Bret Christensen stated GLP-1s are part of offering to clinicians but not core to Biote's revenue, and no evidence of lack of interest in hormone optimization; focus remains on growth in hormone optimization and wellness space.

Q: How is the onboarding process of the new software?

A: Bret Christensen said the rollout is complete, but it's a continuous improvement project, with ongoing feedback solicited from practitioners.

Q: What is the size of the clinical network and growth expectations for procedure revenues?

A: Bob Peterson mentioned over 8,600 providers and around 4,700 clinicians, with focus on training new practitioners and getting them effective to drive procedure revenue growth as seen in pre-CDSS growth.