BTMD - Earnings call transcript Q4 2023

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Operator

Good afternoon, and welcome to the Biote Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Szymon Serowiecki, IR representative from Advisory Partners. Please go ahead.

Szymon Serowiecki

Thank you for joining us today. financial XX, the XXXX. published year and Biote December ended evening, results quarter for full This This Investor the Relations release section news is of company's available website. on the will Bob Terry Chief Weber, Officer; call. and Chief Financial Executive Officer, host today's Peterson,

opportunities, to are company's are risks in operations, uncertainties, Before of upon uncertainties to manufacturing management financial subject goals, on everyone performance of of relied company's commercialization financial matters. These call and the business update include results, date. materially process variety business, these be management's not will we any among the of could statements current expectations regarding, as operations, growth which impact this company's that forward-looking They reflected to during future and remind statements would business statements other conditions statements get regulatory I that from of should that statements of development, Actual based expectations conditions its future, on are started, today. Biote in views the a These subject them subsequent some control. and statements. future outlook, no like beyond performance. guarantees macroeconomic results representing strategies, differ make are risks, activities, therefore, the things, other are to and the as assumptions obligation forward-looking and any undertakes results not as of and

of of refer well non-GAAP and and factors the financial certain non-GAAP compensation, in a please a additional EBITDA provide release. year and the liabilities, Please full For with the to release expenses. website available quarter to provided measure. Relations the adjustments measures other to XXXX filings factors and is being fair EBITDA, also primary important our stock-based differences could to section reconciliation information expenses closest income, our comparable on of will discussion investors. A that affect is earnings GAAP our nonoperating a risks which reconciliation refer other adjusted net our actual earnings value as to the to results, and Management refer measure, to of discussed fourth of important the as adjusted other SEC's in earnings release, risks website our Investor SEC transaction-related GAAP for

I turn Weber. will over Terry now to call the

Teresa Weber

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

is call call for our year, our for with review strategic the discuss for questions Peterson, Biote, to foundation Chief which today our leadership added this prepared to and financial Beer, progress Officer, ahead. Q&A On continued corporate me XXXX. you we our Bob who built Among outlook a is help we years our pivotal in answer was the a capabilities today's remarks. XXXX our also accomplishments results growth key talent at on and following new solid and team Executive Chairman, your achieved strengthen Marc Financial made our the to level. in will our session year significant investments during the

our manage growing further practitioner practitioner network. our optimization focused our expand our hormone training optimized also on nationwide in core territories to efficiently leveraging education We our more strengths sales and network. We to remain business,

substantially strategic initiatives. broadened meet X to of needs, with As we continue market and patient evolve customer opportunity launch to we addressable the our

with men's First, we providers health, men. close to working Biote programs for and to expand address large in certain their partnership began the in treatment underserved opportunity

optimization hormone key leaders We in the promote to of also of partnered benefits men. with opinion awareness

optimization enhanced encompass and expanded we've therapeutics. wellness our practice evidence-based Additionally, to hormone

of we We're via therapies, EBITDA the our also and By while adjusted proprietary hormone further that our wellness increased providing by our existing approximately expanding XXXX provide range X growing we monetizing quarter complementary Over X% wellness platforms. a complementary network value of health enhancing to practitioners. Fourth past to fourth months, in of of successfully a compared is top-tier I'm the practice. delivered Biote our trialed patient enhancing increased our technology core the therapies with XXXX. third to sales consistent the Similar revenue is our quarter X.X%, of consistent among our demand to hormone strategy, fourth rates quarter performance procedure for by therapies. reflecting the providers. which helping growth quarter initial drive pleased more of procedure success optimization XXXX, revenue

modalities, onboard during one also expectations, fourth online of in-person quarter. Consistent and Biote-certified offering revenue primarily business are rapidly driven exiting practitioners more larger distributors nutraceuticals to training by our a variety quarter the the options. new with working by including our We of both decreased,

this the transition growth, nutraceuticals year. growth storefront, profitable we we Further on revenue we second revenue million margins, focus the EBITDA Biote business underscoring for approximately strong our As growth will XXXX. In of year, to reported generated online growth of driving in double-digit revenue cash maintained starting own profit included the year-over-year distributor X.X%. adjusted products resume our of by our previously consolidated growth in Throughout we $XX to which in half enabling operating XXXX, procedure sold achieve the XX.X%, flow for XXXX. anticipate us

wellness commercial complementary wellness is a therapies, for launched offerings. changer We Biote, our competitive trial of I'm we February, successful strengthening pleased our hormone BioteRx, that new in our game believe position. and to Following report significantly therapeutic BioteRx

therapeutic into transforming provider of evidence-based products. a wellness of we're hormone and With BioteRx, the launch single-source

our including We and needs are composition, both across health wellness. range body now our sexual addressing weight of loss, preventive categories, a wellness patients' practitioners' and

To of approximately XX phased expanded a ensuring that wellness rollout therapeutic to taking are BioteRx, therapeutics. We we of with wellness products. practitioners introduced new to the we've our an provide access start, approach range consistent

excited purchase offer our the manufacturer by among patients we hormones. energized requested is our to compounded announced which Our most are these therapies of both January, and of sales a products, Health, force practitioners. In Asteria and bio-identical the

We by March. end expect to the this acquisition close of

to accretive legal be shares will resolved with distraction of Biote, Dr. paired repurchases value. at litigation. announced settlement settlement Donovitz, per protracted eliminating and also The price between Biote's with and outstanding cost an Donovitz a XX.X these interest repurchase founder, shareholder the of his claims Donovitz recently and also all Dr. average We agreement believe Gary share. We Dr. of $X.XX to million

now for of continued to call grow I'm what our financial accomplished Before to has to Bob like team the significant I a year. I with forward the foundation the over call the Biote objectives, I'd outlook over gratitude provide updating to turn my past to Bob, year. enter on results discuss proud their to XXXX. throughout upon. and look Biote against our we've progress for entire XXXX will to progress turn our the achieved our you we express dedication and and strategic solid

Robert Peterson

of both growth Terry. XXXX. and fourth you opting million increased offset meeting procedure EBITDA were distributors larger quarter quarter. was business decline a by revenue. Fourth look ahead. nutraceutical great in here, be in The is year revenue It nutraceutical million, forward you, to grew revenue. nutraceutical full and months primarily XX.X% $XX.X in Biote's exit X.X% nutraceutical but Thank decline of to $XX.X was The to representing adjusted year-over-year one partially the by respectively, XXXX revenue to driven revenue of million. increases revenue during of the by the I generated X.X%, and from Procedure XX.X% driven in revenue growth XX.X%, all $XXX.X Biote and of

the XXX delivered this to XXXX. Fourth quarter quarter expect cost of points expanded end of by fourth distributor compared the quarter $XX.X million administrative costs to by in We second profit the $XX.X begin general to mix were management. and to products the margin XX.X% direct-to-patient gross effective Selling, product previously basis distribution of XXXX. million due and

million in million, million, EBITDA in quarter and to Adjusted XXXX, prior and and Excluding expenses and EBITDA million of was $X.X of fourth Fourth This approximately flow XX.X%. increased Net EBITDA million a EBITDA cash a of higher to to an margin adjusted than net and the operating profit the due higher liability. EBITDA expenses which the million M&A-related of earnout compensation, transactions as more revenue to million settlements fair year adjusted was sales, $X.X would and expenses of EBITDA quarter earnout services. business, fourth the product other, the compares year SG&A adjusted income $XX.X adjusted $X.X compared the in to quarter period. $XX.X have with prior the full change $XX.X impact the million for fair gain change in been $XX.X of due fourth to quarter inclusive professional year. totaled million margins $XX.X to the higher of an for XXXX. net $X.X of share-based compares ongoing profitability million liability. Adjusted income offset of was was income XX.X% compared with in primarily $X.X and This value litigation XXXX. Operating primarily gross million, $XX.X unrelated improved quarter quarter of includes of the a in value the margin in were expenses, by mix

noted, in reached to share As we of this balance on Terry program, shareholder execute value. shareholder commitment Supported repurchase terms. We and sheet cash outstanding announced enhancing past fixed his a to with paired agreement to We shares long-term a our we we February. execute believe of Biote's over flow, further effective an founder well Separately, million our a and began by share is all years accretive X this reflecting repurchase, our and litigation of early solid period resolve program and repurchase occur month, will use interest. this are $XX on to be against positioned recently settlement to which cash this will value.

adjusted $XX XXXX, million. million $XXX achieve Turning fiscal financial and to outlook to of million our revenue of we to EBITDA for $XX million $XXX to expect

As the the channel Total to nutraceutical financial seasonal we of is be by impacted the second adjusted our first promotions. half weighted growth of year, the to in the cadence the year. transition of half EBITDA distribution in the XXXX expected and towards we of for be look timing and revenue expect performance at revenue

call Terry the comments. her to for I'll closing Now turn back

Teresa Weber

enhancing Thank patient our you, to stakeholders. committed growth health Bob. for Biote while delivering remains profitable

are and As to become confident we leading we remains to single-source therapeutic XXXX the Biote provider wellness evidence-based solutions. well-positioned look ahead beyond, of

and growth just begin market in opportunity into open question-and-answer front I'd session. to the have for only Operator, please questions. the we like addressable Our begun tap the of to that, is us. With substantial, call

Operator

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

Leszek Sulewski

around sales And the you here guidance. narrowed then the expansion is how start that of some you the Can I'll separately, comfortable international right guidance And expansion you and through that say has trending? on down? size range? puts takes geographic just are and what how and of the the force, you us the walk would on been

Teresa Weber

So Bob I'll I'll second Les, of the then half. question, the take have half the and answer first

Robert Peterson

nutras guidance, think place in to drive given our a and the plan, the at look I for would we and as solid procedure I both position, core half. business in we've growth evaluated second revenue Look, business the say we're

these as will definitely guidance. I So the into prepared and feel when baked XXXX at comfortable think I plans, we growth, we mimic with first procedure half it they're look our we would earlier remarks. said in the revenue say

at the make sure As I we half. channel And return of at guidance, and then the nutra end big thing that look can the of in Amazon instead -- over we mean want to we will is we potentially by second that business. will retail first think I help growth distribution the that do take I selling wholesale to half, think can the

accretion I to at margin believe in growth practitioner see the that and given strong stable. Asteria core margin expect our back business, in network. continued second think -- half As We providers we the and the in our the we see we half, should core remain some integration look

you I the think Terry, to half? -- want take second do

Teresa Weber

second take Yes, our force sales the on half optimization. I'll

on white space sales progress we're the into going optimization to So we space, -- making but going that have here. into which calling call new we're force used space, been we green

that's been progress. strong So

training are rate, up bringing our at new a as faster these We have and clinics this team been well that we has team found into as our ramping older faster. doctors

really to So give hired sales in we've on modernized individual key them area, data actionable is working. We've we that optimization also talent feel that territories. where focus that, allow the that the to insights into that's systems and

the little has talent. some pleased, of the and more progress front, we'll talk So Mid-Atlantic, areas quite Coast, domestic later on that we're we'll well, then highlight Midwest, also in key a very the the in new bit on that gone calls space and West green

are things well. those So going

much In we see space in current, and and so in of progress then on business. so to our much continue that Puerto our terms international, the domestic Rican focus of we've our green that expanded domestic And offerings. we

be year. delivering sales about talked will force BioteRx, that we As rollout with this that

focus domestic to of of of year has see to that said, second and new should as begin the really the year, the that this think looking, clinics. we at it. you be practitioners look to half So that, that up the Bob way new And ramping input

Leszek Sulewski

if helpful. I Very Appreciate that. One more, may.

So the dynamics split that at economics look at and the changed before, product economics, when how you've offerings we if the new all? has the of revenue shared wellness the

Teresa Weber

would to core the year. be will in impact. This us hormone What business. a XXXX, allows not competitive have really our it be it is more marginal

financial, So would I competitive I BioteRx. program that it we wellness strength look not rolled calling in out look offer for would therapeutics. We as for February. We're that

platforms, on look So XXXX program. a that methodological XXX to looking clinics. but program to very we've out the that tech impact ensuring of it and the roll 'XX through access in be in rolled remainder to through We'll works our it well very fashion,

Operator

with Jonna TD The next is question Cowen. from Kim

Jungwon Kim

a What in men's and can that expanding some become benefits should can should bring and the just margins to the How do the sort bit new about we little of year? we key for are think BioteRx, gross takes on you How margins. treatment more puts large one those think expanding on Just and over question those incremental health. consider? you mentioned also initiatives time business? And gross then

Teresa Weber

Yes. and market talk ahead that I'll the and expansion. male go about

only the only to large is discussed treatment. it's million any Over It's large market. it's XX% associated as -- XX% a a of treated men market. over that of This of So the XX, men go it. before, very age have we've TAM for experience got so also kind with undertreated XX

focus our growing on Biote's, of to that to very is accretive So going in value consumer our be terms adding base. the

large BioteRx that as will with as has is on grow The look male wellness therapeutics over The a and different well to practitioners. at we the time procedures TAM. focus very the piece tend other that urologist

So going only that expand. is to

just as but earlier year look hormone and will -- market, you them our is more know we well, that treatments to later are in are is impact If the the the get the we more billions be that's out, specific the and wellness think something position that you that Jonna, both adds the treatment, that be discussed said at providers do will asking is patients that in business. What our we we've it roll and statistics, these on what in at on and that impact I the see in competitive program and for. Biote

those that fact key the makes wellness treatment the the shop be a advantage. one-stop So we'll single-source provider products competitive that both therapeutic of hormone and

Robert Peterson

year. of have the accretive as obviously, you over sales I margin. the don't we margin. second we in acquisition, Asteria, time is manufacturer, asking strategic on that improvement this any this and see vertically we and look the Jonna, the volume were at we a And shifts half I Asteria about in as to provide we say, regarding integrate margin pellet shift second will piece on drive will ratio major as that that

-- margin majority of the and realized vast second the benefit and the of the -- fully in into as half EBITDA by I thus integrate be some benefit we believe XXXX, I by will of end end think XXXX. the

I you So at guidance best this that's give think can probably the point. we

Operator

ROTH question Kelly with is from next The MKM. George

George Kelly

any deal? think? create it really do if new, much an could you to And offer that acceleration do So training, or curious, training and in And to an any Like is prepared how And maybe you offer person I'm online online. just onboardings? a to historically offered have it's your planning in you big of said remarks training? acceleration you're online it Terry, start, both you

Teresa Weber

George. question, Good

we've XXXX We yes, these proficient offered actually when actually quite hormone got products therapeutic we and during other on out. So rolling products trained we're it. that

because a we We through well. yes, it looked what's in-person XXXX optimization online know a and it before. this So of hybrid proctoring on the works is We've done area. all training had complex about method

had of hybrid complete some we've a digital. real method call what training, and done So with I'd we've success

of a results in their how So we and how grow? And you're do in those we've and found and we clinics at the been found and it procedures be what expanding providers do positive many to be does second but hybrid mean, year what's method, the the will online, adding depth looking to those quantified going the we very we their very clinics results really knowledge, of especially will that's efficient perform, then that. do acceleration how some method. right, haven't terms And they in train in the of can the blended practitioners what how we allow half

George Kelly

X question guidance. second maybe Okay. And then That's me, for guess on helpful. I questions

much The prepared from the Or question is of half about a any the the in Back majority produce to and there beyond you then on vast press to guidance. remarks, -- products? -- I'm do think of going X benefit mean Asteria. kind any is side shift material -- your you pellets? And acceleration? And curious, in of you I acceleration really procedure How of your your production or is to in just year-end? by growth. first driven the by second release one are Asteria or expect hormone if the and benefit is revenue you year-end, to new your it majority that talked it business,

Teresa Weber

So the of on I'll answer question the first acceleration BioteRx.

core is it. numbers as looking the So really especially hormone enhancing in onto at clinics we business of of the half roll in what year larger the XXXX, BioteRx we're second

of our it still hormone be modest So impact in that other other on it terms a guidance. be then they'll have that will on single impact you'll source, business, will and but -- see the

XXXX business out. fully at impact looking the ask in into and Asteria, the do of combination I'll when of XXXX, that but second a hormone He's half at therapeutic I having working been So very the on on Bob the modest more hormone expanding positive and the rolled the actually in we looking the And detail. year, to think it then that. in

Robert Peterson

So as planning. end Terry said to as the expect and the us integration ground and earlier, key moving it be we will integrated We our end by allow it ahead upon part XXXX. expect closing. we be fully we date, month to closing of the really That is vertical the the by that of know hit the we're await business, to the to running a with

be I think that we we the fully have up licenses we manufacturing given by of believe that phases challenges. all end second to step the the out, full not volume. integration, We onboard any is believe will integrated set the and a have licenses. how that do all And way the big next and -- should that, the year will drive the half for manufacturing

really at it. way that's we're that looking So the

Operator

The is next Magnusen from B. question Riley. Richard with

Richard Magnusen

here This for they're said you Sinderen. products XX believe Jeff is regarding is I Richard to I'm question rolled My Magnusen. being the in calling first XXX new you're Van introducing, clinics. if these all how what being Are being managed not, training And they And products? accommodate cadence the point? also, is new offered to the doctor is this there? all at out

Teresa Weber

For the XXX those clinics, first to offered it XXX. be the will being

just February. in that began So

on So these sales XXXX. providing These educated Officer, Science through as as starting Chief in who's products product are are well that we've XX on training our staff our being onboarded XX before, actually products. those the

very providers our are of many So comfortable.

have products that years. we XX the products all taught are of for Some

providing guidelines, we're out we're way. then the that's So that comfortable and training where in on rolling very product. measured We're a with that

tuned time, monetizing that. and to we to So so as And But about XX and in began available we're comfortable. just these products the the XXX. products number that we've that We're for first February, providers. pleased out roll stay grow we're piece you'll actually very made need of all all

Richard Magnusen

to besides in by And of now the the And of terms how being most what terms Okay. related practitioners? then of any patients? there new are demand they're application sort that, standouts by significant GLP-Xs, are in right products applied,

Teresa Weber

giving just program. products brand-new it's individual those -- we're and a discussion on -- not right We're because now

prescribed begin really So to products, see we'll we'll this be in in thing. looking more we provider dates, all something ordering and these patterns. Having of we're that begun all lot talk female almost to this discuss their with type are like patients found kind is many about this the but to just February, in of future, on certain of later able a attributes, progesterone, they how products the but acceptance

more. hormones, sexual So categories we'll GLP-Xs, of of, weight and wellness, comps. the The which loss, give body kind you you're the are aware

give more early those discuss more those providers. findings we'll we So in detail on as

Operator

from question Kaumil Jefferies. from The next is Gajrawala

Kaumil Gajrawala

the Can you came you of learned from that evolve of of from And the started about, then after what kind onto report maybe if those the board? can with economics add X-month along clinics that come more progress and maybe, or maybe cohort BioteRx February, that, how on you this a how first just plan? sort more in wellness folks as franchises should that, of -- talk will

Teresa Weber

is February as just February So initial. in so last been we've month, very

much So that initial initial, be too are these won't because initial on through. products going we discussing orders,

So make comments on. early one to month is too

as often later detail. interest initial very be that for places. favorable about And meaningful and a to more discussed, in our talk many different in we'll practitioners to response tech these These -- rollout. there's platform find modest is been had we going products XXXX, that they've contribution it's we the as to XXXX. What it's these get allowing really good So use on in with

our what is, So delivery. provider that efficiency them for our allowing platforms of those the and clinics single-source is this getting and see really to

to exactly you competitive their our core things adds helping manage of look loss So provider better. had focused, hormone where to in be who's as and and business. And this it we to be strength really weight interest business onslaught that's that these honestly, able really should our at

weeks where over initial come just than less these will provider orders time. single-source So ago. are But in that's that X going

Kaumil Gajrawala

it. Got

what just some some Okay. distribution. Could and commentary that little And explain in made more you in detail you on meant? Amazon then Bob, shifts maybe a

Robert Peterson

who we for had Amazon our relationship Well, yes. us managing third-party we in And earlier, about with was as some challenges I QX. the talked think

core so wholesale. And that and bring as the retail the to it is areas can bit gives bit we a could to we're more in-house better of a looking that's at do of improvement a that think going us that -- begin to I be provide now see selling little control, management. little One opposed to

So by end going first bring in of second the half that to it again, start the year. we're the and really real key here the that try then of to in half the is scaling

Operator

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

Teresa Weber

you We're Thank for months to progress the joining looking in to Have us good updating on this forward come. afternoon. call a this on our you evening.

Operator

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

You disconnect. may now

biote (BTMD) 12 Mar 242023 Q4 Earnings call transcript