biote (BTMD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $49.2 million, nearly flat year-over-year, with procedure revenue up 7.8% sequentially and dietary supplement revenue down 32.2% due to e-commerce transition and lapping a prior promotion.

• Gross profit margin improved to 68.9% (or 70.9% excluding Asteria Health inventory revaluation), and adjusted EBITDA was $12.7 million (25.9% margin), down from $14.5 million (29.5% margin) in Q2 2023.

• Net loss for Q2 2024 was $10.5 million, including a $13.9 million loss from earn-out liability revaluation; net loss for the six months was $16.3 million, an improvement from $34.5 million in the prior year period.

• Practitioner network expanded by approximately 30% year-over-year, with significant growth in new clinics achieving Quick Start status and the introduction of BioteRx to ~600 clinics.

• Completed three acquisitions in 2024: Asteria Health, Simpatra, and BioSana, expanding product and technology portfolio and driving manufacturing efficiencies.

Financial highlights

• Q2 2024 total revenue was $49.2 million, flat year-over-year; for the six months ended June 30, 2024, revenue increased 2.0% to $96.0 million.

• Procedure revenue grew 7.8% sequentially in Q2 2024; dietary supplement revenue declined 32.2% year-over-year.

• Gross profit margin was 68.9% in Q2 2024, up 100 basis points year-over-year; would have been 70.9% excluding Asteria Health inventory revaluation.

• Operating income was $6.2 million in Q2 2024, down from $7.7 million in Q2 2023; net loss per share for the six months was $(0.25), compared to $(0.62) year-over-year.

• Adjusted EBITDA was $12.7 million (25.9% margin) in Q2 2024 and $26.9 million for the six months, with a six-month margin of approximately 28%.

Outlook and guidance

• Management reiterated 2024 guidance: revenue of $200–$204 million and adjusted EBITDA of $60–$63 million.

• Expects procedure revenue growth to strengthen in H2 2024, driven by top-tier clinic performance, network expansion, and new clinics with Quick Start.

• Operating expenses are anticipated to moderate in H2 2024 compared to H1.

• Nutraceutical revenue expected to return to year-over-year growth in H2 2024.

• Management plans to expand into new geographic regions and expects continued growth in the hormone optimization market.