Biote Corp.

Welcome to the BioT third quarter 2024 earnings conference call. All participants are in listen-only mode. If you need assistance, please dial star zero to signal an operator. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would like now to turn the conference over to Simon Sorowiecki from Investor Relations. Please go ahead.

Thank you for joining us today. This afternoon, Rossi published financial results for the third quarter in the September 30, 2024. This news release is available in the Investor Relations section of the company's website. Terry Weber, Chief Executive Officer, and Bob Peterson, Chief Financial Officer, will host today's call. 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 growth opportunities, business outlook, strategies, goals, research and development, manufacturing and commercial decision activities, competitive position, regulatory process operations, benefits of the solutions, anticipated impact of macroeconomic conditions on business, social operations, financial conditions, and other matters. These 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 reflecting any forward-looking statements. These statements are subject to risks and uncertainties and assumptions that are based on management current expectations as of today. The biotech undertakes no obligation to update them in the future. Therefore, these statements should not be relied upon as representing the company's views as of any subsequent date. To the question of risks and other important factors that could affect their 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 earnings release. Management will 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 in earnings release, with the primary differences being stock-based compensation, fair value adjustment to certain liabilities, transaction-related expenses, and other non-operating expenses. Please refer to our third quarter 2024 earnings release for the continuation of adjusted EBITDA to net income, the closest comparable gap measure. I'll now turn the call over to Terri Weber.

Thank you, Simon, and thank you all for joining us. On the call with me today is Bob Peterson, our Chief Financial Officer, who will review our financial results and discuss our outlook for 2024. Mark Beer, our Executive Chairman, is also on today's call to help answer your questions during the Q&A session following our prepared remarks. BioT delivered strong financial performance in the third quarter, highlighted by double-digit growth in both revenue and adjusted EBITDA. Revenue was driven by continued growth in procedures and a strong return to growth in our dietary supplement business as we continue to drive improvements and our Amazon channel. We also generated solid improvement in both our gross profit and adjusted EBITDA margins, realizing cost savings from the vertical integration and effective management of our operating expenses. As a result, our third quarter adjusted EBITDA improved approximately 15% compared to the same quarter last year, and adjusted EBITDA margins exceeded 30%. During the quarter, we continue to focus on driving growth from our top tier accounts who consistently generate the majority of our revenue. Over the past year, we have strengthened engagement with our top practitioners. By expanding our offering and treatment protocols, we can more comprehensively serve the needs of our providers and their patients. Additionally, we have further enhanced our research, training, and educational programs to meet the growing demand for evidence-based medicine. In doing so, we believe we have further enhanced our position as the leading authority in hormone optimization and therapeutic wellness. We have also continued to make progress in training and certifying new practitioners. As I noted last quarter, our Quick Start program creates an efficient workflow for the new practitioners to optimize clinic success. Since launching this program, we have found that clinics that achieve Quick Start status generate stronger performance over time. As a result, we continue to assist our new practitioners to efficiently build and promote their hormone and therapeutic wellness practices. We believe BioT's patient data set and proprietary algorithms are key advantages in the marketplace. In the third quarter of 2024, we introduced targeted enhancements to our proprietary clinical decision support software, further strengthening our position in the marketplace. The enhancements we introduced reinforce our commitment to patient health and wellness as we advance the BioT method by following the latest evidence-based medical literature. Importantly, our clinical decision support software now makes recommendations across an expanded range of our product portfolio, enhancing patient care with highly personalized therapies that can include hormone optimization, therapeutic wellness, and dietary supplements. Additionally, our updated software strengthens our practitioners' capabilities to serve a broader range of patients, expanding our long-term market opportunity. As we introduced these enhancements in the third quarter of 2024, we experienced a temporary disruption in procedure volume as our practitioners adjusted to the updated software and workflow in their clinics. To facilitate this transition, we're assisting our practitioners with additional workflow support and training. Although we're seeing some residual impact in the fourth quarter of 2024, we have begun to experience a rebound in procedure activity over the last several weeks. And as we look ahead to next year, we anticipate procedure revenue growth will re-accelerate in 2025. We are confident that our enhanced clinical decision support software strengthens our competitive position and supports our growth objectives. Our refined dosing considerations expand patient treatment options while better positioning BioT to attract a broader range of practitioners. Additionally, our advanced software allows for a greater range of data input, empowering practitioners to more precisely tailor care to a broader base of patients. Over time, we believe the deeper patient data set provided by our enhanced software will enable us to leverage traditional and AI-driven analytics to identify new growth opportunities in hormone optimization and therapeutic wellness. We continue to take a measured approach to expanding our footprint of BioTRx. ensuring that all enrolled clinics maintain consistent access to our personalized therapeutic wellness solutions. As of the third quarter, the total number of BioTRx enrolled clinics throughout our network exceeded 1,100. In addition to new product offerings for sexual health, weight loss, and preventative wellness, the BioTRx marketplace features a comprehensive portfolio of advanced technical tools, support, training, and educational resources. While our BioTRx program currently provides a relatively small direct revenue contribution, the BioTRx formulary is expansive and essential to enhancing our competitive offerings in the marketplace. I would note that our BioTRx formulary is not dependent on any single category of therapeutic treatments, including GLP-1s. In the third quarter, we continued the integration of Asteria Health into our operations. Consistent with our strategic objectives, the vertical integration of our manufacturing has strengthened our supply chain and has yielded expected cost savings. As we continue to vertically integrate our pellet manufacturing, we are narrowing our current vendor network to better manage our supply chain. On a longer-term basis, we believe Asteria Health will strengthen our 503 manufacturing expertise, enabling us to develop and provide a wider range of high-quality compounded medications. In the near term, we remain focused on expanding Asteria Health's licenses to additional states. I will now turn the call over to Bob to discuss our third quarter financial results and provide our outlook for 2024.