NASDAQ:BTMD biote Q2 2023 Earnings Report $3.43 -0.02 (-0.58%) Closing price 04:00 PM EasternExtended Trading$3.47 +0.04 (+1.28%) As of 06:43 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast biote EPS ResultsActual EPS$0.44Consensus EPS $0.10Beat/MissBeat by +$0.34One Year Ago EPS$0.27biote Revenue ResultsActual Revenue$49.26 millionExpected Revenue$46.76 millionBeat/MissBeat by +$2.50 millionYoY Revenue GrowthN/Abiote Announcement DetailsQuarterQ2 2023Date8/10/2023TimeAfter Market ClosesConference Call DateFriday, August 11, 2023Conference Call Time8:30AM ETUpcoming Earningsbiote's Q1 2025 earnings is scheduled for Wednesday, May 7, 2025, with a conference call scheduled at 5:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by biote Q2 2023 Earnings Call TranscriptProvided by QuartrAugust 11, 2023 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:02Good morning, and welcome to the Bioty Second Quarter 2023 Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Simon Sarovietzky. Operator00:00:25Please go ahead. Speaker 100:00:27Good morning. Thank you for joining us today. Last evening, BioTE published financial results for the quarter ended June 30, 2023. This release is available in the Investor Relations section of the company's website. Terry Weber, Chief Executive Officer and And Samir Kamdak, Chief Financial Officer will host this morning's call. Speaker 100:00:45Before we get started, I'd like to remind everyone that management will be making statements on this call that include forward looking Research and development, manufacturing and commercialization activities, regulatory process operations, the impact of macroeconomic conditions on its business, results of operations, financial conditions and consumers and on the healthcare industry generally. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond our control. Our actual results could differ materially from expectations reflected in any forward looking statements. These statements are subject to risks, uncertainties and assumptions that are based on management's current expectations as of today. Speaker 100:01:35BioTE undertakes no obligation to update them in the future. Therefore, these statements should not be relied upon as represented in the company's views as of any on the SEC website and our Investor Relations website as well as risks and other important factors discussed in the earnings release. We also refer to adjusted EBITDA, which is a non GAAP financial measure, to provide additional information to investors. Reconciliation of the non GAAP to GAAP measure is provided with the earnings release with the primary differences being stock based compensation, You are directed to our Q2 2023 earnings release, which is available on the Investor Relations section of our website at ir.bioty.com for reconciliations of adjusted EBITDA to its closest comparable GAAP measure. I'd now like to turn the call over to Terri Weber. Speaker 200:02:35Thank you, Simon, and thank you all for joining us. On the Call with me today is Somer Kamdar, our Chief Financial Officer, who will review our financial results and discuss our outlook for 2023 Mark Beer, our Executive Chairman and Doctor. Ross McQuivey, our Chief Medical Officer are also on today's Call to help answer your questions during the Q and A session following these prepared remarks. I am pleased with the significant financial and strategic progress Bioty achieved in the 2nd quarter. We generated double digit growth In both revenue and adjusted EBITDA. Speaker 200:03:13Adjusted EBITDA margins came in near the upper end of our target range, highlighting the profitability of our business model even as we invested to strengthen our capabilities. During the quarter, we continued to broaden awareness of the benefits of hormone therapy and further build our practitioner network. From a strategic standpoint, we also formalized our commitment to men's health by launching a new division, focused And further improve the liquidity of our publicly traded shares. Starting with our financial performance, Revenue grew approximately 19% year over year, driven by growth in both procedure and dietary supplement revenues. Over the past several years, we've significantly expanded our dietary supplement offerings, providing a wider range of products To promote healthy aging and well-being. Speaker 200:04:16We view dietary supplements as a complementary business that strengthens BioTE's brand identity And helps diversify our revenue streams. In the second quarter, dietary supplements benefited from Successful seasonal promotion for our BioTE providers. Additionally, our recently launched direct to patient distribution channel Help drive supplement sales growth. 2nd quarter procedure revenue growth of approximately 10% It was broad based geographically, but moderated from our historic growth rate. Earlier this year, we realigned our sales territories To accommodate our significantly expanded sales team, we undertook the strategic realignment to scale our business more efficiently, Further strengthen our market position and accelerate adoption of the Bioty method into new markets. Speaker 200:05:10As our sales team grows into our newly scaled structure and gains productivity, we anticipate improving procedure revenue. Turning to our new initiative in Men's Health, we're excited about the long term growth opportunity for BioTE in this large and growing addressable market. With recent scientific research providing support for the safety and efficacy of testosterone therapy in men, We believe now is the right time to deepen our commitment to advancing men's health. Industry data suggests that approximately 20,000,000 men in the U. S. Speaker 200:05:47Over the age of 45 are affected by the adverse symptoms of testosterone deficiency, yet only 10% to 12% As we build the foundational elements of our Men's Health division, we're focused on 3 pillars supporting our strategy: awareness, Education, research. To drive awareness, we're closely working with our existing practitioners on the health benefits of the Bioty Method for men. We're also ramping up our sales and marketing efforts to better connect with the growing number of men who want to feel their best Regardless of their age, at the same time, we're leveraging our position as the foremost provider of hormone therapy Education and Research. For example, we are integrating new research supporting the safety and efficacy of testosterone therapy into our education programs. In addition, we are forming new relationships with key opinion leaders Specializing in male urology, we believe urology practices offer a key pathway to accelerating adoption of the BioTE In addition, We are expanding our strategic approach to more fully address the extensive opportunities within the dynamic and evolving market for healthy living solutions. Speaker 200:07:30For example, many of our patients have expressed interest in certain wellness products that are complementary to our existing hormone therapies. Working closely with our top providers, we're currently testing an And our next question comes from the line of Bioty's Q1 of 2019. Please go ahead. Thank you, Steve. Thank you, Steve. Operator00:07:51Thank you, Steve. Speaker 200:07:51Good morning, everyone. Currently, we're transitioning our sales and marketing efforts to encompass this broader category of therapeutic wellness, which includes hormone therapy, sexual health, weight loss and preventative wellness. We believe we can leverage the strength of our brand and our practitioner network to ultimately become a leading provider of evidence based therapeutic wellness solutions. Now I'll turn the call over to Sommer. Speaker 300:08:26Thanks, Terry, and good morning, everyone. Revenue for the Q2 increased 19.1% from the prior year period to $49,300,000 reflecting 9.8% growth in procedure revenue and 52.8% growth in dietary supplement revenue. As Terry noted, 2nd quarter supplement sales benefit from a successful seasonal promotion as well as continued favorable response to our new distribution channel. Gross profit margin was 67.9%, up 60 basis points from the Q2 of 2022. The increase in gross profit margin was primarily due to effective product cost management. Speaker 300:09:07Selling, general and administrative This were $25,800,000 a decrease of $87,700,000 or 77.3 percent from the Q2 of 2022. Excluding the impact of share based compensation, transaction related expenses and litigation and other, Selling, general and administrative expenses would have been $19,400,000 in the Q2 of 2023, Compared to $15,200,000 in the Q2 of 2022, representing an increase of $4,200,000 or 27.5 percent over the prior year period. I'll now provide additional detail on this quarterly expense increase on a year over year basis. $1,300,000 of this increase was related to the expansion of our sales team. We continue to expect the investment in our sales effort to drive improved procedure revenue. Speaker 300:10:03$1,000,000 of this increase was related to investments in our clinical and corporate infrastructure as well as technology to support our growth. $1,000,000 of this increase was related to public company expense for the period and $400,000 of this increase was related to the expansion of our marketing efforts. Operating income for the Q2 of 2023 was $7,700,000 compared to a loss of $85,600,000 for the Q2 of 2022. Operating income in the Q2 of 2023 reflected growth in revenue and improved gross profit, partially offset by increased personnel and other expenses to build our infrastructure. Operating loss in the Q2 of 2022 was mainly due to transaction related expenses of 18,800,000 And share based compensation of $79,300,000 at time of going public. Speaker 300:10:59Net loss It was $13,100,000 compared to net loss of $21,300,000 in the Q2 of 2022. Net loss in the Q2 of 2023 was due to a net change in the fair value adjustments to warrant and earn out liabilities of 18,200,000 Adjusted EBITDA was $14,500,000 in the Q2 of 2023 with an adjusted EBITDA margin of 29.5%. This compares to adjusted EBITDA of $13,100,000 with an adjusted EBITDA margin of 31.8% in the Q2 of 2022. Adjusted EBITDA in the Q2 of 2023 increased due to higher sales and improved gross profit, while adjusted EBITDA margin $800,000 and totaled $19,800,000 year to date. As we expected, operating cash flow for the Q2 of 2023 was lower As compared to the Q1 of 2023, primarily reflecting timing of certain annual expenses. Speaker 300:12:07I would like to highlight the improvements we have made with Back to our capital structure, as Terry noted, in June, we completed a warrant exchange offer and consent solicitation. Given the positive shareholder response, we exercised the right to exchange all remaining outstanding warrants and shares of common stock. As a result, we have greatly simplified our capital structure. Additionally, another successful secondary offering of our Class A common stock was completed, Adding to our trading liquidity without diluting shareholders. Together, these corporate actions underscore our ongoing commitment to optimizing our capital structure And increasing our trading liquidity to enhance long term shareholder value. Speaker 300:12:49Turning to our financial guidance. Resulting from the realignment and expansion of our sales geographies and evolving market dynamics, we forecast a more moderate pace of growth in the second half of twenty 3 as compared to our prior forecast. We therefore forecast that 2023 revenue and adjusted EBITDA Likely will be toward the lower end of our guidance range. Now I'll turn the call back to Teri for her closing comments. Speaker 200:13:25Thank you, Summer. Bioty remains on track for continued profitable growth in 2023. We have achieved significant strategic progress across A number of focus areas, while continuing to deliver solid financial performance. As we look forward, the preventative health market is evolving And Bioty's pivoting to meet our patients' growing needs. We envision a more expansive mission In which we build on our success and Bioty becomes a leading platform provider of evidence based therapeutic wellness solutions. Speaker 200:14:02We are taking key steps towards fulfilling this vision and we look forward to updating you on our progress. Now I'd like to open the call for questions. Operator, please begin the question and answer session. Operator00:14:16Thank you. We will now begin the question and answer session. Our first question comes from Lee Selewski from Truist. Please go ahead. Speaker 400:14:45Good morning. Thank you for taking my questions. Just in regards to your guidance update, can you provide a little bit more color on what you mean by in Efficiencies from realignment of sales geographies, has there been a change in which geographic areas you're targeting? And also secondarily on that is what color can you provide on the evolving market dynamics? Not quite sure I follow here. Speaker 400:15:11Are you seeing any unfavorable adoption rates? Or are the additional sales teams just being held back by internal reasons and perhaps not performing as you expected? And I have some follow ups. Speaker 200:15:22Thanks. Great. No, thank you for those questions. It was a mouthful and let's walk through that. So yes, we're pleased with The total revenue growth of 19%, but looking at those procedures, we did this realignment in the new part of the year. Speaker 200:15:37We added And honestly, it's taken a little longer than expected in some of the new geographies. So these are geographic. We have maintained the guidance, but due to this delay, we just directed you to the lower end of the range. We're very Confident on the market, we hired a top notch Chief Commercial Officer, Mary Poinshikar, and she's really come in And taking a hard look at optimize those geographies and how we penetrate the new markets. So what we want to do is kind of give you that Confidence that we are absolutely training 100 providers this weekend and we're very pleased with that Continued interest of the providers and the patients. Speaker 200:16:26So that's where we're so strong on confidence in this marketplace. When I was describing the second question, what we're talking about is these complementary evidence Space therapies that we've been training on since 2020. So we are becoming more of a platform provider With including hormone optimization, but we're looking at these other therapies that our age group is asking for, Such as that fascination with the GLP-1s, the semiglutide market, both our patients and our providers We're asking for this complementary therapy. It works so well with hormone optimization, and we have potential to offer that in a compounded form. So we've been training on it for years and now we're looking at that coming in and providing that access. Speaker 400:17:21Just great. Thanks for that. Just to build on that, you did mention broadening health categories, specifically weight loss, As you just discussed, I mean, what opportunities are available here and what internal investments would have required to get into these verticals? Speaker 200:17:38Great question. So what we've been doing is teaching some of our providers the number one trainers in those therapies in the U. S. Probably in the world. So we train on this, but we've just never monetized it. Speaker 200:17:53So in providing the access and Extending these therapies out in addition to the hormone optimization, we really, just extend what we've been doing for years in the training. We've got 6,400 very well trained providers who trust our brand and they're looking for access to this product that we can provide Without substantial investment. We've been training on it. We've got the expertise. Now it's opening the platform up that way. Speaker 400:18:25Great. Thank you. And just lastly for me, as far as your confidence in the guidance, As we walk through, I guess, 3Q now, is there a possibility you can kind of go essentially below the Lower end of the guidance, and just gives you what what gives you confidence there? And then, any possibility these Inefficiencies leak into 2024? Thank you. Speaker 200:18:52No, I'm very comfortable with the guidance. I think maybe I'm This 1st year publicly traded, we want to be very candid and that's why we wanted to talk to you about Guiding to the lower end because of these slight delays, but the market is very strong. One of the things we're seeing is strong patient interest, Really strong provider interest. There are not enough doctors. We're growing profitably. Speaker 200:19:18We continue these trends. But what we've got to do is get more doctors out there. We're creating capacity to train more doctors because the patients can't get in and get their appointment. So one of the things that Mary has brought is that relentless discipline of analytics to show These patients aren't getting into these getting appointments because there aren't enough docs. So we really know where we're focused in the second half of the year. Speaker 200:19:47We are above or faster in terms of training new docs than we had forecasted. So that's Good news and even better news is they're coming on board faster. So, the model is working. We want to say all that we're Excited about as well is the testing of the new complementary therapies in the second half And we really believe that that's just going to increase the TAM, absolutely increase the TAM in this patient base. Speaker 400:20:22Thank you for that color, Terry. Appreciate it. Operator00:20:27The next question comes from Jana Kim from TD Cowen. Please go ahead. Speaker 200:20:32Thank you for taking my question. It sounds like provider interest It's John, but just wanted to get any color or any changes in the number of procedures provided by these providers, just given macro headwinds and With more than your updates that you have on the retention rate as well? The retention rate is as strong as ever. We don't give you the exact number, but it's actually improving as we add the stickiness to our platform. These are very loyal Providers who believe that they identify themselves as Biotie certified providers. Speaker 200:21:10What we're seeing is capacity in the doctors' offices To take these appointments. So where our work is, is to get more providers trained and get these providers to open up hours To see our patients, right? That's our big, big focus and we're helping, that's what that's new sales force is so key on It's not only training them to find new docs, but they've really got to get into the docs and find how to add more patients, throughput. So the market is good. The doctors are providing as many procedures. Speaker 200:21:46They don't see a downturn. We survey them. We just had a we train every 2 weeks about 200 to 300 docs in the advanced training and we survey them every time about Do they see their Biot business slowing? What are their concerns? They do not see the Biot Slowing, what their concerns are is support staff in the offices and ability to get the patients through. Speaker 200:22:13So we really know the market is there, the TAM is there. In the second half of the year, we'll Focusing on making them stronger and really training more providers. Got it. And just one more from me. Just would love to hear more Okay. Speaker 200:22:37We have begun dual Language training in Tampa, so please join us. I don't think you've been to a training yet, so I'd love to have you join the international and that's Currently, what we're doing is we're bringing in all the interest of the international doctors into our Tampa training, which is every month and being able to provide that. So we've got, I think, so much opportunity in the U. S. I Continue to stay very focused, especially adding these new therapies that offer such a bigger TAM, to keep focusing on the U. Speaker 200:23:13S, Train the international at our current ones and look towards later in 2024 to expand that. We still believe in it. It's just Let's go to training, the immediate needs here in the U. S. First. Speaker 200:23:29Good. Thank you so much. Operator00:23:32The next question comes from George Kelly from ROTH. Please go ahead. Speaker 500:23:37Hey, everyone. Thanks for taking my questions. So first, just a couple more on your guidance. I just want to make sure that I heard you properly. Have you seen any kind of evidence of changing consumer behavior or just weakening kind of Hey there. Speaker 500:23:57The frequency of procedures. And the second part of that question is and Terry, I think you just answered this, but You're not seeing any kind of unexpected churn among your providers, are you? Speaker 200:24:09No, we're not seeing that and we're not Seeing any decrease in patient interest. We're definitely seeing access problems for the patients to get in to see the providers. And some of that may actually be this GLP-one, this semiglutide market. When those providers take those weight loss patients, That's where we've got to make sure that our hormone people get seen and treated. That's why we're looking at the platform to do it together. Speaker 200:24:38I don't know, George. I think you know us well enough to know that we've got very close relationship with the compounders who provide these additional therapeutic wellness, Great long term relationships. We just never turned it on. We never provided access before. We're Still so committed to hormone optimization, but if that patient is coming in, for that is looking for both those treatments, We provide access and we provide those algorithms for our providers, consider how much That increases the potential of our TAM. Speaker 200:25:14So there's no reason you go use the same platform. We've invested, George, in technology. How do we make the easy button for the providers? How does it easy to treat both therapies as well as some of the other products we train on In terms of sexual wellness, preventive medicine, hit it all through the same platform, provide the access and really Strengthen that Bioty relationship with them. Be the one stop shop. Speaker 500:25:46Okay, understood. And then maybe more on that. If you were to look a year, maybe 2 years out, how many additional therapies do you think could you could offer through your platform? And what is the model going to look similar to your existing model where it's you're Collecting a high margin stream and you're just sort of connecting the compounding pharmacies with the providers. Just any more detail The number of treatments you could offer and the model you're going to target. Speaker 200:26:19Yes. And George, I wish you would have been to some of our earlier training. We train on these Therapies are ready. Our doctors are experts in it in the U. S. Speaker 200:26:27They're the ones that train all the specialty training. So easy to Add what we train on anyway, hair loss, sexual wellness, you'll think about everyone interested in taking care of their bodies, They're getting hormone treatment and then what comes with adjunct therapies, right? If you have one platform like we have, It's easy for that provider and that patient to order. Think about what we've done in terms of being the premier Leader in the market, we provide that type of value. I think this only makes us stickier. Speaker 200:27:03Nobody wants to look for semiglutide. What we would provide is that access. We're testing it now, George. We'll be talking about it our next call. But we're very confident. Speaker 200:27:15We've got the access to the right manufacturers. We have long term relationships with them. And I think our tech platform, we've invested in it this year. I'm excited about We've invested in it this year. I'm excited about the skill levels to make it easy. Speaker 200:27:30What can we do to make it easier To get in and out of that practice and get everything you need for healthy aging. Speaker 500:27:39Okay. And then Maybe a last question. Your normal growth rate before this quarter, the procedure revenue, as you mentioned, decelerated In the quarter, I'm curious these changes you're making with new therapies and the realignment of the sales force. Sounds like the 2 halves impact will be minimal. We should expect a continuation of the Current revenue growth that you just generated, correct me if I'm wrong, but how long do you suspect it will take To get to that more accelerated, call it mid teens or somewhere in that ballpark revenue growth rate, do you think that's achievable sometime in 2024? Speaker 200:28:23Yes, absolutely. Feel very confident on it. We just took a little bit more than expected time this year, right? It's hard to Anticipate velocity, but that's all it is, George. It's just we're really comfortable on where we're at with these accretive Programs, right? Speaker 200:28:42The TAM is there. The patients are there. Our real problem is getting providers to open up appointments. And you know what, George, I've got to go find a way to train doctors, more doctors and I'm doing it right now. This is a change that the world's been looking for and it's really accelerated. Speaker 200:29:01So that's where we need to really focus here. Speaker 500:29:05Okay. Thank you. Operator00:29:09This concludes our question and answer session. I would like to turn the conference Back over to Terri Weber for any closing remarks. Speaker 200:29:17All right. Well, thank you so much for joining us this morning. We understand it's an early hour. These are exciting times. I can't stress that enough that we're excited about the great interest from the patients And the providers, it's only increasing and it's now our job to continue to lead the market and really dominate in terms of How to go to market best with evidence based therapies that we didn't talk about research today, need to make sure we Operator00:29:58The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference Callbiote Q2 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) biote Earnings HeadlinesBiote Schedules First Quarter 2025 Financial Results Release and Conference CallApril 23 at 4:05 PM | businesswire.comJefferies Reaffirms Their Buy Rating on biote (BTMD)April 9, 2025 | markets.businessinsider.comCrypto’s crashing…but we’re still profitingMost traders are panicking right now. Bitcoin’s dropping. Altcoins are bleeding. The stock market’s a mess. The news is screaming fear. But while most traders watch their portfolios tank…April 25, 2025 | Crypto Swap Profits (Ad)biote Corp. (BTMD): Insider Were Buying In Q1 2025April 2, 2025 | msn.comMarc Beer Buys Handful Of Shares In bioteMarch 20, 2025 | finance.yahoo.combiote (BTMD) Gets a Buy from Craig-HallumMarch 19, 2025 | markets.businessinsider.comSee More biote Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like biote? Sign up for Earnings360's daily newsletter to receive timely earnings updates on biote and other key companies, straight to your email. Email Address About biotebiote (NASDAQ:BTMD) operates in practice-building business within the hormone optimization space. It trains physicians and nurse practitioners in hormone optimization using bioidentical hormone replacement pellet therapy in men and women experiencing hormonal imbalance. The company offers Biote Method, a comprehensive end-to-end practice building platform that provides Biote-certified practitioners with the components developed for practitioners in the hormone optimization space comprising Biote Method education, training, and certification services; practice management software that allows Biote-certified practitioners to order, track, and manage hormone optimization product inventory and other administrative requirements; inventory management software to monitor pellet inventory; and information regarding available hormone replacement therapy products, as well as digital and point-of-care marketing support. It also sells dietary supplements under the Biote brand; and sterile pellet insertion kits that is used with hormone optimization therapies for male and female. The company was founded in 2012 and is headquartered in Irving, Texas.View biote ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step In Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Booking (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 6 speakers on the call. Operator00:00:02Good morning, and welcome to the Bioty Second Quarter 2023 Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Simon Sarovietzky. Operator00:00:25Please go ahead. Speaker 100:00:27Good morning. Thank you for joining us today. Last evening, BioTE published financial results for the quarter ended June 30, 2023. This release is available in the Investor Relations section of the company's website. Terry Weber, Chief Executive Officer and And Samir Kamdak, Chief Financial Officer will host this morning's call. Speaker 100:00:45Before we get started, I'd like to remind everyone that management will be making statements on this call that include forward looking Research and development, manufacturing and commercialization activities, regulatory process operations, the impact of macroeconomic conditions on its business, results of operations, financial conditions and consumers and on the healthcare industry generally. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond our control. Our actual results could differ materially from expectations reflected in any forward looking statements. These statements are subject to risks, uncertainties and assumptions that are based on management's current expectations as of today. Speaker 100:01:35BioTE undertakes no obligation to update them in the future. Therefore, these statements should not be relied upon as represented in the company's views as of any on the SEC website and our Investor Relations website as well as risks and other important factors discussed in the earnings release. We also refer to adjusted EBITDA, which is a non GAAP financial measure, to provide additional information to investors. Reconciliation of the non GAAP to GAAP measure is provided with the earnings release with the primary differences being stock based compensation, You are directed to our Q2 2023 earnings release, which is available on the Investor Relations section of our website at ir.bioty.com for reconciliations of adjusted EBITDA to its closest comparable GAAP measure. I'd now like to turn the call over to Terri Weber. Speaker 200:02:35Thank you, Simon, and thank you all for joining us. On the Call with me today is Somer Kamdar, our Chief Financial Officer, who will review our financial results and discuss our outlook for 2023 Mark Beer, our Executive Chairman and Doctor. Ross McQuivey, our Chief Medical Officer are also on today's Call to help answer your questions during the Q and A session following these prepared remarks. I am pleased with the significant financial and strategic progress Bioty achieved in the 2nd quarter. We generated double digit growth In both revenue and adjusted EBITDA. Speaker 200:03:13Adjusted EBITDA margins came in near the upper end of our target range, highlighting the profitability of our business model even as we invested to strengthen our capabilities. During the quarter, we continued to broaden awareness of the benefits of hormone therapy and further build our practitioner network. From a strategic standpoint, we also formalized our commitment to men's health by launching a new division, focused And further improve the liquidity of our publicly traded shares. Starting with our financial performance, Revenue grew approximately 19% year over year, driven by growth in both procedure and dietary supplement revenues. Over the past several years, we've significantly expanded our dietary supplement offerings, providing a wider range of products To promote healthy aging and well-being. Speaker 200:04:16We view dietary supplements as a complementary business that strengthens BioTE's brand identity And helps diversify our revenue streams. In the second quarter, dietary supplements benefited from Successful seasonal promotion for our BioTE providers. Additionally, our recently launched direct to patient distribution channel Help drive supplement sales growth. 2nd quarter procedure revenue growth of approximately 10% It was broad based geographically, but moderated from our historic growth rate. Earlier this year, we realigned our sales territories To accommodate our significantly expanded sales team, we undertook the strategic realignment to scale our business more efficiently, Further strengthen our market position and accelerate adoption of the Bioty method into new markets. Speaker 200:05:10As our sales team grows into our newly scaled structure and gains productivity, we anticipate improving procedure revenue. Turning to our new initiative in Men's Health, we're excited about the long term growth opportunity for BioTE in this large and growing addressable market. With recent scientific research providing support for the safety and efficacy of testosterone therapy in men, We believe now is the right time to deepen our commitment to advancing men's health. Industry data suggests that approximately 20,000,000 men in the U. S. Speaker 200:05:47Over the age of 45 are affected by the adverse symptoms of testosterone deficiency, yet only 10% to 12% As we build the foundational elements of our Men's Health division, we're focused on 3 pillars supporting our strategy: awareness, Education, research. To drive awareness, we're closely working with our existing practitioners on the health benefits of the Bioty Method for men. We're also ramping up our sales and marketing efforts to better connect with the growing number of men who want to feel their best Regardless of their age, at the same time, we're leveraging our position as the foremost provider of hormone therapy Education and Research. For example, we are integrating new research supporting the safety and efficacy of testosterone therapy into our education programs. In addition, we are forming new relationships with key opinion leaders Specializing in male urology, we believe urology practices offer a key pathway to accelerating adoption of the BioTE In addition, We are expanding our strategic approach to more fully address the extensive opportunities within the dynamic and evolving market for healthy living solutions. Speaker 200:07:30For example, many of our patients have expressed interest in certain wellness products that are complementary to our existing hormone therapies. Working closely with our top providers, we're currently testing an And our next question comes from the line of Bioty's Q1 of 2019. Please go ahead. Thank you, Steve. Thank you, Steve. Operator00:07:51Thank you, Steve. Speaker 200:07:51Good morning, everyone. Currently, we're transitioning our sales and marketing efforts to encompass this broader category of therapeutic wellness, which includes hormone therapy, sexual health, weight loss and preventative wellness. We believe we can leverage the strength of our brand and our practitioner network to ultimately become a leading provider of evidence based therapeutic wellness solutions. Now I'll turn the call over to Sommer. Speaker 300:08:26Thanks, Terry, and good morning, everyone. Revenue for the Q2 increased 19.1% from the prior year period to $49,300,000 reflecting 9.8% growth in procedure revenue and 52.8% growth in dietary supplement revenue. As Terry noted, 2nd quarter supplement sales benefit from a successful seasonal promotion as well as continued favorable response to our new distribution channel. Gross profit margin was 67.9%, up 60 basis points from the Q2 of 2022. The increase in gross profit margin was primarily due to effective product cost management. Speaker 300:09:07Selling, general and administrative This were $25,800,000 a decrease of $87,700,000 or 77.3 percent from the Q2 of 2022. Excluding the impact of share based compensation, transaction related expenses and litigation and other, Selling, general and administrative expenses would have been $19,400,000 in the Q2 of 2023, Compared to $15,200,000 in the Q2 of 2022, representing an increase of $4,200,000 or 27.5 percent over the prior year period. I'll now provide additional detail on this quarterly expense increase on a year over year basis. $1,300,000 of this increase was related to the expansion of our sales team. We continue to expect the investment in our sales effort to drive improved procedure revenue. Speaker 300:10:03$1,000,000 of this increase was related to investments in our clinical and corporate infrastructure as well as technology to support our growth. $1,000,000 of this increase was related to public company expense for the period and $400,000 of this increase was related to the expansion of our marketing efforts. Operating income for the Q2 of 2023 was $7,700,000 compared to a loss of $85,600,000 for the Q2 of 2022. Operating income in the Q2 of 2023 reflected growth in revenue and improved gross profit, partially offset by increased personnel and other expenses to build our infrastructure. Operating loss in the Q2 of 2022 was mainly due to transaction related expenses of 18,800,000 And share based compensation of $79,300,000 at time of going public. Speaker 300:10:59Net loss It was $13,100,000 compared to net loss of $21,300,000 in the Q2 of 2022. Net loss in the Q2 of 2023 was due to a net change in the fair value adjustments to warrant and earn out liabilities of 18,200,000 Adjusted EBITDA was $14,500,000 in the Q2 of 2023 with an adjusted EBITDA margin of 29.5%. This compares to adjusted EBITDA of $13,100,000 with an adjusted EBITDA margin of 31.8% in the Q2 of 2022. Adjusted EBITDA in the Q2 of 2023 increased due to higher sales and improved gross profit, while adjusted EBITDA margin $800,000 and totaled $19,800,000 year to date. As we expected, operating cash flow for the Q2 of 2023 was lower As compared to the Q1 of 2023, primarily reflecting timing of certain annual expenses. Speaker 300:12:07I would like to highlight the improvements we have made with Back to our capital structure, as Terry noted, in June, we completed a warrant exchange offer and consent solicitation. Given the positive shareholder response, we exercised the right to exchange all remaining outstanding warrants and shares of common stock. As a result, we have greatly simplified our capital structure. Additionally, another successful secondary offering of our Class A common stock was completed, Adding to our trading liquidity without diluting shareholders. Together, these corporate actions underscore our ongoing commitment to optimizing our capital structure And increasing our trading liquidity to enhance long term shareholder value. Speaker 300:12:49Turning to our financial guidance. Resulting from the realignment and expansion of our sales geographies and evolving market dynamics, we forecast a more moderate pace of growth in the second half of twenty 3 as compared to our prior forecast. We therefore forecast that 2023 revenue and adjusted EBITDA Likely will be toward the lower end of our guidance range. Now I'll turn the call back to Teri for her closing comments. Speaker 200:13:25Thank you, Summer. Bioty remains on track for continued profitable growth in 2023. We have achieved significant strategic progress across A number of focus areas, while continuing to deliver solid financial performance. As we look forward, the preventative health market is evolving And Bioty's pivoting to meet our patients' growing needs. We envision a more expansive mission In which we build on our success and Bioty becomes a leading platform provider of evidence based therapeutic wellness solutions. Speaker 200:14:02We are taking key steps towards fulfilling this vision and we look forward to updating you on our progress. Now I'd like to open the call for questions. Operator, please begin the question and answer session. Operator00:14:16Thank you. We will now begin the question and answer session. Our first question comes from Lee Selewski from Truist. Please go ahead. Speaker 400:14:45Good morning. Thank you for taking my questions. Just in regards to your guidance update, can you provide a little bit more color on what you mean by in Efficiencies from realignment of sales geographies, has there been a change in which geographic areas you're targeting? And also secondarily on that is what color can you provide on the evolving market dynamics? Not quite sure I follow here. Speaker 400:15:11Are you seeing any unfavorable adoption rates? Or are the additional sales teams just being held back by internal reasons and perhaps not performing as you expected? And I have some follow ups. Speaker 200:15:22Thanks. Great. No, thank you for those questions. It was a mouthful and let's walk through that. So yes, we're pleased with The total revenue growth of 19%, but looking at those procedures, we did this realignment in the new part of the year. Speaker 200:15:37We added And honestly, it's taken a little longer than expected in some of the new geographies. So these are geographic. We have maintained the guidance, but due to this delay, we just directed you to the lower end of the range. We're very Confident on the market, we hired a top notch Chief Commercial Officer, Mary Poinshikar, and she's really come in And taking a hard look at optimize those geographies and how we penetrate the new markets. So what we want to do is kind of give you that Confidence that we are absolutely training 100 providers this weekend and we're very pleased with that Continued interest of the providers and the patients. Speaker 200:16:26So that's where we're so strong on confidence in this marketplace. When I was describing the second question, what we're talking about is these complementary evidence Space therapies that we've been training on since 2020. So we are becoming more of a platform provider With including hormone optimization, but we're looking at these other therapies that our age group is asking for, Such as that fascination with the GLP-1s, the semiglutide market, both our patients and our providers We're asking for this complementary therapy. It works so well with hormone optimization, and we have potential to offer that in a compounded form. So we've been training on it for years and now we're looking at that coming in and providing that access. Speaker 400:17:21Just great. Thanks for that. Just to build on that, you did mention broadening health categories, specifically weight loss, As you just discussed, I mean, what opportunities are available here and what internal investments would have required to get into these verticals? Speaker 200:17:38Great question. So what we've been doing is teaching some of our providers the number one trainers in those therapies in the U. S. Probably in the world. So we train on this, but we've just never monetized it. Speaker 200:17:53So in providing the access and Extending these therapies out in addition to the hormone optimization, we really, just extend what we've been doing for years in the training. We've got 6,400 very well trained providers who trust our brand and they're looking for access to this product that we can provide Without substantial investment. We've been training on it. We've got the expertise. Now it's opening the platform up that way. Speaker 400:18:25Great. Thank you. And just lastly for me, as far as your confidence in the guidance, As we walk through, I guess, 3Q now, is there a possibility you can kind of go essentially below the Lower end of the guidance, and just gives you what what gives you confidence there? And then, any possibility these Inefficiencies leak into 2024? Thank you. Speaker 200:18:52No, I'm very comfortable with the guidance. I think maybe I'm This 1st year publicly traded, we want to be very candid and that's why we wanted to talk to you about Guiding to the lower end because of these slight delays, but the market is very strong. One of the things we're seeing is strong patient interest, Really strong provider interest. There are not enough doctors. We're growing profitably. Speaker 200:19:18We continue these trends. But what we've got to do is get more doctors out there. We're creating capacity to train more doctors because the patients can't get in and get their appointment. So one of the things that Mary has brought is that relentless discipline of analytics to show These patients aren't getting into these getting appointments because there aren't enough docs. So we really know where we're focused in the second half of the year. Speaker 200:19:47We are above or faster in terms of training new docs than we had forecasted. So that's Good news and even better news is they're coming on board faster. So, the model is working. We want to say all that we're Excited about as well is the testing of the new complementary therapies in the second half And we really believe that that's just going to increase the TAM, absolutely increase the TAM in this patient base. Speaker 400:20:22Thank you for that color, Terry. Appreciate it. Operator00:20:27The next question comes from Jana Kim from TD Cowen. Please go ahead. Speaker 200:20:32Thank you for taking my question. It sounds like provider interest It's John, but just wanted to get any color or any changes in the number of procedures provided by these providers, just given macro headwinds and With more than your updates that you have on the retention rate as well? The retention rate is as strong as ever. We don't give you the exact number, but it's actually improving as we add the stickiness to our platform. These are very loyal Providers who believe that they identify themselves as Biotie certified providers. Speaker 200:21:10What we're seeing is capacity in the doctors' offices To take these appointments. So where our work is, is to get more providers trained and get these providers to open up hours To see our patients, right? That's our big, big focus and we're helping, that's what that's new sales force is so key on It's not only training them to find new docs, but they've really got to get into the docs and find how to add more patients, throughput. So the market is good. The doctors are providing as many procedures. Speaker 200:21:46They don't see a downturn. We survey them. We just had a we train every 2 weeks about 200 to 300 docs in the advanced training and we survey them every time about Do they see their Biot business slowing? What are their concerns? They do not see the Biot Slowing, what their concerns are is support staff in the offices and ability to get the patients through. Speaker 200:22:13So we really know the market is there, the TAM is there. In the second half of the year, we'll Focusing on making them stronger and really training more providers. Got it. And just one more from me. Just would love to hear more Okay. Speaker 200:22:37We have begun dual Language training in Tampa, so please join us. I don't think you've been to a training yet, so I'd love to have you join the international and that's Currently, what we're doing is we're bringing in all the interest of the international doctors into our Tampa training, which is every month and being able to provide that. So we've got, I think, so much opportunity in the U. S. I Continue to stay very focused, especially adding these new therapies that offer such a bigger TAM, to keep focusing on the U. Speaker 200:23:13S, Train the international at our current ones and look towards later in 2024 to expand that. We still believe in it. It's just Let's go to training, the immediate needs here in the U. S. First. Speaker 200:23:29Good. Thank you so much. Operator00:23:32The next question comes from George Kelly from ROTH. Please go ahead. Speaker 500:23:37Hey, everyone. Thanks for taking my questions. So first, just a couple more on your guidance. I just want to make sure that I heard you properly. Have you seen any kind of evidence of changing consumer behavior or just weakening kind of Hey there. Speaker 500:23:57The frequency of procedures. And the second part of that question is and Terry, I think you just answered this, but You're not seeing any kind of unexpected churn among your providers, are you? Speaker 200:24:09No, we're not seeing that and we're not Seeing any decrease in patient interest. We're definitely seeing access problems for the patients to get in to see the providers. And some of that may actually be this GLP-one, this semiglutide market. When those providers take those weight loss patients, That's where we've got to make sure that our hormone people get seen and treated. That's why we're looking at the platform to do it together. Speaker 200:24:38I don't know, George. I think you know us well enough to know that we've got very close relationship with the compounders who provide these additional therapeutic wellness, Great long term relationships. We just never turned it on. We never provided access before. We're Still so committed to hormone optimization, but if that patient is coming in, for that is looking for both those treatments, We provide access and we provide those algorithms for our providers, consider how much That increases the potential of our TAM. Speaker 200:25:14So there's no reason you go use the same platform. We've invested, George, in technology. How do we make the easy button for the providers? How does it easy to treat both therapies as well as some of the other products we train on In terms of sexual wellness, preventive medicine, hit it all through the same platform, provide the access and really Strengthen that Bioty relationship with them. Be the one stop shop. Speaker 500:25:46Okay, understood. And then maybe more on that. If you were to look a year, maybe 2 years out, how many additional therapies do you think could you could offer through your platform? And what is the model going to look similar to your existing model where it's you're Collecting a high margin stream and you're just sort of connecting the compounding pharmacies with the providers. Just any more detail The number of treatments you could offer and the model you're going to target. Speaker 200:26:19Yes. And George, I wish you would have been to some of our earlier training. We train on these Therapies are ready. Our doctors are experts in it in the U. S. Speaker 200:26:27They're the ones that train all the specialty training. So easy to Add what we train on anyway, hair loss, sexual wellness, you'll think about everyone interested in taking care of their bodies, They're getting hormone treatment and then what comes with adjunct therapies, right? If you have one platform like we have, It's easy for that provider and that patient to order. Think about what we've done in terms of being the premier Leader in the market, we provide that type of value. I think this only makes us stickier. Speaker 200:27:03Nobody wants to look for semiglutide. What we would provide is that access. We're testing it now, George. We'll be talking about it our next call. But we're very confident. Speaker 200:27:15We've got the access to the right manufacturers. We have long term relationships with them. And I think our tech platform, we've invested in it this year. I'm excited about We've invested in it this year. I'm excited about the skill levels to make it easy. Speaker 200:27:30What can we do to make it easier To get in and out of that practice and get everything you need for healthy aging. Speaker 500:27:39Okay. And then Maybe a last question. Your normal growth rate before this quarter, the procedure revenue, as you mentioned, decelerated In the quarter, I'm curious these changes you're making with new therapies and the realignment of the sales force. Sounds like the 2 halves impact will be minimal. We should expect a continuation of the Current revenue growth that you just generated, correct me if I'm wrong, but how long do you suspect it will take To get to that more accelerated, call it mid teens or somewhere in that ballpark revenue growth rate, do you think that's achievable sometime in 2024? Speaker 200:28:23Yes, absolutely. Feel very confident on it. We just took a little bit more than expected time this year, right? It's hard to Anticipate velocity, but that's all it is, George. It's just we're really comfortable on where we're at with these accretive Programs, right? Speaker 200:28:42The TAM is there. The patients are there. Our real problem is getting providers to open up appointments. And you know what, George, I've got to go find a way to train doctors, more doctors and I'm doing it right now. This is a change that the world's been looking for and it's really accelerated. Speaker 200:29:01So that's where we need to really focus here. Speaker 500:29:05Okay. Thank you. Operator00:29:09This concludes our question and answer session. I would like to turn the conference Back over to Terri Weber for any closing remarks. Speaker 200:29:17All right. Well, thank you so much for joining us this morning. We understand it's an early hour. These are exciting times. I can't stress that enough that we're excited about the great interest from the patients And the providers, it's only increasing and it's now our job to continue to lead the market and really dominate in terms of How to go to market best with evidence based therapies that we didn't talk about research today, need to make sure we Operator00:29:58The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.Read morePowered by