• Total Revenue: $51.4 million, up 12.8% from the prior quarter period.
• Procedure Revenue Growth: Increased 7.1%.
• Dietary Supplement Revenue: Increased 21.7% year-over-year.
• Gross Profit Margin: 17.5%, a 160 basis point increase from the third quarter of 2023.
• Selling, General and Administrative Costs: $24.0 million compared to $23.8 million in the third quarter of 2023.
• Operating Income: $12.2 million, up from $7.6 million in the prior year quarter.
• Net Income: $12.7 million, inclusive of a $7.2 million gain due to a change in the fair value of the earn-out liabilities.
• Income Per Diluted Share: $0.33, an increase of 38% year-over-year.
• Adjusted EBITDA: $16.2 million with an adjusted EBITDA margin of 31.5%.
• Cash Flow from Operations (Year-to-Date): $32.9 million compared to $19.9 million for the nine months ended September 30, 2023.
• Cash and Cash Equivalents: $38.2 million at the end of the third quarter of 2024.
• BioteRx Enrolled Clinics: Exceeded 1,100 clinics.
• 2024 Revenue Guidance: Adjusted to $197 million to $201 million.
• 2024 Adjusted EBITDA Guidance: Adjusted to $58 million to $61 million.

• Warning! GuruFocus has detected 4 Warning Signs with BTMD.

Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Biote Corp (NASDAQ:BTMD) reported double-digit growth in both revenue and adjusted EBITDA for the third quarter of 2024.
• The company achieved a 15% improvement in adjusted EBITDA compared to the same quarter last year, with margins exceeding 30%.
• Biote Corp (NASDAQ:BTMD) introduced enhancements to its Clinical Decision Support software, which are expected to strengthen its competitive position and support growth objectives.
• The company has successfully integrated Asteria Health into its operations, yielding expected cost savings and strengthening its supply chain.
• Biote Corp (NASDAQ:BTMD) reported strong cash flow from operations, with cash and cash equivalents increasing to $38.2 million by the end of the third quarter of 2024.

Negative Points

• The introduction of enhancements to the Clinical Decision Support software caused a temporary disruption in procedure volume.
• Hurricane Helene caused clinic closures in several core states, impacting third-quarter procedure volumes.
• Biote Corp (NASDAQ:BTMD) adjusted its 2024 financial guidance downward due to temporary headwinds impacting fourth-quarter results.
• The company experienced a revenue mix shift towards dietary supplements, which impacted gross profit margins.
• There is ongoing uncertainty regarding the state licensing process for Asteria Health, which could affect future operations.

Q & A Highlights

Q: Could you help us quantify how big the BioteRx business is now and where you see that trending over time? Also, how is the Amazon storefront progressing? A: (Teresa Weber, CEO) BioteRx is a next-generation platform offering enhanced tools and products for hormone optimization and therapeutic wellness. Currently, it contributes modestly to income but provides significant competitive value. (Robert Peterson, CFO) The Amazon storefront is progressing well, aligning with our expectations, and we anticipate continued growth into 2025.

Q: Can you explain the impact of the Clinical Decision Support software disruption and how you're addressing it? A: (Teresa Weber, CEO) The software enhancements caused a temporary workflow adjustment, but we've seen a rebound in recent weeks. We're providing additional training and support to clinics. (Robert Peterson, CFO) The disruption impacted growth by about 2.5 percentage points, but patient demand and practitioner loyalty remain strong.

Q: Could you provide more details on the new software's capabilities and its impact on your offerings? A: (Teresa Weber, CEO) The enhanced software personalizes treatment based on specific patient data, expanding our ability to treat a wider range of patients and offering comprehensive product recommendations. This broadens our appeal to mainstream providers and strengthens our competitive position.

Q: How is the integration of Asteria Health progressing, particularly regarding state licenses? A: (Robert Peterson, CFO) We have obtained licenses in approximately 30 states and are on track to continue expanding. We've converted about 50% of our volume to Asteria, resulting in margin improvements. We aim to participate in all 50 states long-term.

Q: What is your outlook for procedure revenue growth in 2025? A: (Teresa Weber, CEO) We are confident in accelerated growth for 2025, driven by strong patient demand, practitioner loyalty, and the expanded capabilities of our Clinical Decision Support software. (Robert Peterson, CFO) We are focused on growing top-tier clinics, expanding geographically, and leveraging our Nutra brands to support this growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.