Biote Corp. ((BTMD)) has held its Q4 earnings call. Read on for the main highlights of the call.
Biote Corp’s recent earnings call presented a balanced view of its financial health, with notable achievements in revenue growth and gross profit margins, yet tempered by challenges such as declining net income and increased expenses. This mix of positive and negative elements resulted in a neutral sentiment overall.
Revenue Growth
Biote Corp reported a 9% increase in fourth-quarter revenue, reaching $49.8 million compared to the previous year. This growth was driven by a 5% rise in procedure revenue and a notable 10.2% increase in dietary supplement revenue year-over-year.
Gross Profit Margin Improvement
The company achieved a gross profit margin of 71.8% in the fourth quarter, marking a 247 basis point improvement from the same period in 2023. This enhancement reflects successful cost-saving strategies through vertical integration and effective cost management.
Adjusted EBITDA Growth
Biote’s adjusted EBITDA grew by 11.4% to $15.1 million, with an adjusted EBITDA margin of 30.3%. This growth underscores the operating leverage inherent in Biote’s business model.
Successful Acquisition Integration
The acquisition of Asteria Health has proven beneficial, strengthening Biote’s control over its supply chain, improving product quality, and generating cost efficiencies through vertical integration of manufacturing processes.
Introduction of BioteRx Platform
Biote introduced the BioteRx wellness platform, a phased launch that serves as a key competitive differentiator. This platform offers practitioners a seamless experience for product ordering, inventory management, and technical support.
Net Income Decline
Despite revenue growth, Biote experienced a decline in net income, which fell to $3.5 million from $12.1 million in the fourth quarter of 2023. Earnings per diluted share decreased to $0.10 from $0.18 in the same period.
Slowed New Customer Growth
The company reported a slowdown in new customer growth, attributed to its focus on serving existing practitioners during the transition to a new clinical decision support software.
Increased SG&A Expenses
Selling, general, and administrative expenses rose to $33.0 million from $26.2 million in the fourth quarter of 2023. This increase was driven by employee-related investments and additional legal expenses.
Procedural Revenue Growth Challenges
Biote’s guidance for 2025 indicates procedural revenue growth of only 2% to 4%, impacted by the transition to new software and increased sales and marketing investments aimed at driving new customer growth.
Forward-Looking Guidance
Looking ahead, Biote provided financial guidance for 2025, projecting revenue between $202 million and $208 million and adjusted EBITDA ranging from $59 million to $64 million. While procedural revenue is expected to grow modestly by 2% to 4%, dietary supplement revenue is anticipated to increase by 5% to 10%. For the first quarter of 2025, Biote forecasts a slight revenue increase compared to the first quarter of 2024, despite a projected 5% decline in adjusted EBITDA due to elevated sales and marketing expenses.
In summary, Biote Corp’s earnings call painted a picture of a company experiencing both growth and challenges. While revenue and profit margins have improved, the decline in net income and increased expenses present hurdles. The company’s forward-looking guidance suggests cautious optimism, with expectations of continued revenue growth and strategic investments to drive future success.