NASDAQ:BTMD biote Q1 2025 Earnings Report $3.68 -0.07 (-1.87%) Closing price 05/23/2025 04:00 PM EasternExtended Trading$3.68 +0.00 (+0.14%) As of 05/23/2025 04:43 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast biote EPS ResultsActual EPS$0.08Consensus EPS $0.06Beat/MissBeat by +$0.02One Year Ago EPSN/Abiote Revenue ResultsActual Revenue$48.99 millionExpected Revenue$47.25 millionBeat/MissBeat by +$1.74 millionYoY Revenue GrowthN/Abiote Announcement DetailsQuarterQ1 2025Date5/7/2025TimeAfter Market ClosesConference Call DateWednesday, May 7, 2025Conference Call Time5:00PM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by biote Q1 2025 Earnings Call TranscriptProvided by QuartrMay 7, 2025 ShareLink copied to clipboard.There are 8 speakers on the call. Operator00:00:00Hello, and welcome to the Biodi First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Simon Sarovietki. Operator00:00:29Please go ahead. Speaker 100:00:32Thank you for joining us today. This afternoon, Bati published financial results for the first quarter ended 03/31/2025. This news release is available in the Investor Relations section of the company's website. Hosting today's call are Brett Christensen, Chief Executive Officer Bob Peterson, Chief Financial Officer and Mark Beer, Executive Chairman. Before we get started, I would like to remind everyone that management will make statements during this call that include forward looking statements regarding, among other things, the company's financial results, future performance and growth opportunities, business outlook, strategies, goals, mission development, manufacturing and commercialization activities, competitive position, regulatory process operations, benefits of its solutions, anticipated impacts of macroeconomic conditions on its business, results of operations, financial conditions and other matters that do not relate to historical facts. Speaker 100:01:24These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond the company's control. Actual results could differ materially from expectations reflected in any forward looking statements. These statements are subject to risks, uncertainties and assumptions that are based on management's current expectations as of today. BIOTI undertakes no obligation to update them in the future. Speaker 100:01:46Therefore, these statements should not be relied upon as representing the company's views as of any subsequent date. For a discussion of risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC's website and the Investor Relations section of our website as well as risks and other important factors discussed in the earnings release. Management also refers to adjusted EBITDA and adjusted EBITDA margin, which are non GAAP financial measures to provide additional information to investors. A reconciliation of the non GAAP to GAAP measures is provided in our earnings release, with the primary differences being stock based compensation, fair value adjustments to certain liabilities, transaction related expenses and other non operating expenses. Please refer to our first quarter twenty twenty five earnings release for a reconciliation of these non GAAP measures to close comparable GAAP measures. Speaker 100:02:32I'll now turn the call over to Brett. Speaker 200:02:34Thank you, Simon, and thank you all for joining us. I'll begin by providing an update on our business and the key initiatives we announced today. And then I'll turn the call over to Bob for a review of our first quarter financials and our 2025 financial outlook. After our comments, we'll open the call for questions. In the first quarter, we generated strong financial performance with strength in our dietary supplements business more than offsetting the expected softness in procedure revenue. Speaker 200:03:01We experienced continued improvement in our gross profit margin, which increased 300 basis points to 74.3% due to the vertical integration of our 503B manufacturing facility. Total revenue increased 4.7% and adjusted EBITDA decreased 3.4% compared to the same period in 2024, keeping us on track with our 2025 financial forecast for revenue and adjusted EBITDA. As we expected, procedure revenue was impacted by reduced commercial effectiveness in part due to the residual effect of the transition to our enhanced clinical decision support software as well as ongoing competitive pressures. A slowdown in new clinic additions as well as a minor decrease in procedure volumes and select reductions in average selling prices also contribute to the decline in procedure revenue. On last quarter's earning call, identified three areas of emphasis for 2025, which I believe are fundamental to commercial execution at a high level. Speaker 200:03:59The priorities were one, accelerate new providers two, maximize value from top tier clinics and three, improve commercial accountability and discipline. Consistent with these comments, today we announced a strategic organizational restructuring designed to drive sustainable profitable growth and create long term value for our stockholders. This restructuring builds on the foundational progress we achieved over the past year, supporting our expanded capabilities within the hormone and therapeutic wellness space. We believe that the decisive actions we are taking will enable us to scale our business more effectively and deliver a high level of financial performance. We are focused on three major objectives. Speaker 200:04:43First, we intend to accelerate new provider wins to further expand our nationwide network. Second, we intend to strengthen relationships with our existing top tier providers. And third, we intend to improve our financial performance by strengthening accountability and improving consistency and discipline throughout the commercial organization. Among the key steps we are implementing is the realignment of our commercial team with the goal of increasing productivity and driving new clinic growth. As part of this realignment, we are working to transition certain commercial support functions to active field sales positions, effectively increasing our field sales team by approximately 25%. Speaker 200:05:23We expect expanded and strengthened sales force will enable us to recruit new clinics at an accelerated rate and provide the dedicated support our new providers require as they build their medical practices. Additionally, we are streamlining sales leadership to ensure better communication and efficiency to drive more consistent performance across the entire commercial team. We are also updating our sales compensation structure to align incentives with our sales goals. As we direct our sales efforts to driving new clinic growth, we also recognize the importance of retaining and maximizing the value from our existing top tier providers. Over the past year, BIO T has significantly expanded our capabilities and product offerings, encompassing hormone optimization, therapeutic wellness and dietary supplements. Speaker 200:06:08At the same time, we have expanded our education, training and technical resources, further differentiating BIO key in the marketplace. By strengthening engagement with our top two providers, we believe we will be better positioned to reinforce our role as a trusted partner, offering a science based approach to patient care and ongoing practice building support. As I noted last quarter, we are implementing these initiatives quickly, but recognize they will take time to show results. I strongly believe these actions will strengthen our commercial organization through increased productivity and deeper customer engagement and improve financial performance. As we move forward with our plans, I would like to reiterate my confidence in our exceptional team and our shared commitment to execute on our strategic priorities. Speaker 200:06:53While we expect 2025 will be a transition year from a financial standpoint, I believe the actions we announced today are essential to accelerating our growth and enabling us to realize our full potential. I look forward to updating you on our continued progress in the quarters ahead. I will now turn the call over to Bob. Speaker 300:07:11Thank you, Brett, and good afternoon, everyone. Unless otherwise noted, all quarterly financial comparisons in my prepared remarks are made against the first quarter of twenty twenty four. First quarter revenue increased 4.7 to $49,000,000 Procedure revenue decreased 3.6% to $36,000,000 primarily reflecting reduced commercial effectiveness and the slowdown in new clinic additions. As Brett noted, we are redirecting our commercial efforts to drive new clinic growth now that all of our existing clinics are utilizing our enhanced clinical decision support software. Dietary supplement revenue increased 25.5% to $9,300,000 primarily driven by the growth of our e commerce channel. Speaker 300:08:06We continue to expect solid growth this year from our dietary supplements business. Gross profit margin was 74.3%, a 300 basis point increase. The improvement reflected cost savings from the continued vertical integration of our 503B manufacturing facility, as well as effective cost management. While we expect to maintain strong gross profit margins, this metric has historically fluctuated quarter to quarter depending on our product mix and other factors. Selling, general and administrative expenses increased 16.4% to $26,700,000 reflecting an increased level of investment in sales and marketing focused on driving new customer growth and professional services. Speaker 300:09:01Notably, SG and A expenses decreased approximately 19.2% compared to the elevated level reported in the fourth quarter of twenty twenty four due to the absence of certain employee related investments and legal expenses. Net income was $15,800,000 inclusive of a 10,700,000 gain due to a change in the fair value of the earn out liabilities. Diluted earnings per share attributable to BIOTY PORT stockholders was $0.37 per share. This compares to a net loss in the first quarter of twenty twenty four of $5,700,000 inclusive of a $12,100,000 loss due to the change in the fair value of the earn out liabilities and diluted loss per share attributable to BIOT Corp stockholders of $0.12 per share. Adjusted EBITDA decreased 3.4% to $13,800,000 with an adjusted EBITDA margin of 28.1%. Speaker 300:10:10The decreases in adjusted EBITDA and adjusted EBITDA margin primarily reflected increased sales and marketing expense to drive growth, partially offset by improved gross profit. First quarter cash flow from operations was 6,500,000 As of 03/31/2025, cash and cash equivalents were $41,700,000 compared to $39,300,000 as of 12/31/2024. Now turning to our financial outlook for 2025. We maintain our previously stated guidance of revenue of $2.00 $2,000,000 to $2.00 $8,000,000 and adjusted EBITDA of $59 to $64,000,000 For the second quarter of twenty twenty five, we expect revenue and adjusted EBITDA to be similar to slightly higher than that of the second quarter of twenty twenty four. Also, the company expects to incur a one time charge of approximately $600,000 to $800,000 in the second quarter of twenty twenty five due to the restructuring. Speaker 300:11:29I'll now turn the call back to Brett for his closing comments. Speaker 200:11:33Thanks, Bob. Before we open the call for questions, I would like to say a few words. Our financial performance over the past few years has been inconsistent, falling short of our expectations and those of our investors. While I've only recently joined the company as CEO, I have been here long enough to recognize our shortcomings as an organization and what specific actions are required to drive outstanding commercial execution and financial performance. The restructuring plan we announced today represents a significant step forward with ForBioT. Speaker 200:12:02While it will take time to achieve our goals and we may experience some speed bumps along the way, I am confident that we are on the right path with the right people and with the right processes to achieve long term success and build shareholder value. Operator, let's now open the call for questions. Operator00:12:19Thank you. We will now begin the question and answer session. Today's first question comes from Kamil Gajrawala with Jefferies. Please go ahead. Speaker 400:12:50Hey, guys. Good evening. Can we maybe talk a little bit more about the supplements business and if there was anything maybe one time in it? It's obviously quite a result. I just want to make sure we looking at something that's a new run rate based on the changes that you've made or is there something maybe more temporary in there that we should be aware of? Speaker 300:13:14No, no, no. Hey, Camille, how are you? Look, I think the biggest piece of the supplements business that we saw solid performance in was our e commerce business. I would say it was a little bit more it performed a little bit better than expected. And I think we have a solid runway in this space, and we're comfortable where we are right now in the business that we're in. Speaker 300:13:41So with additional procedure growth, we could see some benefit in the space, but no one time items in this space, really just solid performance in the e commerce space. Speaker 400:13:55Okay, great. And then two, let me just try to understand the procedures, number of procedures and what happened there. Also in your prepared remarks mentioned competition a little bit. So there's so many there's some things that you guys are doing obviously as part of the process of optimizing the business. But is there anything changing in the marketplace itself that we should be aware of? Speaker 200:14:23Camille, this is Brett. Nothing significant has changed in the marketplace at all. We highlighted the headwinds to our procedure business. And I would say it's really volume related. And in that, we did mention competition, but competition is not new for us. Speaker 200:14:39That's an ongoing headwind. And like every other company, we're going to have competition. We've also highlighted in the past that our attrition has been relatively stable at around 5%, which is a great number and pretty predictable. This past quarter, we expected softness in procedure volume. And we highlighted that last call mainly due to our launch of our clinical decision support software at the end of last year. Speaker 200:15:05That did a couple of things. One, slowed down meaningfully new starts. It distracted our field organization and new practice starts had a dip at the end of last year. In annuity models, you know that will follow us this year. We highlighted that last call and certainly we expected the contribution from new clinics this quarter to be lighter than usual. Speaker 200:15:25So that was probably the biggest component. Second component was really just a slight decline in volume from our base business that we believe is associated with the launch of that CDSS as well. Speaker 400:15:38Okay. Got it. And are we fully deployed with that and now it's sort of a matter of time or are we still in process of the rollout? Speaker 200:15:47No. We are fully deployed with CDSS. All of our users are using the new version. The feedback is excellent, especially from new clinics. And this is going to be remember, this is going be really key to us advancing in the future and making what we do more mainstream to the average physician. Speaker 200:16:04It's critical to get the dose right. And the new CDSS helps them do just that. So it's going to give them comfort to do pellets and to do testosterone in their clinics. So it's a valuable foundation. We have no regrets of launching it. Speaker 200:16:17We just saw the headwind for the disruption from last year. Speaker 400:16:20Got it. Okay, great. Thank you. Operator00:16:24Thank you. The next question comes from Les Zuliewski with Truist. Please go ahead. Speaker 500:16:31Yes, good evening. Thank you for taking my questions. I have three essentially to start off with. First one I think we've heard about the realigning of the sales force over the past few quarters. What is different about today's realignment announcement? Speaker 500:16:45Is this aimed, I guess, at sales, back office, leadership roles or more broadly across the organization? And I have two follow ups. Speaker 200:16:56Hi, Les. This is Brett. We didn't do any realignment last quarter. So the realignment that we announced today is new and it's the only one that we've done frankly. So what we did was focused around growth. Speaker 200:17:09It was not a cost cutting effort for us. We're not in cost cutting mode, we're in growth mode. But what I highlighted in the last call and what you probably heard me say is we needed to change a lot of things in the organization to get us more focused and more aligned to growth. And one of those things was the alignment of our commercial organization. So we needed different territory alignments. Speaker 200:17:31We need different comp plans. We need everything focused on growing the business and a little less on maintaining the business. So if you noticed in our release, one of the things that we highlighted was we effectively grew the sales team this week by about 25% as we transition nearly 20 people in the field from support roles to sales roles. And so that's going to be really important for us to have everybody focused on growing the business. And that was the alignment change that we announced this week. Speaker 500:18:04Okay. I guess on that front, the individuals was it redundancies in the more on the support roles or not sales included? Or is it also sales included? And I guess maybe perhaps overall, maybe use a baseball terminology, if you could. Can you help us kind of reconcile where inning you are in, I guess, CDS implementation, the new sales reorg, although that seems to be new and as well as vertical integration, maybe kind of item by item if you could? Speaker 200:18:40Sure. I'll let Bob take the last part of that. But as far as CDSS goes, we're in late innings, if not the game is over for CDSS. So we are fully integrated with CDSS. And so while we're still the only reason we're talking about it, Les, is that in this annuity model, as you know, new starts follow us for a year. Speaker 200:18:59So you need whatever we're doing this quarter, contribution we get from new starts is a function of all the new clinic starts that we added over the last year. And frankly, the quality of those starts and how they started. And so CDSS just meant a decline in new starts and probably new starts that got off to a slower start than normal because again, they were distracted and our field was distracted with CDSS. But today, we are fully implemented with CDSS and there is no more work being done as far as rollout, system change, training, any of that. We're fully aligned and implemented with CDSS. Speaker 200:19:36Bob, do you want to talk about vertical integration? Hey, Les. Speaker 300:19:41On the vertical integration front, I'd say we're probably in around the fourth inning, to use your baseball analogy. Look, we have not expanded too much further than we had on the last call and a goal to not disrupt our clinics. That's a mantra that we have since the CDSS, and we are in the process now of expanding and getting prepared for conversion, but that is I'd say we're probably in the fourth inning. You're seeing some of the benefits that now on the margin front, but that's kind of where we would I would say we are on Asteria. Speaker 500:20:22Great. That is helpful. Perhaps on the supplement side, maybe, a, kind of talk to your exposure to tariffs potentially from API sourcing. And then second, you've called out the e commerce business being a little bit stronger than you expect. Any sort of more color on that? Speaker 500:20:42Thank you. Speaker 300:20:43Yes. So on tariffs, look, at this point, we don't see the impact to business on the tariff front. In our core pellet business, we're largely sourced domestically. And where we have had exposure to overseas providers, we've increased our inventory coverage to lock in price. So I don't see any significant direct exposure in the current year. Speaker 300:21:10And as far as the Nutri business, we've talked about it a little bit over time. Our e commerce business has since we've taken over, we are seeing solid growth in that space. And I think what I could highlight here is that a good amount of that growth is centered around that one piece of the business. So solid performance to date and yes, a continuation of what we started in August of last year. Speaker 500:21:45Thank you. Operator00:21:47Thank you. The next question comes from Jonah Kim with TD Cowen. Please go ahead. Thank you for taking my question. Could you just elaborate a little bit on the decline in the volume from the base business and whether you think that will continue to improve as we move throughout the year? Operator00:22:07And when can we start to see some improvements from the realignment that you talked about today? Thank you very much. Speaker 200:22:16Thanks, Toni. I'll try to give as much color as I can on our procedure revenue. So you heard me mention earlier to Camille's question. It was mainly volume related. So I'll hit that again real quick. Speaker 200:22:28Two real components there. The contribution from new starts, which has been lower. And I'm sure everybody is clear on that as we talked about it a lot. And so most of what we did today in the restructure, the realignment, in the new start of what we're doing at BIOTI is really aimed at that, at growing new starts. The other components though, we get a lot of volume from our base business. Speaker 200:22:55And while attrition has been fairly stable, there might have been a slight uptick in attrition this past quarter that we believe is temporary. And we do believe that attrition will stabilize and be a constant around 5%. The other there was also a small contribution to selective ASP declines, which were concessions due to CDSS in the field. And so those are the components, of course, always the components of an annuity model is volume, the contribution you get from NuStar and any changes to ASP. What we've been really good at is keeping ASP and attrition relatively constant. Speaker 200:23:31And that's why you'll hear us talk over and over again about the effort to increase new starts in the field. Operator00:23:39Got it. And any softness you're seeing from the consumer side from any macro headwinds at this point? Speaker 200:23:49Jonah, we don't typically see too much softness as far as price sensitivity, if that's what you're referring to. It's really hard to gauge. I mentioned that there was a slight decline in volume in our existing business, but we do believe that is related to the launch of CDSS last year. Nothing even anecdotally that I could comment on as far as macro effects and pricing sensitivity. Operator00:24:14Got it. Thank you very much. Speaker 100:24:16Thank you. Operator00:24:19The next question comes from Jeff Van Sinderen with B. Riley. Please go ahead. Speaker 600:24:26Great. Hi, everyone. Brett, I wonder, given that you've been there for a quarter or so, can you speak a little bit more about what you've learned on a granular level to the degree that you feel comfortable doing that? And kind of what the specific inefficiencies are that you've uncovered outside of the CDSS? And I guess also what steps you might take to turn around the new clinic additions? Speaker 600:24:55What other steps you might take to get those ramps back up again and get procedure growth up? Speaker 200:25:03Sure, Jeff. I'll start with the first one, just sort of what I've learned. I guess how I would describe that is I've really gained just clarity on some of what I highlighted in the call from Q4. And in Q4, I highlighted the amazing opportunity that brought me to BIO T, the massive TAM, the really underpenetrated marketplace as far as physicians that are both utilizing testosterone therapy, but also the nutraceuticals that we offer. And just the need for better execution as an organization to capture more of that TAM. Speaker 200:25:41And so I would say what's changed since that call is I've just gained more clarity in exactly what we need to do to get there. The restructure that we announced today that took place this week is step one. It's not the answer, it's step one to the answer of a real culture shift in the organization where the entire company is focused on growth. We are a company and this sort of gets to the second part of your question here. We were a company that had a fantastic start. Speaker 200:26:08And when you start from zero, you grow territories to the point where it's tough to grow them. And this is where structure and comp plans and those types of things come into play where you've got to split territories, you got to make sure you've got incentives that don't penalize sales reps for getting their territory split. You need a comp plan that is really focused on growth and less on maintaining the base. And then of course you need the right messaging to communicate proposition that we're offering to our customers, which isn't just products. It is the training, the education, the systems, everything we do to help clinicians practice build. Speaker 200:26:43We're the only ones in the marketplace doing this. Others are going around and competing on price. So I've got a lot of clarity into one, the value that BIOTI offers, and I think it's fantastic. And I couldn't be more optimistic about the long term prospects here. But two, just what we need to do with the short term this year, as we highlighted this year is a transition year for us. Speaker 200:27:02So we're making a lot of changes here. Some of them are disruptive. All of them will be good for the long term. And what we're just trying to assess now is when we'll start to see the results of those changes. But I know what a strong commercial organization looks like and those elements, and we're slowly putting those places those things into place. Speaker 200:27:23But the restructure this week was paramount in the start of what we're doing. Speaker 600:27:29Okay. Good to hear. And then, not to beat a dead horse with the supplement business, but, I guess I'm just trying to reconcile a little bit here. Very strong in the quarter. It doesn't sound like any one time items, But I think your guidance is baking in kind of sequentially slower growth there. Speaker 600:27:49Can you remind us of the year over year comparisons? Maybe that's the major thing. Just trying to understand why that business would slow down sequentially as far as the growth. Speaker 300:28:03No. I think the what we've said in the past is that we would have a 5% to 10% growth from a guide perspective. And what we're seeing now is, we are in the as we were just mentioning on a prior question, we're in the earlier phases of this with our e commerce platform. And as we get throughout the remainder of the year, we will start lapping solid performance in the e commerce space, which would potentially drive us lower. But yes, the performance that we saw in Q1 was solid in that space. Speaker 600:28:45Okay. So just to clarify there, the comparisons get tougher and is it Q3 and Q4? I just wasn't sure on the time. Speaker 300:28:55In the second half of the year as we started onboarding Amazon. Speaker 600:29:00Okay. Okay, fair enough. Thanks for taking my questions. Speaker 300:29:04Of course. Operator00:29:06Thank you. The next question comes from George Kelly with ROTH Capital Partners. Please go ahead. Speaker 700:29:13Hey, everybody. Thanks for taking my questions. Just a couple for you. First, on Asteria, I was curious if you plan over the course of 2020, '20 '20 '5 to grow penetration. And where might you sort of end the year? Speaker 700:29:33And I guess secondarily, have there been issues with ramping production there? Speaker 300:29:41No. And in fact, our inventory levels are at solid points. So we've not had any issues from a NYSTERIA perspective. I can tell you our focus right now has been on smooth transition and the focus on not disrupting the clinic. We do have a plan to expand further in the remaining months of the year, and we have that baked into our guide. Speaker 300:30:12So we are we will continue to expand in this arena throughout the remainder of the year just in a tempered fashion. Speaker 700:30:21Okay. Understood. And then second question on your 2025 guide for procedure revenue growth. I think it's plus 2% to 4%. Just curious what gives you confidence in that guide? Speaker 700:30:37It's been a pretty steady deceleration for, I don't know, one point years, two years now, and including in the first quarter with it being negative. So I'm just wondering what is it can you help sort of give us confidence that see that And perhaps what have you seen so far in Q2 and April? Speaker 300:30:59So let me give you an overview, and Brett, feel free to add. So as Brett said, we've taken decisive action, and we're changing a lot on the commercial team. We know what we need to do to drive new penetrations, new customer penetrations, new monitoring our and filling our clinic pipeline and maximizing the value from our top tier providers. And we have line of sight into the actions that are needed. So let's just we'll level set there. Speaker 300:31:34As shared, we expect a slower start in the first half of the year as we shared to as we start to reinvigorate that customer new customer volume in this annuity model. We know that this is going to be a bit of a transition year in the space, and we believe that we will begin to see the benefits of this restructure in the latter half of the year as we begin to drive the culture of accountability and growth. Look, to your question, to be pretty direct, is there a potential risk around the 2% to 4% procedure revenue growth? The answer is yes. And we recognize that certain actions have to go to plan to achieve that 2% to 4% procedure revenue growth. Speaker 300:32:23But that said, we are confident overall in the overall guide for the year on revenue and EBITDA. And maybe Brett, if you wanted to add anything to the key facets that we want to achieve. Speaker 200:32:36Yes. George, you heard me talk quite a bit about what we're doing to change each of those components in the annuity model, volume, ASP, attrition. And we're confident in each of those. What's really difficult to predict at this moment is just how quickly we'll see results from all the changes that we're making. We're going to learn a lot over the next quarter, maybe not in the form of results that we'll report. Speaker 200:33:02However, we're going to there's a lot of early indicators into what we're doing here, including training volumes, training classes, new starts coming on board. Those things we'll see before we'll report revenue on an increase in procedure growth. So we're confident that changes we're making and it's difficult to project when you'll start to see revenue change materially from the changes. But as Bob said, we're comfortable in the top line overall and there will be pressure on the 2% to 4%, but we definitely see line of sight to get there. Speaker 700:33:39Okay. Thank you. Operator00:33:44Thank you. This concludes our question and answer session. I would now like to turn the call back over to Brett Christensen for closing remarks. Speaker 200:33:54Thank you everyone for joining us today. We appreciate your interest in BIO T and look forward to speaking with you on our next conference call. Operator00:34:03The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.Read morePowered by Key Takeaways In Q1, total revenue rose 4.7% to $49 M, driven by a 25.5% surge in dietary supplements to $9.3 M while procedure revenue fell 3.6% to $36 M; gross profit margin expanded 300 bps to 74.3% and adjusted EBITDA was $13.8 M (down 3.4%), aligning with full-year guidance of $200–208 M revenue and $59–64 M EBITDA. The decline in procedure revenue reflects reduced commercial effectiveness from last year’s rollout of enhanced clinical decision support software, ongoing competitive pressures, a slowdown in new clinic additions, minor volume declines, and selective price concessions. BIOTI announced a strategic organizational restructuring to drive profitable growth, including realigning the commercial team, boosting the field sales force by ~25%, streamlining leadership, and updating sales compensation to focus on three goals: accelerating new provider wins, maximizing top-tier clinic value, and enhancing commercial accountability. Integration of the company’s 503B manufacturing facility continued to deliver cost savings, contributing to margin expansion and demonstrating the benefits of vertical integration on product costs and profitability. Dietary supplement revenue growth was fueled by improved e-commerce performance with no material one-time items, though the company expects growth to moderate later in 2025 as it laps strong prior-year comparisons, including its Amazon launch. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference Callbiote Q1 202500:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) biote Earnings Headlinesbiote Corp. (BTMD) Q1 2025 Earnings Call TranscriptMay 11, 2025 | seekingalpha.combiote Corp. Just Recorded A 469% EPS Beat: Here's What Analysts Are Forecasting NextMay 11, 2025 | finance.yahoo.comTrump Predicts Dollar DownfallREAD THIS VERY CAREFULLY: If you have $100,000 or more saved for retirement, this may make you VERY angry... This is what President Trump said: "Our currency is crashing and will soon no longer be the world standard, which will be our greatest defeat, frankly, in 200 years." Why Would He Say This?May 24, 2025 | Augusta Precious Metals (Ad)Earnings call transcript: Biote Corp’s Q1 2025 results beat expectationsMay 9, 2025 | uk.investing.comBiote Reports First Quarter 2025 Financial ResultsMay 7, 2025 | businesswire.comBiote Schedules First Quarter 2025 Financial Results Release and Conference CallApril 23, 2025 | businesswire.comSee More biote Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like biote? Sign up for Earnings360's daily newsletter to receive timely earnings updates on biote and other key companies, straight to your email. Email Address About biotebiote (NASDAQ:BTMD) operates in practice-building business within the hormone optimization space. It trains physicians and nurse practitioners in hormone optimization using bioidentical hormone replacement pellet therapy in men and women experiencing hormonal imbalance. The company offers Biote Method, a comprehensive end-to-end practice building platform that provides Biote-certified practitioners with the components developed for practitioners in the hormone optimization space comprising Biote Method education, training, and certification services; practice management software that allows Biote-certified practitioners to order, track, and manage hormone optimization product inventory and other administrative requirements; inventory management software to monitor pellet inventory; and information regarding available hormone replacement therapy products, as well as digital and point-of-care marketing support. It also sells dietary supplements under the Biote brand; and sterile pellet insertion kits that is used with hormone optimization therapies for male and female. The company was founded in 2012 and is headquartered in Irving, Texas.View biote ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Booz Allen Hamilton Earnings: 3 Bullish Signals for BAH StockAdvance Auto Parts Jumps on Surprise Earnings BeatAlibaba's Earnings Just Changed Everything for the StockCisco Stock Eyes New Highs in 2025 on AI, Earnings, UpgradesSymbotic Gets Big Earnings Lift: Is the Stock Investable Again?D-Wave Pushes Back on Short Seller Case With Strong EarningsAppLovin Surges on Earnings: What's Next for This Tech Standout? 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There are 8 speakers on the call. Operator00:00:00Hello, and welcome to the Biodi First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Simon Sarovietki. Operator00:00:29Please go ahead. Speaker 100:00:32Thank you for joining us today. This afternoon, Bati published financial results for the first quarter ended 03/31/2025. This news release is available in the Investor Relations section of the company's website. Hosting today's call are Brett Christensen, Chief Executive Officer Bob Peterson, Chief Financial Officer and Mark Beer, Executive Chairman. Before we get started, I would like to remind everyone that management will make statements during this call that include forward looking statements regarding, among other things, the company's financial results, future performance and growth opportunities, business outlook, strategies, goals, mission development, manufacturing and commercialization activities, competitive position, regulatory process operations, benefits of its solutions, anticipated impacts of macroeconomic conditions on its business, results of operations, financial conditions and other matters that do not relate to historical facts. Speaker 100:01:24These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond the company's control. Actual results could differ materially from expectations reflected in any forward looking statements. These statements are subject to risks, uncertainties and assumptions that are based on management's current expectations as of today. BIOTI undertakes no obligation to update them in the future. Speaker 100:01:46Therefore, these statements should not be relied upon as representing the company's views as of any subsequent date. For a discussion of risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC's website and the Investor Relations section of our website as well as risks and other important factors discussed in the earnings release. Management also refers to adjusted EBITDA and adjusted EBITDA margin, which are non GAAP financial measures to provide additional information to investors. A reconciliation of the non GAAP to GAAP measures is provided in our earnings release, with the primary differences being stock based compensation, fair value adjustments to certain liabilities, transaction related expenses and other non operating expenses. Please refer to our first quarter twenty twenty five earnings release for a reconciliation of these non GAAP measures to close comparable GAAP measures. Speaker 100:02:32I'll now turn the call over to Brett. Speaker 200:02:34Thank you, Simon, and thank you all for joining us. I'll begin by providing an update on our business and the key initiatives we announced today. And then I'll turn the call over to Bob for a review of our first quarter financials and our 2025 financial outlook. After our comments, we'll open the call for questions. In the first quarter, we generated strong financial performance with strength in our dietary supplements business more than offsetting the expected softness in procedure revenue. Speaker 200:03:01We experienced continued improvement in our gross profit margin, which increased 300 basis points to 74.3% due to the vertical integration of our 503B manufacturing facility. Total revenue increased 4.7% and adjusted EBITDA decreased 3.4% compared to the same period in 2024, keeping us on track with our 2025 financial forecast for revenue and adjusted EBITDA. As we expected, procedure revenue was impacted by reduced commercial effectiveness in part due to the residual effect of the transition to our enhanced clinical decision support software as well as ongoing competitive pressures. A slowdown in new clinic additions as well as a minor decrease in procedure volumes and select reductions in average selling prices also contribute to the decline in procedure revenue. On last quarter's earning call, identified three areas of emphasis for 2025, which I believe are fundamental to commercial execution at a high level. Speaker 200:03:59The priorities were one, accelerate new providers two, maximize value from top tier clinics and three, improve commercial accountability and discipline. Consistent with these comments, today we announced a strategic organizational restructuring designed to drive sustainable profitable growth and create long term value for our stockholders. This restructuring builds on the foundational progress we achieved over the past year, supporting our expanded capabilities within the hormone and therapeutic wellness space. We believe that the decisive actions we are taking will enable us to scale our business more effectively and deliver a high level of financial performance. We are focused on three major objectives. Speaker 200:04:43First, we intend to accelerate new provider wins to further expand our nationwide network. Second, we intend to strengthen relationships with our existing top tier providers. And third, we intend to improve our financial performance by strengthening accountability and improving consistency and discipline throughout the commercial organization. Among the key steps we are implementing is the realignment of our commercial team with the goal of increasing productivity and driving new clinic growth. As part of this realignment, we are working to transition certain commercial support functions to active field sales positions, effectively increasing our field sales team by approximately 25%. Speaker 200:05:23We expect expanded and strengthened sales force will enable us to recruit new clinics at an accelerated rate and provide the dedicated support our new providers require as they build their medical practices. Additionally, we are streamlining sales leadership to ensure better communication and efficiency to drive more consistent performance across the entire commercial team. We are also updating our sales compensation structure to align incentives with our sales goals. As we direct our sales efforts to driving new clinic growth, we also recognize the importance of retaining and maximizing the value from our existing top tier providers. Over the past year, BIO T has significantly expanded our capabilities and product offerings, encompassing hormone optimization, therapeutic wellness and dietary supplements. Speaker 200:06:08At the same time, we have expanded our education, training and technical resources, further differentiating BIO key in the marketplace. By strengthening engagement with our top two providers, we believe we will be better positioned to reinforce our role as a trusted partner, offering a science based approach to patient care and ongoing practice building support. As I noted last quarter, we are implementing these initiatives quickly, but recognize they will take time to show results. I strongly believe these actions will strengthen our commercial organization through increased productivity and deeper customer engagement and improve financial performance. As we move forward with our plans, I would like to reiterate my confidence in our exceptional team and our shared commitment to execute on our strategic priorities. Speaker 200:06:53While we expect 2025 will be a transition year from a financial standpoint, I believe the actions we announced today are essential to accelerating our growth and enabling us to realize our full potential. I look forward to updating you on our continued progress in the quarters ahead. I will now turn the call over to Bob. Speaker 300:07:11Thank you, Brett, and good afternoon, everyone. Unless otherwise noted, all quarterly financial comparisons in my prepared remarks are made against the first quarter of twenty twenty four. First quarter revenue increased 4.7 to $49,000,000 Procedure revenue decreased 3.6% to $36,000,000 primarily reflecting reduced commercial effectiveness and the slowdown in new clinic additions. As Brett noted, we are redirecting our commercial efforts to drive new clinic growth now that all of our existing clinics are utilizing our enhanced clinical decision support software. Dietary supplement revenue increased 25.5% to $9,300,000 primarily driven by the growth of our e commerce channel. Speaker 300:08:06We continue to expect solid growth this year from our dietary supplements business. Gross profit margin was 74.3%, a 300 basis point increase. The improvement reflected cost savings from the continued vertical integration of our 503B manufacturing facility, as well as effective cost management. While we expect to maintain strong gross profit margins, this metric has historically fluctuated quarter to quarter depending on our product mix and other factors. Selling, general and administrative expenses increased 16.4% to $26,700,000 reflecting an increased level of investment in sales and marketing focused on driving new customer growth and professional services. Speaker 300:09:01Notably, SG and A expenses decreased approximately 19.2% compared to the elevated level reported in the fourth quarter of twenty twenty four due to the absence of certain employee related investments and legal expenses. Net income was $15,800,000 inclusive of a 10,700,000 gain due to a change in the fair value of the earn out liabilities. Diluted earnings per share attributable to BIOTY PORT stockholders was $0.37 per share. This compares to a net loss in the first quarter of twenty twenty four of $5,700,000 inclusive of a $12,100,000 loss due to the change in the fair value of the earn out liabilities and diluted loss per share attributable to BIOT Corp stockholders of $0.12 per share. Adjusted EBITDA decreased 3.4% to $13,800,000 with an adjusted EBITDA margin of 28.1%. Speaker 300:10:10The decreases in adjusted EBITDA and adjusted EBITDA margin primarily reflected increased sales and marketing expense to drive growth, partially offset by improved gross profit. First quarter cash flow from operations was 6,500,000 As of 03/31/2025, cash and cash equivalents were $41,700,000 compared to $39,300,000 as of 12/31/2024. Now turning to our financial outlook for 2025. We maintain our previously stated guidance of revenue of $2.00 $2,000,000 to $2.00 $8,000,000 and adjusted EBITDA of $59 to $64,000,000 For the second quarter of twenty twenty five, we expect revenue and adjusted EBITDA to be similar to slightly higher than that of the second quarter of twenty twenty four. Also, the company expects to incur a one time charge of approximately $600,000 to $800,000 in the second quarter of twenty twenty five due to the restructuring. Speaker 300:11:29I'll now turn the call back to Brett for his closing comments. Speaker 200:11:33Thanks, Bob. Before we open the call for questions, I would like to say a few words. Our financial performance over the past few years has been inconsistent, falling short of our expectations and those of our investors. While I've only recently joined the company as CEO, I have been here long enough to recognize our shortcomings as an organization and what specific actions are required to drive outstanding commercial execution and financial performance. The restructuring plan we announced today represents a significant step forward with ForBioT. Speaker 200:12:02While it will take time to achieve our goals and we may experience some speed bumps along the way, I am confident that we are on the right path with the right people and with the right processes to achieve long term success and build shareholder value. Operator, let's now open the call for questions. Operator00:12:19Thank you. We will now begin the question and answer session. Today's first question comes from Kamil Gajrawala with Jefferies. Please go ahead. Speaker 400:12:50Hey, guys. Good evening. Can we maybe talk a little bit more about the supplements business and if there was anything maybe one time in it? It's obviously quite a result. I just want to make sure we looking at something that's a new run rate based on the changes that you've made or is there something maybe more temporary in there that we should be aware of? Speaker 300:13:14No, no, no. Hey, Camille, how are you? Look, I think the biggest piece of the supplements business that we saw solid performance in was our e commerce business. I would say it was a little bit more it performed a little bit better than expected. And I think we have a solid runway in this space, and we're comfortable where we are right now in the business that we're in. Speaker 300:13:41So with additional procedure growth, we could see some benefit in the space, but no one time items in this space, really just solid performance in the e commerce space. Speaker 400:13:55Okay, great. And then two, let me just try to understand the procedures, number of procedures and what happened there. Also in your prepared remarks mentioned competition a little bit. So there's so many there's some things that you guys are doing obviously as part of the process of optimizing the business. But is there anything changing in the marketplace itself that we should be aware of? Speaker 200:14:23Camille, this is Brett. Nothing significant has changed in the marketplace at all. We highlighted the headwinds to our procedure business. And I would say it's really volume related. And in that, we did mention competition, but competition is not new for us. Speaker 200:14:39That's an ongoing headwind. And like every other company, we're going to have competition. We've also highlighted in the past that our attrition has been relatively stable at around 5%, which is a great number and pretty predictable. This past quarter, we expected softness in procedure volume. And we highlighted that last call mainly due to our launch of our clinical decision support software at the end of last year. Speaker 200:15:05That did a couple of things. One, slowed down meaningfully new starts. It distracted our field organization and new practice starts had a dip at the end of last year. In annuity models, you know that will follow us this year. We highlighted that last call and certainly we expected the contribution from new clinics this quarter to be lighter than usual. Speaker 200:15:25So that was probably the biggest component. Second component was really just a slight decline in volume from our base business that we believe is associated with the launch of that CDSS as well. Speaker 400:15:38Okay. Got it. And are we fully deployed with that and now it's sort of a matter of time or are we still in process of the rollout? Speaker 200:15:47No. We are fully deployed with CDSS. All of our users are using the new version. The feedback is excellent, especially from new clinics. And this is going to be remember, this is going be really key to us advancing in the future and making what we do more mainstream to the average physician. Speaker 200:16:04It's critical to get the dose right. And the new CDSS helps them do just that. So it's going to give them comfort to do pellets and to do testosterone in their clinics. So it's a valuable foundation. We have no regrets of launching it. Speaker 200:16:17We just saw the headwind for the disruption from last year. Speaker 400:16:20Got it. Okay, great. Thank you. Operator00:16:24Thank you. The next question comes from Les Zuliewski with Truist. Please go ahead. Speaker 500:16:31Yes, good evening. Thank you for taking my questions. I have three essentially to start off with. First one I think we've heard about the realigning of the sales force over the past few quarters. What is different about today's realignment announcement? Speaker 500:16:45Is this aimed, I guess, at sales, back office, leadership roles or more broadly across the organization? And I have two follow ups. Speaker 200:16:56Hi, Les. This is Brett. We didn't do any realignment last quarter. So the realignment that we announced today is new and it's the only one that we've done frankly. So what we did was focused around growth. Speaker 200:17:09It was not a cost cutting effort for us. We're not in cost cutting mode, we're in growth mode. But what I highlighted in the last call and what you probably heard me say is we needed to change a lot of things in the organization to get us more focused and more aligned to growth. And one of those things was the alignment of our commercial organization. So we needed different territory alignments. Speaker 200:17:31We need different comp plans. We need everything focused on growing the business and a little less on maintaining the business. So if you noticed in our release, one of the things that we highlighted was we effectively grew the sales team this week by about 25% as we transition nearly 20 people in the field from support roles to sales roles. And so that's going to be really important for us to have everybody focused on growing the business. And that was the alignment change that we announced this week. Speaker 500:18:04Okay. I guess on that front, the individuals was it redundancies in the more on the support roles or not sales included? Or is it also sales included? And I guess maybe perhaps overall, maybe use a baseball terminology, if you could. Can you help us kind of reconcile where inning you are in, I guess, CDS implementation, the new sales reorg, although that seems to be new and as well as vertical integration, maybe kind of item by item if you could? Speaker 200:18:40Sure. I'll let Bob take the last part of that. But as far as CDSS goes, we're in late innings, if not the game is over for CDSS. So we are fully integrated with CDSS. And so while we're still the only reason we're talking about it, Les, is that in this annuity model, as you know, new starts follow us for a year. Speaker 200:18:59So you need whatever we're doing this quarter, contribution we get from new starts is a function of all the new clinic starts that we added over the last year. And frankly, the quality of those starts and how they started. And so CDSS just meant a decline in new starts and probably new starts that got off to a slower start than normal because again, they were distracted and our field was distracted with CDSS. But today, we are fully implemented with CDSS and there is no more work being done as far as rollout, system change, training, any of that. We're fully aligned and implemented with CDSS. Speaker 200:19:36Bob, do you want to talk about vertical integration? Hey, Les. Speaker 300:19:41On the vertical integration front, I'd say we're probably in around the fourth inning, to use your baseball analogy. Look, we have not expanded too much further than we had on the last call and a goal to not disrupt our clinics. That's a mantra that we have since the CDSS, and we are in the process now of expanding and getting prepared for conversion, but that is I'd say we're probably in the fourth inning. You're seeing some of the benefits that now on the margin front, but that's kind of where we would I would say we are on Asteria. Speaker 500:20:22Great. That is helpful. Perhaps on the supplement side, maybe, a, kind of talk to your exposure to tariffs potentially from API sourcing. And then second, you've called out the e commerce business being a little bit stronger than you expect. Any sort of more color on that? Speaker 500:20:42Thank you. Speaker 300:20:43Yes. So on tariffs, look, at this point, we don't see the impact to business on the tariff front. In our core pellet business, we're largely sourced domestically. And where we have had exposure to overseas providers, we've increased our inventory coverage to lock in price. So I don't see any significant direct exposure in the current year. Speaker 300:21:10And as far as the Nutri business, we've talked about it a little bit over time. Our e commerce business has since we've taken over, we are seeing solid growth in that space. And I think what I could highlight here is that a good amount of that growth is centered around that one piece of the business. So solid performance to date and yes, a continuation of what we started in August of last year. Speaker 500:21:45Thank you. Operator00:21:47Thank you. The next question comes from Jonah Kim with TD Cowen. Please go ahead. Thank you for taking my question. Could you just elaborate a little bit on the decline in the volume from the base business and whether you think that will continue to improve as we move throughout the year? Operator00:22:07And when can we start to see some improvements from the realignment that you talked about today? Thank you very much. Speaker 200:22:16Thanks, Toni. I'll try to give as much color as I can on our procedure revenue. So you heard me mention earlier to Camille's question. It was mainly volume related. So I'll hit that again real quick. Speaker 200:22:28Two real components there. The contribution from new starts, which has been lower. And I'm sure everybody is clear on that as we talked about it a lot. And so most of what we did today in the restructure, the realignment, in the new start of what we're doing at BIOTI is really aimed at that, at growing new starts. The other components though, we get a lot of volume from our base business. Speaker 200:22:55And while attrition has been fairly stable, there might have been a slight uptick in attrition this past quarter that we believe is temporary. And we do believe that attrition will stabilize and be a constant around 5%. The other there was also a small contribution to selective ASP declines, which were concessions due to CDSS in the field. And so those are the components, of course, always the components of an annuity model is volume, the contribution you get from NuStar and any changes to ASP. What we've been really good at is keeping ASP and attrition relatively constant. Speaker 200:23:31And that's why you'll hear us talk over and over again about the effort to increase new starts in the field. Operator00:23:39Got it. And any softness you're seeing from the consumer side from any macro headwinds at this point? Speaker 200:23:49Jonah, we don't typically see too much softness as far as price sensitivity, if that's what you're referring to. It's really hard to gauge. I mentioned that there was a slight decline in volume in our existing business, but we do believe that is related to the launch of CDSS last year. Nothing even anecdotally that I could comment on as far as macro effects and pricing sensitivity. Operator00:24:14Got it. Thank you very much. Speaker 100:24:16Thank you. Operator00:24:19The next question comes from Jeff Van Sinderen with B. Riley. Please go ahead. Speaker 600:24:26Great. Hi, everyone. Brett, I wonder, given that you've been there for a quarter or so, can you speak a little bit more about what you've learned on a granular level to the degree that you feel comfortable doing that? And kind of what the specific inefficiencies are that you've uncovered outside of the CDSS? And I guess also what steps you might take to turn around the new clinic additions? Speaker 600:24:55What other steps you might take to get those ramps back up again and get procedure growth up? Speaker 200:25:03Sure, Jeff. I'll start with the first one, just sort of what I've learned. I guess how I would describe that is I've really gained just clarity on some of what I highlighted in the call from Q4. And in Q4, I highlighted the amazing opportunity that brought me to BIO T, the massive TAM, the really underpenetrated marketplace as far as physicians that are both utilizing testosterone therapy, but also the nutraceuticals that we offer. And just the need for better execution as an organization to capture more of that TAM. Speaker 200:25:41And so I would say what's changed since that call is I've just gained more clarity in exactly what we need to do to get there. The restructure that we announced today that took place this week is step one. It's not the answer, it's step one to the answer of a real culture shift in the organization where the entire company is focused on growth. We are a company and this sort of gets to the second part of your question here. We were a company that had a fantastic start. Speaker 200:26:08And when you start from zero, you grow territories to the point where it's tough to grow them. And this is where structure and comp plans and those types of things come into play where you've got to split territories, you got to make sure you've got incentives that don't penalize sales reps for getting their territory split. You need a comp plan that is really focused on growth and less on maintaining the base. And then of course you need the right messaging to communicate proposition that we're offering to our customers, which isn't just products. It is the training, the education, the systems, everything we do to help clinicians practice build. Speaker 200:26:43We're the only ones in the marketplace doing this. Others are going around and competing on price. So I've got a lot of clarity into one, the value that BIOTI offers, and I think it's fantastic. And I couldn't be more optimistic about the long term prospects here. But two, just what we need to do with the short term this year, as we highlighted this year is a transition year for us. Speaker 200:27:02So we're making a lot of changes here. Some of them are disruptive. All of them will be good for the long term. And what we're just trying to assess now is when we'll start to see the results of those changes. But I know what a strong commercial organization looks like and those elements, and we're slowly putting those places those things into place. Speaker 200:27:23But the restructure this week was paramount in the start of what we're doing. Speaker 600:27:29Okay. Good to hear. And then, not to beat a dead horse with the supplement business, but, I guess I'm just trying to reconcile a little bit here. Very strong in the quarter. It doesn't sound like any one time items, But I think your guidance is baking in kind of sequentially slower growth there. Speaker 600:27:49Can you remind us of the year over year comparisons? Maybe that's the major thing. Just trying to understand why that business would slow down sequentially as far as the growth. Speaker 300:28:03No. I think the what we've said in the past is that we would have a 5% to 10% growth from a guide perspective. And what we're seeing now is, we are in the as we were just mentioning on a prior question, we're in the earlier phases of this with our e commerce platform. And as we get throughout the remainder of the year, we will start lapping solid performance in the e commerce space, which would potentially drive us lower. But yes, the performance that we saw in Q1 was solid in that space. Speaker 600:28:45Okay. So just to clarify there, the comparisons get tougher and is it Q3 and Q4? I just wasn't sure on the time. Speaker 300:28:55In the second half of the year as we started onboarding Amazon. Speaker 600:29:00Okay. Okay, fair enough. Thanks for taking my questions. Speaker 300:29:04Of course. Operator00:29:06Thank you. The next question comes from George Kelly with ROTH Capital Partners. Please go ahead. Speaker 700:29:13Hey, everybody. Thanks for taking my questions. Just a couple for you. First, on Asteria, I was curious if you plan over the course of 2020, '20 '20 '5 to grow penetration. And where might you sort of end the year? Speaker 700:29:33And I guess secondarily, have there been issues with ramping production there? Speaker 300:29:41No. And in fact, our inventory levels are at solid points. So we've not had any issues from a NYSTERIA perspective. I can tell you our focus right now has been on smooth transition and the focus on not disrupting the clinic. We do have a plan to expand further in the remaining months of the year, and we have that baked into our guide. Speaker 300:30:12So we are we will continue to expand in this arena throughout the remainder of the year just in a tempered fashion. Speaker 700:30:21Okay. Understood. And then second question on your 2025 guide for procedure revenue growth. I think it's plus 2% to 4%. Just curious what gives you confidence in that guide? Speaker 700:30:37It's been a pretty steady deceleration for, I don't know, one point years, two years now, and including in the first quarter with it being negative. So I'm just wondering what is it can you help sort of give us confidence that see that And perhaps what have you seen so far in Q2 and April? Speaker 300:30:59So let me give you an overview, and Brett, feel free to add. So as Brett said, we've taken decisive action, and we're changing a lot on the commercial team. We know what we need to do to drive new penetrations, new customer penetrations, new monitoring our and filling our clinic pipeline and maximizing the value from our top tier providers. And we have line of sight into the actions that are needed. So let's just we'll level set there. Speaker 300:31:34As shared, we expect a slower start in the first half of the year as we shared to as we start to reinvigorate that customer new customer volume in this annuity model. We know that this is going to be a bit of a transition year in the space, and we believe that we will begin to see the benefits of this restructure in the latter half of the year as we begin to drive the culture of accountability and growth. Look, to your question, to be pretty direct, is there a potential risk around the 2% to 4% procedure revenue growth? The answer is yes. And we recognize that certain actions have to go to plan to achieve that 2% to 4% procedure revenue growth. Speaker 300:32:23But that said, we are confident overall in the overall guide for the year on revenue and EBITDA. And maybe Brett, if you wanted to add anything to the key facets that we want to achieve. Speaker 200:32:36Yes. George, you heard me talk quite a bit about what we're doing to change each of those components in the annuity model, volume, ASP, attrition. And we're confident in each of those. What's really difficult to predict at this moment is just how quickly we'll see results from all the changes that we're making. We're going to learn a lot over the next quarter, maybe not in the form of results that we'll report. Speaker 200:33:02However, we're going to there's a lot of early indicators into what we're doing here, including training volumes, training classes, new starts coming on board. Those things we'll see before we'll report revenue on an increase in procedure growth. So we're confident that changes we're making and it's difficult to project when you'll start to see revenue change materially from the changes. But as Bob said, we're comfortable in the top line overall and there will be pressure on the 2% to 4%, but we definitely see line of sight to get there. Speaker 700:33:39Okay. Thank you. Operator00:33:44Thank you. This concludes our question and answer session. I would now like to turn the call back over to Brett Christensen for closing remarks. Speaker 200:33:54Thank you everyone for joining us today. We appreciate your interest in BIO T and look forward to speaking with you on our next conference call. Operator00:34:03The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.Read morePowered by