Biote Reports Second Quarter 2024 Financial Results
Biote (NASDAQ: BTMD) reported its Q2 2024 financial results, highlighting revenue of $49.2 million and a gross profit margin of 68.9%, up from 67.9% last year. Procedure revenue grew by 7.8%, reaching $38.4 million. The company faced a net loss of $(10.5) million, an improvement from a $(13.1) million loss in Q2 2023. Adjusted EBITDA was $12.7 million, down from $14.5 million a year earlier, due to increased sales and marketing investments.
Biote expanded its clinic network by 30% in the first half of 2024 and continued rolling out its BioteRx suite of hormone and wellness therapies, now in approximately 600 clinics. The company settled litigation with its founder, repurchasing 18.4 million shares. Guidance for 2024 remains unchanged, with revenue expected between $200-$204 million and Adjusted EBITDA between $60-$63 million.
Biote (NASDAQ: BTMD) ha riportato i risultati finanziari per il secondo trimestre del 2024, evidenziando un fatturato di 49,2 milioni di dollari e un margine di profitto lordo del 68,9%, in aumento rispetto al 67,9% dell'anno precedente. Il fatturato delle procedure è cresciuto del 7,8%, raggiungendo i 38,4 milioni di dollari. L'azienda ha registrato una perdita netta di 10,5 milioni di dollari, una miglioria rispetto alla perdita di 13,1 milioni di dollari nel secondo trimestre del 2023. L'EBITDA corretto era di 12,7 milioni di dollari, in calo rispetto ai 14,5 milioni di dollari dell'anno precedente, a causa dell'aumento degli investimenti in vendite e marketing.
Biote ha ampliato la sua rete di cliniche del 30% nel primo semestre del 2024 e ha continuato a lanciare la suite BioteRx di terapie ormonali e per il benessere, ora in circa 600 cliniche. La società ha risolto le controversie legali con il suo fondatore, riacquistando 18,4 milioni di azioni. Le previsioni per il 2024 rimangono invariate, con un fatturato atteso tra 200 e 204 milioni di dollari e un EBITDA corretto tra 60 e 63 milioni di dollari.
Biote (NASDAQ: BTMD) informó sus resultados financieros del segundo trimestre de 2024, destacando ingresos de 49.2 millones de dólares y un margen de ganancia bruta del 68.9%, en comparación con el 67.9% del año pasado. Los ingresos por procedimientos crecieron un 7.8%, alcanzando los 38.4 millones de dólares. La compañía enfrentó una pérdida neta de 10.5 millones de dólares, una mejora respecto a la pérdida de 13.1 millones de dólares en el segundo trimestre de 2023. El EBITDA ajustado fue de 12.7 millones de dólares, una disminución desde 14.5 millones de dólares del año anterior, debido al aumento en inversiones de ventas y marketing.
Biote amplió su red de clínicas en un 30% en la primera mitad de 2024 y continuó el despliegue de su suite BioteRx de terapias hormonales y de bienestar, ahora en aproximadamente 600 clínicas. La compañía resolvió un litigio con su fundador, recomprando 18.4 millones de acciones. La orientación para 2024 se mantiene sin cambios, con ingresos esperados entre 200 y 204 millones de dólares y EBITDA ajustado entre 60 y 63 millones de dólares.
Biote (NASDAQ: BTMD)는 2024년 2분기 재무 결과를 발표하며, 4,920만 달러의 매출과 총 이익률 68.9%를 강조했습니다. 이는 작년의 67.9%에서 증가한 수치입니다. 절차 매출은 7.8% 성장하여 3,840만 달러에 도달했습니다. 회사는 (1,050만) 달러의 순손실을 기록했으며, 이는 2023년 2분기의 (1,310만) 달러 손실에서 개선된 수치입니다. 조정 EBITDA는 1,270만 달러로, 작년 1,450만 달러에서 감소했습니다. 이는 판매 및 마케팅 투자 증가 때문입니다.
Biote는 2024년 상반기에 클리닉 네트워크를 30% 확장했으며, 현재 약 600개의 클리닉에서 호르몬 및 웰니스 치료를 위한 BioteRx 제품군을 계속 출시하고 있습니다. 이 회사는 창립자와의 소송을 해결하고 1,840만 주를 재매입했습니다. 2024년 전망은 변경되지 않았으며, 매출은 2억에서 2억 4백만 달러, 조정 EBITDA는 6천만에서 6천 3백만 달러로 예상됩니다.
Biote (NASDAQ: BTMD) a publié ses résultats financiers pour le deuxième trimestre de 2024, mettant en avant des revenus de 49,2 millions de dollars et un marge brute de 68,9%, en hausse par rapport à 67,9% l'année précédente. Les revenus des procédures ont augmenté de 7,8%, atteignant 38,4 millions de dollars. La société a enregistré une perte nette de 10,5 millions de dollars, une amélioration par rapport à une perte de 13,1 millions de dollars au deuxième trimestre 2023. L'EBITDA ajusté était de 12,7 millions de dollars, en baisse par rapport à 14,5 millions de dollars l'année précédente, en raison de l'augmentation des investissements en ventes et marketing.
Biote a élargi son réseau de cliniques de 30% au premier semestre 2024 et a poursuivi le déploiement de sa suite BioteRx de thérapies hormonales et de bien-être, désormais présentes dans environ 600 cliniques. L'entreprise a résolu un litige avec son fondateur, en rachetant 18,4 millions d'actions. Les prévisions pour 2024 restent inchangées, avec des revenus attendus entre 200 et 204 millions de dollars et un EBITDA ajusté entre 60 et 63 millions de dollars.
Biote (NASDAQ: BTMD) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, wobei ein Umsatz von 49,2 Millionen Dollar und eine Bruttomarge von 68,9% hervorgehoben wurden, was einem Anstieg von 67,9% im Vorjahr entspricht. Der Umsatz aus Verfahren stieg um 7,8% und erreichte 38,4 Millionen Dollar. Das Unternehmen verzeichnete einen Nettoverlust von (10,5) Millionen Dollar, was eine Verbesserung gegenüber einem Verlust von (13,1) Millionen Dollar im Q2 2023 darstellt. Der bereinigte EBITDA lag bei 12,7 Millionen Dollar, ein Rückgang von 14,5 Millionen Dollar im Vorjahr, bedingt durch erhöhte Vertriebs- und Marketinginvestitionen.
Biote erweiterte sein Netzwerk von Kliniken im ersten Halbjahr 2024 um 30% und setzte die Einführung seines BioteRx-Sortiments an Hormon- und Wellness-Therapien fort, das nun in ungefähr 600 Kliniken verfügbar ist. Das Unternehmen einigte sich im Rechtsstreit mit seinem Gründer und kaufte 18,4 Millionen Aktien zurück. Die Prognose für 2024 bleibt unverändert, mit einem erwarteten Umsatz zwischen 200 und 204 Millionen Dollar und einem bereinigten EBITDA zwischen 60 und 63 Millionen Dollar.
- Procedure revenue grew 7.8% to $38.4 million.
- Gross profit margin improved to 68.9%.
- Net loss decreased to $(10.5) million from $(13.1) million.
- Clinic network expanded by 30% in the first half of 2024.
- 2024 financial guidance reaffirmed with revenue between $200-$204 million and Adjusted EBITDA between $60-$63 million.
- Revenue slightly decreased to $49.2 million from $49.3 million.
- Net loss margin was (21.3)%.
- Dietary supplement revenue fell by 32.2%.
- Operating income decreased to $6.2 million from $7.7 million.
- Adjusted EBITDA decreased to $12.7 million from $14.5 million.
Insights
Biote's Q2 2024 results show mixed signals. While procedure revenue grew
The
The recent legal settlements and share repurchases are significant, potentially reducing share count but also impacting cash reserves. Management's reiteration of 2024 guidance suggests confidence in future growth, particularly from the BioteRx rollout and new clinic additions.
Biote's strategic focus on personalized hormone optimization and therapeutic wellness aligns with growing trends in preventive healthcare. The 30% growth in new clinics and accelerated revenue ramp from the quick-start program indicate strong market penetration. The BioteRx rollout to 600 clinics demonstrates the company's commitment to expanding its service offerings.
However, the
The increased investments in sales and marketing, while impacting short-term profitability, could drive future growth if executed effectively. The focus on top-tier practitioners and geographic expansion suggests a targeted approach to market development.
The resolution of legal claims with Dr. Gary S. Donovitz and Marci M. Donovitz is a significant development for Biote. The company has agreed to repurchase approximately 26.7 million shares at an average price between
However, the financial impact is substantial. The total commitment of
Investors should closely monitor how these settlements affect Biote's financial flexibility and growth strategies moving forward.
Procedure revenue growth accelerates sequentially
BioteRx roll-out on track with further expansion planned
Management reiterates 2024 financial guidance
Second Quarter 2024 Financial Highlights
(All financial result comparisons made are against the prior-year period)
-
Revenue of
$49.2 million -
Procedure revenue of
$38.4 million -
Gross profit margin of
68.9% , including a inventory step-up related to the acquisition of Asteria Health$1.2 million -
Net loss of
, representing net loss margin of (21.3)%, and basic and diluted loss per share attributable to biote Corp. stockholders of$(10.5) million , compared to net loss of$(0.19) , representing net loss margin of (26.6)%, and basic and diluted loss per share attributable to biote Corp. stockholders of$(13.1) million $(0.25) -
Adjusted EBITDA1 of
$12.7 million
“Biote’s second quarter procedure revenue grew
Ms. Weber continued, “We are pleased with the positive response from both patients and practitioners to BioteRx, our recently launched suite of hormone and evidence-based wellness therapies. BioteRx builds upon our science-based approach, leveraging the latest technology and tools to enhance patient health outcomes while supporting practitioners with unmatched education and training. Over the past several months, we have introduced BioteRx to approximately 600 clinics throughout our network, addressing essential healthcare needs in preventative wellness, sexual health and weight loss. As we continue to roll out BioteRx over the remainder of this year and into 2025, we remain focused on delivering the next level of personalized medicine for our growing patient population.”
______________________________ |
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Please see “Discussion of non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measure. |
2024 Second Quarter Financial Review
(All financial result comparisons made are against the prior-year period unless otherwise noted)
Revenue for the second quarter of 2024 was
Gross profit margin for the second quarter of 2024 was
Operating income for the second quarter of 2024 was
Net loss for the second quarter of 2024 was
Adjusted EBITDA for the second quarter of 2024 was
Resolution of Legal Claims and Related Share Repurchases
As previously announced, on April 23, 2024, Biote reached a definitive settlement in the Company’s litigation with Dr. Gary S. Donovitz, Biote’s founder, to resolve litigation. Under the terms of this settlement, Biote agreed to repurchase all the approximately 18.4 million shares beneficially owned by Dr. Donovitz at the time of the settlement at an average price of
Additionally, on June 28, 2024, Biote reached a definitive settlement with Marci M. Donovitz, stockholder of Biote, to resolve litigation. For
2024 Financial Outlook
Ms. Weber concluded, “Based on our solid first half performance and our expectation for accelerated growth in the second half of the year, we reiterate our 2024 financial guidance for revenue and Adjusted EBITDA. While we will continue to make investments consistent with our growth strategy, we anticipate our overall operating expenses will moderate in the second half of 2024 as compared to the first half of the year.
“We continue to expect improved procedure revenue growth in the second half of 2024 relative to the first half, driven by strengthened performance from our top-tier clinics, the continued expansion of our practitioner network and our quick-start program that accelerates the revenue ramp from new clinics.”
($ in millions) |
Previously Reported 2024 Guidance Ranges |
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Revenue |
|
||
Adjusted EBITDA1 |
|
______________________________ |
1 Please see “Forward-Looking Non-GAAP Financial Measures" below for additional information about forward-looking Adjusted EBITDA. |
Conference Call:
Biote management will host a conference call to review these results and provide a business update beginning at 5:00 p.m. ET on Thursday, August 8, 2024. To access the conference call by telephone, please dial (844) 481-2820 (
Discussion of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, Biote has disclosed Adjusted EBITDA, a non-GAAP financial measure that it calculates as net income before interest, taxes and depreciation and amortization, further adjusted to exclude stock-based compensation, litigation expenses, legal settlements, transaction-related expenses, merger and acquisition expenses, fair value adjustments to certain equity instruments classified as liabilities and other expenses. Below we have provided a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure.
We present Adjusted EBITDA and Adjusted EBITDA margin because it is a key measure used by our management to evaluate our operating performance, generate future operating plans and determine payments under compensation programs. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.
Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect cash capital expenditure requirements for such replacements of our assets;
- Adjusted EBITDA and Adjusted EBITDA margin do not reflect changes in, or cash requirements for, our working capital needs; and
- Adjusted EBITDA and Adjusted EBITDA margin do not reflect tax payments that may represent a reduction in cash available to us.
In addition, Adjusted EBITDA and Adjusted EBITDA margin are subject to inherent limitations as it reflects the exercise of judgment by Biote’s management about which expenses are excluded or included. A reconciliation is provided in the financial statement tables included below in this press release for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Because of these limitations, you should consider Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including net income and our other GAAP results.
Forward-Looking Non-GAAP Financial Measures
The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of certain information needed to calculate reconciling items. For example, the Company has not included a reconciliation of projected Adjusted EBITDA to GAAP net income (loss), which is the most directly comparable GAAP measure, for the periods presented in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company’s projected Adjusted EBITDA excludes certain items that are inherently uncertain and difficult to predict including, but not limited to, share-based compensation expense, income taxes, due diligence expenses and legal expenses. Due to the variability, complexity and limited visibility of the adjusting items that would be excluded from projected Adjusted EBITDA in future periods, management does not forecast them for internal use and therefore cannot create a quantitative projected Adjusted EBITDA to GAAP net income (loss) reconciliation for the periods presented without unreasonable efforts. A quantitative reconciliation of projected Adjusted EBITDA to GAAP net income (loss) for the periods presented would imply a degree of precision and certainty as to these future items that does not exist and could be confusing to investors. From a qualitative perspective, it is anticipated that the differences between projected Adjusted EBITDA to GAAP net income (loss) for the periods presented will consist of items similar to those described in the financial tables later in this release, including, for example and without limitation, share-based compensation expense, income taxes, due diligence expenses and legal expenses. The timing and amount of any of these excluded items could significantly impact the Company’s GAAP net income (loss) for a particular period. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis.
About Biote
Biote is transforming healthy aging through innovative, personalized hormone optimization and therapeutic wellness solutions delivered by Biote-certified medical providers. Biote trains practitioners to identify and treat early indicators of aging conditions, an underserved global market, providing affordable symptom relief for patients and driving clinic success for practitioners.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “hope,” “anticipate,” “believe,” “seek,” “target,” “continue,” “could,” “might,” “ongoing,” “potential,” “predict,” “would” and other similar expressions, are intended to identify forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual results or developments to differ materially from those expressed or implied by such forward-looking statements, including but not limited to: the success of our dietary supplements to attain significant market acceptance among clinics, practitioners and their patients; our customers’ reliance on certain third parties to support the manufacturing of bio-identical hormones for prescribers; our and our customers’ sensitivity to regulatory, economic, environmental and competitive conditions in certain geographic regions; our ability to increase the use by practitioners and clinics of the Biote Method at the rate that we anticipate or at all; our ability to grow our business; the significant competition we face in our industry; the impact of strategic acquisitions and the implementation of our growth strategies; our limited operating history; our ability to protect our intellectual property; the heavy regulatory oversight in our industry; changes in applicable laws or regulations; the inability to profitably expand in existing markets and into new markets; the possibility that we may be adversely impacted by other economic, business and/or competitive factors, including recent bank failures; and future exchange and interest rates. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and other risks and uncertainties described in the “Risk Factors” section of Biote’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, filed with the Securities and Exchange Commission on May 10, 2024, and other documents filed by Biote from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Biote assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Biote does not give any assurance that it will achieve its expectations.
Financial Tables
Biote Corp. Consolidated Balance Sheets (In Thousands) (Unaudited) |
||||||||
June 30, |
December 31, |
|||||||
2024 |
2023 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
26,419 |
|
$ |
89,002 |
|
||
Accounts receivable, net |
|
7,700 |
|
|
6,809 |
|
||
Inventory, net |
|
19,212 |
|
|
17,307 |
|
||
Other current assets |
|
8,436 |
|
|
9,225 |
|
||
Total current assets |
|
61,767 |
|
|
122,343 |
|
||
Property and equipment, net |
|
4,523 |
|
|
1,218 |
|
||
Capitalized software, net |
|
4,884 |
|
|
4,973 |
|
||
Goodwill |
|
5,516 |
|
|
— |
|
||
Intangible assets, net |
|
5,967 |
|
|
— |
|
||
Operating lease right-of-use assets |
|
2,102 |
|
|
1,877 |
|
||
Deferred tax asset |
|
8,141 |
|
|
24,884 |
|
||
Total assets |
$ |
92,900 |
|
$ |
155,295 |
|
||
|
||||||||
Liabilities and Stockholders’ Deficit |
||||||||
Current liabilities: |
|
|||||||
Accounts payable |
$ |
5,793 |
|
$ |
4,155 |
|
||
Accrued expenses |
|
6,899 |
|
|
8,497 |
|
||
Term loan, current |
|
6,250 |
|
|
6,250 |
|
||
Deferred revenue, current |
|
3,159 |
|
|
3,002 |
|
||
Earnout liabilities, current |
|
100 |
|
|
— |
|
||
Operating lease liabilities, current |
|
419 |
|
|
311 |
|
||
Share repurchase liabilities, current |
|
23,646 |
|
|
— |
|
||
Total current liabilities |
|
46,266 |
|
|
22,215 |
|
||
Term loan, net of current portion |
|
103,909 |
|
|
106,630 |
|
||
Revolving loans |
|
10,000 |
|
|
— |
|
||
Deferred revenue, net of current portion |
|
1,544 |
|
|
1,322 |
|
||
Operating lease liabilities, net of current portion |
|
1,807 |
|
|
1,680 |
|
||
Share repurchase liabilities, net of current portion |
|
43,101 |
|
|
— |
|
||
TRA liability |
|
4,356 |
|
|
18,894 |
|
||
Earnout liabilities, net of current portion |
|
23,568 |
|
|
41,100 |
|
||
Total liabilities |
|
234,551 |
|
|
191,841 |
|
||
Commitments and contingencies |
||||||||
Stockholders’ Deficit |
||||||||
Preferred stock, |
|
— |
|
|
— |
|
||
Class A common stock, |
|
3 |
|
|
3 |
|
||
Class V voting stock, |
|
1 |
|
|
3 |
|
||
Additional paid-in capital |
|
— |
|
|
— |
|
||
Accumulated deficit |
|
(137,723 |
) |
|
(29,391 |
) |
||
Accumulated other comprehensive loss |
|
(22 |
) |
|
(12 |
) |
||
Treasury stock, at cost |
|
(5,600 |
) |
|
— |
|
||
biote Corp.’s stockholders’ deficit |
|
(143,341 |
) |
|
(29,397 |
) |
||
Noncontrolling interest |
|
1,690 |
|
|
(7,149 |
) |
||
Total stockholders’ deficit |
|
(141,651 |
) |
|
(36,546 |
) |
||
Total liabilities and stockholders’ deficit |
$ |
92,900 |
|
$ |
155,295 |
|
||
Biote Corp. Consolidated Statements of Operations (In Thousands, except per share values) (Unaudited) |
||||||||||||||||
Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Revenue: |
||||||||||||||||
Product revenue |
$ |
48,111 |
|
$ |
48,652 |
|
$ |
94,146 |
|
$ |
92,807 |
|
||||
Service revenue |
|
1,058 |
|
|
605 |
|
|
1,827 |
|
|
1,293 |
|
||||
Total revenue |
|
49,169 |
|
|
49,257 |
|
|
95,973 |
|
|
94,100 |
|
||||
Cost of revenue |
||||||||||||||||
Cost of products |
|
14,426 |
|
|
14,992 |
|
|
27,228 |
|
|
28,019 |
|
||||
Cost of services |
|
861 |
|
|
836 |
|
|
1,426 |
|
|
1,686 |
|
||||
Cost of revenue |
|
15,287 |
|
|
15,828 |
|
|
28,654 |
|
|
29,705 |
|
||||
Selling, general and administrative |
|
27,649 |
|
|
25,760 |
|
|
50,659 |
|
|
48,845 |
|
||||
Income from operations |
|
6,233 |
|
|
7,669 |
|
|
16,660 |
|
|
15,550 |
|
||||
Other income (expense), net: |
||||||||||||||||
Interest expense, net |
|
(2,577 |
) |
|
(1,645 |
) |
|
(4,237 |
) |
|
(3,291 |
) |
||||
Loss from change in fair value of warrant liability |
|
— |
|
|
(11,793 |
) |
|
— |
|
|
(13,411 |
) |
||||
Loss from change in fair value of earnout liability |
|
(13,949 |
) |
|
(6,400 |
) |
|
(26,038 |
) |
|
(31,810 |
) |
||||
Other income (expense) |
|
(2 |
) |
|
(4 |
) |
|
(4 |
) |
|
(11 |
) |
||||
Total other income (expense), net |
|
(16,528 |
) |
|
(19,842 |
) |
|
(30,279 |
) |
|
(48,523 |
) |
||||
Loss before provision for income taxes |
|
(10,295 |
) |
|
(12,173 |
) |
|
(13,619 |
) |
|
(32,973 |
) |
||||
Income tax expense |
|
180 |
|
|
922 |
|
|
2,666 |
|
|
1,552 |
|
||||
Net Loss |
|
(10,475 |
) |
|
(13,095 |
) |
|
(16,285 |
) |
|
(34,525 |
) |
||||
Less: Net loss attributable to noncontrolling interest |
|
(4,153 |
) |
|
(7,952 |
) |
|
(7,893 |
) |
|
(22,577 |
) |
||||
Net loss attributable to biote Corp. stockholders |
$ |
(6,322 |
) |
$ |
(5,143 |
) |
$ |
(8,392 |
) |
$ |
(11,948 |
) |
||||
|
||||||||||||||||
Other comprehensive loss: |
||||||||||||||||
Foreign currency translation adjustments |
|
(1 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
||||
Other comprehensive loss |
|
(1 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
||||
Comprehensive loss |
$ |
(10,476 |
) |
$ |
(13,095 |
) |
$ |
(16,287 |
) |
$ |
(34,525 |
) |
||||
|
||||||||||||||||
Net loss per common share |
||||||||||||||||
Basic |
$ |
(0.19 |
) |
$ |
(0.25 |
) |
$ |
(0.25 |
) |
$ |
(0.62 |
) |
||||
Diluted |
$ |
(0.19 |
) |
$ |
(0.25 |
) |
$ |
(0.25 |
) |
$ |
(0.62 |
) |
||||
Weighted average common shares outstanding |
||||||||||||||||
Basic |
|
33,072,156 |
|
|
20,704,866 |
|
|
34,185,578 |
|
|
19,153,574 |
|
||||
Diluted |
|
33,072,156 |
|
|
20,704,866 |
|
|
34,185,578 |
|
|
19,153,574 |
|
||||
Biote Corp. Consolidated Statements of Cash Flows (In Thousands) (Unaudited) |
||||||||
Six Months Ended June 30, |
||||||||
2024 |
2023 |
|||||||
Operating Activities |
||||||||
Net loss |
$ |
(16,285 |
) |
$ |
(34,525 |
) |
||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
|
1,626 |
|
|
1,068 |
|
||
Bad debt expense |
|
838 |
|
|
766 |
|
||
Amortization of debt issuance costs |
|
404 |
|
|
391 |
|
||
Provision for obsolete inventory |
|
42 |
|
|
(155 |
) |
||
Non-cash lease expense |
|
180 |
|
|
137 |
|
||
Non-cash interest on share repurchase liability |
|
493 |
|
|
— |
|
||
Shares issued in settlement of litigation |
|
— |
|
|
1,199 |
|
||
Share-based compensation expense |
|
4,604 |
|
|
4,817 |
|
||
Loss from change in fair value of warrant liability |
|
— |
|
|
13,411 |
|
||
Loss from change in fair value of earnout liability |
|
26,038 |
|
|
31,810 |
|
||
Deferred income taxes |
|
— |
|
|
236 |
|
||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
|
(1,684 |
) |
|
(2,154 |
) |
||
Inventory |
|
(192 |
) |
|
3,942 |
|
||
Other current assets |
|
818 |
|
|
(4,082 |
) |
||
Accounts payable |
|
1,490 |
|
|
3,295 |
|
||
Deferred revenue |
|
379 |
|
|
490 |
|
||
Accrued expenses |
|
(1,262 |
) |
|
(848 |
) |
||
Operating lease liabilities |
|
(170 |
) |
|
(31 |
) |
||
Net cash provided by operating activities |
|
17,319 |
|
|
19,767 |
|
||
Investing Activities |
||||||||
Purchases of short-term investments |
|
— |
|
|
(20,000 |
) |
||
Purchases of property and equipment |
|
(3,210 |
) |
|
(67 |
) |
||
Purchases of capitalized software |
|
(692 |
) |
|
(1,158 |
) |
||
Acquisitions, net of cash acquired |
|
(11,611 |
) |
|
— |
|
||
Net cash used in investing activities |
|
(15,513 |
) |
|
(21,225 |
) |
||
Financing Activities |
||||||||
Repurchases of common stock |
|
(5,599 |
) |
|
— |
|
||
Borrowings on revolving loans |
|
10,000 |
|
|
— |
|
||
Principal repayments on term loan |
|
(3,125 |
) |
|
(3,125 |
) |
||
Payments on repurchase liability |
|
(62,162 |
) |
|
— |
|
||
Proceeds from exercise of stock options |
|
562 |
|
|
420 |
|
||
Issuance of stock under purchase plan |
|
146 |
|
|
— |
|
||
Distributions |
|
(4,203 |
) |
|
(6,588 |
) |
||
Net cash used in financing activities |
|
(64,381 |
) |
|
(9,293 |
) |
||
Effect of exchange rate changes on cash and cash equivalents |
|
(8 |
) |
|
— |
|
||
Net decrease in cash and cash equivalents |
|
(62,583 |
) |
|
(10,751 |
) |
||
Cash and cash equivalents at beginning of period |
|
89,002 |
|
|
79,231 |
|
||
Cash and cash equivalents at end of period |
$ |
26,419 |
|
$ |
68,480 |
|
||
Supplemental Disclosure of Cash Flow Information |
||||||||
Cash paid for interest |
$ |
3,972 |
|
$ |
4,581 |
|
||
Cash paid for income taxes |
$ |
2,207 |
|
$ |
4,472 |
|
||
Non-cash investing and financing activities |
||||||||
Capital expenditures and capitalized software included in accounts payable |
$ |
85 |
|
$ |
61 |
|
||
Shares issued to acquire Simpatra |
$ |
1,841 |
|
$ |
— |
|
||
Non-GAAP Measures
Adjusted EBITDA is a non-GAAP performance measure that provides supplemental information that we believe is useful to analysts and investors to evaluate the Company’s ongoing results of operations when considered alongside net income, (the most directly comparable
We use Adjusted EBITDA as alternative measures to evaluate our operational performance. We calculate Adjusted EBITDA by excluding from net income: interest expense; depreciation and amortization expenses; and income taxes. Additionally, we exclude certain expenses we believe are not indicative of our ongoing operations or operational performance. We present Adjusted EBITDA because it is a key measure used by our management to evaluate our operating performance, generate future operating plans and determine payments under compensation programs. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; and
- Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us.
In addition, Adjusted EBITDA is subject to inherent limitations as it reflects the exercise of judgment by Biote’s management about which expenses are excluded or included. Other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our Adjusted EBITDA as a tool for comparison. Investors are encouraged to review the reconciliation, and not to rely on any single financial measure to evaluate our business.
The following is a reconciliation of net loss to Adjusted EBITDA (in thousands) for the three and six months ended June 30, 2024 and 2023:
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
(in thousands) | 2024 |
2023 |
2024 |
2023 |
||||||||||||
Net Loss | $ |
(10,475 |
) |
$ |
(13,095 |
) |
$ |
(16,285 |
) |
$ |
(34,525 |
) |
||||
Interest expense, net(1) |
|
2,577 |
|
|
1,645 |
|
|
4,237 |
|
|
3,291 |
|
||||
Income tax expense |
|
180 |
|
|
922 |
|
|
2,666 |
|
|
1,552 |
|
||||
Depreciation and amortization(2) |
|
876 |
|
|
530 |
|
|
1,626 |
|
|
1,068 |
|
||||
Share-based compensation expense(3) |
|
2,841 |
|
|
2,647 |
|
|
4,604 |
|
|
4,817 |
|
||||
Litigation expenses-former owner(4) |
|
(12 |
) |
|
1,539 |
|
|
589 |
|
|
2,069 |
|
||||
Litigation-other(5) |
|
22 |
|
|
184 |
|
|
92 |
|
|
368 |
|
||||
Legal settlement (gain) loss(6) |
|
— |
|
|
— |
|
|
— |
|
|
1,198 |
|
||||
Inventory fair value write-up(7) |
|
1,206 |
|
|
— |
|
|
1,206 |
|
|
— |
|
||||
Transaction-related expenses(8) |
|
— |
|
|
1,472 |
|
|
45 |
|
|
1,796 |
|
||||
Other expenses(9) |
|
1,202 |
|
|
341 |
|
|
1,287 |
|
|
609 |
|
||||
Merger and acquisition expenses(10) |
|
376 |
|
|
160 |
|
|
795 |
|
|
181 |
|
||||
Loss from change in fair value of warrant liability |
|
— |
|
|
11,793 |
|
|
— |
|
|
13,411 |
|
||||
Loss from change in fair value of earnout liability |
|
13,949 |
|
|
6,400 |
|
|
26,038 |
|
|
31,810 |
|
||||
Adjusted EBITDA | $ |
12,742 |
|
$ |
14,538 |
|
$ |
26,900 |
|
$ |
27,645 |
|
||||
Total revenue | $ |
49,169 |
|
$ |
49,257 |
|
$ |
95,973 |
|
$ |
94,100 |
|
||||
Net loss margin(11) |
|
(21.3 |
)% |
|
(26.6 |
)% |
|
(17.0 |
)% |
|
(36.7 |
)% |
||||
Adjusted EBITDA margin(12) |
|
25.9 |
% |
|
29.5 |
% |
|
28.0 |
% |
|
29.4 |
% |
(1) |
Represents cash and non-cash interest on our debt obligations, commitment fees for our unused Revolving Loans, net of interest income earned on our money market account and short-term investment. For the three and six months ended June 30, 2024, interest expense, net included |
|
(2) |
Represents depreciation expense on property and equipment, amortization expense on capitalized software and amortization expense on purchased intangible assets. Depreciation expense of |
|
(3) |
Represents employee compensation expense associated with equity-based stock awards. This includes expense associated with equity incentive instruments including phantom stock awards, stock options and restricted stock units. |
|
(4) |
Represents legal expenses to defend the Company against claims asserted by the Company’s former owner. |
|
(5) |
Represents litigation expenses other than those incurred in connection with claims asserted by the Company’s former owner that are not related to the Company’s ongoing business. |
|
(6) |
Represents settlements of legal matters. |
|
(7) |
Represents the fair market value write-up of inventory accounted for under ASC 805 related to the acquisition of Asteria Health. |
|
(8) |
Represents transaction costs including legal fees of |
|
(9) |
Represents professional services fees of |
|
(10) |
Represents legal fees of |
|
(11) |
Net loss margin is defined as net loss divided by total revenue. |
|
(12) |
Adjusted EBITDA margin is defined as adjusted EBITDA divided by total revenue. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808260997/en/
Investor Relations:
Eric Prouty
AdvisIRy Partners
eric.prouty@advisiry.com
Media:
Press@biote.com
Source: biote Corp.
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