Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to today’s Conference Call to discuss LifeVantage’s Second Quarter Fiscal 2023 Results. [Operator Instructions] Hosting today’s conference will be Reed Anderson with ICR.

As a reminder, today’s conference is being recorded. like the would Mr. over I now, to conference turn to And Anderson. go sir. Please ahead,

Reed Anderson

Good to of Thank call and afternoon you. welcome results the to LifeVantage for second XXXX. quarter fiscal discuss conference Corporation’s

President today call Carl prepared Steve Officer LifeVantage On and Financial the Executive Officer. from Chief Chief remarks with are Fife, Aure, and

afternoon have p.m. Eastern X:XX should everyone earnings now, approximately to the release, at which By access went out this Time.

website Relations at the release, This it available portion If of webcast have Investor LifeVantage’s the company’s being will not received is website you replay as be www.lifevantage.com. on on call is a well. the and available

your Before we are upon not LifeVantage’s and guarantee those These current performance and begin, inherent risks management that statements not statements and statements company’s XX-Q. Risk and be section of These remind everyone future the and should management reliance therefore our to including based prepared Forms may placed make we statements XX-K the questions. like recently contain in forward-looking forward-looking filed would do remarks additional Factors undue involve on uncertainties, to them. response expectations most identified in of

when basis. that underlying measures analysis results will measures, we Please on transparency comparing from today’s into these greater can and of believes discuss financial particularly an operating results non-GAAP during note facilitate operations, call, a complete adjusted Management financial including more ongoing period-to-period. LifeVantage’s results

made LifeVantage release of with date assumes these XXXX. today’s update measures is of a call. today’s This broadcast, as have We information or that forward-looking reconciliation projections to live obligation February of contains the non-GAAP that maybe any call release. included in accurate no only this X, also time-sensitive

the Steve Officer President call turn Chief Fife, will Executive the to I Now, of LifeVantage. and over

Steve Fife

us an today. Reed good exciting joining at LifeVantage. you afternoon, everyone. incredibly time It’s and for Thanks, Thank

the public announcement as markets to an January was products, along back month Over our the and always a for company. simultaneously for it more years ago, forge in get U.S., sustainable our initiatives designed a having Rhythm New Our of Australia, Zealand this with Rock executive we earlier propel growth. company needed team, transformation at held served year XX to watch. Japan, the the on a where had and new, what was has stability, event chapter which as to time LifeVantage a superior broadcast modern look major took were reputation to hard organization delivered to being but to myself,

into advisors. we dug team earn with had options Our deep as known We opportunities multiple and industry consumer consultants, to We trends. support for distributors. evaluated the growth our to top met previously our paths

with deliver that approach this and take customer from experience. needed for, a plan analysis outcomes holistic because across we points LVXXX, our all the looking was happening the strategic major touch emerged to to called The comprehensive we really of were innovations consultant

love. to personalities them Evolve share, the simple of meets through driving structure defines incentives. outlines with journeys, industry-leading on stage. attractive path stages grow, in our consulting biggest three components plan. consultant One sales and professionals respective the It Evolve products key of build works new sales Evolve, earning behaviors, for that product clearly commissions lifestyles. their is a consultants simply who to both and and earn for this their that graduated each by focuses they they the and on way opportunities modern new possible those direct is pricing where and of lead. at rewarding sharing including the want Evolve three-tier progressive And compensation paths: are working bonus LVXXX is

its simple customers another unlocked reward a called earn our is subscription Circle updated status a value discount as which future structured Like compensation each on value. in plan, spend earned certain in be orders. proposition. credits program A Rewards is a enhances With customer order, Circle reward double Insider status is LifeVantage credits, element Rewards efficient Once towards LVXXX. once loyalty key is new of subscription earned, manner, insider which can threshold applied once and is met.

benefits program free on March Existing Australia, markets to customer’s are sold scheduled product on where full-size launch on initiatives subscription Zealand in are loyalty X. qualifying Both Rewards insider Other to a and X a the as order status on the gift our Evolve their to products have and as distributed a anniversary. U.S., of over automatically XX next second LifeVantage other Japan and New as in Circle These well program. are will the include customers consecutive planned product March rollout months. subscription

evolve product Another with off initiative LVXXX, in last October, And year of kicked the to for our consultants product of last liquid more, through their important element paths: positionings activation guide journey. across at initiative it Global portfolio. make radiant launch our look and possibilities, achieve strong collagen. innovation to year’s we calendar wellness Convention, launched The includes optimize activation easier customers health,

designed new formula amounts natural were deliver and the of time. a The & the Reset vitamins, to time-wise activation AM markets. right circadian the Protandim line. with the at a At Rise system minerals blend PM the right signaling of nutrient cell your multi-nutrient rhythms system Rhythm, to the delivery, of right in three Zealand effectiveness Rock nutrients launched New and and adaptogens products body the with The is supports Australia, help the U.S., intelligently in gene maximize that aligns Japan,

Mintel rely opens new the as D. Also we users with support added NrfX combination an the showing from PM data with XX% this mood. of immune bones, LifeVantage cardiovascular we improves increased Tri-Synergizer muscle such currently our to performed glutathione It share catalase, peroxidase is customers more DX+ combination These from line, of total study positions sirtuins. to communication health as Synergizer The fill and gene Americans with alone. Protandim health, To clinical study NrfX vitamin you genetic glutathione nutritional results combined as with and nerve by demonstrate Reset current Rise the PM AM & product activity Protandim a to elsewhere. strong Tri-Synergizer important and Synergizer micronutrients that to supplement dietary as Rise source reach Vitamin magnesium purchasing supplementation XX% in markers multivitamin door sirtuins XX% by also over & AM simply well cellular calcium does role targeting key well a Reset increased of well expression of of excellent gaps, The activation, the other in as with on product the new Protandim alone. over than as KX, and and and market

continuing will digital LVXXX includes major enhancements to elevate experience over overall which account to on major management, our engagement. we a the enhancements our as next months, be March of couple subscription revamped e-commerce well introducing X and well. and continue will user Starting experience as experience drive as to and

unveil initiatives We are our the for LVXXX to growth company. to drive thrilled designed and

ahead. Several exciting X that kicked consultants advance new off incentives have already new the March promotions and lie opportunities in launch for help of prepare to the

road LVXXX It trainings with be while others. important a trainings U.S., of Evolve their leaders to held training We regional and Australia are are at strong continue and was LVXXX shows a partnered best-in-class new well kick and opportunity confident culminate in program. of for will work the well-thought-out a worldwide. Japan aimed support off initiatives laying developing for the and build foundation training top March in events, corporate recognition hosted field the plan, on. a to executing These share virtual includes as field Current announcement to phase and the as will sessions XX next to our towards with over us which consultants at development training public which team on by excited

up on increase quarter of quarters. was X.X%, Second with contributor recent up a revenue key U.S. to our several second XX key year-over-year was and U.S. we remains first by revenue show was trends gains. constant the collagen the X.X%. encouraged Liquid continues million basis, revenue quarter top The to are progress, up revenue Philippines in XX.X%. Internationally, driver and the currency performer in our other markets. And launch $XX.X

that resolved backlog. first year Recall quarter this product quarters future would of able and ending significant the full in demand a our exceeded for The for have September, overall collagen Supply unique be June resulting products forecast, launched breadth in in chain as orders sharply our product strategy. been QX. well to which in sales, the were bodes challenges as surrounding of product the first we our in fiscal well

from our approximately Customer to for XX.X% QX. penetration And QX QX. in collagen in in approximately a which in in product, blended compared XX.X%, XX.X% of million from On revenues. compared QX, similarly or XX.X% to penetration Customer XX% acquisition reached benefited was $X.X XX.X% XX.X% basis, penetration was up QX. QX, accounted liquid consultant

New fashion results those markets. March in We stack The will Protandim to Australia launch be in We U.S. launches Mexico the introduce launching sharing liquid in the Protandim collagen of Japan, to enabled NAD Australia, these Zealand you similar Japan, forward with a and in future from quarters. look in launch June. in Tri-Synergizer to in us

NrfX has initial and markets Protandim show in Tri-Synergizer Consisting top results potential. been of performer Protandim stack NAD, the U.S. Protandim in similar and the NrfX, these a

and as Energy engagement was remained brand November’s was X.X%. media XXX% blended have XX.X%. it it in to content Trends user Mexico, rate Our sharpen early In very December favorable XXX% months remain channels, up strong high elevate our in levels Japan we with continue the social with brand to XXXX. adoption. Australia, field was in total in penetration those And messaging. and our showing XX.X%, across up compared

to similar new incentive plan. and for collagen have in well products introduced Zealand compensation up continued NAD we as success behaviors Australia, New as Builder structured to for cash collagen also with for QX, them the and Japan. sharing set MVP for bonus new our and key that cash is The Axio In consultants evolved drive

also Run Evolve. to newest is designed incentive, with Our Pro consultants X, help to earn

the momentum recently qualified eight first of further advancement of as and provides Elite for proof their Finally, upward strong our individuals consultants Retreat.

as of million initiatives over strategic XXXX, LVXXX and us to our summary, further our In evolution and growth for the model solidifies leadership improved and We’ve demonstrates our company commitment plan. the $X and invested which activation positions business calendar the profitability. culture during

quarter, in but very our still are it top results, latest We transformation recognize is the to early in second including journey. our line with return growth a pleased

Organizationally, to better and creating than be confidence degree trajectory. driving Top is part There implementation a is much company. the so energy teams ever, giving field this are field between this never within of future been a our leaders has as the time more unified their excitement. high which us and corporate well, of in alignment within

call turn to me Carl Aure, Chief to our our results. let second over Officer, financial review the Now quarter Financial

Carl Aure

everyone. Steve afternoon you, Thank and good

Please results. financial that quarter second I our be through note you walk adjusted non-GAAP our will results. me Let discussing

You press the in to GAAP additional reconciliations can to details. refer non-GAAP today’s release for

and was million, first Second the from sequentially a X.X% year-over-year quarter revenue basis up up $XX.X quarter. X.X% on

revenue by currency negatively $X.X Foreign million second fluctuations in impacted quarter. the

Excluding period. or year the compared revenue foreign quarter was negative of fluctuations, currency second to approximately up X.X% $X.X prior million the impact

by in Americas including in Collagen rate the Europe total Revenue by region exchange million, accounts XX.X% the active the and the driven fluctuations. region a increase States, to primarily prior in driven United XX% our offset currency active negative in total decrease TrueScience a XX.X%, Liquid year partially million, Revenue launch increased impacts to compared XX.X% foreign product from decline in and a and to X.X% Asia-Pacific $XX.X region. the accounts by in $XX decreased period our of

the of leadership, Despite currency in results and be impact in to the advancement. continue we to down our foreign and Asia country. Europe currency the currency are X%. the fluctuations Philippines foreign to Japan, region in revenue The development Excluding continued impact the revenue we primarily second our fluctuations, currency launch was quarter was encouraged due headwinds, from by lower drove related negative foreign which from seeing Pacific distributor

in prior the to Gross impacts margin sales fluctuations expenses, in negative shifts as was and to year gross due elevated XX.X% as currency margin The compared primarily quarter, foreign well of for mix. period. in geographic second XX.X% the product shipping was the decrease

across We cost that our actively entire chain supply negatively have savings offset are our initiatives recent cost gross impacted help the margins. pursuing increases to

million $X.X Commissions and decreased incentive quarter expense in the second year-over-year.

and $XX.X was increased a levels, year million compared magnitude commissions result incentive various as event-related percentage the costs, related of decreased incentive outside revenue, expenses, the was X programs. travel promotional which year year was of to the compensation-related and in professional XXX XXX to by prior prior second and a to XXXX, of adjusted SG&A driven to Non-GAAP versus quarter basis percentage fiscal points upcoming higher This million points expense and half the employee As revenue all was up $XX.X of ago service timing XX.X%. as XX.X% period. the primarily and basis expenses launching primarily versus increase of higher a in initiatives fees expense

tax in year. of tax a loss to operating with The recorded to benefit of was period. or year foreign was $X.X primarily Adjusted prior relating We benefit diluted the $X.X $XX,XXX period second to diluted of last income favorable comparable income last compared quarter, million $X.X comparable year. recorded period per adjustments loss compared tax due benefit the adjusted operating the of year impact a adjusted fully taxes was to income a in million, the tax in discrete the of million, decrease on or in in $X.X the million, earlier. share, compared in net $X.XX $X.XX quarter, Adjusted million $X.X fully second per net share,

For EBITDA and ago. approximately rate quarter or $X.X the we in our second a the XXXX, X.X% X.X% period to will Adjusted year million, same compared was XX%. fiscal tax effective expect $X.X of million year for revenues, be

the adjustments our cash with earnings all $XX.X reconciled position today ended from no press release issued strong non-GAAP second a financial that the of afternoon. I note to discussed Please and this in of million in quarter debt. GAAP are We

for $X We second line XXXX Capital maintain capital also totaled the $X of of continue in under be million. to We to million our $X.X anticipate approximately revolving total expenditures expenditures quarter. credit. million availability fiscal

our million adjusted earnings we share. anticipate with $XXX million to the fiscal non-GAAP share $X.XX outlook, adjusted range fiscal per $XX the our per in the million EBITDA $XXX will in million, XXXX range to be revenue turning to of $X.XX and non-GAAP to range of XXXX $XX Now of in

call operator back And the questions. to Operator? the for me turn with that, let over

Operator

proceed from Rikert, is LifeVantage [Operator Instructions] question [ph]. Our your Dustin first question. Please with

Unidentified Analyst

how Yes. with better you new be this the – I going plan, comp just that one? hear how to old the was interested is to feel than

Steve Fife

We some appealing become address Yes. that sell plan is had want gaps our of Thanks. in going much products. to especially feel the more like for to we have this people and that

interested those that innovation along also paying history of incentivizing much selling of products products the comes business. people that We those. a new are does our the we But with that better proud have our and and frankly, plan build that of are to in job with want

Unidentified Analyst

the middle of Is company top? the it in at those the that or are

Steve Fife

It’s throughout the organization.

Unidentified Analyst

Okay.

Steve Fife

Thanks.

Operator

It would are appears questions that further to there to no over comments. closing back like the now at I Fife floor this turn for Steve time.

Steve Fife

hard you Alright. and as well our the of to Well, thank for to opportunity their independent and today. for consultants closing, all take I customers. of outstanding want In joining work as our employees thank loyal team dedication us

our on a very great you you day. of on We our that are updating and about call. next remain the look and hope forward We excited safe lie ahead. this modernization all focused and healthy company stay to opportunities Have

Operator

concludes teleconference. today’s This

your you time. disconnect may lines Thank this your participation. for at You

LifeVantage (LFVN) 2 Feb 232023 Q2 Earnings call transcript