In This Article:
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Biote Corp (NASDAQ:BTMD) reported a 4.7% increase in total revenue for the first quarter of 2025.
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The company's dietary supplements business showed strong performance, with a 25.5% increase in revenue, primarily driven by e-commerce growth.
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Gross profit margin improved by 300 basis points to 74.3%, attributed to vertical integration of the 503b manufacturing facility.
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Biote Corp (NASDAQ:BTMD) is implementing a strategic organizational restructuring to drive sustainable, profitable growth and create long-term value for stockholders.
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The company is expanding its sales force by approximately 25% to accelerate new clinic growth and strengthen relationships with top-tier providers.
Negative Points
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Procedure revenue decreased by 3.6% due to reduced commercial effectiveness and a slowdown in new clinic additions.
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The company experienced a minor decrease in procedure volumes and select reductions in average selling prices.
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Biote Corp (NASDAQ:BTMD) anticipates a one-time restructuring charge of approximately $0.6 million to $0.8 million in the second quarter of 2025.
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The company acknowledged that 2025 will be a transition year financially, with potential risks around achieving the 2% to 4% procedure revenue growth target.
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Increased selling, general, and administrative expenses by 16.4% reflect higher investments in sales and marketing, impacting adjusted EBITDA.
Q & A Highlights
Q: Can you provide more details about the supplements business and whether the recent performance is sustainable or if there were any one-time factors involved? A: (Bob Peterson, CFO) The supplements business, particularly our e-commerce segment, performed better than expected. There were no one-time factors; it was solid performance in the e-commerce space. We see a solid runway for growth in this area.
Q: What are the main factors affecting the procedure revenue, and is there any change in the competitive landscape? A: (Brett Christensen, CEO) The procedure revenue was mainly impacted by volume-related issues, not significant changes in the competitive landscape. The launch of our clinical decision support software (CDSS) last year slowed new starts and distracted our field organization, which affected procedure volumes.
Q: Can you elaborate on the recent sales force realignment and its expected impact? A: (Brett Christensen, CEO) The realignment is focused on growth, not cost-cutting. We increased our sales team by 25% by transitioning support roles to sales roles. This change aims to enhance focus on growth and improve commercial execution.