Biote Corp.

Good morning, and welcome to the BioT second quarter 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. 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 Sarovetsky. Please go ahead.

Good morning. Thank you for joining us today. Last evening, Bahti published financial results for the quarter ended June 30th, 2023. This release is available in the investor relations section of the company's website. Terry Weber, Chief Executive Officer, and Samar Kamdar, Chief Financial Officer, will host this morning's call. Before we get started, I'd like to remind everyone that management will be making statements during this call that include forward-looking statements regarding the company's financial results, market, future performance, growth opportunities, business outlook, strategies, goals, research and development, manufacturing and commercialization activities, regulatory process operations, the impact of macroeconomic conditions on its business, results of operations, financial conditions, and consumers, and on the healthcare industry generally. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond our control. Our actual results could differ materially from expectations reflected in any forward-looking statement. These statements are subject to risks, uncertainties, and assumptions that are based on management's current expectations as of today. Validation undertakes no obligation to update them in the future. Therefore, these statements should not be relied upon as represented in the company's views as of any subsequent date. For discussion of risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC website and our Investor Relations website, as well as risks and other important factors discussed in the earnings release. We also refer to adjusted EBITDA, which is a non-GAAP financial measure, to provide additional information to investors. Reconciliation of the non-GAAP to GAAP measure is provided with the earnings release, with the primary differences being stock-based compensation, fair value adjustment to certain liabilities, transaction-related expenses, and other non-operating expenses. You're directed to our second quarter 2023 earnings release, which is available in the investor relations section of our website at ir.biotech.com. reconciliation of adjusted EBITDA to its closest comparable gap measure. I'd now like to turn the call over to Terri Weber.

Thank you, Simon, and thank you all for joining us. On the call with me today is Samar Kamdar, our Chief Financial Officer, who will review our financial results and discuss our outlook for 2023. Mark Beer, our Executive Chairman, and Dr. Ross McQuivie, our Chief Medical Officer, are also on today's call to help answer your questions during the Q&A session following these prepared remarks. I am pleased with the significant financial and strategic progress BioT achieved in the second quarter. We generated double-digit growth in both revenue and adjusted EBITDA. Adjusted EBITDA margins came in near the upper end of our target range, highlighting the profitability of our business model, even as we invested to strengthen our capabilities. During the quarter, we continued to broaden awareness of the benefits of hormone therapy and further build our practitioner network. From a strategic standpoint, we also formalized our commitment to men's health by launching a new division, focused on capturing a larger share of this important addressable market. To enhance shareholder value, we simplified our capital structure and further improved the liquidity of our publicly traded shares. Starting with our financial performance, revenue grew approximately 19% year over year, driven by growth in both procedure and dietary supplement revenues. Over the past several years, we've significantly expanded our dietary supplement offerings, providing a wide range of products that promote healthy aging and well-being. We view dietary supplements as a complementary business that strengthens BioT's brand identity and helps diversify our revenue streams. In the second quarter, dietary supplements benefited from a successful seasonal promotion for our BioT providers. Additionally, our recently launched direct-to-patient distribution channel helped drive supplement sales growth. Second quarter, procedure revenue growth of approximately 10% was broad-based geographically, but moderated from our historic growth rate. Earlier this year, we realigned our sales territories to accommodate our significantly expanded sales team. We undertook this strategic realignment to scale our business more efficiently, further strengthen our market position, and accelerate adoption of the BioT method into new markets. As our sales team grows into our newly scaled structure and gains productivity, we anticipate improving procedure revenue. Turning to our new initiative in men's health, we're excited about the long-term growth opportunity for BioT in this large and growing addressable market. With recent scientific research providing support for the safety and efficacy of testosterone therapy in men, we believe now is the right time to deepen our commitment to advancing men's health. Industry data suggests that approximately 20 million men in the U.S. over the age of 45 are affected by the adverse symptoms of testosterone deficiency. Yet only 10 to 12% receive any testosterone treatment. Through the BioT method, We believe we can help achieve positive health outcomes for the tens of thousands of men who would otherwise likely go untreated. As we build the foundational elements of our men's health division, we're focused on three pillars supporting our strategy. Awareness, education, research. To drive awareness, we're closely working with our existing practitioners on the health benefits of the BioT method for men. We're also ramping up our sales and marketing efforts to better connect with a growing number of men who want to feel their best regardless of their age. At the same time, we're leveraging our position as the foremost provider of hormone therapy, education, and research. For example, we are integrating new research supporting the safety and efficacy of testosterone therapy into our education programs. In addition, we are forming new relationships with key opinion leaders specializing in male urology. We believe urology practices offer a key pathway to accelerating adoption of the BioT method in men's health, just as OBGYN practices have in women's health. In addition, we are expanding our strategic approach to more fully address the extensive opportunities within the dynamic and evolving market for healthy living solutions. For example, many of our patients have expressed interest in certain wellness products that are complementary to our existing hormone therapies. Working closely with our top providers, we're currently testing an expanded suite of requested wellness therapeutics that will help patients manage a variety of common health concerns. Currently, We're transitioning our sales and marketing efforts to encompass this broader category of therapeutic wellness, which includes hormone therapy, sexual health, weight loss, and preventative wellness. We believe we can leverage the strength of our brand and our practitioner network to ultimately become a leading provider of evidence-based therapeutic wellness solutions. Now I'll turn the call over to Summer.