Q2 2025 LifeVantage Corp Earnings Call
Good day, ladies and gentlemen, and thank you for standing by welcome to today's conference call to discuss <unk> second quarter fiscal 2020 five results at this time all participants are in a listen only mode.
Unknown Executive: Good day, ladies and gentlemen, and thank you for standing by.
Unknown Executive: Welcome to today's conference call to discuss LifeVantage's second quarter of fiscal 2025 results. At this time, all participants are in a listen-only mode.
Unknown Executive: Following the formal remarks, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up.
Following the formal remarks, we will conduct a question and answer session and instructions will be provided at that time for you to queue up hosting today's conference call will be a feed and you're sitting with ICR.
Reed Anderson: Hosting today's conference call will be Reed Anderson with ICR. As a reminder, today's conference is being recorded.
Speaker Change: A reminder, today's conference is being recorded I would now like to turn the conference over to Mr. Anderson. Please go ahead Sir.
Reed Anderson: I would now like to turn the conference over to Mr. Anderson. Please go ahead, sir.
Anderson: Thank you good afternoon, and welcome to Lifevantage Corporation's conference call to discuss results for the second quarter of fiscal 2025.
Reed Anderson: Thank you. Good afternoon and welcome to LifeVantage Corporation's conference call to discuss results for the second quarter of fiscal 2025. On the call today from LifeVantage, with prepared remarks, are Steve Fife, President and Chief Executive Officer, and Carl Aure, Chief Financial Officer.
Speaker Change: On the call today from Lifevantage with prepared remarks are Steve Fife, President and Chief Executive Officer, and Carl I'll Ray Chief Financial Officer.
Reed Anderson: By now, everyone should have access to the earnings release, which went out this afternoon at approximately 4.05 p.m. Eastern Time. If you have not received the release, it is available on the Investor Relations portion of LifeVantage's website at www.lifevantage.com.
Speaker Change: By now everyone should have access to the earnings release, which went out this afternoon at approximately 405 P. M. Eastern time, if you've not received the release. It is available on the Investor Relations portion of Lifevantage. Its web site at Www Dot Lifevantage Dot Com. This call is being webcast and a replay will be available on the company's website as well before we begin we'd.
Reed Anderson: This call is being webcast, and a replay will be available on the company's website as well.
Reed Anderson: Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance and, therefore, under-reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of LifeVantage's most recently filed Forms 10-K and 10-Q.
Speaker Change: Like to remind everyone that our prepared remarks contain forward looking statements and management may make additional forward looking statements in response to your questions. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those.
Speaker Change: As identified in the risk factors section of flight vintages. Most recently filed forms 10-K and 10-Q. Please note that during today's call. We will discuss non-GAAP financial measures, including results on an adjusted basis management believes these financial measures can facilitate a more complete analysis and greater transparency into lifevantage as ongoing results of operation.
Reed Anderson: Please note that during today's call, we will discuss non-GAAP financial measures, including results on an adjusted basis. Management believes these financial measures can facilitate a more complete analysis and greater transparency into LifeVantage's ongoing results of operations, particularly when comparing underlying operating results from period to period. We've included a reconciliation of these non-GAAP measures with today's release.
Speaker Change: Particularly when comparing underlying operating results from period to period.
Speaker Change: We've included a reconciliation of these non-GAAP measures with today's release. This call also contains time sensitive information that is accurate only as of the date of this live broadcast February five 2025, Lifevantage assumes no obligation to update any forward looking projection that may be made in today's release or call now I would like to turn the call over to Steve Fife the <unk>.
Reed Anderson: This call also contains time-sensitive information that is accurate only as of the date of this live broadcast, February 5th, 2025. LifeVantage assumes no obligation to update any forward-looking projection that may be made in today's release or call.
Steven Fife: Now, I'd like to turn the call over to Steve Fife, the President and Chief Executive Officer of LifeVantage. Thanks, Reed, and good afternoon, everyone. Thank you for joining us today. We are thrilled to share our second quarter results, which demonstrate the transformational impact our new MindBody GLP-1 system is having on our business. Our performance in Q2 significantly exceeded initial expectations. with revenue of $67.8 million, representing sequential growth of nearly 44% from our first quarter and year-over-year growth of 31%. Profitability metrics also remain strong with gross margins up 190 basis points versus prior year and adjusted EBITDA more than doubling to $6.5 million or 9.6% of revenue.
Steve Fife: <unk> Chief Executive officer of Lifevantage.
Thanks, Ryan and good afternoon, everyone. Thank you for joining US today, we are thrilled to share our second quarter results, which demonstrate the transformational impact our new mine body G. L. P. One system is having on our business and our performance in Q2 significantly exceeded the initial expectations.
Steve Fife: With revenue of $67 8 million, representing sequential growth of nearly 44% from our first quarter and year over year growth of 31%.
Steve Fife: Profitability metrics also remained strong with gross margins up 190 basis points versus prior year and adjusted.
Steve Fife: EBITDA more than doubling to $6 5 million or nine 6% of revenue.
Steven Fife: The success of our patent-pending MindBody GLP-1 system since its October launch in the U.S. has been remarkable. While our initial inventory sold out in just 13 days, we continued to take orders throughout the quarter, and I am pleased to report that by mid-December we had received additional inventory and cleared our backlog by the end of December. This rapid sellout occurred despite ordering significantly more initial inventory compared to our successful liquid collagen launch. More importantly, we have now secured sufficient manufacturing capacity and strengthened our supply chain to meet the continued strong demand we're seeing with our current capacity significantly higher than our initial launch Our active accounts metrics are particularly encouraging, including the highest number of enrollments in a quarter since 2019.
Steve Fife: The success of our patent pending mind-body G. L. P. One system since its October launch in the U S has been remarkable.
Steve Fife: Our initial inventories sold out in just 13 days, we continued to take orders throughout the quarter and I am pleased to report that by mid December we have received additional inventory and cleared our backlog by the end of December this rapid sellout occurred despite ordering significantly more initial.
Steve Fife: Inventory.
Steve Fife: <unk> to our successful liquid college and launch.
Steve Fife: More importantly, we have now secured sufficient manufacturing capacity and strengthened our supply chain to meet the continued strong demand, we're seeing with our current capacity significantly higher than our initial launch volumes.
Steve Fife: Our active accounts metrics are particularly encouraging including the highest number of enrollments in a quarter. Since 2019. During Q2 active accounts increased by 23000 or 25% in the Americas region compared to Q1, including a 13%.
Steven Fife: During Q2, active accounts increased by 23,000 or 25% in the Americas region compared to Q1, including a 13% increase in the number of our independent consultants and a 31% increase in the number of customers. And while the mind-body system has been a catalyst for active accounts growth, we are also seeing very positive early indications of strong cross-selling opportunities. across our broader portfolio of Activation products. Subscription metrics are also trending up and are currently above 70%, reflecting the initial impact of MindBody, which is positioned as a long-term lifestyle product to aid in sustainable weight management, among other health benefits.
Steve Fife: Increase in the number of our independent consultants and a 31% increase in the number of customers.
Steve Fife: And while the main body system has been a catalyst for active accounts growth. We are also seeing very positive early indications of strong cross selling opportunities across our broader portfolio of activation products.
Prescription metrics are also trending up and are currently above 70%, reflecting the initial impact of mind body, which is positioned as a long term lifestyle product to eat and sustainable weight management among other health benefits.
Steven Fife: The MindBody GLP-1 system exemplifies our ownership and innovation in cellular activation and longevity. The U.S. Mind-Body Clinical results have shown a 140% increase in natural GLP-1 production on average, leading to reduction of visceral fat by up to 27% and total body fat by up to 5.5%. All those who lost weight in the clinical also notably maintained their muscle mass. These compelling results combined with the fact that we are using naturally derived ingredients delivered in a format that fits a typical daily routine are resonating strongly with consumers looking for a sustainable approach to weight management. Consumers are discovering the numerous benefits of this approach, including reduced cravings, feeling fuller longer after meals, and reduced food noise.
Steve Fife: The main body G. L. P. One system exemplifies our ownership and innovation and cellular activation and longevity. The U S. Mind-body clinical results have shown 140% increase in natural G. L. P. One production on average leading to reduction of visceral fat by up to 27%.
Steve Fife: And total body fat by up to five 5%.
Steve Fife: All of those who lost weight and the clinical also notably maintain their muscle mass.
Steve Fife: These compelling results combined with the fact that we are using naturally derived ingredients delivered in a format that fits a typical daily routine are resonating strongly with consumers looking for a sustainable approach to weight management.
Steve Fife: Consumers are discovering the numerous benefits of this approach, including reduce cravings feeling fuller longer after meals and reduced food noise. I'm also excited to share the results of our recent third party in vitro cell study on the synergistic benefits of combining.
Steven Fife: I'm also excited to share the results of our recent third-party in vitro cell study on the synergistic benefits of combining our MindBody GLP-1 system with ProTandem NRF2 Synergizer in what we call the Healthy Weight The findings are remarkable. When used together, these products not only amplify each other's individual benefits, but activate 22 new genes. This new genetic activity targets key aspects of cellular health and an aging impact that many of us don't see, the aging of our internal organs. Speaking to the amplified results, the study showed enhanced antioxidant defense through the activation of four additional antioxidant pathways, while nine additional fat and fatty acid metabolisms pathways.
Steve Fife: Our mind body G. L. P. One system with pro tandem and our half two center guys are and what we call the healthy weight stack.
Steve Fife: The findings of remarkable when used together these products not only amplify each others individual benefits, but activate 22 new genes.
Steve Fife: This new genetic activity targets key aspects of cellular health and an aging impact that many of US who don't see the aging of our internal organs.
Steve Fife: Speaking to the amplified results. The study showed enhanced anti oxidant defense through the activation of four additional anti oxidant pathways, while nine additional fat and fatty acid metabolic.
Steve Fife: Pathways, where.
Steven Fife: We're activated to optimize the body's ability to use and distribute FACT effectively. This product combination supports our customers' wellness journey by not just addressing weight management, but also promoting cellular resilience. metabolic health, and healthy aging. These findings reinforce our scientific leadership in cellular activation and demonstrate how our products can work together to deliver enhanced benefits for our customers.
Steve Fife: We're activate it to optimize the body's ability to use and distribute fact effectively this product combination supports our customers' wellness journey, but not just addressing weight management, but also promoting cellular.
Steve Fife: Williams.
Steve Fife: Metabolic health and healthy aging these.
Steve Fife: These findings reinforce our scientific leadership in cellular activation and demonstrate how our products can work together to deliver enhanced benefits for our customers.
Steven Fife: Looking ahead, we're preparing for the international rollout of the Mind-Body System beginning in March. Given that the U.S. currently represents more than 80 percent of our revenue, we see significant growth opportunities as we expand into our other markets. We're following the same strategic measured launch approach that proved so successful in the U.S., including comprehensive consultant training and education about the GLP-1 hormone, its role in the body, and how it is activated. Our modernized Evolved Compensation Plan has been crucial to our success. The plan's flexibility in supporting traditional business builders, the bedrock of LifeVantage, and product-focused sellers have enabled us to retain our core consultant base while expanding into new channels, helping us reach new audiences.
Steve Fife: Looking ahead, we're preparing for the international rollout of the mind body system beginning in March.
Steve Fife: Given that the U S. Currently represents more than 80% of our revenue, we see significant growth opportunities as we expand into our other markets. We're following the same strategic measured launch approach that proved so successful in the U S, including comprehensive consulting training and education about.
Steve Fife: The G L P. One hormone its role in the body and how it is activated.
Steve Fife: Our modernized evolved compensation plan has been crucial to our success the plan's flexibility in supporting traditional business builders, the bedrock of Lifevantage and product focused sellers have enable us to retain our core consultants space, while expanding into new channels.
Steve Fife: Peanuts reach new audiences for example, we're seeing increasing interest from Influencers.
Steven Fife: For example, we're seeing increasing interest from influencers with substantial followings who are attracted by our demonstrable science-backed products and compelling earning opportunities. The latest enhancements to our evolved compensation plan, including the new sharing bonus launched on November 1st in our current evolved markets, are further simplifying the path to success for our consultants. This new bonus, on top of other compensation elements, along with accelerators for new consultants, is helping drive the strong enrollment numbers we're seeing. Our commitment to sustainable, profitable growth remains unchanged. Despite the rapid growth we're experiencing, we maintain strong profitability metrics in the corner.
Steve Fife: Cancel followings, who are attracted by our demonstrable science back products and compelling earning opportunity.
Steve Fife: The latest enhancement to our evolved compensation plan, including the new sharing bonus launched on November 1st.
Steve Fife: Our current evolve markets are further simplifying and the path to success for our consultants. This new bonus on top of other compensation elements, along with accelerators for new consultants is helping drive the strong enrollment numbers were seen.
Steve Fife: Our commitment to sustainable profitable growth remains unchanged. Despite the rapid growth, we're experiencing we maintained strong profitability metrics in the quarter.
Steven Fife: We're continuing to make strategic investments and growth initiatives while maintaining our disciplined approach to cost.
Steve Fife: We're continuing to make strategic investments in growth initiatives, while maintaining our disciplined approach to costs.
Steven Fife: Welcome to the second half of fiscal 2025. We're focused on several key initiatives.
Steve Fife: Looking to the second half of fiscal 2025, we're focused on several key initiatives.
Steven Fife: 1. Ensuring consistent supply to meet the high demand for our mine body system. 2. Successfully launching the MB system in international markets starting in March. 3. Launching our evolved compensation plan to our remaining Asian markets in March. 4. Continuing to enhance our digital capabilities and consultant tools. 5. Building greater brand awareness as we reach new customer segments. And 6. Maintaining our strong profitability metrics while funding growth initiatives. We believe we're still in the early stages of realizing the full potential of our mind body system, and its ability to transform our business. The product significantly spans our total addressable market.
Steve Fife: One ensuring consistent supply to meet the high demand for our mind body system to successfully launching the M. B system in international markets starting in March three launching our evolved compensation plan to our remaining Asian markets in March for continuing to enhance our.
Steve Fife: Digital capabilities and consultant tools.
Steve Fife: Five building greater brand awareness as we reach new customer segments, and six maintaining our strong profitability metrics, while funding growth initiatives.
Steve Fife: We believe we're still in the early stages of realizing the full potential of our mind body system and its ability to transform our business and the products significantly expands our total addressable market.
Steven Fife: brings new customers to our activation platform and strengthens our position as a leader in cellular health activation.
Brings new customers to our activation platform and strengthens our position as the leader in cellular health activation.
Steven Fife: Additionally, we're excited about our upcoming global convention in April in Salt Lake City. where we'll celebrate the international launch of MindBody, consultant business successes, and our vibrant, energetic community that only direct selling and a brand centered on activation can deliver. This event will bring together our global field. for training, announcements, and launches that will further build momentum for our growth initiative.
Steve Fife: Additionally, we're excited about our upcoming global convention in April and Salt Lake City.
Steve Fife: Where we will celebrate the international launch of mind body.
Steve Fife: Consulting business successes in our vibrant energetic community that only direct selling and our brand centered on activation can deliver.
Steve Fife: This event will bring together our global field.
Steve Fife: For training announcements and launches that will further build momentum for our growth initiatives.
Steven Fife: I'm also pleased to announce that we recently welcomed Todd Thompson as our Chief Information and Innovation Officer. Todd brings decades of experience driving transformative technology solutions and business growth for prominent global organizations, including JetBlue Airlines, Starwood Hotels, and doTERRA. His proven track record in scaling operations, improving back-end systems, and delivering exceptional customer-facing technologies will be invaluable as we enhance the digital experience for our consultants and customers. Todd's experience will be particularly critical as we scale our infrastructure to support our accelerating growth in international plants.
Steve Fife: I'm also pleased to announce that we recently welcomed Todd Thompson as our Chief information and innovation Officer, Todd brings decades of experience driving transformative technology solutions and business growth for prominent global organizations, including Jetblue Airlines.
Steve Fife: Starwood hotels Endo Terra.
Steve Fife: His proven track record and scaling operations, improving backend systems and delivering exceptional customer facing technologies will be invaluable as we enhance the digital experience for our consultants and customers.
Steve Fife: Todd's experience will be particularly critical as we scale our infrastructure to support our accelerating growth in international plans. In summary, we are very pleased with our latest results. Our business has incredible momentum, reflecting the exceptional growth of mind body in recent months.
Steven Fife: In summary, we are very pleased with our latest results. Our business has incredible momentum reflecting the exceptional growth of MindBody in recent months. The strength of our distinctive platform, coupled with the competitive edge of our business model that empowers individuals to establish businesses on their own terms, position us well for continued success. We remain focused on executing our strategy to deliver strong financial performance and long-term value for our shareholders.
Steve Fife: Strength of our distinctive platform coupled with the competitive edge of our business model that empowers individuals to establish businesses on their own terms position us well for continued success.
Steve Fife: We remain focused on executing our strategy to deliver strong financial performance and long term value for our shareholders.
Carl Aure: Now, let me turn the call over to Carl to review our second quarter financial results in detail. Carl?
Speaker Change: Now, let me turn the call over to Carl to review, our second quarter financial results in detail Karl.
Carl: Thank you, Steve and good afternoon, everyone. Let me walk you through our second quarter financial results. Please note that I'll be discussing our non-GAAP. Adjusted results you can refer to the GAAP to non-GAAP reconciliations in today's press release for additional details.
Carl Aure: Thank you, Steve, and good afternoon, everyone. Let me walk you through our second quarter financial results. Please note that I will be discussing our non-GAAP adjusted results. You can refer to the GAAP to non-GAAP reconciliations in today's press release for additional details. Second quarter revenue was $67.8 million, up 31.3% on a year-over-year basis and up $43.5 sequentially from the first quarter. Foreign Currency Negatively Impacted Revenue by $300,000 in the Second Excluding the negative impact of foreign currency. Second quarter revenue was up approximately 31.9% as compared to the prior year period. Revenue in the Americas region increased 46.3% to $57.2 million in the quarter, reflecting exceptionally strong results from the October launch of our MindBody GOP-1 system in the United States.
Speaker Change: Second quarter revenue was $67 8 million up 31, 3% on a year over year basis, and up 43.5 sequentially from the first quarter.
Speaker Change: Foreign currency negatively impacted revenue by $300000 in the second quarter, excluding the negative impact of foreign currency fluctuations second quarter revenue was up approximately 31, 9% as compared to the prior year period.
Speaker Change: Revenue in the Americas region increased 46, 3% to $57 2 million in the quarter, reflecting exceptionally strong results from the October launch of our mind body G. O P. One system in the United States.
Carl Aure: Total active accounts increased 21.1% in the Americas in comparison to the prior year period and was up 25% sequentially from the first year. Total average revenue per consultant was also up 33.7% in the American.
Total active accounts increased 21, 1% in the Americas in comparison to the prior year period and was up 25% sequentially from the first quarter.
Speaker Change: Total average revenue per consultant was also up 33, 7% in the Americas in the current quarter.
Carl Aure: Revenue in our Asia-Pacific and Europe region decreased 15.5% to $10.6 million in the quarter, primarily driven by a 13.9% decrease in total active accounts and the negative impact from foreign currency exchange rate fluctuations. Excluding the negative impact from foreign currency fluctuations, which are primarily attributable to Japan, second quarter revenue in our Asia Pacific and Europe region was down 13.7% as compared to the prior year period. Gross margin was 80.5% in the second quarter, a 190 basis point improvement compared to 78.6% in the prior year period. The increase in gross margin was primarily due to product mix factors, including strong sales of our mine body, as well as lower inventory obsolescence and lower inventory-related variance Commissions and incentive expense as a percentage of revenue was 48 percent, up from 42.1 percent in the prior year period.
Speaker Change: Revenue in our Asia Pacific and Europe region decreased 15, 5% to $10 6 million in the quarter, primarily driven by a 13, 9% decrease in total active accounts and the negative impact from foreign currency exchange rate fluctuations.
Speaker Change: Excluding the negative impact from foreign currency fluctuations, which are primarily attributable to Japan second quarter revenue in our Asia Pacific and Europe region was down 13, 7% as compared to the prior year period.
Speaker Change: Gross margin was 85% in the second quarter of 190 basis point improvement compared to 78, 6% in the prior year period. The increase in gross margin was primarily due to product mix factors, including strong sales of our mind body as well as lower inventory obsolescence and lower inventory.
Speaker Change: The related variance expenses.
Speaker Change: Commissions and incentive expense as a percentage of revenue was 48% up from 42, 1% in the prior year period. The increase was due to higher incentive related expense from additional qualifications within our existing promotional programs higher commissions due to the rapid growth and change in sales mix with them.
Carl Aure: The increase was due to higher incentive-related expense from additional qualifications within our existing promotional programs, higher commissions due to the rapid growth and change in sales mix within our active accounts between independent consultants and customers, and impacts and changes in overall revenue mix between commissionable and non-commissionable revenue. Non-GAAP adjusted SG&A expense was $18.1 million compared with $17.4 million in the prior year period and was 710 basis points lower as a percentage of revenue to 26.7%. Adjusted non-GAAP operating income was $3.9 million compared with adjusted non-GAAP operating income of $1.4 million in the prior year period.
Speaker Change: Our active accounts between independent consultants and customers and impacts and changes in overall revenue mix between Commission a bowl and noncommissioned revenue.
Speaker Change: non-GAAP adjusted SG&A expense was $18 1 million compared with $17 4 million in the prior year period, and was 710 basis points lower as a percentage of revenue to 26, 7%.
Speaker Change: Adjusted non-GAAP operating income was $3 9 million compared with adjusted non-GAAP operating income of $1 4 million in the prior year period.
Carl Aure: Adjusted non-GAAP net income was $3 million, or $0.22, per fully diluted share in the second quarter, compared to adjusted non-GAAP income of $1.4 million, or $0.10, per fully diluted share in the prior year period. We recorded income tax expense of $500,000 in the second quarter, which translates to an effective tax rate of approximately 17% compared to a tax benefit of $500,000 in the prior year period and an effective rate of 41%. The decrease in our effective tax rate was due to the impact of discreet items. We now expect our full year FY25 tax rate to be approximately 22 to 24%.
Speaker Change: Adjusted non-GAAP net income was $3 million or 22 per fully diluted share in the second quarter compared to adjusted non-GAAP income of $1 4 million or <unk> 10 per fully diluted share in the prior year period.
Speaker Change: We recorded income tax expense of $500000 in the second quarter, which translates to an effective tax rate of approximately 17% compared to a tax benefit of $500000 in the prior year period, and an effective rate of 41%.
Speaker Change: The decrease in our effective tax rate was due to the impact of discrete items. We now expect our full year FY 'twenty five tax rate to be approximately 22% to 24%.
Carl Aure: Adjusted EBITDA for the second quarter was $6.5 million or 9.6% of revenues compared to $3.1 million and 6% in the same period a year ago. Please note that all of the adjustments from GAAP to non-GAAP that I discussed today are reconciled in our earnings press release issued this afternoon.
Adjusted EBITDA for the second quarter was $6 5 million or nine 6% of revenues compared to $3 1 million and 6% in the same period a year ago.
Speaker Change: Please note that all of the adjustments from GAAP to non-GAAP that I discussed today are reconciled in our earnings press release issued this afternoon our financial.
Carl Aure: Our financial position remains strong, with $21.6 million of cash and no debt at the end of the second quarter. Capital expenditures total $500,000 in the second quarter compared to $600,000 in the same period a year ago. We anticipate total capital expenditures to be approximately $1.5 million in fiscal 2025.
Speaker Change: Position remains strong with $21 6 million of cash and no debt at the end of the second quarter.
Speaker Change: Capital expenditures totaled $500000 in the second quarter compared to $600000 in the same period, a year ago, we anticipate total capital expenditures to be approximately $1 5 million in fiscal 2025.
Speaker Change: Turning to capital allocation, we did not repurchase any shares during the second quarter ended December 31, 2024 through the first six months of fiscal 2025, we've repurchased a 140000 shares for an aggregate purchase price of $1 1 million as of December 31, 2024, there is still a 19.
Carl Aure: Turning to capital allocation, we did not repurchase any shares during the second quarter ended December 31, 2024. Through the first six months of fiscal 2025, we've repurchased 140,000 shares for an aggregate purchase price of $1.1 million. As of December 31, 2024, there were still $19.3 million remaining under existing share repurchase authorization. We also announced a quarterly cash dividend of $0.04 per share of common stock, or approximately $500,000 in the aggregate. This dividend will be paid on March 17, 2025 to stockholders of record as of March 3, 2020. Since the beginning of fiscal 2024, we have returned approximately $15.5 million in total value to our stockholders through stock repurchases and We continue to focus on our balanced capital allocation strategy in order to drive value for our stockholders.
Speaker Change: $1 3 million remaining under our existing share repurchase authorization, we also announced a quarterly cash dividend of <unk> <unk> per share of common stock for approximately $500000 in the aggregate.
Speaker Change: This dividend will be paid on March 17th 2025 to stockholders of record as of March three 2025.
Speaker Change: Since the beginning of fiscal 2024, we have returned approximately $15 5 million and total value to our stockholders through stock repurchases and dividends. We continue to focus on our balanced capital allocation strategy in order to drive value for our stockholders.
Carl Aure: Turning to our outlook for fiscal 2025, on January 8, we announced preliminary Q2 revenue and raised our fiscal 2025 outlook to $235 million to $245 million, a 17 percent increase at the midpoint from our previous guidance. We are now reiterating this revenue range and now expect adjusted EBITDA to be $21 million to $24 million, up from the prior guidance of $18 million to $21 million, and adjusted non-gap earnings per share of $0.72 to $0.88 versus $0.70 to $0.80 previously. We remain committed to continuing to improve our adjusted EBITDA margins and believe we are well on track to reach our long-term target of low double digits in the very near future.
Speaker Change: Turning to our outlook for fiscal 2025 on January eight we announced preliminary Q2 revenue and raised our fiscal 2025 outlook to 235 million to $245 million, a 17% increase at the midpoint from our previous guidance. We are now reiterating this revenue range and now.
Speaker Change: We expect adjusted EBITDA to be 21 million to $24 million up from the prior guidance of 18 million to $21 million and adjusted non-GAAP earnings per share of <unk> 72 to.
Speaker Change: So 88 cents.
Speaker Change: Versus 70 to 80 previously we remain committed to continuing to improve our adjusted EBITDA margins and believe we are well on track to reach our long term target of low double digits in the very near future.
Unknown Executive: And with that, let me turn the call back over to the operator for questions. Operator?
Speaker Change: With that let me turn the call back over to the operator for questions operator.
Unknown Executive: Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.
Speaker Change: If he would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Transformation tone will indicate your line is in the question queue. You May press star two if he likes train movie a question from the queue and for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
Unknown Executive: And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Brooks O'Neill: Our first question is from Brooks O'Neill with Lake Street Capital Markets. Please proceed.
Speaker Change: Our first question is from Brooks O'neil with Lake Street Capital markets. Please proceed.
Aaron: Hey, Good afternoon, guys. This is Aaron on the line for Brooks are you able to hear me okay.
Aaron: Good afternoon, guys. This is Aaron. I'm on the line for Brooks. Are you able to hear me okay?
Speaker Change: Yeah.
Unknown Executive: Yeah. Cool.
Speaker Change: Oh, so congrats on the strong quarter I guess to start so with the recent focus sort of attracting more social salaries and micro influencers.
Aaron: So congrats on the strong quarter. I guess to start, so with the recent focus on sort of attracting more social sellers and micro influencers, how do you plan to continue to scale and sort of build off the solid growth and active accounts we saw this quarter? And I guess, a second parter to that question, you know, in conjunction, what do the efforts look like around brand awareness?
Speaker Change: How do you plan to continue to scale and sort of build off a solid year all at the back of the chance you saw this quarter and I guess.
Speaker Change: Second part to that question you know in conjunction with the efforts look like around brand awareness.
Speaker Change: Yeah. Thank you you know we are I think we talked earlier a little bit in my script, but we are looking to expand I'd.
Steven Fife: Yeah, thanks. You know, we are, I think we talked earlier a little bit and in my script, but we are looking to expand, you know, I'd say not just brand awareness, but our product offerings. You know, to date, you know, in the company, we've relied largely on our independent consultants to be that voice. And they've done a phenomenal job, but we know that, you know, our current base of consultants, you know, don't necessarily participate as broadly in the weight management area as, you know, our new product would support. And so we are going to be initiating some very proactive advertising outreach to drive a higher awareness around LifeVantage and, you know, LifeVantage the company and who we are as the activation company, but also targeting some of our key products with MindBody and Collagen and ProTandem in particular.
Speaker Change: I'd say not just brand awareness.
Speaker Change: Product offerings.
Speaker Change: To date and the company.
Speaker Change: We've relied largely on our independent consultants to be that voice and they've done a phenomenal job, but we know that.
Speaker Change: Our current base of consultants.
Speaker Change: Don't necessarily participate as broadly in the weight management area as as our new product.
Speaker Change: With support and so we are going to be initiating some very proactive.
Speaker Change: Advertising outreach to drive a higher awareness around Lifevantage and Lifevantage the company and who we are as the activation company, but also targeting some of our key products with mind body and collagen and protein and in particular.
Speaker Change: And I think that success that we're seeing with call it social sellers.
Steven Fife: And, you know, I think that success that we're seeing with, you know, call it social sellers, is just continuing to build. It's amazing how, you know, they, a lot of these people follow one another. And we've had circumstances or situations where, you know, we have a social seller join us and there are people that are following that individual who then have signed up to join us because, you know, they see the benefits of MindBody is really the attraction. But as they get in and we start talking to them a little bit more and they get educated on our other product offerings, they see that this is, you know, much bigger than just kind of a one-trip pony.
Speaker Change: Is just continuing to build its amazing how.
Speaker Change: A lot of these people follow one another.
Speaker Change: We've had it.
Speaker Change: Circumstances are.
Speaker Change: Situations, where.
Speaker Change: We have a social seller join us.
Speaker Change: And there are people that are following that individuals who then has signed up to join us because they see the benefits of my body is really the attraction, but as they get in and we start talking to them a little bit more and they get educated on our other profit product offerings. They see that this.
Speaker Change: Is much bigger than just kind of a one trick pony.
Steven Fife: So we see that opportunity for sure. We also, you know, are excited about what our existing consultant base is doing as well to drive this message through their channel.
Speaker Change: So we see that opportunity for sure. We also you know we're excited about what our existing consultant base is doing as well to drive this message through their channels.
Speaker Change: Absolutely no. That's super helpful. And then this question may be tailored a little bit more towards call.
Unknown Executive: Absolutely, no, that's super helpful.
Aaron: And then this question may be tailored a little bit more towards Carl.
Carl Aure: You know, are there any material expenses we should be looking for post this initial launch phase here in the next quarter or two, you know, understandably, there were some higher expenses this quarter associated with the launch and higher top line number, but maybe just some additional color on potential lumpiness there would be great. Yeah, sure, Aaron. I can share a few more details. You know, as we look forward here to Q3, we still expect to see some elevated costs, particularly on the incentive line. You know, one of the big increases we had in Q2, we had some existing incentive programs that I talked a little bit about in the script.
Are there any material expansion, we should be looking for a post. This initial launch phase here in the next quarter or two you know understandably there were some higher expenses this quarter associated with the launch and higher top line number, but maybe just some additional color on potential lumpiness there would be great.
Speaker Change: Yes, sure and I can share a few more details.
Speaker Change: We look forward here to Q3 to Q3, we still expect to see some elevated costs, particularly in the on the incentive line.
Speaker Change: One of the Big increases we had in Q2, we had some existing incentive programs that I talked a little bit about in the script and the qualification for that preexisting incentive actually runs through March of this year and so there will be some continued elevated costs on that incentive line here in Q3, but not to the same.
Carl Aure: And the qualification for that pre-existing incentive actually runs through March of this year. And so there will be some continued elevated costs on that incentive line here in Q3, but not to the same extent that we saw in Q2. It will be gradually decreasing a bit. And then ultimately in Q4, we expect that to normalize back down in that, you know, say 44% range. And so that's the expectation.
Speaker Change: Extent that we saw in Q2, it will it will be gradually decreasing a bit and then ultimately in Q4, we expect that to normalize back down in that say, 44% range and so that's the expectation so outside of the commission and incentive expense I think the majority of the the launch related costs are really are really behind us.
Aaron: So outside of the commission and incentive expense, I think the majority of the launch-related costs are really behind us. Awesome. No, that's super helpful. That's it for me. Congrats again, guys.
Speaker Change: Awesome No that's super helpful.
Speaker Change: That's it for me Congrats again guys.
Unknown Executive: Great, thanks Aaron. Thanks a lot.
Darren: Great. Thanks, Darren Thanks, a lot.
Speaker Change: Our next question is from Alex Furman with Craig Hallum Capital Group. Please proceed.
Alex Furman: Our next question is from Alex Furman with Craig Hallam Capital Group. Please proceed.
Alex Furman: Hey, guys. Thanks, very much for taking my question and congratulations on a really successful launch of the mind body system.
Alex Furman: Hey guys, thanks very much for taking my question and congratulations on a really successful launch of the MindBody system. You know, I wanted to ask a little bit about the margins. You called out a couple of headwinds to the margins in the second quarter, like some incremental shipping costs and the incentive comp and incentive program related to the GLP-1 program. It seems like despite those headwinds, the flow-through to EBITDA on the extra revenue in Q2 is still pretty strong, but the guidance implies that the flow-through over the next couple of quarters in the back half of the fiscal year is going to be lower than that.
Alex Furman: I wanted to ask a little bit about the margins you called out a couple head.
Alex Furman: Headwinds to the margins in the second quarter like some incremental shipping costs and the incentive comp.
Alex Furman: And incentive program related to the G. L. P. One program it seems like despite those headwinds the flow through to EBITDA on the extra revenue in Q2 was still pretty strong.
But the guidance implies that the flow through over the next couple of quarters in the back half of the fiscal year is going to be lower than that.
Carl Aure: Can you help us understand why that is and what are kind of the puts and takes as you think about incremental margins for the rest of the year? Yeah, I can take a first crack at that, Alex, and then, Steve, you can add any comments if you'd like. But as we look at the flow-through, you know, I think that the flow-through actually will be consistent or maybe even slightly better in the back half of the year. As I mentioned in the, you know, the previous question, we still are anticipating some higher incentive-related expenses and elevated just normal commission payout in Q3 and Q4.
Alex Furman: US understand you know why why that is and what are kind of the puts and takes as you think about incremental margins for the rest of the year.
Steve Fife: Yes, I can take a first crack at that Alex and then Steve you can add any comments, if you'd like but as we look at the flow through you know I think that the flow through or actually will be consistent or maybe even slightly better in the back half of the year as I mentioned in the previous question. We still are anticipating some higher incentive related expenses and <unk>.
Alex Furman: Elevated just normal commission payout in Q3 and Q4.
Carl Aure: You know, we'll also see some elevated, you know, related to the variable comp that we have in the SG&A structure. But I think, you know, going forward, I think that the flow-through should be similar here in Q3 and Q4.
Alex Furman: We'll also see some elevated you know related to the variable comp that we have in the SG&A structure, but I think going forward I think that the flow through should be similar here in Q3, and Q4 and looking forward beyond into FY 'twenty six that's where we really expect to see the incremental leverage.
Carl Aure: And looking forward, you know, beyond into FY26, that's where we really expect to see the incremental leverage of that additional flow-through running through benefiting Adjusted EBITDA and EPS.
Alex Furman: That additional flow through in running through benefiting.
Alex Furman: Adjusted EBITDA and EPS.
Alex Furman: Okay, that's really helpful.
Carl Aure: Okay, that's really helpful. If I could ask also, just on the timing of the launch and how it's progressed, obviously a pretty huge impact on revenue just in the first quarter it was launched. Can you give us a sense of how revenues for the total company or for MindBody trended month to month throughout the quarter? I imagine you only had a partial month of selling the new product, and in October you had a lot of stock outs to contend with in November. Can you give us a little bit of a sense of how demand played out month to month throughout the quarter and into January?
Alex Furman: Okay.
Alex Furman: And then if I could ask also just on on kind of the timing of the launch and how it's progressed, obviously a pretty huge impact on the on revenue just in the first quarter.
Alex Furman: It was launched can you give us a sense of how revenues for the total company or for mind body trended month to month throughout the quarter I imagine you've only had a partial month of selling the new product and in October you had a lot of stock outs to contend with in November can you give us a little bit of a sense of kind of how the math.
Alex Furman: Played out month to month throughout the quarter and into January.
Speaker Change: Yeah, I can I can talk about that Alex and you know we had October was.
Steven Fife: Yeah, I can talk about that, Alex. And, you know, we had, October was, you know, frankly, massive for us. It was the biggest month in the company's history from a revenue standpoint. And, you know, and I don't know, you know, I'd like to think of what would have happened if had we not run out of inventory before the end of the month, but we did. And so all of November and about half of December, we weren't able to ship product. And our consultants, I think, did all they could to continue to enroll. And we took orders during that period of time.
Speaker Change: Frankly massive for us so it was the biggest month in the company's history from a revenue standpoint.
Speaker Change: And.
Speaker Change: And I don't know I'd like to think of what would've happened if had we not run out of inventory before the end of the month, but we did it.
Speaker Change: And so all of November and about half of December we weren't able to ship product and our consultants I think did all they could continue to enroll and we took orders during that period of time, but just it's hard keeping that same entered.
Steven Fife: But, you know, just it's hard, you know, keeping that same energy around selling a product and then telling people, but, you know, you're going to have to wait four, six, eight weeks before you get it. And I think especially around the holidays, where people are maybe thinking about spending their money on other things as well. And so, you know, I'm Super proud of our operations team and accelerating kind of orders that had been in transit and supply chain fixes to get inventory back in stock by the middle of December and happy that we were able to fulfill all of that, all of our back order by the end of December.
Speaker Change: G around selling their product and then telling people, but youre going to have to wait.
Speaker Change: 468 weeks before you get it and I think especially around the holidays, where people are or may be thinking about spending their money on other things as well.
Speaker Change: So you know I'm I'm.
Speaker Change: Super proud and of our operations team and accelerating kind of orders that had been in transit and supply chain fixes to get inventory back in stock by the middle of December.
Speaker Change: And happy that we were able to fulfill all of that.
Speaker Change: All of our back order by the end of December So we ended the quarter with with virtually zero backlog.
Steven Fife: So we ended, you know, the quarter with virtually zero backlog, which is fantastic. Now I think as it relates to, and so there was, I mean, to answer your question, there was a slight decrease month to month to month in the quarter. And I, you know, in January is, is, is, you know, kind of in line with where we were in December, I think one of the headwinds in January was because of this backorder situation, we had people that could have received and did receive, you know, three sets of MindBody in December. because they placed an order in October, they placed an order in November and December, they joined on a subscription, and then they received all three of those systems towards the end of December.
Speaker Change: Which is fantastic now I think as it relates to and so there was I mean to answer. Your question. There was a slight decrease month to month to month in the quarter.
Speaker Change: And January is kind of in line with where we were in December I think one of the headwinds in January it was because of this back order situation.
Speaker Change: We had people that could have received and did receive.
Speaker Change: Three sets of mind body in December.
Speaker Change: Because they place an order in October they place an order in November and December they joined on a subscription and then they received all three of those systems towards the end of December and so when we when we provided our updated guidance in January.
Steven Fife: And so, you know, when we provided our updated guidance in January, at the beginning of January and reiterated it, you know, we took that into account that we anticipated January being a little softer because of that inventory, how the inventory was shipped out to our customers.
Speaker Change: At the beginning of January January and reiterated that we took that into account that we anticipated January being a little softer because of that inventory holiday inventory was shipped out to our customers.
Speaker Change: Okay that makes that makes a lot of sense. Thank you Steve Thanks Carl.
Unknown Executive: Okay, that makes a lot of sense.
Unknown Executive: Thank you, Steve. Thanks, Carl. Yeah.
Doug Lane: Thanks, Alex. Our next question is from Doug Lane with Watertower Research.
Speaker Change: Yes, Thanks, Alex.
Speaker Change: Our next question is from Doug Lane lighter calorie research. Please proceed.
Doug Lane: Please proceed. Yes, hi, thank you. Just on the on the mind-body subscriptions, how has that come in via these are the expectations? Is it mostly subscription now or was it mostly just one-off order? Yeah, you know, our average subscriptions, Doug, are about 80% of our revenue on a month to month basis. And, and MindBody for, you know, is tracking, you know, Low double digits above that. So there's more people coming in on subscriptions and it has a higher subscription rate. I think that's largely due because of our positioning around the product and we've been really careful not to refer to it as a magic pill that you come in and take it for a month and, you know, move back to your normal habits.
Speaker Change: Yes, hi, thank you.
Speaker Change: Just on the on the mind body.
Speaker Change: Yeah.
Speaker Change: Descriptions how has that come in.
Speaker Change: Vis vis your expectations is it mostly subscription now or was it mostly just one off orders.
Speaker Change: Yeah, you know our average subscription Doug.
Speaker Change: About 80% of our revenue on a month to month basis.
Speaker Change: And in mind body for.
Speaker Change: Is tracking.
Speaker Change: Low double.
Speaker Change: <unk> digits above that so theres more people coming in on subscriptions and it has a higher subscription rate.
Speaker Change: I think that's largely due do because of our positioning around the product and we've been really careful not to refer to it as the magic pill that you come in and take it for a month in.
Speaker Change: Move back to your normal habits, but this is a lifestyle and weight management products. So we strongly encourage people to come in on subscription.
Steven Fife: But this is a lifestyle and weight management products. So we strongly encourage people to come in on subscription. And, you know, one of the other things that I've looked at and I'm pleased with is just, you know, the people that are new people that are joining LifeVantage and are signing up with MindBody, over 50% of them are joining with a subscription. And keep in mind that is also during a period of time where for about eight weeks, we didn't have products. to ship in the quarter. But in the quarter, over 50% of the people came in on a subscription and are new to the company on a subscription.
Speaker Change: One of the other things that.
Speaker Change: I've looked at and I'm pleased with is just.
Speaker Change: The people that are new people that are joining life in age.
Speaker Change: Well and are signing up with with mind body.
Over 50% of them.
Speaker Change: Our joining with the subscription and keep in mind that is also during a period of time, where for about eight weeks, we didn't have product.
Speaker Change: To ship in the quarter, but in the quarter over 50% of the people came in on a subscription.
Speaker Change: And.
Speaker Change: And are new to the company.
Speaker Change: On a subscription and that's compared to I guess, it was kind of low thirties.
Steven Fife: And that's compared to, I guess it was kind of low 30s. When we launched Collagen, as you know, it was a very successful launch for us as well. But most of the people that we're buying, you know, were existing customers and consultants of our customer base back in, you know, two years ago. So we've seen a much, you know, higher purchase rate of new people coming from the outside with MindBody than we did with colleges.
Speaker Change: When we launched college and as you know is a very successful launch for us as well, but most of the people that were buying.
Speaker Change: Were existing customers and consultants of our of our cuts of our customer base back in two years ago. So we've seen a much higher purchase right.
Speaker Change: Of new people coming from the outside with my body than we did with with college.
Speaker Change: And you know with the science coming out.
Steven Fife: And, you know, with the signs coming out earlier this quarter, how much of the mine bodies now being sold in the stacks versus standalone? Yeah, so I think in the first quarter, we did see a high proportion of stand-alone units, but it was probably, you know, out of the total MB-related revenue in Q2, 80%, 80% to 85% would be stand-alone. But I think the more recent trends that we're seeing, if you look in the later, especially in the launch month, but if you look in the later months and where our expectations are going forward, we believe that we're going to see a higher proportion of MB purchases in the stacks and pack strategy.
Speaker Change: Earlier this quarter how much of the.
Speaker Change: How much of the mind body is now being sold in the stacks versus Standalone.
Speaker Change: Yeah. So I think in the first quarter, we did see a high proportion of Standalone units, but it was probably out of the total and MB related revenue in Q2, 80%, 80% to 85% would be standalone, but I think the more recent trends that we're seeing if you look into later, especially into launch month, but.
Speaker Change: If you look in the later months and where our expectations are going forward. We believe that we're going to see a higher proportion of MB purchases in the stacks and pack strategy that would include nerf to where collagen or some other of our products.
Steven Fife: That would include Nrf2 or collagen or some other of our products. Right. And as you pointed out, that in vitro result that we talked about at the beginning of the month, you know, it's pretty staggering that the amplification story about taking mind-body with ProTandem. And that's really something that, you know, ProTandem is really, you know, the anchor of our product strategy. Every time we look at new products, and this is going back, you know, five, six years ago when we introduced ProTandem NRF1 and ProTandem NAD, we did a study with those products and saw that an amplification when taken with NRF2.
Speaker Change: Okay.
Speaker Change: Right that would that would yes.
Speaker Change: Yeah, and as you pointed out that in vitro results that we talked about at the beginning of the of the month, it's pretty staggering. The amplification story about taking mind body with <unk> and that's that's really something that protandim.
Speaker Change: <unk> is really.
Speaker Change: The increase of.
Speaker Change: Our product strategy every time, we look at new products and this is this is going back five six years ago, when we introduced.
Speaker Change: Pro tandem interest one in pro tandem M D.
Speaker Change: We did a study with those products and saw that an amplification when taken with <unk>. Two we see the same thing with college.
Steven Fife: We see the same thing with collagen. And now that in vitro result, you know, reaffirms the same kind of findings with mind-body. So, you know, and our consultants are used to selling that, you know, going back again to our trisenergizer and then the collagen. So, as Carl said, as time passes, I think we'll see that percentage increasingly grow to more of a system or a stack approach than rather than just an individual product sale of mind-body.
Speaker Change: Now that in vitro results.
Speaker Change: Reaffirms the same kind of of our findings with mind body. So yes.
Speaker Change: And then there are consultants are used to selling that.
Speaker Change: Going back again to our trace Energizer and then the collagen so as Carl said as time passes.
Speaker Change: We will see that percentage increasingly grow to more of a system or a stack approach rather than rather than just an individual product sale of my body.
Speaker Change: No that makes sense you have the same thing right with <unk> and liquid collagen I think theirs.
Unknown Executive: No, that makes sense. You have the same thing, right, with NRF2 and liquid collagen. I think there's even a pending one. That's right. Exactly. I assume there's science coming out shortly about the three of them, the synergistic benefits of all three of them taken together, is that fair? That's fair.
Speaker Change: Ending.
Speaker Change: Exactly.
Speaker Change: I assume they're science coming out shortly about the three of them.
Speaker Change: The synergistic benefits of all three of them taken together that there.
That's fair that's fair and.
Steven Fife: And, you know, the other thing that, I don't know if you saw that release from yesterday, but we did, you know, release the results of our international mind-body formula, and we've started off, you know, rolling that out. We expect to have sales internationally starting in Japan towards the end of March, and then all of our other international markets in April. But the in vitro results from that, from that product are very consistent, similar to our U.S. formula, and so it's exciting to have that information corroborating our international formula as well. Yeah, no question.
Speaker Change: The other thing that I don't know if you saw that release from yesterday, but we did release the results of our international mind body Formula and we've started off rolling that out we expect.
Speaker Change: Have sales internationally, starting in Japan towards the end of March.
Speaker Change: And then all of our other international markets in April.
Speaker Change: But the in vitro results from that.
Speaker Change: From that product.
Speaker Change: Our very consistent similar to our U S formula.
Speaker Change: So it's.
Speaker Change: It's exciting to have that information corroborating, our international Formula as well.
Speaker Change: Yes, no question and just one last thing I noticed in the balance sheet. You are now back to $21 $6 million in cash, which is where you were when you declared a special dividend a couple of years ago. So how should we think about the opportunities for a special dividend coming up here.
Carl Aure: Just one last thing I noticed in the balance sheet, you're now back to $21.6 million in cash, which is where you were when you declared a special dividend a couple of years ago. So how should we think about the opportunity for a special dividend coming up here? Yeah, I think that option, Doug, is always on the table and, you know, I think we found that to be a pretty good lever for us in the past, but we're also balancing that against some of the other internal investments that we feel we want to make in the business as well.
Speaker Change: Yes, I think on that option, Doug as always on the table and I think we found that to be a pretty good lever for us in the past.
Speaker Change: But we're also balancing that against some of the other internal investments that we feel we want to make in the business as well as Steve talked earlier in the call. We were talking about investments in brand awareness and maybe other areas in <unk>.
Carl Aure: As Steve talked earlier in the call, we were talking about investments in brand awareness and maybe other areas in IT related where we can, you know, get some real benefits internally. And so, we are balancing that and the other thing we want to make sure we do is we need to sure up and make sure that we've got enough inventory worldwide to support the growth that we're expecting in MB and the successful launches we're expecting internationally. So we do have some, we want to make sure we're ahead of the inventory situation and we don't run into the same issue we had with the U.S.
Speaker Change: Related where we can get some some real benefits internally and so we are balancing that and then the other thing we want to make sure. We do is we need to show up and make sure that we've got enough inventory worldwide to support the growth that we're expecting in <unk> and the successful launches were expecting internationally. So we do have some we want to make sure. We're ahead.
Speaker Change: The inventory situation and we don't run into the same issue, we had with the U S launch, but overall, though I think that's a fair fair point and its certainly a special dividend is something that we're as an option for us going forward.
Carl Aure: launch. But overall though, you know, I think that's a fair point and it's certainly a special dividend is something that is an option for us going forward.
Steve Fife: Okay. Thanks, Steve Thanks Carl.
Unknown Executive: Okay. Thanks, Steve. Thanks, Carl.
Unknown Executive: Okay.
Unknown Executive: Thanks, Doug. Thanks for the question.
Speaker Change: Okay. Thanks, Doug Thanks for the question.
Steven Fife: Once we have reached the end of our question and answer session, I would like to turn the conference back over to Steve for closing remarks. Yeah, thanks. And I just want to thank you all for joining us today.
Steve Fife: We have reached the end of our question and answer session I would like to turn the conference back over to Steve for closing remarks.
Steve Fife: Yeah, Thanks, and I just wanted to thank you all for joining US today as we wrap this up I wanted to extend my appreciation to our employees our independent consultants.
Steven Fife: As we wrap this up, I wanted to extend my appreciation to our employees, our independent consultants, all of you stockholders, and our very loyal and passionate customer base. And we look forward to updating you with our next results. Thanks a lot.
Steve Fife: All of you as stockholders and.
Steve Fife: There are very loyal and passionate customer base and we look forward to.
Steve Fife: Updating you with our next results thanks a lot.
Unknown Executive: Thank you.
Speaker Change: Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.
Unknown Executive: This will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.
Steve Fife: Okay.
Reed Anderson: Reed Anderson, Unknown Executive, LifeVantage Corp.
Steve Fife: Okay.
Steve Fife: [music].
Steve Fife: Yeah.
Steve Fife:
Steve Fife: Uh huh.
Steve Fife: Okay.
Steve Fife: Okay.
Steve Fife: [music].
Steve Fife: Okay.
Steve Fife: [music].
Steve Fife: Yeah.
Steve Fife: [music].