biote (BTMD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 12.8% year-over-year to $51.4 million, driven by growth in procedures and dietary supplements, with strong Amazon channel performance.

• Adjusted EBITDA rose to $16.2 million (31.5% margin), up from $14.0 million (30.8% margin) in Q3 2023.

• Net income was $12.7 million, with diluted EPS of $0.33, impacted by fair value changes in earnout liabilities and higher interest expense.

• Strategic acquisitions in 2024, including Asteria Health, Simpatra, and BioSana, enhanced vertical integration, supply chain, and intellectual property.

• Launched significant enhancements to proprietary clinical decision support software, expanding treatment options and improving practitioner workflow, though causing temporary disruption in procedure volumes.

Financial highlights

• Q3 2024 revenue: $51.4M (+12.8% YoY); procedure revenue grew 7.1%, dietary supplement revenue up 21.7%.

• Gross profit margin improved to 70.5% (up from 68.9% YoY), reflecting vertical integration and cost management.

• Operating income increased to $12.2 million from $7.6 million YoY; net income included a $7.2 million gain from earnout liability fair value change.

• Adjusted EBITDA for Q3 2024 was $16.2 million (31.5% margin), up 15.4% YoY.

• Cash and cash equivalents at September 30, 2024, were $38.2 million; available revolving loans: $40.0 million.

Outlook and guidance

• 2024 guidance revised: revenue of $197–$201 million and adjusted EBITDA of $58–$61 million, slightly reduced due to software rollout and hurricane-related clinic closures.

• Expects procedure revenue growth to reaccelerate in 2025 as workflow disruptions subside and software adoption increases.

• Management anticipates continued growth from top-tier accounts, network expansion, and dietary supplement sales.

• Company believes current cash, operations, and revolving loan capacity are sufficient for at least the next 12 months.

• Ongoing focus on cost savings from vertical integration to support margin strength.