• Revenue: $49.8 million for Q4 2024, up 9% year-over-year.
• Procedure Revenue Growth: Increased 5%, impacted by transition to new software and training focus.
• Dietary Supplement Revenue: Increased 10.2% year-over-year, benefiting from transition to Amazon Channel.
• Gross Profit Margin: 71.8%, a 247 basis point increase from Q4 2023.
• Selling, General and Administrative Costs: $33.0 million, up from $26.2 million in Q4 2023.
• Net Income: $3.5 million, compared to $12.1 million in Q4 2023.
• Net Income Per Share: $0.10 per diluted share, down from $0.18 in Q4 2023.
• Adjusted EBITDA: $15.1 million, up 11.4%, with a margin of 30.3%.
• Cash Flow from Operations: $45.2 million for fiscal year 2024, up from $26.9 million in 2023.
• Cash and Cash Equivalents: $39.3 million as of December 31, 2024.
• 2025 Revenue Outlook: $202 million to $208 million.
• 2025 Adjusted EBITDA Outlook: $59 million to $64 million.

• Warning! GuruFocus has detected 3 Warning Signs with BTMD.

Release Date: March 12, 2025

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

Positive Points

• Biote Corp (NASDAQ:BTMD) reported a 9% increase in fourth-quarter revenue, reaching $49.8 million.
• The company achieved a 247 basis point improvement in gross profit margin, reaching 71.8%, due to cost savings from vertical integration and effective cost management.
• Biote Corp (NASDAQ:BTMD) successfully launched its proprietary BioteRx wellness platform, which is expected to be a key competitive differentiator.
• The acquisition of Asteria Health has strengthened Biote Corp (NASDAQ:BTMD)'s control over its supply chain and product quality, enhancing gross profit margins.
• Biote Corp (NASDAQ:BTMD) has a strong cash flow from operations, with $45.2 million generated in fiscal year 2024, compared to $26.9 million in 2023.

Negative Points

• Procedure revenue growth was negatively impacted by a reduction in procedure volume due to the transition to upgraded clinical decision support software.
• New customer growth has slowed as the company focused on serving existing practitioners, impacting procedure revenue growth in the first half of 2025.
• Net income decreased to $3.5 million in the fourth quarter of 2024, compared to $12.1 million in the same period of 2023.
• Selling, general, and administrative expenses increased to $33.0 million in the fourth quarter of 2024, up from $26.2 million in 2023, due to employee-related investments and legal expenses.
• The company expects first-quarter 2025 adjusted EBITDA to be approximately 5% lower compared to the first quarter of 2024 due to increased sales and marketing activities.

Q & A Highlights

Q: Can you help us reconcile the 2 to 4% procedural revenue growth guidance? What portion of that revenue growth is expected to come from new practitioners versus the current base? A: Robert Peterson, CFO: The 2 to 4% guide on procedure revenue growth is driven by new customers, which are crucial in an annuity-driven business. Growth in new customers is material, and while we grew new customers well in the first three quarters of the year, the focus shifted to the CDSS launch. It will take a couple of quarters to refocus on driving new customer growth.

Q: Can you provide more color on the three areas of focus mentioned, particularly regarding the new software implementation and its impact on procedural business growth? A: Bret Christensen, CEO: The focus is on servicing top-tier accounts, ensuring the new CDSS is fully operational, and driving new clinic starts to fill the top of the funnel. The CDSS launch was disruptive, but we are now refocusing on new starts and improving commercial execution to drive growth.

Q: Are patients being lost to GLP-1 offerings, and how do you view the compounded GLP-1 space? A: Bret Christensen, CEO: GLP-1s are part of our offering to remain competitive and meet clinician demand, but they are not core to our business. Our focus remains on hormone optimization and wellness. Marc Beer, Executive Chairman, added that there is no evidence of GLP-1s affecting patient interest in hormone optimization.

Q: Regarding new practitioner additions, were you unable to onboard new practitioners due to the CDSS focus, or was it a matter of not signing up as many new practitioners? A: Marc Beer, Executive Chairman: While new clinics and practitioners were added, the field's focus was on minimizing the CDSS launch's impact on existing accounts, which slowed the flow of new practitioners. The focus is now shifting back to new practitioner growth.

Q: Can you discuss the benefits of the broader product offering with BioTRX and the potential for acquisitions to expand the platform? A: Bret Christensen, CEO: BioTRX offers a comprehensive platform that includes testosterone pellets, nutraceuticals, and more. The focus is on the entire Biote offering rather than individual products, and there is potential to add more products to the platform in the future.

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