LFVN - Earnings call transcript Q2 2025

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to today's conference call to discuss LifeVantage's Second Quarter of Fiscal 2025 results. [Operator Instructions] Hosting today's conference call 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 second 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 Steve 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, LifeAnage's is it of call have the will on being at the website the is replay

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

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

Steven Fife

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

thrilled are MindBody is our having impact system the second transformational business. to quarter We share new results, GLP-X demonstrate on our which our

QX in GLP-X year-over-year initial nearly with to up points million, our growth versus million also EBITDA Our of performance in and basis quarter expectations, doubling of first The or than success of gross patent-pending more XXX with system MindBody representing and remained Profitability has $XX.X XX%. exceeded prior adjusted its from $X.X significantly since revenue of October growth of our XX% revenue. strong sequential metrics year been X.X% launch remarkable. U.S. the margins

out inventory to and the that our launch. had backlog collagen the in compared mid-December, While inventory significantly end by of pleased sold initial additional we received orders we by to I'm just continued This successful take quarter, occurred throughout to despite XX more and rapid our sellout liquid initial ordering days, inventory report our December. cleared

to chain secured strong we capacity capacity with current the meet and demand volume. our launch our than supply importantly, higher strengthened have now seeing manufacturing our we're initial More sufficient continued significantly

particularly Our of enrollments XXXX. in are number including quarter active highest the since encouraging, accounts metrics a

among active to XX,XXX metrics our XX%, in activation clinical lost increase average, a and accounts shown MindBody visceral their the and results and a have to in XX% increase independent positioned aid we muscle of GLP-X the XX% a also production compelling and accounts which XX%, sustainable ownership lifestyle a by catalyst in are notably management consultants food using for resonating naturally initial early innovation reduction are region the benefits. in approach including results, X.X%. after meals increase long-term are noise. format including the is daily natural seeing to that of of our These reduced feeling other indications The longevity. in clinical of looking discovering cravings, fact as The a All to Consumers exemplifies broader and positive for leading very our above up. with strong weight cellular to MindBody currently management. also mass. by the active maintain QX, weight the combined compared fat GLP-X MindBody, with impact system health a benefits system to while of has in a delivered Americas fits up fat across portfolio opportunities QX, been fuller by customers. numerous the During those growth, are are product U.S. on number that a products. Subscription And increased derived body total also reflecting are or in of approach, and XXX% routine cross-selling who XX% a and reduced up of weight in we ingredients strongly MindBody typical trending consumers this the sustainable number activation longer

targets recent are I'm aging call study with and XX not stack. the new organs. cell but NrfX what see activate in products the GLP-X the benefits of The genetic on healthy This in also to each Synergizer findings internal excited impact remarkable. of us synergistic share of the Protandim combining When amplify MindBody don't aspects we system results third-party aging only of an many together, activity of our our vitro individual that new cellular used benefits our key these genes. other's health weight

body's enhanced results, X fat and amplified X while were additional showed antioxidant the of pathways, use the to pathways fatty effectively. the acid activated to ability metabolism optimize distribute through study to additional Speaking antioxidant activation and the defense

can journey products work our not in but This deliver findings also our together metabolic product reinforce healthy combination and to weight supports benefits aging. customers. cellular health management, our our demonstrate cellular scientific customers' wellness just promoting enhanced by and resilience, addressing These activation leadership how for

MindBody for preparing the the of system Looking rollout March. in beginning ahead, international we're

U.S. following measured our training the in We're proved and the represents significant revenue, we the XX% approach in how that strategic that than role the currently Given of markets. as education about including consultant expand see hormone, it its activated. so U.S. and body GLP-X comprehensive other same opportunities we more our growth successful into launch is

Our modernized evolved been our to crucial success. compensation plan has

new LifeVantage, our flexibility to builders, us expanding planned in The helping base have new audiences. enabled supporting channels, while core traditional the of bedrock us business product-focused and into reach retain sellers consultants

elements, in plan, current success we're with top helping sharing consultants. This November bonus and simplifying for further The new evolved markets opportunity. X Evolve our we're are the compelling new example, on other to interest the launched substantial science-backed compensation followings bonus seeing products of our influencers consultants latest is drive including with for demonstrable new increasing on accelerators strong are along seeing. earning to the our enrollment For compensation by from path attracted who our numbers enhancements

commitment experiencing, while to profitability to in rapid approach to maintained growth We're metrics the unchanged. maintaining strong the we're costs. in continuing Our sustainable profitable And growth our make quarter. we remains initiatives growth disciplined investments despite strategic

the on system realizing for fiscal Looking and consistent to March; international stages cellular half activation. segments to supply product The launching we market MB and significantly of high as building awareness addressable its in markets still brings of our our our believe one, our our in to and to activation We expands to digital initiatives: demand successfully leader our four, customer in ability the ensuring our to the system XXXX, position reach the platform brand capabilities several tools; three, we're March; early funding new six, in focused key as our customers greater profitability system business. to meet MindBody enhance consultant new while launching transform total markets of metrics Evolve MindBody plan continuing strengthens compensation the potential health our starting five, strong the we're maintaining in our initiatives. remaining Asian second growth and full

deliver. selling to we excited brand I'm we're growth business bring City, back-end April our Chief plans. in and will This a for technologies experience will our for our launches global in we'll brings of further we driving customer-facing as JetBlue be that systems upcoming as that critical convention Airlines, announcements international Thompson, in will operations, our on consultants together our that Todd decades record launch solutions only recently direct celebrate where growth energetic the and Additionally, transformative MindBody, about for Atera. experience scaling Officer. vibrant can track Innovation business organizations of improving accelerating customers. pleased and Salt centered in our infrastructure our Todd's global delivering consultant welcomed Todd and community activation successes, initiatives. the growth global field technology digital build and His our for be as event also to and announce will training, support momentum proven exceptional and international Starwood Information including prominent enhance Hotels particularly we experience scale in invaluable Lake

summary, very with our latest results. we In pleased are

reflecting Our for model, the own establish long-term business financial platform, remain for and strength to distinctive strategy of shareholders. that their coupled on position business with edge terms exceptional focused well performance our of to continued success. our individuals of us deliver growth momentum, The in incredible We has MindBody months. recent value businesses our our the competitive executing empowers strong on

to detail. financial review Carl? me turn quarter to let Now in over Karl the call our results second

Carl Aure

Steve, Thank good everyone. and you, afternoon,

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

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

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

the currency impacted in $XXX,XXX revenue Foreign second negatively quarter. by

in States. to impact prior reflecting increased as foreign Revenue the negative the of the results compared up quarter million launch second our XX.X% approximately of MindBody the from currency strong period. quarter, October region in $XX.X Americas to GLP-X in Excluding United the was fluctuations, system exceptionally XX.X% year the revenue

our active Total in in driven was XX% prior quarter by active XX.X% the from region and negative average accounts XX.X% year exchange period also and up from quarter. in in current the Asia the rate in Americas a increased in million Europe Total was Pacific $XX.X impact up currency decreased quarter. the foreign total comparison Revenue decrease fluctuations. per in and the accounts XX.X% XX.X% to primarily the sequentially first consultant to the revenue Americas

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

The incentive-related basis improvement strong expense compared was as XX.X% was the well XX.X% a the a impacts in higher within to quarter, accounts including in XX% and XX.X% sales product lower commissionable margin growth independent point period. margin period. due programs, revenue. and due inventory-related factors promotional the as commissions mix variance The the of Gross sales within expenses. existing increase due from in higher to percentage and from and our additional to prior our incentive MindBody customers revenue in year was and second XXX of expense and inventory obsolescence mix mix as gross lower overall year increase qualifications noncommissionable in up between consultants to in Commissions active primarily change revenue and changes prior was rapid between and our

$X.X rate The the year $X.X second year to impact period. of which tax tax effective adjusted income share an year rate $XXX,XXX decrease expense period. our compared due second adjusted ago. million Non-GAAP full Adjusted compared recorded or $XX.X discrete XXX the effective per $X.XX now million year revenues $X.X non-GAAP compared items. We million second expense or million to $X.X with of and of lower the fully be of income of $X.X quarter XX% approximately or XX%. was approximately in million prior for was non-GAAP share XX%. of to EBITDA quarter, in period the year in fully period the of our and points million diluted of prior and to the SG&A non-GAAP was operating effective basis period compared a Adjusted was compared in adjusted X% FY in income $X 'XX same XX.X%. with to translates a in Adjusted net prior rate tax year $X.XX X.X% We was per expect a XX% percentage was $XXX,XXX revenue tax and income to to the non-GAAP income an benefit tax to diluted $XX.X in operating in as quarter the prior million million of rate the

from adjustments the in discussed press of all that I are note that Please issued to earnings release reconciled non-GAAP our this GAAP today afternoon.

quarter Capital million end strong second anticipate quarter. the compared totaled expenditures debt expenditures in fiscal the to remained same XXXX. total position of be financial with to Our a $XXX,XXX and capital in million approximately $XX.X $XXX,XXX cash $X.X period second ago. at no of the the We year in

did of second XXXX. XXX,XXX capital to we've Turning for first XX, not the allocation. fiscal million. ended repurchase the shares Through price repurchased XXXX, purchase an December aggregate during we quarter any shares of X months $X.X

there share existing still December was million repurchase authorization. under $XX.X XX, XXXX, of As our remaining

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

our on balanced allocation We to strategy capital to stockholders. value continue in order drive our for focus

revenue raised January we XXXX. to the million $XXX midpoint fiscal fiscal for guidance. a our announced XX% million QX and from previous $XXX to preliminary outlook our increase to On our at Turning outlook XXXX X,

are our We to the low and to to over $X.XX EBITDA to we range prior future. from now reiterating non-GAAP EBITDA of turn the in be earnings $X.XX of with We improve and believe committed our target and guidance adjusted share back Operator? to to $XX this track And to are $X.XX long-term near call me digits the questions. remain million, on for versus very per to million the margins adjusted continuing let operator that, double $XX well now revenue reach up adjusted $XX to of million previously. $X.XX expect $XX million

Operator

first is Our question Markets. O'Neil from Brooks Street with Capital Lake Instructions] [Operator

Unknown Analyst

Are This Brooks. is at the you Aaron Cool. the line mic. for on Yes.

strong So quarter. the on to congrats I start. guess

of do the like quarter? the accounts second on this brand influencers, on awareness. the a plan of guess parter to to with question, the And in you saw and that growth So social do off efforts how solid continue micro build look recent focus what sort and attracting sort more scale sellers to you back I of conjunction, around

Steven Fife

thanks. Yes,

area We we we to that looking are I largely in and my they've consultants brand consultants But as would but our are a and as earlier expand relied our on say our to base voice in script, I'd To offerings. talked -- management product our support. independent necessarily be done weight the product in date, don't we company, think little we've new of phenomenal that participate know a just but not current broadly job. awareness, bit the

so we initiating LifeVantage. are collagen going be with company. and proactive to a in products And the but and particular. of some activation the as very we who MindBody LifeVantage outreach And key drive also to around some our advertising are higher company and Protandim awareness targeting

people the they is there they and MindBody seeing for to join start get bit attraction. of see they get us, -- are individual that who that or of benefits opportunity see have this is success offerings. us other It's social product we where -- educated And more then so seller sellers just that talking the But we up kind think our I just sure. of join we're a had that And we situations are in because really another. on they to how lot that follow as than They amazing circumstances have and a call bigger these with, them much build. continuing a signed see is a that and X people to little -- social we've it, following

this channels. well about to message We our through are existing as is also what base doing their consultant excited drive

Unknown Analyst

towards for bit quarter the this we expenses post potential any would launch higher should question Carl. No, associated II to on a Phase initial this Are were just material with but there quarter in looking helpful. tailor there maybe super higher that's be number, Absolutely. some launch maybe line some more next expenses the this Understandably, lumpiness color great. be And and top there little additional then

Carl Aure

can share I Yes, details. sure, few Aaron. more a

here forward to on see incentive elevated to particularly costs, some in line. look -- still we we expect As the QX, the

programs One talked some actually little this through preexisting in had we I And QX, the year. of that the of script. qualification in runs incentive bit incentive the a big existing for that had we increases about March

in will saw there XX% in line but that range. QX, not back here costs it will -- to extent that be continued so incentive a ultimately, in that, the same And that we some elevated decreasing gradually then on we And be normalize down in QX, bit. to say, expect

the that's so expectation. And

incentive and commission the behind of I really the think outside the majority us. costs expense, So launch-related are of

Unknown Analyst

guys. Congrats again,

Carl Aure

Thanks, Great. Aaron.

Operator

Alex with Our next is Fuhrman Craig-Hallum Capital from Group. question

Alex Fuhrman

wanted the -- to a little ask of margins. the I bit on launch. successful MindBody system. Congratulations really a about

a flow quarter, the flow-through the about for going GP couple help than the implies shipping of what costs the like to of pretty and headwinds takes understand and you on the back is like on You to puts that the and over It despite be program. extra but the headwinds, think to related the comp some rest margins through you And quarters that incentive fiscal in as and those of next half second out the guidance why QX the still year program couple is? was margins called us year? seems strong, in the incentive EBITDA of are lower the revenue incremental of kind that. Can the the to incremental

Carl Aure

at maybe you'd take Steve, actually Alex, back consistent in or of better flow-through, as can look half the if the flow-through year. that any like. first But think be will add a then you slightly I I that, crack the even can at and Yes. we comments the

and still the in comp the QX. going incentive-related that's that We'll expect into I we some be see commission through QX of 'XX, we that question, and just are mentioned see normal expenses really payout in related have we But QX some adjusted incremental also in SG&A I and variable should structure. the beyond and think elevated EPS. I think leverage where to anticipating and that the previous As elevated to flow QX in running forward, forward, here EBITDA through benefiting flow-through additional similar FY looking higher the

Alex Fuhrman

if total a of had the on just helpful. the it's it partial also of could kind revenue only quarter on you obviously, sense October. launch how give you ask of first company and really progressed, impact product of the That's for the throughout the selling just And Okay. pretty in huge in then timing was revenues for a I Can MindBody month-to-month a imagine the quarter? us launched. how trended month or new I

You to throughout contend with little kind month-to-month a us of sense into and give January? had of the you a bit a lot demand November. stock played of quarter in outs out Can of how

Steven Fife

Yes, we had about can October frankly, was, us. Alex. for that, And I -- talk massive

standpoint. So end the like history know in what I the And think the of month out inventory the it of have happened but would revenue month, from don't we was of biggest we run had a I'd company's did. before to not

the and I as And same of product. maybe enroll, well. other we able where telling you're weren't But of our took it. going consultants, and things that hard we to just energy during think could around time. people and to all money about ship selling wait people so to did And for about product December, on they period it's are X, to And to you half of holidays that November thinking their X around I have get keeping before weeks all a continue spending orders especially think, that then

in all middle and chain were had orders supply of proud kind inventory happy of super of operations by that stock our the of team order accelerating end able the in so December and fulfill to our of we to all And of I'm been back that get December. by fixes back and transit that

which we ended So the is X with quarter backlog, virtually fantastic.

month mean, as in slight we where a there January Now is answer think to were to And was I and there December. quarter. in with was so to in your in -- line to relates question, kind decrease of it I month month the --

they they in headwinds we receive received December. order those back they placed December. systems December. order people an on could situation, in November an the in joined that X was in October, received subscription, January think I one towards MindBody because of They order Because then of of this a all of had sets placed and and the did X have of and end

we so inventory it, And customers. when January we shipped at the beginning January we inventory, out that of -- reiterated our provided being was our into that took of how anticipated a that to in because guidance softer and little account the updated January

Operator

next is Our Water Tower Lane question from with Doug Research.

Douglas Lane

vis-a-vis Or orders? How MindBody has in subscription mostly now? on just subscriptions. Just expectations? Is that it the it one-off mostly come is

Steven Fife

Yes.

our Our low for average revenue about a digits that. basis. subscriptions, on month-to-month Doug, -- tracking above And are of MindBody double is XX%

it subscription people And subscriptions, think So positioning our refer to on there's normal it is that's and in I take a largely but weight rate and careful more and the products. we've it back lifestyle been this move has coming you for magic around your in really higher come to and of pill because a a as product. habits, that due management month a not to

looked buying time just and up MindBody, come about joining in signing the new where well. at, customer are ago. So X ship you and very product launch we -- joining with we of to One us is company of years encourage launched quarter. them a subscription were are to people also that when consultants in XX% with I'm I've a keep existing the period on during for customers to people subscription to, a of well for And compared XXs I on the most in was is people it didn't of that other it things subscription. But are over we low new X kind and we're subscription. the with that that's base of and on as guess, came we LifeVantage And a our and over that people was the of as a are in know, that and collagen, back pleased XX% strongly successful and quarter, in are weeks, mind, the people But have of the

we've from with we coming So rate purchase did higher collagen. MindBody the seen much people of that a outside with new

Douglas Lane

with now MindBody the in much the being the is of how quarter, And sold stacks science standalone? this earlier out versus coming

Carl Aure

Yes.

So XX% stand-alone later I would we're quarter, be the a think was revenue out you in seeing, more it to first of XX%, see in proportion high recent total we think the units, XX% but in the that of -- did if QX, the look probably MB-related especially stand-alone, but I if or That in a strategy. and see products. But some our going later would forward, X include MB in going that other expectations collagen our look you the month. the launch of to stacks higher we're believe the pack in NERF purchases months and are of trends proportion or where

Douglas Lane

Right. be... That would

Steven Fife

it's result of MindBody. with introduced amplification Every body that of study the same reaffirms at kind you products with back thing that out, see ago with years of in the a X when an mind vitro we the X. and Protandim. and the taken story Protandim at vitro Protandim when really Yes. really that is NAD, that month, look taking we NrfX We college. saw with talked Protandim the staggering product same And something anchor now about findings X, results new products, this we the and And did NRF that strategy. going those in beginning our with as pretty that's about we pointed time is amplification And

that, -- So our and the our are collagen. to used again back Tri-Synergizer going selling consultants and to then

system passes, grow Carl we'll time of stack rather MindBody. I sale as an percentage a product more increasingly to than of that a see approach as think just individual said, So or

Douglas Lane

No, that makes sense.

You have collagen. NRFX right, the same with thing, liquid and

coming even think together. the exactly X have all pending that X on them the been taken synergistic there's about I science assume Is -- of of benefits fair? out shortly I there's

Steven Fife

saw that from fair. other off but we our out. we've know yesterday, of that release started you formula. the if That's the international I fair. That's did thing MindBody release results don't that rolling And And

We markets to sales U.S. all very have consistent, Japan formula. in international April, and expect March the end towards our of internationally but from starting are that our then in to results in other similar vitro product the of

And so international formula have well. to it's exciting information as that our corroborating

Douglas Lane

just thing. balance one And sheet. in the last I noticed

in you were now couple ago. is to $XX.X You're of where declared dividend when special a a back million which you years cash,

the So for we special dividend up about think opportunity how should coming a here?

Carl Aure

Yes.

I think option, Doug, some we us And want that balancing also the I to on think feel well. a in on to past. always for table. business be make investments the we other that lever of in we that we're But is against good pretty found the internal as the that

can we awareness were real internally. talked get Steve benefits in about in we the As other investments call, talking earlier where brand and maybe areas some related in

MB that. make is we're need And support to expecting inventory internationally. to growth thing we launches sure and that got we we've the balancing and make up sure do we're the shore enough And we want we successful are other in the worldwide to so that expecting

to sure we're make -- the is is have that had certainly is we of want we the into an same I launch. where with the situation, inventory U.S. run option forward. us and and dividend a we But Overall, a some though, we something special it's So don't -- going ahead fair issue point, think do that's for

Operator

the for reached turn the conference Steve to I to over have our like remarks. end question-and-answer back closing We would session. of

Steven Fife

all thank to I And want for today. just Thanks. us joining Yes. you

wanted our a look we and updating lot. our forward we loyal As appreciation and this to consultants our extend Thanks wrap results. to very and of I next you my passionate to up, customer stockholders employees, all our independent you base, with

Operator

This you. today's conference. conclude Thank will

thank your participation. You time, may for lines at your this disconnect you and

LifeVantage (LFVN) 5 Feb 252025 Q2 Earnings call transcript