- Revenue: $48.9 million, down 9.8% year-over-year.
- Currency Adjusted Revenue: Down 8% year-over-year.
- Americas Region Revenue: $38.1 million, down 4.1% year-over-year.
- Asia Pacific and Europe Region Revenue: $10.8 million, down 25.2% year-over-year.
- Gross Margin: 79.5%, compared to 79.6% in the prior year period.
- Commissions and Incentive Expense: 44.9% of revenue, up 160 basis points year-over-year.
- Non-GAAP Adjusted SG&A Expense: $13.7 million, improved 280 basis points as a percentage of revenue.
- Adjusted Non-GAAP Operating Income: $3.2 million, compared to $3 million in the prior year period.
- Adjusted Non-GAAP Net Income: $1.8 million or $0.14 per fully diluted share, compared to $2.2 million or $0.17 per fully diluted share in the prior year period.
- Adjusted EBITDA: $4.8 million or 9.8% of revenues, compared to $4.8 million and 8.9% in the prior year period.
- Cash Position: $16.9 million with no debt at the end of the fourth quarter.
- Capital Expenditures: $0.3 million in the fourth quarter and $2.2 million for fiscal year 2024.
- Stock Repurchase: $1.8 million used to repurchase approximately 253,000 shares in the fourth quarter.
- Quarterly Cash Dividend: $0.04 per common share, totaling approximately $500,000.
- Fiscal 2025 Revenue Outlook: $200 million to $210 million.
- Fiscal 2025 Adjusted Non-GAAP EBITDA Outlook: $18 million to $21 million.
- Fiscal 2025 Adjusted Non-GAAP EPS Outlook: $0.7 to $0.8 per share.
Release Date: August 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Adjusted EBITDA margin improved by 90 basis points to 9.8% compared to the previous year.
- Adjusted EBITDA for the full fiscal year increased by 45% to $17 million.
- Sequential revenue growth of 2.4% in the Americas region over fiscal Q3.
- Productivity improvements with a 2% increase in revenue per consultant year-over-year.
- Successful launch and positive reception of the TrueScience liquid collagen product.
Negative Points
- Total revenues for the quarter were down nearly 10% year-over-year.
- Currency adjusted revenue decreased by 8% for the quarter.
- Revenue in the Asia Pacific and Europe region decreased by 25.2%, with a 17.1% drop in total active accounts.
- Non-GAAP adjusted net income decreased to $1.8 million from $2.2 million in the prior year period.
- Income tax expense increased to $1.4 million from $600,000 in the prior year period.
Q & A Highlights
Q: Can you provide some guidance on the expected revenue growth for fiscal 2025 and the quarterly cadence?
A: We expect moderate improvement in each quarter of FY25, with Q1 likely being a bit lower compared to other quarters. Momentum is anticipated to build towards the back half of the year, especially with product launches in Q2 and the following momentum in Q3 and Q4. β Carl Aure, Chief Financial Officer
Q: What is driving the sequential improvement in total active accounts?
A: The improvement is attributed to the refresh of our compensation plan and the efforts of our existing leaders. We have seen increased enrollments and improved retention, especially in the US. We believe we have bottomed out and are now looking forward to sequential growth. β Steven Fife, President, Chief Executive Officer, Director
Q: Has the shift of other companies to affiliate marketing impacted LifeVantage?
A: Yes, we anticipated this trend and adapted our compensation plan to be attractive to both traditional consultants and those interested in affiliate marketing. Our plan allows individuals to join and move freely between selling products and building teams. β Steven Fife, President, Chief Executive Officer, Director
Q: Can you elaborate on your new weight management product and how it differs from competitors?
A: Our new product activates GLP-1 proteins and is 100% natural. It offers benefits like reducing food noise and hunger suppression. Unlike quick-fix diets, it is intended for long-term use to help manage weight sustainably. Preliminary results from our testing are very promising. β Steven Fife, President, Chief Executive Officer, Director
Q: What are the financial highlights for the fourth quarter?
A: Fourth quarter revenue was $48.9 million, down 9.8% year-over-year. Adjusted EBITDA was $4.8 million, maintaining a 9.8% margin. We also repurchased approximately 253,000 shares of common stock and announced a quarterly cash dividend of $0.04 per share. β Carl Aure, Chief Financial Officer
Q: What are the key initiatives driving your strategic growth?
A: Key initiatives include innovation, optimization, and profitability. We are focusing on product launches, enhancing our rewards program, and driving consultant engagement through events like Activate 2024. β Steven Fife, President, Chief Executive Officer, Director
Q: How is the company addressing the challenges in the Asia Pacific and Europe regions?
A: Revenue in these regions decreased primarily due to a decline in active accounts and foreign currency fluctuations. We are focusing on improving retention and enrollment to address these challenges. β Carl Aure, Chief Financial Officer
Q: Can you provide more details on the recent changes to the Board of Directors?
A: Erin Brockovich has resigned from the Board, and we have welcomed Raj Anbalagan, who has over 20 years of experience in technology and e-commerce. His expertise will be invaluable in advancing our strategic growth initiatives. β Steven Fife, President, Chief Executive Officer, Director
Q: What are your capital allocation priorities?
A: We are focused on maintaining a strong balance sheet, repurchasing shares, and paying dividends. During fiscal 2024, we returned $13.4 million to stockholders through stock repurchases and dividends. β Carl Aure, Chief Financial Officer
Q: What is the outlook for adjusted EBITDA margins?
A: We expect adjusted EBITDA margins to improve and are on track to reach our long-term target of low double digits. For fiscal 2025, we anticipate adjusted non-GAAP EBITDA in the range of $18 million to $21 million. β Carl Aure, Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
