LFVN - Earnings call transcript Q4 2024

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to today's conference call to discuss LifeVantage's Fourth Quarter of Fiscal 2024 Results. [Operator Instructions] Hosting today's conference will be Reed Anderson with ICR.

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

Reed Anderson

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

are the Chief approximately Time. call Fife, By Aure, afternoon now, the today at have LifeVantage X:XX which Officer. prepared On access went should to this from Chief Financial Eastern President release, Officer; Executive remarks and everyone and earnings Carl p.m. with Steven out

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

management broadcast, response to contain XXXX. period assumes risks today's of in update projection on results in do These time-sensitive results period. of operations, are or statements Forms the be will more date your measures guarantee based on current Before we accurate We can management that as particularly placed complete questions. Management today's future comparing recently an during to most with facilitate to including additional XX-Q. Please measures, ongoing of believes today's these and when Factors the financial not those XX-K XX, operating any a information like non-GAAP also into included release. LifeVantage transparency live analysis that undue basis. this therefore, performance, adjusted identified discuss of we be may these that measures This in is our from obligation make call. expectations results including forward-looking not remind LifeVantage's financial a filed forward-looking would and reconciliation and made inherent reliance to contains note underlying non-GAAP greater statements, upon and company's the prepared should call of remarks release begin, These no LifeVantage's of only August uncertainties may that we and statements them. everyone call, involve section forward-looking Risk statements and

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

Steven Fife

you Thanks, Reed, and good us today. everyone. afternoon, for joining Thank

quarter top fourth results have demonstrated profitability headwinds. create line continued that despite challenging to Our macro again strong conditions

was progress margin ago, down last revenues year, initiatives performance versus and to EBITDA improvement versus profitability. Adjusted total a XX%. the flat revenue adjusted year a was down reflecting X.X%, quarter XX-basis-point were Currency adjusted on Our drive nearly EBITDA for continued was while X%. optimize

For EBITDA up million year, the versus adjusted $XX of was 'XX. XX% fiscal full fiscal

adjusted was While down revenue revenues down Currency X%. X%. were

quarter by increased but were our anticipated, softer fourth was of largest accounts were sequentially fiscal for which X/X over business, X.X% we revenue than we our over QX. encouraged down X% geographies. In revenues overall Americas While results the in region, year-over-year

over year consultant revenue addition, rose improve continued per ago. In to as compared productivity a to X%

We continue parties initiatives Event on was as Virtual consultant held platform including as around watch local in well selling. to hosted modern commitment Global to XXXX direct business into supported as reaffirm our This the markets of engagement, by focus all industry consultant world. we our to drive our served selling a Activate the adapted in our how July. have It gatherings event and to direct recent

on of event, rates increased positive the the enrolling, advancing to growth, business of retention performance, supporting During core leader impacts recent within rank organization. advancements we emphasize the and consultant highlighting statistics behaviors and continue behaviors impressive Rise retaining including the ERA, these

ERA list Activate extraordinary leaders. training comprehensive towards Trip ERA by Another this and provided cruise Destination, Alaska, the led sales the featured sales by equipping reinforce Rise consultants and emphasizing European of for for businesses Activate direct XXXX our X-day, top consultants to consultants community importance an and their XXXX following actionable points rallied markets the of Incentive elevate steps with event XXXX this trip for LifeVantage announcement company the come. the in behaviors. is was to tools excited behaviors what companies Mexico is highlight sessions achieve like to U.S., of and bucket X-night to the Activation and brands. strategies insights, vision These goals. Events around has Canada, invaluable also sessions Nation earn

the to our We as demonstrates loyalty An completed meet recently Rewards make long-term enhancing those well for customers and New optimizing consultants program program huge Australia commitment designed commitment demands. to growth. ongoing in Zealand consumer our design our of is continue to both the experience strides markets. of Circle The as the update to sustain our and programs in optimization U.S., example efforts to

In providing for benefits Circle Rewards and subscription now also engagement optimize value consultants. offer greater addition to for customers,

loss approach first-subscription from On to the as launching LVXXX from the better the and refresh the grow earn part Recall with well business-building included that shipping future, every the LVXXX. as come looking Reward initiatives perk, products retention of enhancements a consultants, Customers that scheduled system accelerate better free enrollment of subscription to us the compensation when path entrepreneurs now caters and of to ARPA. product to Evolves we've modern Collagen. past redemption with LVXXX enable growth our products looking but the when success. collagen build diverse thresholds. These launch area includes who activates benefit every needs XX first-of-its-kind modern driven peptides, and are teams. Innovation will subscription wellness over the as consumers results, and enjoy build on dynamic that income program with needs including activation including were customer orders free collagen shipping of and well data significant for entrepreneurs types affiliates Liquid continue of price a the of replenishes want very will to and for in pleased rewards a Circle consultant Rewards body's key protein. share with meet via production experienced side, and Credits sell product is with those A simplifying Plan, has of been a offers we've who to both rewards transformation over to only after years, ships. to not time their driven with threshold. gift streams customer opportunities to independent to XX the as incredible Compensation to Evolve businesses. successful the the that a increase focus subscription plus Subscriptions continues to us, lower collaborative and our own the That consultant as especially Customers for months several been another deliver also an collagen robust a contributing

system expands the LifeVantage the of in story introducing that loss. we category XXXX, Activate at launch into upcoming weight October be we Finally, announced will rapidly activation growing new the a product of

body As other system needs with you to something for make new health. this products, activating your our take

Something but with to this [indiscernible] things levels that hormone. leads as of body, make, to knows your genetics, age, other lifestyle sanitary in essential pour and how diet

promises hunger solution to the hormones space to GLP-X innovative by formulas groundbreaking activating Our disrupt with designed cravings and production. two management weight balance suppress food

upcoming to about true will system challenging it market, innovation, margins excited on making summary, and key despite product consultants profitability, in Kansas City. In on and be meaningful especially environment. we around game launch new optimization be a that this product incredibly stays event no to on believe and There product Connect it progress our a and will with it around their or approach a we're double the health. changer comparable in launched is at like delivering are initiatives brand We and October system adjusted digits, are again very This businesses. and way Market our for XX XX EBITDA our revenue

with share In addition, we value continue repurchases shareholder driving and to payments. dividend focus on

welcome Finally, Brockovich will the Directors. the for an to a on I has years, advocate from resigned for Erin recent that After turning serving we are for has years Anbalagan our pleased as want over managing to and partner Raj director experience bring to place, to of the been her brand, years over few value change thankful our we service. In a are X member over the Erin dedicated Board. of XX and of Information many serves board Officer has advancing before for the announced share make His we Board to LifeVantage our technologies Board Caesars company. Chief Raj strategic new and at Entertainment. her in invaluable currently initiatives. Board to growth and call exceptional be feel Product large Erin digital will the amazing he and e-commerce and Transformation technology programs in Carl, executing to the experience as comments and a room

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

Carl Aure

good Steve, and everyone. afternoon, Thank you,

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

by down million, in refer additional foreign today's impacted basis, was currency GAAP million. for to $XX.X year-over-year X.X% revenue the You reconciliations details. Fourth press $X.X on non-GAAP negatively revenue can and quarter release a to

$X.X our TrueScience impact X% revenue penetration average exchange a and negative partially Excluding in and Collagen fluctuations, in by X.X% driven driven mix the in of currency primarily active total from currency higher the to the quarter, to to $XX.X by of decrease Americas Asia/Pacific product. Revenue in product and in foreign primarily the region per region million quarter, active million by negative down account, fluctuations. foreign continued year our XX.X% Europe million a offset resulting the from decrease XX.X% or was Liquid X.X% the prior quarter decreased and decreased approximately as $XX.X period. Revenue fourth in total accounts by rate in compared the revenue changes accounts impact

our compared fluctuations, year year to to fourth impact negative are was quarter XX.X% the the compared which in for margin XX.X% quarter Europe revenue in the and Excluding prior down to from the XX.X% was foreign attributable region primarily prior as period. Japan, period. Gross currency fourth Asia/Pacific

maintain to percentages revenue. encouraged that were are despite we in We margin decrease able gross the

be our on to the and margins. Commissions in cost savings We expense supply quarter focused $X.X improve year-over-year. fourth continue incentive million chain identifying opportunities across gross to decreased

$X.X $X.XX share income share million net year year fully income was $X.XX income of tax million adjusted and expense $X.X of year XX.X%, basis expense of levels. incentive ago basis in due As percentage to compared operating improved our to revenue promotional SG&A XXX with various $XX.X the of the or prior up was recorded non-GAAP per XX%. the $X.X million prior income Adjusted non-GAAP year $XXX,XXX a increase to XXX revenue, adjusted compared year and diluted in expense per of period adjusted of was quarter $X compared the non-GAAP fourth programs. Non-GAAP points primarily Adjusted period. fourth in $X.X as of timing million operating million the incentive quarter, percentage points $XX.X a to and non-GAAP with The in was commissions million the was million compared prior the prior versus and in period. We diluted magnitude or income fully in XXXX period. a

the in $XXX,XXX of afternoon. our to discuss the related was fiscal period all X.X% Please fourth Excluding positions, XXXX $X.X million today adjustments million note or rate for effective that $X.X I issued earnings tax XX.X%. Adjusted press uncertain tax from revenues accrual a non-GAAP was year for to ago. X.X% release that same EBITDA the GAAP our this and quarter compared reconciled in to are the of

Our quarter. the fourth no financial totaled year position strong million in cash the million remains debt of and fiscal of fourth $X.X million $X.X $XX.X Capital quarter at for and expenditures the with XXXX. end

to continue balance our maintaining allocation to priorities value In to addition for a stockholders. focus capital we sheet, strong on drive

our approximately quarter, cash stock under to During in million repurchase common used the we approximately stock authorization. repurchase XXX,XXX $X.X shares of fourth

used we of to million approximately approximately common XXX,XXX XXXX, fiscal in During shares stock. $X.X repurchase cash

there As under remaining XX, of still is $XX.X authorization. stock our XXXX, repurchase million June

in announced to XX, $X.XX be beginning fiscal common $XXX,XXX September a approximately paid will XXXX, stock or stock record through the also X. stockholders per share the September Since as of value of XXXX $XX.X dividend have million our returned dividends. We in quarterly aggregate. to of cash and stockholders This we repurchases on dividend of of total

XXXX, $XXX Turning to range to revenue our will million. for $XXX our year outlook anticipate be we of million fiscal the full in

$X.XX the range the million adjusted in earnings million $XX $X.XX per to to share. share We expect per of range EBITDA in non-GAAP $XX non-GAAP adjusted of with

that, our We continuing to questions. turn adjusted committed let the over EBITDA and margins, for me our operator reach to back we are target improve well to Operator? with on of call long-term believe are digits. And the low to track we double

Operator

question is Lane Doug with Tower Instructions] Our first Research. Water [Operator from

Douglas Lane

fiscal outlook starting the here, on for Just Carl. off XXXX

in where help of give load? Or but XXXX? a for a and consistent guidance, off this you full you digits can coming challenges sales expect growth cadence? flat fiscal mid-single you improvement more back to something Is don't you pressures, to quarter-over-quarter of be a mentioned, or give are couple for is us looking You're And little quarters going up a you I half XXXX. know, quarterly with there year

Carl Aure

do question. year, moderate fiscal do but in Doug, Thanks, launch see in lower each momentum we've Yes. to back in anticipating following. build we're had, 'XX. we I QX QX expect the surrounded Yes, that for improvement to we bit that got I as that to look comparison quarters, half think be the the quarter in will a QX mean, expect the momentum following the with likely towards -- forward the especially XXXX, we and FY we product with of a and we to expect a that the other in little QX lot

Douglas Lane

is just the sort improved the that I helpful. in I was consultants sequential more and one about driving I first point the notice your just could I for interesting active not in trend, total sequentially customers mean is that years. number. which longer-term change dynamic. I improvement comment me you -- wondered That's active And that released And just the wondered number really Okay. but stood accounts. to an a of actually you time trend that accounts, what's did if one reversing out is in a don't it's

Steven Fife

glad Yes, Doug, noticed I'm you Steve. this is that.

this recently existing working and of and and our that people through plan, U.S. year And really And optimize our is, about know, to as as the when are pleased then earlier launched that. both how Europe. I understanding attribute Japan the Australia. is reality months and in in that the working the that, new to in more -- with Mexico as Canada, the transformation company we've refresh the now And within been plan. We well we on XX leaders they attraction this for now compensation a first plan can you place

retention. now think I it's what from And well, are standpoint. enrollment it -- we So improved it's seeing improved growth has an our is

in out So in enrollments to we a are and is and quarter had now have improvement increased point trend, -- believe but U.S. as this I data we And the forward especially are one growing last retention, bottomed both QX, we you said, sequentially. not that in looking

Douglas Lane

business Have leadership. there an for some selling model has you marketing? been from pick from these there traditional direct any changing had to away to any -- more of there impact LifeVantage concepts some affiliate Is other their up opportunity

Steven Fife

plan activity It's one affiliate as absolutely. it that back, plan the of make of attractive the this and trend They're providing to still But are premises to key is when all people our COVID attributes the we of changed kept of consulting avenue of The those products. we well individuals. for traditional it look our also of there the is Yes, anticipated very beauty plan teams. is an for to business. them to and more things as model, about one noise in who interested for really, we more that occurring of selling we coming more compensation as the just want those best that and attractive want was much more build minded out and more a build entrepreneurial kind very

forcing at those than plan element or kind hard individuals rather the to we're a which when new going to decisions path a of So and they're or joining having which follow, make add really to a around model to LifeVantage. decision make beginning

said, And however beginning we're people to like or products plan of I building freely to just benefits they move the Our and think want and allows to then see. just teams. that between selling that join I

Douglas Lane

what's and the turbulence management these that to with participates about pay might thing weight an attention weight and how in just space the currently been anybody to certainly for Okay. then That raise to about disruptive with Medifast get those days. sense. on decision at WeightWatchers, eyebrow of space the such us makes going that that whole And it's into GLP-X in management

to maybe it competitors? approach to your on segment? help be your management, what's the bit down offering? more little differ does if the So what's weight a from could And going that you How build

Steven Fife

Yes.

that You're as is, There adopted think lot and over legacy, built most there, of and is science grounded that's turbulence just last right. standpoint but I approach our it's LifeVantage's we've true from the on been several recently, the we've in a a activation story. years,

line And foundation then, body If LifeVantage. And recently you it NrfX that think proteins threats. guess, to look years -- create other a introduced products their we X product the or that And of combat More we in of introduced, a pipeline as oxidative collagen beginning, helps I activates that core activate know, path or it since our other is generate Protandim you product collagen. all that that And ago so. as about our at we -- in at the help and an what was focus in we skin was back story. thought story have need the happening products, that that in activation activation our there's no with certain management. and very why to line create pathways bodies that the can't have weight on those create marketplace, to is antioxidants reason we've care the

GLP-X we to X/X that and results human believe are year be also about now, and differentiation promising. testing hunger the will do. those And in the of and middle has extremely a is what powder launching that close It to can benefit in then of the X-part the And through preliminary that of we of system, that, the testing and we tracking a XXX% of vitro product tablets right results of a the so ago, are proteins. our here, benefits October food a we it's And clinical noise, suppressant. through development activates the natural. still started are the couple the there probably We're a of way reducing we kind a

of but a an diets This intended So to be think -- space it and And a now, it's the those to not we noisy the benefits. of fat, have alternative get X-month of these to targeted is are entering take all all -- you yo-yo is of of stability the quick of where then to the out continue something go of it's really this types isn't manage things. we and just health, But that's provide it. helps weight weight just of after the you weight lose and would amount confidence that you you off it the loss your that help product mental to targeting, individuals. but of

And so that mark -- what see in what we're with we is a healthy that product, what And the are but believe in of we on and optimistic about very trends have October, lies ahead us. marketplace. still the very differentiated we'll one

Operator

no for are call at There like hand back questions closing time. Fife over comments. any to this further would I Steve the to

Steven Fife

Well, community diverse and we business call, you. next and joining edge value committed conclude, consistently look emphasizes after our goals you extend thank while GLP-X us strength This distinctive you, competitive financial of faithful engaged model customers. innovative our on is the coupled weight to be range launch unique everyone, their I an forward enabling consultant stockholders that team, which today. for will positioning my leadership as we build the businesses Thank dedicated to system. us by our management the stockholders. We substantial The terms a pursue individuals a our employees, new future, appreciation of position. long-term establish to collectively independent a with want for for of strategic products, robust updating our of outstanding to own consultants, on And complemented platform, our our to empowers

Operator

concludes today's conference. This

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

LifeVantage (LFVN) 28 Aug 242024 Q4 Earnings call transcript