BTMD Q1 2025: Supplements E-commerce Surges, CDSS Rollout Cuts Volumes
- Strong dietary supplements performance: The supplements business, particularly the e-commerce channel, delivered better-than-expected results without relying on one-time items, suggesting a sustainable revenue stream.
- Aggressive sales force realignment: The company expanded its field sales force by approximately 25% by transitioning support roles to sales roles, positioning it to drive new clinic acquisitions and long-term growth.
- Effective technology deployment: The full deployment of the enhanced clinical decision support system (CDSS) with excellent feedback from new clinic users lays a solid foundation for future procedure growth.
- CDSS-Related Procedure Volume Decline: The transition to the new clinical decision support software resulted in a slowdown of new practice starts and a reduction in procedure volume, which could persist and weigh on future revenue growth.
- Sequential Revenue Growth Concerns: Analyst questions point to potential sequential deceleration in growth, with indications that upcoming periods might see softer performance compared to the strong Q1 results.
- Ongoing Competitive Pressures: Despite no major changes in the marketplace, persistent competition remains a headwind that could continue to challenge market share and profitability.
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Revenue | FY 2025 | $202 million to $208 million | No guidance provided in Q1 2025 | no updated guidance |
Adjusted EBITDA | FY 2025 | $59 million to $64 million | No guidance provided in Q1 2025 | no updated guidance |
Procedure Revenue Growth | FY 2025 | Approximately 2% to 4% increase | No guidance provided in Q1 2025 | no updated guidance |
Dietary Supplement Revenue Growth | FY 2025 | Approximately 5% to 10% increase | No guidance provided in Q1 2025 | no updated guidance |
| Topic | Previous Mentions | Current Period | Trend |
|---|---|---|---|
CDSS Technology | Q4 2024: Described as disruptive, shifting focus from acquiring new clinics with temporary slowdowns. Q3 2024: Introduced with enhancements, causing temporary procedure disruptions that then rebounded. Q2 2024: Not mentioned. | Q1 2025: Fully deployed with excellent feedback from new clinics; noted benefits for long‑term growth but still causing a slowdown in new clinics and slight volume declines due to transitional challenges. | Mixed impact remains; initial disruptions are transitioning into a positive long‑term outlook as practitioners and clinics adjust. This topic continues to be critical for future growth given its role in mainstreaming procedures. |
Dietary Supplements | Q4 2024: Moderate growth attributed to transitioning a portion of the business to Amazon. Q3 2024: Strong performance with 21.7% YoY growth driven by enhancements in the Amazon channel. Q2 2024: Significant decline (32.2% YoY) amid e‑commerce transition challenges. | Q1 2025: Strong revenue growth (up 25.5% to $9.3 million) driven by robust e‑commerce performance; expectations for solid growth persist though sequential comparisons may moderate later in the year. | Positive sentiment shift from earlier volatility. Improved execution in e‑commerce has stabilized revenue, although near‑term sequential slowdown is expected as prior strong performances lap. |
Sales Force Realignment | Q4 2024: Focused on managing existing practitioners during the CDSS rollout, which slowed new practitioner additions. Q2 2024: Practitioner/clinic expansion was highlighted with significant new clinic additions, though sales realignment was not explicitly detailed. | Q1 2025: Announced a new realignment focused on growth rather than cost-cutting, including territory realignments and shifting support roles to sales roles to address slow new clinic starts and improve commercial effectiveness. | More proactive and growth‐oriented. The strategy is evolving from merely managing disruptions to actively driving new clinic growth and commercial efficiency, indicating a sharper focus on expansion despite previous distractions. |
Vertical Integration | Q4 2024: Emphasized cost efficiencies, enhanced internal manufacturing, and increased control following the Asteria Health acquisition. Q3 2024: Noted 50% volume conversion to Asteria Health and associated margin improvements. Q2 2024: Focused on ramping up production capabilities and securing additional state licenses. | Q1 2025: Described as in the “fourth inning” of the process, with ongoing integration efforts that are slowly delivering benefits such as stable inventory and margin improvements; Asteria Health licensing continues smoothly. | Steady progress continues with gradual conversion and licensing expansion. Though integration is still maturing, the focus remains on long‑term cost benefits and operational efficiencies, which are expected to positively impact the business in the future. |
Procedure Revenue Growth | Q2 2024: Strong growth at 7.8% YoY driven by broad-based contributions and new clinic growth. Q3 2024: Robust growth at 7.1% YoY despite temporary disruptions from CDSS enhancements and hurricanes. Q4 2024: Moderated growth at 5% amid CDSS transition and a focus on training existing practitioners. | Q1 2025: Procedure revenue declined 3.6% to $36.0 million, attributed to reduced commercial effectiveness and slower new clinic starts due to the CDSS transition; management remains optimistic about a 2%-4% annual growth for 2025 as restructuring benefits take effect. | Short‑term slowdown continues as transitional pains from CDSS deployment persist, though management’s long‑term guidance remains positive. The trend highlights volatility with expectations of recovery and acceleration later in the year as operational adjustments mature. |
GLP‑1 Product Strategy | Q2 2024: Introduced as part of the BioteRx wellness platform, ensuring quick access and significant adoption despite reliance on compounders. Q3 2024: Highlighted integration of Tirzepatide and Semaglutide into BioteRx with expansion to additional states and innovation efforts. Q4 2024: Positioned as non‑core, with its continuation dependent on regulatory guidance and not central to revenue growth. | Q1 2025: Not mentioned. | De‑emphasized in the current period, suggesting a potential shift in strategic focus or reduced regulatory emphasis. Its absence may reflect a deliberate move away from highlighting GLP‑1 due to ongoing regulatory uncertainties and its immaterial contribution to core revenue. |
Ongoing Competitive Pressures | Q3 2024: Mentioned in relation to the GLP‑1 space, indicating some competitive challenges in that segment. Q2 2024 & Q4 2024: Not specifically mentioned. | Q1 2025: Acknowledged as an ongoing headwind for procedure revenue, though noted as predictable with stable attrition rates (5%); competition is seen as a constant factor without significant new changes. | Stable; competitive pressures remain consistent without marked escalation. The sentiment suggests that while competition is an ongoing concern, it is manageable and not currently a primary disruptor to performance. |
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Sales Realignment
Q: What is today’s realignment about?
A: Management announced a new restructuring focused solely on growth, transitioning nearly 20 support roles to sales to expand their field force by 25% in order to drive new clinic wins and boost market penetration. -
Procedure Revenue
Q: Why did base procedure volume decline?
A: The drop was mainly due to fewer new clinic starts and a temporary volume dip following the CDSS rollout, with competition remaining steady and attrition holding at around 5%. -
Revenue Guidance
Q: What supports the 2–4% procedure growth guidance?
A: Although procedure revenue recently dipped due to transitional challenges, management is confident that the realignment and improved new starts will gradually restore growth to the 2–4% target, despite inherent risks. -
Asteria Expansion
Q: Are there production or ramp issues with Asteria?
A: Asteria is progressing smoothly with stable inventory levels, and management is implementing a tempered expansion strategy throughout the year without significant production hurdles. -
Operational Inefficiencies
Q: What inefficiencies were found and how will clinic additions rebound?
A: Leadership identified gaps in territory management and compensation alignment, and they are addressing these with a cultural shift and restructuring designed to reenergize clinic additions and overall growth. -
Supplements Business
Q: Was supplements performance driven by one-time factors?
A: The strong performance in dietary supplements is attributed to robust e-commerce growth, reflecting a sustainable trend rather than any one-time event. -
Procedure Market Dynamics
Q: Are external competitive forces affecting procedure volume?
A: The recent softening in procedure volume is driven by internal adjustments related to the CDSS launch rather than by changes in market competition, which remains unchanged. -
Support vs. Sales
Q: Does the restructuring include cutting support roles?
A: The focus is on transitioning certain support functions into active sales roles, not on cutting positions, to enhance growth rather than reduce expenses. -
Tariff & E-commerce Impact
Q: Are tariffs affecting supplements, and is e-commerce growth sustainable?
A: Tariff impacts are minimal since core products are domestically sourced, and the e-commerce channel has shown exceptional performance, supporting ongoing growth. -
Sequential Performance
Q: Why might sequential growth slow despite a strong Q1?
A: Although Q1 was strong, management expects a more modest pace later in the year as transitional adjustments and a maturing market naturally temper sequential growth.
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