BTMD - Earnings call 2 2023

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Operator

Good morning, and welcome to the Biote Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.I'd now like to turn the conference over to Szymon Serowiecki. Please go ahead.

Szymon Serowiecki

Good morning. Thank you for joining us today. financial the published XX, ended Biote XXXX. evening, results quarter for June Last available Relations the company's release in This is Investor website. section the of regulatory process opportunities, Officer, of this manufacturing to activities, financial performance, remind Terry not growth Kamdar, consumers, performance. that the management outlook, and call.Before Officer company's conditions Executive making healthcare macroeconomic everyone include get are will research strategies, statements forward-looking be operations, the Financial regarding of on we like Weber, future morning's that generally.These industry host and results, results the development, and operations, on business goals, I'd and conditions and business, started, of market, on future guarantees statements will this impact commercialization call Chief Chief its Samar financial statements of They beyond are control. of subject a are to and uncertainties, some which risks our variety

risks release, compensation, liabilities, non-operating expenses well value is Reconciliation EBITDA, financial GAAP also investors. on adjustments to these non-GAAP available differences assumptions being could statements other release.We other management's Our future. which of forward-looking stock-based to provide undertakes to results, risks, as actual to from today. as of to filings fair measure the factors in SEC additional refer reflected and no and results any are of statements differ subsequent to primary Biote to and discussion could provided a website, obligation not discussed statements.These our update factors upon as be Therefore, SEC measure actual representing as the is date.For and the and in adjusted risks important earnings subject the other are expectations with of expectations affect Relations our important the non-GAAP website as to that them with relied expenses. refer certain our earnings based company's any that views transaction-related in materially should our uncertainties current information on Investor the please

which is to to at You're directed EBITDA over our Relations Investor the like ir.biote.com second call of Weber. measure.I'd to website of its GAAP on section available the turn reconciliation Terry to adjusted for earnings release, XXXX closest comparable now quarter our

Teresa Weber

and for all joining Szymon, thank you, Thank you us.

formalized growth traded approximately capturing XX% simplified financial supplement and we our business and liquidity our our remarks.I driven invested with XXXX. to is financial men's Kamdar, the hormone answer end today's standpoint, Medical From a financial Officer, new Officer, prepared with we Marc on dietary Biote help and important adjusted On the our and We value, call outlook further in launching division, structure Samar achieved commitment practitioner EBITDA of revenue significant and of near we revenues. enhance range, further a awareness in call Adjusted our the growth target during share by generated our our the to our procedure profitability continued progress Chief upper our in these McQuivey, capital of to the our improved following who for network. Dr. Executive highlighting pleased Financial our today and am a we of revenue on grew also session, both market.To the larger me performance, EBITDA. also and Q&A our Beer, therapy benefits came both this quarter, broaden strengthen addressable strategic our to capabilities.During in the shareholder the publicly the second Starting of review model, discuss year-over-year, build results Ross will of strategic even Chairman; shares. margins questions are focused health as your by with Chief quarter. double-digit

wider a range complementary from successful that diversify supplements our business providers. brand a significantly we've years, and seasonal revenue well-being.We promote dietary Over Biote as aging our several and healthy the Biote's past of In identity dietary offerings, strengthens view promotion streams. a benefited quarter, our for products that providing second expanded helps supplement supplements dietary the

launched of growth.Second channel XX% distribution but help We of Additionally, significantly geographically, Earlier our moderated our expanded drive direct-to-patient business strengthen quarter to efficiently, recently territories sales revenue and procedure further more to accelerate this Method strategic we market sales accommodate new scale into realigned growth rate. markets. our our from supplement undertook historic broad-based adoption sales was year, growth our approximately position the team. this Biote our realignment

U.S. testosterone health.Industry million positive scaled the large are of the providing Method, growing of the men's initiative thousands in the the of only our this men, long-term advancing symptoms in by of tens team XX% outcomes anticipate can we excited men approximately adverse to who our we XX health scientific about market. We're health. treatment. improving As Through that deepen Biote suggests newly into go growth we our therapy XX we procedure data deficiency, yet sales the for of revenue.Turning opportunity men's safety structure otherwise productivity, is men and gains With for research receive Biote and new any XX% untreated. over grows the efficacy our age and would recent for now support to right believe to addressable help affected likely testosterone achieve in commitment in time testosterone to believe the

of elements also health our awareness, best, into on of time, education therapy we provider strategy; we're Method X As and the safety marketing health on position education of new our ramping awareness, of growing with and want feel research.For our supporting to of pillars, age. the regardless the foremost who therapy, working programs. our integrating men, existing number example, of division, to connect the their men's efficacy up hormone the We're leveraging same sales we're research as the our Biote our are efforts men. their foundational At research.To focused and drive better closely with education, the we benefits for build practitioners we're testosterone supporting

In a Biote accelerating relationships key offer with key believe addition, Method of to in urology the forming we are practices health, men's in leaders, specializing pathway male We new opinion urology. adoption as practices approach our we within the just in and market strategic have healthy opportunities living are health.In more expanding dynamic extensive for to address evolving OB-GYN women's the fully solutions. addition,

this an patients concerns.Currently, top example, certain sales we're our of patients which health, expressed wellness sexual will For interest we're ultimately our wellness, and weight a that Samar. of therapeutic transitioning we strength includes; hormone over provider We broader can expanded of that variety practitioner believe to brand marketing to manage become the many common complementary preventative efforts our closely to our of currently help and therapeutic to network therapy, in I'll suite our call evidence-based our Working have of existing of a wellness requested therapies. loss are wellness turn health solutions.Now encompass with hormone wellness. therapeutics providers, testing and leading products category the leverage

Samar Kamdar

second good supplement X.X% Terry, increased $XX.X Revenue period prior for dietary year the and from procedure growth the morning, Thanks, XX.X% in quarter and XX.X% revenue revenue. reflecting growth everyone. to in million,

or now compared and administrative selling, XX effective transaction-related or points new cost general of second year well as distribution million, from $XX.X noted, million representing million increase administrative a this of from million supplement sales expenses as other, increase up of year-over-year basis XXXX. the and the basis. a the product litigation increase favorable our $XX.X to our in management. seasonal expenses, from related the million XXXX, quarter was a the Selling, $XX.X $X.X detail promotion on The expenses XX.X%, were As of in to second continued channel.Gross of response and expansion benefited expense Terry of XXXX, general gross the on and profit additional the impact of in quarterly margin second successful due team. XX.X% an primarily $XX.X over compensation, second this was quarter sales profit period.I'll decrease of increase million XXXX.Excluding share-based been have to would XX.X% quarter of prior margin was to provide quarter $X.X second quarter

to million million higher EBITDA of million investment and to expect infrastructure well drive compensation of Net fair in sales million as procedure $X XXXX margin value was increase margin to to technology was operating EBITDA second effort operating XXXX. the the net growth; related XXXX quarter million public.Net income in offset with improved $X.X increased $XX.X our change transaction-related loss related was our the profit, this continue liabilities adjusted was expense was and corporate partially included This increased to net of EBITDA our was increase We the expenses, infrastructure.Second million in of $XX.X mainly increase of marketing period; adjustments quarter this related of XXXX. support $XX.X Adjusted million was cash million in and efforts.Operating of million investments of of higher sales income a quarter due quarter was to XX.X%. million year-to-date. second XX.X% second by which compared build quarter as this million quarter of Operating in of the profit, for margin decreased improved in second of second time clinical to gross for in to totaled was our of and revenue to $XX.X improved warrant quarter to growth $X in our to the of loss the the second of XXXX, to public compares XXXX the and company EBITDA $XXX,XXX infrastructure. of EBITDA of the an to to revenue. other XXXX in loss of due our in of expansion quarter expenses in at expenses EBITDA adjusted for while personnel Operating share-based quarter loss $XX.X reflected to flow adjusted and of million XXXX investments the with loss due an million.Adjusted second a the $XX.X of adjusted $XX.X $XX.X and and in going XXXX. $X.X quarter earn-out compared second second of gross $XX.X the

XXXX operating completed In of highlight the offer have first like exchange expected, primarily expenses.I second quarter XXXX, of of flow annual our noted. and consent certain would solicitation. to made we as we improvements respect lower to June, was as structure, the we warrant reflecting a to quarter the with capital As cash compared Terry for timing

shareholder the exchange common shares warrants the all response, remaining exercised of we right to in outstanding positive stock. Given

to due our structure and the forecast therefore, inefficiencies to to liquidity another trading temporary maintain half As financial in our Class-A our dynamics, guidance. second diluting guidance greatly have We our toward from structure.Additionally, sales our to for trading our value.Turning our corporate that capital EBITDA secondary a comments. result, simplified adjusted evolving forecast likely will our of in we liquidity to was range.Now, forecast. growth moderate commitment resulting closing our shareholder expansion completed, continued offering underscore to capital of ongoing of more we shareholders. geographies without the EBITDA actions realignment a our and call growth XXXX, pace I'll long-term stock revenue the of optimizing compared our prior XXXX, to her back as revenue adding and Terry successful be end of these market and We the Together, for increasing XXXX enhance lower outlook adjusted turn and common

Teresa Weber

remains you, for track XXXX. Biote continued profitable Thank growth in Samar. on

deliver achieved a solid We progress to continuing strategic focus number areas, across significant have financial performance. of while

of the forward, wellness meet becomes Biote and a solutions. market is our success preventative and in envision mission on our build pivoting As which look is expansive ] we evidence-based growing leading to [ a needs.We more patients' we health provider therapeutic Biote platform evolving

begin We our call are this forward Operator, and you towards taking questions. progress.Now, key the I'd session. to steps updating for open please we question-and-answer on look like vision, fulfilling to the

Operator

Instructions] first Truist. comes Sulewski question from Les from Our [Operator

Leszek Sulewski

by that change in Just Essentially, sure you Are here. seeing back follow can on been the update, you are have you're your you a some I'm of and additional can I not geographic color provide what unfavorable geographies. to any is, bit internal has expected? market as you on Or not little a targeting? which in evolving And mean on held realignment regards I what perhaps follow-ups. secondarily quite color reasons teams the there sales sales And dynamics, just guidance adoption also areas by performing more you rates? being provide from inefficiencies

Teresa Weber

those for mouthful, let's you questions. and No, through Great. was a that. thank It walk

And we honestly, we're revenue added expected part In new number XX%. salespeople. substantial geographies. those looking longer pleased some year, yes, procedures, than total with of it's the So growth the did we this at of the the little of But taken new realignment. a of in

to directed hard to and top-notch have We delay, look the the Puncochar geographic these geographies on Mary guidance, of maintained lower the just we hired very the and markets. the -- market. we come Commercial we this really confident a end are at but range.We're So, she taken due those new in penetrate optimize has how a Officer, Chief and you

kind do week a absolutely and that the training So of the pleased give that providers what providers we we to are this confidence and is, we're interest with that continued of want XXX patients. very you

on strong is confidence talking was these evidence-based I complementary in XXXX. question, describing been on that the So marketplace.When second about since were that's where this what we're we've therapies training so we

as but optimization, age such are we're patients asking at we with with fascination have a other with for group market, of including complementary that is It are a our well semaglutide looking these hormone hormone the provider we in for providers becoming therapy. So more that GLP-Xs, that the asking our therapies platform offer both so compounded optimization potential and to and form. this works our --

for now, looking providing and coming we're access. years, at So, in training on been and we've that that it

Leszek Sulewski

Great.

on that. Just to build

broadening mean into would investments and verticals? mention specifically here categories, health internal require get weight these as opportunities to available I you are discussed. loss, did You just what it what

Teresa Weber

Great question.

in the therapies probably doing So, been what U.S. the in teaching in of we've #X is the our some providers, world. and trainers those

never this, monetized So but we train just on we've it.

provide it's platform to We've been way. for these well-trained the the that on substantial brand providing in can very to doing and got optimization, we the the without training. addition therapies in years extending our X,XXX and trust now they're opening access looking in expertise, who product, we've just access been this training really hormone out, we've investment. what got extend we for it, so up the So, We've providers

Leszek Sulewski

Great, And me. lastly just from

as guidance now, and As then And I gives possibility inefficiencies through, go walked you. far the there?. you you any we the as -- Thank XQ confidence end your confidence of into kind in what lower leak possibility can a the there guess below XXXX? guidance, essentially of just gives these is you

Teresa Weber

very I'm the guidance. No, comfortable with

because year to I think strong. about want maybe of publicly want slight the lower And candid. I'm first be the traded, market these why we that's -- talk this delays. we guiding to you to very very to end, But is

One strong profitably. provider seeing is really are not things doctors.We're there interest, of strong we're the enough interest, patient growing

is capacity doctors We But creating continue more these trends. what We're and we've got there. can't doctors train more their appointments. because patients do get in get to to the out get

than new we the docs.So these relentless and show that -- there we patients So, half to appointments focused of in Mary had is getting that are know the of into really of docs brought enough these or second one aren't year terms analytics has faster the discipline we aren't getting training where because in we're of forecasted. above things

news good and is even better faster. they're coming onboard news that's So

working, to we the all therapies say new the half about this is and base. want to the just is that that's we of complementary excited as the that in believe TAM model testing and we're really year well the going of the increase in absolutely the TAM, patient increase So second

Operator

Kim from next The Jonna from TD Cowen. comes question

Jungwon Kim

as color any in providers, on would number these rate and is to that macro the have It procedures given strong, updates the provided by of love on any wanted sounds just well. get any you interest provider headwinds but like changes retention have

Teresa Weber

get loyal we're add is Providers. providers is as as don't as believe themselves get in to are -- big, into market but patients really on, them so who actually throughput.So, focus as force hours to They work many you identify to every them. rate how it's to about keen see concerns?.They more new get what we are support platform. new What XXX they've give and concerns seeing helping. docs is and as to These through. providing weeks XXX -- ever. not and slowing? they to -- stickiness offices advanced we we're the sales are see number, We the very training our Biote they docs, their the more just their the find What survey appointments.So, where doctor's to survey to good, docs Biote in and see is that improving Certified about trained don't The do the the our We strong procedures. That's get exact big every but find they retention a got the the their doctors add not these capacity is staff open patients, had offices is up retrain our to are That's to ability training downturn, these take is, X slowing, providers Biote time providers we do our the see in business only to and the them patients is what that right?

there, really the be them the of And TAM making really more market know second we So, half is is and there. training providers. the stronger year, we'll on focusing the in

Jungwon Kim

Got more me. And it. just one from

next Just is international plan more about to your how would love progressing hear for year? expansion

Teresa Weber

training language Okay, begun Tampa. we have in dual

what got, international every please the interest you would month so we're is international is a able love provide training, training we've that.So have don't bringing U.S., the been I Tampa to believe XXXX to doing so needs being training to and join yet, in and join towards into our to you've I new the offer it. current we're to of and it's the expand opportunity much the focused, bigger stay So in We look think that. such to train immediate and doctors still the in go let's that's later us. here think, the in a currently all just, adding on that first. focusing therapies to ones the these continue I our U.S. keep in especially U.S. TAM very which international

Operator

The next Roth. question comes from from George Kelly

George Kelly

and a make any evidence weakening and So your question answered you part more think the just Terry that among churn not of that on couple any heard consumer I want to seen you? second or you're kind And unexpected is, seeing Have of behavior your properly. first, of guidance. are sure the procedures? I just kind behavior this, of kind providers, of just but just I you you changing frequency

Teresa Weber

seeing those our that those how and TAM.So no -- is providers, both the that with we great patients, you We're never definitely decrease looking same to seeing committed get where for reason, of that provide access to platform those got from to think at we're problems I we're We're relationships. When treatments, for do access to loss provide and -- much interest. sure on, we've compounders, us may seeing any the still is the don't never we've to those long-term know, therapeutic this the in algorithms providers optimization, our No, together.I looking potential see that just the that of we're seen very and these be before. our patient George, if turned use access people platform. into that hormone that's That's We so wellness, close treated. go in semaglutide for relationship not there get is it who take actually increases provide market. we why patient weight make not that GLP-X, this well for you provided consider patients some got and we hormone know enough know the providers, it coming additional but

as in one-stop in therapies medicine, button it really strengthen easy do the wellness, same on we've the it all platform, with train well How easy terms preventive shop. to both products Be of we of the the hit Biote invested, through providers? relationship the provide technology. sexual make that for and some the access You other as treat How know George, we does them?

George Kelly

that. maybe on then more And understood. Okay,

many collecting pharmacies you're the you existing model of stream therapies what were or sort additional similar model, If high-margin platform? through you're you X treatments -- could maybe and connecting and offer look could providers a you the going look out, offer of And to to think where is the on you're detail going the you model, just how a with number to do the year, it's more your just target? to your compounding any years

Teresa Weber

have Yes. I train would We wish to earlier of you some And George, already. on our training. these been therapies

train all Our doctors U.S. it training. They're of experts that are the specialty in the in the ones

So, their train patient being what easy with sexual have, think done that Think we care leader right?If interested market. taking everyone have to therapies, bodies, wellness, they're comes terms and the it's provide value. that about in and of on getting one to premier hair that platform, then you we we've anyway; treatment, loss, you hormone of add know what about easy type provider We like for order. in of the what in adjunct

I semaglutide. us about think What makes wants manufacturers. to very the look it is got call.But access confident. We've We'll right testing now, that talking stickier. George. the be provide we're next would it to we for our access. this only in We're Nobody

do We get it what skill to to relationships we for in you and tech easy, I them, this practice everything make platform, have aging. can long-term excited need get to we've think that out easier, of about in the it invested I'm and it healthy make year. levels our with and

George Kelly

And maybe Okay. last a then question.

curious, decelerated the in growth these It sounds the realignment and with before changes be ] Your like procedure -- therapies of rate impact minimal, sales this you're you the the to how do I'm expect will think suspect normal will new in as in quarter. a mentioned we [ should get making wrong.But sometime have revenue the revenue force. revenue achievable continuation correct that more you if ballpark Do accelerated, take it mid-teens of that rate? long somewhere just to you call-it to the just or you current growth me generated, that's I'm that XXXX? growth

Teresa Weber

time are really there, hard just than way all a doctors. This It's The just, is right? expected Yes, change this problem that's took is a anticipate providers It's where very there, confident that right? world velocity, absolutely. what, know to we're patients to programs, the on you feel accelerated. a year, George. comfortable the George, little right real at these it to and it's is it. to with on our we're but more up now. doctors, I'm accretive train We I is doing has been got go appointments. I've find looking open And more getting really And for it TAM

to focus that's we here. So, where need really

Operator

This concludes our question-and-answer session. remarks. I would like to Weber turn the conference any for back over to closing Terry

Teresa Weber

All with the to right. can't are the looking continue Well, the from market us research doing. talk I We thank it's stress sure lead go-to-market joining terms today. the of for increasing hour. our We enough we Thank morning. know patients early to times. excited make how that this great know dominate to to you that now the I and so only evidence-based you it's therapies and need we're much we really understand best an to about next job And and the exciting forward These in that providers. to time. interest we're we It's stress didn't about talking research you.

Operator

The presentation. you conference concluded. today's attending now for Thank is

disconnect. now may You

biote (BTMD) 11 Aug 232023 Q2 Earnings call transcript