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biote Corp. (BTMD)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue grew 9% YoY to $49.8M with gross margin expanding 240 bps to 71.8%; Adjusted EBITDA rose to $15.1M (30.3% margin) though GAAP EPS declined to $0.10 on higher SG&A and an $0.8M unfavorable earnout revaluation .
  • Management issued FY 2025 guidance of $202–$208M revenue and $59–$64M Adjusted EBITDA; expects procedure revenue +2–4% and dietary supplements +5–10% in 2025; Q1 2025 revenue slightly higher YoY but Adjusted EBITDA ~5% lower on stepped-up commercial spend .
  • Sequentially, Q4 revenue declined vs Q3 (seasonally and due to CDSS transition/training), but gross margin improved, reflecting benefits from Asteria 503B vertical integration; cash ended at $39.3M .
  • Street consensus (S&P Global) for Q4 2024 was unavailable at query time, so beat/miss versus estimates cannot be determined.
  • Stock catalysts: execution on ramping new practitioner adds post-CDSS rollout, sustained margin accretion from internal manufacturing, and traction of BioteRx/Amazon channels .

What Went Well and What Went Wrong

  • What Went Well
    • Gross margin expansion to 71.8% (+240 bps YoY) driven by vertical integration/cost management; management reiterated margin accretion from Asteria is “baked into the guide” .
    • Adjusted EBITDA up 11% YoY to $15.1M in Q4 with margin up to 30.3% as operating leverage offset higher SG&A .
    • Strategic platform progress: phased launch of BioteRx and upgraded clinical decision support software (CDSS) to strengthen competitive moat; CEO: “strengthened our competitive moat and broadened our capabilities” .
  • What Went Wrong
    • Procedure revenue growth (+5% YoY) underperformed vs company ambitions due to CDSS transition disrupting volumes and diverting field resources from new clinic starts .
    • Operating income fell to $2.8M (from $5.5M YoY) on employee-related investments and legal expenses; GAAP EPS impacted by a $0.8M loss from earnout revaluation .
    • New practitioner additions slowed during CDSS rollout; management expects H1:25 growth impact and increased S&M to reaccelerate new customer growth .

Financial Results

Headline metrics by quarter (oldest → newest)

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$45.703 $49.169 $51.384 $49.834
Gross Profit Margin %69.4% 68.9% 70.5% 71.8%
Operating Income ($M)$5.5 $6.233 $12.184 $2.767
Net Income ($M)$12.078 $(10.475) $12.657 $3.483
Diluted EPS ($)$0.18 $(0.19) $0.33 $0.10
Adjusted EBITDA ($M)$13.574 $12.742 $16.202 $15.123
Adjusted EBITDA Margin %29.7% 25.9% 31.5% 30.3%

Revenue breakdown and procedure revenue (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Product Revenue ($M)$48.111 $49.806 $48.288
Service Revenue ($M)$1.058 $1.578 $1.546
Total Revenue ($M)$49.169 $51.384 $49.834
Procedure Revenue ($M)$38.4 $37.9 $36.6

KPIs and operating quality (oldest → newest)

KPIQ2 2024Q3 2024Q4 2024
Gross Profit Margin %68.9% 70.5% 71.8%
Adjusted EBITDA Margin %25.9% 31.5% 30.3%
Cash & Cash Equivalents ($M, period-end)$26.419 $38.225 $39.342
NotesGPM includes $1.2M inventory step-up effect in Q2; ex-step-up GPM 70.9% Margin accretion from vertical integration Asteria accretion maintained per guide commentary

Cash flow and balance sheet (annual)

MetricFY 2023FY 2024
Cash from Operations ($M)$26.883 $45.243
Cash & Cash Equivalents at YE ($M)$89.002 $39.342

Non-GAAP and notable items (Q4 2024)

  • Adjusted EBITDA excludes items including $5.0M legal settlement loss, $2.2M other litigation, $1.9M SBC, and $0.78M loss from earnout fair value change; net income includes the $0.78M earnout loss .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent/ActualChange
Revenue ($M)FY 2024$200–$204 (as of Q2) $197.191 actual Lowered (Q3 reset to $197–$201 ); finished within reset
Adjusted EBITDA ($M)FY 2024$60–$63 (as of Q2) $58.225 actual Lowered (Q3 reset to $58–$61 ); finished within reset
Revenue ($M)FY 2025—$202–$208 New
Adjusted EBITDA ($M)FY 2025—$59–$64 New
Procedure Revenue GrowthFY 2025—+2% to +4% YoY New
Dietary Supplements GrowthFY 2025—+5% to +10% YoY New
RevenueQ1 2025—Slightly higher vs Q1’24 Qualitative
Adjusted EBITDAQ1 2025—~5% lower vs Q1’24 Qualitative

Earnings Call Themes & Trends

TopicQ2 2024 (Q-2)Q3 2024 (Q-1)Q4 2024 (Current)Trend
CDSS rollout & impactBioteRx rollout on track; reiterated 2024 guidance CDSS enhanced; temporary disruption to procedures; hurricane closures; 2024 guidance lowered modestly Rollout complete; still fine-tuning; disruption weighed on new clinic starts; H1:25 growth impact Transition effects moderating; execution refocus
Vertical integration (Asteria) & marginsInventory step-up; GPM 68.9% (70.9% ex step-up) GPM 70.5%; vertical integration drove improvement GPM 71.8%; Asteria accretion included in 2025 guide Steadily accretive
Practitioner adds/quick startNew clinics +~30% 1H; increased S&M Growth slowed late Q3 from CDSS/hurricanes; still adding clinics Field focused on existing accounts during CDSS; funnel rebuild to reaccelerate Near-term rebuild, medium-term growth driver
BioteRx & GLP-1BioteRx introduced (~600 clinics) Continued portfolio expansion GLP-1s mainly service-driven; not core to revenue; BioteRx platform enables future adds Platform expanding; GLP-1 de-emphasized
Amazon supplementsTransition depressed Q2 supplements; strategy in place Supplements +21.7% YoY; Amazon improvements Continued YoY growth expected in 2025 Improving channel execution

Management Commentary

  • CFO: “Even as fourth quarter procedure volume was impacted due to the transition to upgraded clinical decision support software... fourth quarter revenue increased 9.0%. We ended the year in a strong financial position, with $39.3 million in cash and cash equivalents” .
  • CEO: “With the phased launch of the BioteRx platform and the roll-out of our upgraded clinical decision support software, we strengthened our competitive moat... Biote continues to generate strong operating cash flow while also investing in future growth” .
  • 2025 execution focus (CEO): “Maximize value of top-tier providers... intensify focus on adding practitioners... strengthen accountability and discipline... anticipated acceleration in revenue growth later this year” .

Q&A Highlights

  • Procedural growth guide (+2–4%): New customer adds are key in the annuity model; focus shifted back to filling the top of funnel after CDSS disruption; no specific split provided between existing vs new .
  • CDSS status: Rollout is complete; ongoing continuous improvement; some residual friction but practitioners adjusting .
  • GLP-1 role: Offered to meet clinician demand but “not core” to revenue; BioteRx’s value is as a platform to add future wellness offerings .
  • Margins: Asteria-driven accretion embedded in 2025 guide; approach is tempered on internal pellet penetration to meet practitioner needs .
  • Churn: No churn uptick tied to CDSS; emphasis on restoring consistent new starts as growth driver .
  • Network scale: ~8,600 providers and ~4,700 clinicians discussed (to be detailed in 10-K); emphasis on quick-start training and accountability around new starts KPI .

Estimates Context

  • Wall Street consensus (S&P Global) for BTMD’s Q4 2024 EPS and revenue was unavailable at the time of query due to data access limits. As a result, we cannot quantify beat/miss versus consensus for Q4 2024. Management delivered Q4 revenue growth and margin expansion versus prior year and finished FY 2024 within the revised guidance ranges issued in Q3 2024 .

Key Takeaways for Investors

  • Near-term: Expect choppy procedure growth through H1:25 as the field rebuilds the new-practitioner pipeline post-CDSS; Q1:25 EBITDA intentionally lower on higher commercial spend—potential near-term pressure on profitability .
  • Medium-term: Margin structure improving structurally (Asteria vertical integration), providing cushion to reinvest for growth while maintaining ~30% Adjusted EBITDA margins .
  • Growth drivers: Reaccelerating new clinic starts (quick-start program), deepening top-tier provider productivity, and broader BioteRx platform offerings; Amazon supplements channel should remain a tailwind .
  • Quality of earnings: GAAP variability from earnout fair value changes and legal items; Adjusted EBITDA better reflects core operations but monitor recurring legal and “other” adjustments .
  • Liquidity: Strong operating cash generation ($45.2M FY24) supports investment and shareholder actions amid term loan obligations and share repurchase liabilities .
  • Watch list: Practitioner add cadence, CDSS utilization/feedback, sustained GPM >70%, and evidence of procedure growth reacceleration by late 2025 per management narrative .