Biote Corp (BTMD, Financial) released its 8-K filing on November 12, 2024, reporting its financial results for the third quarter ended September 30, 2024. The company, a leader in personalized hormone optimization and therapeutic wellness, demonstrated continued growth and strategic advancements despite facing operational challenges.
Company Overview
Biote Corp operates a growth practice-building business within the hormone optimization space. It provides the necessary components to enable Biote-certified practitioners to establish, build, and successfully implement a program designed to optimize hormone levels using personalized solutions for their patient populations.
Performance Highlights
Biote Corp reported a revenue of $51.4 million for the third quarter of 2024, slightly surpassing the analyst estimate of $51.38 million. This represents a 12.8% increase from the prior-year period, driven by growth in procedure revenue and a resurgence in the dietary supplements business. However, the company faced temporary disruptions in procedure volume due to the introduction of enhanced clinical decision support software and hurricane-related clinic closures.
Financial Achievements
Biote Corp's gross profit margin improved to 70.5% from 68.9% in the previous year, attributed to vertical integration of manufacturing and effective cost management. Operating income rose to $12.2 million, up from $7.6 million, reflecting increased sales and a higher gross profit margin. The company's net income was $12.7 million, with diluted earnings per share of $0.33, exceeding the analyst estimate of $0.09 per share.
Key Financial Metrics
Adjusted EBITDA for the quarter was $16.2 million, with a margin of 31.5%, up from $14.0 million and a margin of 30.8% in the previous year. These metrics are crucial as they provide insights into the company's operational efficiency and profitability, excluding non-recurring items.
“Biote’s third quarter revenue increased 12.8% from the prior-year period, driven by continued growth in procedure revenue and a strong return to growth in our dietary supplements business,” said Terry Weber, Biote’s Chief Executive Officer.
Balance Sheet and Cash Flow
Biote Corp's balance sheet showed total assets of $101.3 million, with cash and cash equivalents at $38.2 million. The company reported a significant decrease in cash and cash equivalents from $89.0 million at the end of 2023, primarily due to financing activities, including share repurchases and payments on repurchase liabilities.
Analysis and Outlook
Biote Corp's performance in Q3 2024 highlights its ability to grow revenue and improve profitability despite operational challenges. The company's strategic focus on vertical integration and enhancing its clinical decision support software positions it well for future growth. However, the temporary disruptions and natural disasters underscore the need for resilience in operational planning.
Looking ahead, Biote Corp has adjusted its full-year 2024 revenue guidance to $197-$201 million, reflecting the anticipated impact of recent challenges. The company's commitment to expanding its practitioner network and leveraging its proprietary software is expected to drive long-term growth and competitive advantage in the healthcare providers and services industry.
Explore the complete 8-K earnings release (here) from Biote Corp for further details.
