8-K: Biote Corp. Announces Fourth Quarter and Full Year 2024 Financial Results, Provides Fiscal 2025 Outlook

Biote Corp. reports a 6.4% increase in full-year revenue for 2024 and provides its financial outlook for fiscal year 2025.

Summary

• Biote Corp. announced its financial results for the fourth quarter and full year ended December 31, 2024.
• Full year 2024 revenue increased 6.4% to $197.2 million, compared to $185.4 million in 2023.
• Procedure revenue for the full year was $150.3 million.
• The gross profit margin for the full year was 70.5%.
• Net income for the full year was $0.05 million, or $0.09 per diluted share, compared to a net loss of $(2.8) million in the previous year.
• Adjusted EBITDA for the full year was $58.2 million, with a margin of 29.5%.
• For the fourth quarter of 2024, revenue was $49.8 million, a 9.0% increase from $45.7 million in the fourth quarter of 2023.
• Net income for the fourth quarter was $3.5 million, or $0.10 per diluted share, compared to $12.1 million in the prior year.
• The company expects 2025 revenue to be in the range of $202-$208 million and Adjusted EBITDA to be in the range of $59-$64 million.
• Procedure revenue is expected to increase approximately 2-4% and dietary supplements revenue is expected to increase approximately 5-10% in 2025.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. The company shows revenue growth and improved gross profit margins, but there are also concerns about decreased net income in Q4 and the impact of software transitions on procedure revenue. The 2025 outlook is cautiously optimistic.

Positives

• Full year revenue increased by 6.4% compared to the previous year.
• Gross profit margin improved due to vertical integration and cost management.
• Operating income for 2024 increased by 10.3%.
• The company ended the year with a strong cash position of $39.3 million.
• The launch of BioteRx and upgrades to clinical decision support software are expected to strengthen the business.
• Dietary supplement revenue grew 10.2% in the fourth quarter, benefiting from the transition to an e-commerce platform.

Negatives

• Net income for the fourth quarter decreased compared to the prior year, from $12.1 million to $3.5 million.
• Fourth quarter procedure revenue growth was negatively impacted by the transition to upgraded clinical decision support software.
• Operating income for the fourth quarter decreased due to employee-related investments and additional legal expenses.
• First quarter 2025 Adjusted EBITDA is expected to be approximately 5 percent lower as compared to the first quarter of 2024 due to increased sales and marketing activities to reaccelerate new customer growth.

Risks

• The company's ability to increase the use by practitioners and clinics of the Biote Method.
• The company faces significant competition in its industry.
• The company's sensitivity to regulatory, economic, environmental and competitive conditions in certain geographic regions.
• The company's ability to protect its intellectual property.
• Changes in applicable laws or regulations.
• The company's limited operating history.

Future Outlook

The company expects 2025 revenue to be in the range of $202-$208 million and Adjusted EBITDA to be in the range of $59-$64 million. Procedure revenue is expected to increase approximately 2-4% and dietary supplements revenue is expected to increase approximately 5-10%.

Management Comments

• Bob Peterson, Biote Chief Financial Officer, stated that Biote strengthened its capabilities to provide the next level of individualized and evidence-based healthcare.
• Bret Christensen, Biote Chief Executive Officer, stated that Biote achieved significant progress over the past fifteen months, building a strong foundation for growth.
• Bret Christensen also mentioned initiatives to maximize the value of top-tier providers, add practitioners, and drive revenue growth through improved accountability.

Industry Context

Biote operates in the preventive healthcare market, focusing on hormone optimization and therapeutic wellness. The company's performance and outlook reflect the growing demand for personalized healthcare solutions and the increasing adoption of hormone therapy.

Comparison to Industry Standards

• It's difficult to provide a direct comparison to industry standards without knowing the specific peer group Biote considers its competitors.
• However, companies like Sesen Bio (SESN) and Evofem Biosciences (EVFM) operate in related areas of women's health and hormone therapies, though their business models and financial situations differ significantly.
• Biote's focus on training practitioners and its vertically integrated manufacturing facility are differentiating factors that could lead to higher margins compared to companies that rely on third-party manufacturers.

Stakeholder Impact

• Shareholders can expect continued growth and profitability, although Q4 results show some areas of concern.
• Practitioners will benefit from the upgraded clinical decision support software and additional training.
• Patients will have access to innovative, personalized hormone optimization and therapeutic wellness solutions.

Next Steps

• The company will focus on maximizing the value of top-tier providers.
• The company will intensify its focus on adding practitioners to broaden its network.
• The company will work to drive revenue growth by strengthening accountability and improving consistency throughout the commercial organization.

Key Dates