Q4 2024 Biote Corp Earnings Call
Good day and welcome to the biotech fourth quarter 'twenty 'twenty four earnings conference call.
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Simon: I would now like to turn the conference over to Simon's there over yet T. Alright Investor Relations. Please go ahead.
Thank you for joining us today.
Simon: The stuff in your in box published financial results for the fourth quarter and fiscal year December 31 2024.
Simon: This news release is available in the Investor Relations section of the company's website.
Speaker Change: Hosting todays call are Marc beer, Executive Chairman, and Chief Executive Officer, and Bob Peterson, Chief Financial Officer.
Speaker Change: We'll get started I would like to remind everyone that management will make semi sir on this call that include forward looking statements regarding among other things.
Speaker Change: The company's financial results for.
Speaker Change: From zero to opportunities business outlook strategies goals reason development manufacturing commercialization activities.
Speaker Change: A physician.
Regulatory pause operations benefits of its solutions, the anticipated impacts of macroeconomic or their shots business booked.
Speaker Change: Lots of operations and should conditions and other matters that do not relate to historical facts.
Speaker Change: 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.
Speaker Change: Actual results could differ materially from expectations reflected in any forward looking statements.
Speaker Change: These statements are subject to risks uncertainties and assumptions that are based on management's current expectations as of today.
Bouchie: Bouchie undertakes no obligations to update them in the future.
Bouchie: Therefore, these statements should not be relied upon as representing the company's views as of any subsequent date.
Bouchie: For a discussion of risks and other important factors that could affect our extra.
Bouchie: Please refer to our SEC filings available on the Sec's website, and the Investor Relations section of our website as well as rich and unemployment factors discussed in the earnings release.
Bouchie: Major also refer to adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP measures to provide additional information to investors.
Bouchie: Reconciliations of non-GAAP to GAAP measures are provided in earnings release with the primary differences being stock based compensation.
Bouchie: Everybody has a different set of liabilities is excellent at it expenses and other nonoperating expenses.
Bouchie: Please refer to our fourth quarter and fiscal year 'twenty 'twenty four earnings release for reconciliation of adjusted EBITDA.
Bouchie: Net income of course comparable GAAP measure.
Marc Beer: I'll now turn the call over to Marc beer.
Marc Beer: Thank you Simon and thank you all for joining us.
With me today are Bob Peterson, our Chief Financial Officer, and Brett Kristian said, our newly appointed Chief Executive Officer.
Speaker Change: After Bob reviews, our performance in the fourth quarter and provides our financial outlook for 2025, Brett will discuss his areas of focus for biotech.
Speaker Change: On behalf of the board of directors and the entire biotech team I would like to start today's call by welcoming Brett to biopsy.
Speaker Change: Consistent with our succession planning strategy the board undertook a methodical and comprehensive search early in 2024 for our next CEO.
Speaker Change: We're delighted to have Brett lead by a T. As the company embarks on its next chapter of growth.
Speaker Change: Well, let's distinguish background includes more than 20 years of leadership experience in women's health care and across the broader health care sector.
Speaker Change: Throughout his career, Brett has commercialized many health care offerings and treatments to the level of industry standard of care, demonstrating an outstanding ability to launch innovative solutions, capturing market share and profitably scale businesses.
The board has every confidence and breath ability to elevate our performance execute our strategy and drive long term value for our stakeholders.
Speaker Change: Over the course of the past year biotech is focused on strengthening our competitive moat with a number of new and enhanced proprietary offerings.
Speaker Change: Through the execution of key growth initiatives and strategic acquisitions, we have laid the groundwork to achieve accelerated growth and drive commercial success in the large and underserved market, where homewood optimization and therapeutic wellness.
Speaker Change: Our acquisition of Asterias help in 2024 marked an important inflection point.
Iot's evolution.
Speaker Change: Not only do we strengthen control over our supply chain and product quality well. We also began vertically integrating our internal manufacturing.
Speaker Change: Which is generating cost efficiencies and enhancing our gross profit margin.
Speaker Change: We also gained expertise and the manufacturing of plywood three be compounded products, enabling us to provide a range of high quality compounded health and wellness alternatives in the future.
Speaker Change: Over the past year, we have scaled up our internal manufacturing capacity to meet our customer needs.
Speaker Change: We have sufficient internal capacity to produce our monthly pellet needs.
Speaker Change: As we gain additional state licenses, we aim to further increase our share of internally manufactured pellets.
Speaker Change: Shortly after we announced the acquisition of Asterias Hell, we implemented the phased launch of our proprietary bio T Rx wellness platform.
We believe <unk> represents a key competitive differentiator for biotech.
Speaker Change: Providing biotech certified practitioners with a seamless platform for product ordering and inventory management, along with technical support training and educational resources.
Speaker Change: In September 2024.
Speaker Change: Iot introduced significant improvements to our proprietary clinical decision support software.
Speaker Change: Reinforcing our commitment to advancing patient health and wellness and creating a brother in boat that clearly separates us from our competition.
Speaker Change: These updates followed the latest evidence based medical literature and feature proprietary dosing algorithms that are unique in the marketplace.
Speaker Change: With these new algorithms biotech certified practitioners are elevating patient care with highly individualized therapies, including hormone optimization therapeutic wellness and dietary supplements.
Speaker Change: With our enhanced clinical decision support software.
Speaker Change: We have aimed to refocus the conversation surrounding hormone and wellness therapies.
Speaker Change: By doing so we believe we are expanding our long term growth opportunity in two important ways.
Speaker Change: First we're broadening our appeal to practitioners, who may be less familiar with hormone optimization and the clinical evidence supporting its efficacy.
Speaker Change: Second we are expanding our existing practitioners treatment alternatives, helping them serve a more diverse range of patients.
Speaker Change: Pain improved health care outcomes.
Speaker Change: Our updated software is unique to the industry and we believe provides us with a key competitive advantage.
Speaker Change: In summary, we believe biotech has entered 2025 with a position of strength.
Speaker Change: Underpinned by the key strategic assets that have expanded and enhanced our capabilities.
Speaker Change: With these foundational elements in place coupled with breadth of experience and leadership I am confident that biotech is an even better position for both patient health and wellness widen our competitive moat and continue to generate profitable growth.
Speaker Change: I will now turn the call over to Bob for a review of our fourth quarter financial results as well as our outlook for 2025.
Speaker Change: Bob.
Bob: Thank you Mark and good afternoon, everyone.
Bob: Fourth quarter revenue was $49.8 million up 9% from the prior year period.
Procedure revenue growth increased 5%, primarily driven by growth of established top tier clinics as we expected fourth quarter procedure revenue growth was negatively impacted by two headwinds one.
Bob: A reduction in procedure volume as clinics transitioned to our upgraded clinical decision support software and to our focus on training, our existing practitioners, which impacted our ability to add new clinics at the expected rate.
Bob: Beginning in the third quarter of 2024 and continuing into early 2025, our Salesforce has worked closely with our practitioners to enable a smooth and productive transition to our enhanced clinical decision support software. This.
This engagement has demonstrated the additional value that biotech can provide to our clinics as we expand further into the mainstream health and wellness space.
While we are confident about the benefits that our clinical decision support software delivers new customer growth has slowed as we heighten our focus on serving existing practitioners.
Bob: As a result in the first half of 2025, we expect procedure revenue growth will be impacted along with increased levels of investment in sales and marketing expense to drive new customer growth.
Fourth quarter dietary supplement revenue increased 10.2% year over year.
Bob: Dietary supplement sales benefited from the transition of a portion of this business to the Amazon channel.
Bob: We are in the final stage of this transition and expect to see continued year over year growth in dietary supplement sales in 2025.
Bob: Fourth quarter gross profit margin was 71, 8%.
Bob: 247 basis point increase from the fourth quarter of 2023.
Bob: The year over year improvement reflected cost savings from the vertical integration of our 503 be manufacturing facility as well as <unk>.
Bob: Effective cost management.
Bob: Selling general and administrative costs were.
Bob: Were $33.0 million compared to $26.2 million in the fourth quarter of 2023.
Bob: SG&A expenses increased in the fourth quarter of 'twenty 'twenty four due to employee related investments and additional legal expenses.
Bob: Net income was $3 $5 million inclusive of an 800000 dollar loss due to the change in the fair value of the earn out liabilities.
Bob: This compares to net income of $12 $1 million in the fourth quarter of 2023 which included a 5.4 million dollar gain due to the net change in the fair value of the earn out liability.
Bob: Fourth quarter 2024, net income was 10 cents per diluted share compared to 18 cents per diluted share in the fourth quarter of 2023.
Bob: Adjusted EBITDA increased 11, 4% to $15.1 million with an adjusted EBITDA margin of 33%.
Bob: In the comparable quarter in 2023, adjusted EBITDA was $13.6 million with an adjusted EBITDA margin of 29.7%.
The increases in adjusted EBITDA and adjusted EBITDA margin for the fourth quarter of 2024, primarily reflected the operating leverage of our business model.
Bob: Cash flow from operations for fiscal year, 'twenty, 'twenty, four was $45.2 million compared to $26.9 million for fiscal year 2023 weeks.
Bob: We continue to be a strong cash flow generating business.
Bob: As of December 31, 2024, cash and cash equivalents were $39.3 million compared to $38.2 million as of September 32024.
Bob: Now turning to our financial outlook for 2025.
Bob: The company expects revenue of $202 million to $208 million and adjusted EBITDA.
Bob: Of $59 million to $64 million.
Bob: Within this outlook the company expects 2025 procedure revenue to increase approximately two to four.
Bob: Per cent from 'twenty 'twenty four.
Bob: And 2025 dietary supplement revenue to increase approximately 5% to 10%.
Bob: From 'twenty 'twenty four.
Bob: Although we do not typically provide quarterly guidance, we expect first quarter 'twenty twenty-five revenue to be slightly higher as compared to the first quarter of 'twenty 'twenty four as we ramp up training and Onboarding of new practitioners to reinvigorate quick start related revenue.
Bob: First quarter 2025, adjusted EBITDA is expected to be approximately 5% lower as compared to the first quarter of 'twenty 'twenty four.
Bob: Due to increased sales and marketing activities to reaccelerate new customer growth.
Brett: Now I'll hand, the call over to Brett for his comments.
Brett: Thank you, Bob and Mark and good afternoon, everyone. It's a pleasure to be speaking with all of you on the call today and I look forward to meeting many of you in person during the upcoming year.
Brett: Before I share my early observations and discuss key initiatives for 2025, I would like to tell you why I came to biodiesel and what excites me about the opportunity ahead, having.
Brett: Having successfully led numerous commercial teams within the health care sector. I have found that there are two essential elements that drive sustainable growth and build long term value.
Number one our company needs a product it makes a difference in People's lives and number two a company needs a large tam to support the long runway of growth.
Speaker Change: As a market leader in hormone optimization at therapeutic wellness biotech has these fundamentals already in place.
Speaker Change: Company currently serves hundreds of thousands of patients and has trained more than 8000 practitioners, representing only a fraction of the total available patient and practitioner population.
Speaker Change: That's what Energizes me and why I believe biotech at such an exciting growth opportunity ahead.
Speaker Change: I'm honored to lead by Ot at this pivotal time as Mark highlighted by Ot has made considerable progress over the past year in building a strong foundation for growth in the years ahead.
Our best in class technology, and proprietary algorithms that followed the latest in evidence based care I believe buyout. He is uniquely positioned to advance patient health and redefined healthy aging.
Speaker Change: Over the past several weeks I've met with many of our clinic practitioners as well as many of our team members at biotech recent national sales meeting I came away from these candid conversations with valuable insights into our operations and our future opportunities I've identified three key areas of emphasis for 2025, which I believe are fundamental to commercial exit.
Speaker Change: At a high level first.
First we are strengthening our efforts to maximize the value from our top tier providers. Our recently upgraded clinical decision support software provides significant advantages for both practitioners and patients.
Speaker Change: By fully leveraging these capabilities, we can help enhance patient health and expand our growth potential across the entirety of our wellness portfolio.
Speaker Change: And we are not stopping there.
Speaker Change: As we will continue to offer more high value and differentiated offerings to our practitioners.
Speaker Change: Second we are intensifying our focus on adding new practitioners to further broaden our network and reinvigorate our procedure revenue growth rate biodiesel.
Speaker Change: <unk> has developed an outstanding training program and we are fortunate to have ample capacity to accelerate the number of newly trained practitioners. They can participate in our successful quick strike program as.
Speaker Change: As we expand our growth opportunity beyond early adopters to the biotech method, we are positioning <unk> to serve a broader range of positions.
Speaker Change: Our enhanced clinical decision support software is key to this strategy, providing evidence based treatments that address the unique needs of our practitioners and their patients.
Speaker Change: Third we are driving revenue growth by strengthening accountability, and improving consistency and discipline throughout the commercial organization.
Speaker Change: Although these changes will be implemented quickly they take time to show results before we experienced an anticipated acceleration in our revenue growth.
Speaker Change: I'm confident that these initiatives will strengthen our commercial organization to increase productivity beginning later this year.
Speaker Change: In closing I am excited to lead biotech forward and committed to building on our success in hormone optimization and therapeutic wellness, we have a great team in place and an exceptional growth opportunity ahead of us I'm confident that as we execute on our strategic priorities will be well positioned to achieve our full potential and create significant shareholder value.
Operator, we can now open the call for questions.
Speaker Change: Thank you.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys. If at anytime. Your question has been addressed and you would like to withdraw. Your question. Please press Star and then two at this time, we will pause momentarily to assemble our raw.
Speaker Change: Foster.
Speaker Change: And your first question today will come from Les Sulewski with Truest. Please go ahead.
Les Sulewski: Yes. Good evening. Thank you for taking my questions and welcome to the call Brett.
Speaker Change: To start out perhaps for team can you help us reconcile that to two to four.
Speaker Change: Revenue growth guidance, what portion of that revenue growth is expected to come from I guess, new practitioners versus the current base and can you provide some commentary around the procedural volume growth and I have a couple of follow ups.
Sure. So just to start off looking at the 2% to 4% guide on procedure revenue growth as you are aware and an annuity driven business new customers at the top of the funnel and they drive drive our future growth.
Speaker Change: A real key here is for you to understand is that as we look at our new customers growth in those new customers in this annuity business is material.
Speaker Change: We grew new customers quite well in the first three quarters of the year until we launch the C. D. S. S and now our goal is to shift back over to to driving those new customers. So it will take a couple of quarters, but it.
New customers are are a material part of our business and we don't really provide that breakdown.
Okay, and then on the second part I guess, you know Brett you mentioned three areas of focus maybe kind of just give us a little bit more color by each one first one being just the providing top tier.
Speaker Change: And then the new software implementation is that fully operational now and mostly resolved and I guess, maybe just.
Speaker Change: Provide us a longer term guidance for gambro or achievable growth for procedural business and then I guess overall I mean, just trying to figure out what the customer base not the practitioners, but the underlying patients.
Speaker Change: Did you just have more product offerings, such as G. L. P ones and just have a reduce pendency ta for uptake in the BH RP business or am I, just kind of looking at this incorrectly just help us give us a little bit more color around the dynamics of the industry as we stand. Thank you.
Yeah, Hi, Les thanks for the question so the.
Speaker Change: Three things.
Speaker Change: And I highlighted in my comments earlier.
Speaker Change: They're all related.
Speaker Change: First we've got to continue to service our largest accounts serviced our customers make sure we're attentive to their needs and grow the business within those existing accounts, we've got a lot.
Speaker Change: And I think the team has done a pretty good job of that so far but it's been a focus in maintaining these accounts servicing our channel.
Speaker Change: And when we might see D&S as Bob mentioned the end of last year, we had to do just that we had to make sure that our customers don't want that change was disruptive.
Speaker Change: And in doing so we lost track.
Speaker Change: New starts new clinic start we had to we had to make sure we manage that change.
Speaker Change: And that's why number two.
Speaker Change: My point of emphasis was just that we need to get back to filling the top of that funnel, Bob articulated this really well and I've been in annuity business before.
Just a function of your attrition.
And.
Speaker Change: New starts and so you've got to make sure you you can predict your attrition how many accounts do you lose I mean, New York Emmy somebody loses accounts, there's a normal amount for doing that.
Speaker Change: We definitely stabilized Boston state.
Okay earlier in the year last year and now it's about making sure the top of that funnel is small so so we need to have a consistent growth in new clinic starts every single quarter. When we report earnings as we are right now we're.
Speaker Change: Were talking about last really we're always going to be a function of what we've done in the last 12 months. Adjusted so when you have disruption you have that that lull and knew that he starts as Bob articulated we had last year that ethics. This border, but it will fall list this year.
Speaker Change: To get back to having consistent new stars that was number two and then number three related as well we have to be <unk>.
Speaker Change: In our commercial organization, we need to execute we've got fantastic product a long runway of growth Big Tam. We just have to go out and execute and there's room for improvement here and I was at the National sales meeting not my first week on the job I met some fantastic people people that any sales organization would love to have a we.
Speaker Change: We can do things better and we can execute better and that's going to be the focus and that was never to me. So all those things are going to drive growth, but it will take a little bit of time this year.
And then last I don't know if I missed the second part of your question I think it was a product mix.
Speaker Change: And actually perhaps maybe mark and I appreciate all that color Brad.
Please either of you welcome to chime in.
Speaker Change: We're all dynamics of the crane industry as we stand.
Speaker Change: Are patients being lost to G. L. P. One offerings at all if they are I mean, you know kind of just walk us through the dynamics of how you think about the compounded jobs once based on as we sit today and you know the.
Speaker Change: The overall outlook for the industry. Thank you.
Speaker Change: Yeah.
Speaker Change: So that is good.
Speaker Change: Go ahead, Mark Brett go ahead, no no good Brad.
Lastly, I would just say this in market chime in but certainly he knows the industry better than I can but GOP ones are.
Speaker Change: Part of our offering today really as a service to our clinicians and we offered that really is sort of.
Speaker Change: To be competitive, but also to provide them with the services. They were asking we don't see it as core to our business. So our core business really hormone optimization and the wellness space. The nutraceuticals that we're selling today GOP wants.
Speaker Change: We the great thing about the G. L. P. One is it guys to introduce Prs, which is a fantastic platform that we can add to it should be a platform for growth for us in the future, but DLP months, specifically, we don't see as part of our core revenue and whether or not they're part of our future.
Speaker Change: Does it matter as much to us, but as long as they are available one offer them to our customers and they're just not core to our revenue.
Speaker Change: And to add to your question West, which is an excellent question what impact.
Speaker Change: Are the G. L. P was having on our patient interest I would say that we're not seeing.
Speaker Change: Any lack of interest in optimizing no hormones, even though G. O P ones continue to grow at a rapid rate and get the the doctors focus on the patient focused best evidenced by some numbers and some trends that I want to share with you and Bob can elaborate on this.
Speaker Change: We're focused on on growth and in Q1, Q2, and Q3 of last year, we had a very good steady growth trajectory in Q1, two and three in both new providers and clinics as well as new patients.
And then you see that drop off in September when we launched the DSS and our sales force had a direct all of their efforts towards getting staffs and doctors comfortable with the new software the news dropped off and for a transient period of time the patients did until the doctors.
Speaker Change: Reschedule them back once they once they were proficient on the C. D. S S. But theres no evidence that we can see in Q1, two and three up to September when we launched our new advanced C. DSS in G O P ones.
Speaker Change: Affecting patients' interest in how they manage their overall health, where they're making a decision I'll pay for the G. O. P wanted that testosterone we haven't seen any evidence of that it's a very good question.
Bob anything to elaborate on that I know you'd like to focus on that growth of Q1, two and three and how it dropped off once the DSS.
It became a challenge.
Speaker Change: No. The only thing I would say is it was definitely a cause and effect on where our where salesforce was saying we are in the clinic working with those top tier clinics and we can see we can see that cause and effect relationship right. The only other thing that I would say is.
Speaker Change: To add to what you said market as far as the general health of the population of the people that.
Speaker Change: Are trying to meet as the Tam still is quite healthy and our.
Speaker Change: Our goal now is to.
Speaker Change: To really get out there and make the market.
We make a we train and make the market a little bit of what it is so it's.
Speaker Change: Now our job is to shift that focus back to adding news. So that we can get back to growth in a couple of quarters.
Speaker Change: Yeah.
Speaker Change: Great. Thank you for all that color.
Thanks, a lot.
Speaker Change: Your next question today will come from Jeff Van <unk> with B Riley Securities. Please go ahead.
Speaker Change: Hi, everyone I just wanted to follow up on.
Speaker Change: Sort of the the new practitioner.
Sure.
Wanted to clarify are you, saying that you.
Speaker Change: You added new practitioners that you could and onboard because you're focused on the existing practitioners ramping or onboarding. The C. D. S. S or are you, saying that you just weren't in a position to go out and get as many new practitioners.
Speaker Change: Signed up because you were focused on the C DSS.
Speaker Change: Yeah.
Speaker Change: Yes, Jeff Good question just to clarify so we did have new clinic conditions. Throughout Q3 Q4, we were we were actively adding new clinics new practitioners. However, the focus in the field was primarily on making sure that launch and the C. D. S. S had a minimal impact as possible.
Speaker Change: Existing accounts and so it was just a big distraction for the field and so while we certainly didn't lose any training capacity over that time, but the flow of new practitioners slowed down pretty dramatically simply because the deal was focused on making sure our existing council, taking here and that is exactly what they should have been doing.
Speaker Change: But again that that distraction met fewer new practitioners.
Speaker Change: And in an annuity model. That's that's just not right recipe for growth and the long term. So really quickly this year, where we're getting the focus back to new practitioners with goals and execution.
Speaker Change: But it's going to take some time to fill that funnel and make sure that the annuities is growing the way we wanted to but we had growth we had new practitioners, but not at the level that you would want simply because of that distraction.
Speaker Change: Okay understood and then.
Speaker Change: If we could I just wanted to focus a moment on <unk>.
Speaker Change: And maybe you could touch on the benefits that you've been experiencing with the broader product offering.
Speaker Change: Just curious on traction outside of the kind of the core pellet procedures and then as a follow up to that kind of a multipart question here would it maybe make sense to acquire to add to that platform to broaden the offering further.
Speaker Change: Yes, Jeff I'll start with that and Bob and Mark might have some some color to add.
Speaker Change: You probably noticed the change in our terminology and we started to talk to us about ourselves as all of the optimization and therapeutic wellness net that really is a reflection of the product offering and as I think about the value biopsy, we've got fantastic products.
And we've got some we've got testosterone pellets and got to meet your student halls got bio Trs.
Speaker Change: And the way, we're starting to form the top track in the field.
Speaker Change: Is it the biopsy offerings. So you don't see everything we offer is how you do business with biopsy as you know we have practiced builders with our clinicians and that that really is our value. We have fantastic products that we do see the complete offering and the way you do business and how we get you up and going with biopsies is our.
Speaker Change: Take advantage of competitive advantage and it is a platform that we think we can add products to over the long run because again, we're not selling individual products from selling the entire platform will be awesome.
No I think you covered it well I think we are I think mark or you said it earlier, we're really offerings as a service and yes.
You laid it out well.
Okay, Great and then if I could just squeeze in one more just to clarify where are we on the onboarding process of the new software today is that largely completed or is there still more to do here.
Well the rollout is complete yet, but I would say I look at this is a continuous improvement project for US is as any good platform and software is so we're going to continue to solicit feedback from our practitioners. We can continue to enhance the product in the future I wouldn't I wouldn't say.
Speaker Change: We're completely out of the woods, but we the product.
Speaker Change: Is essentially rolled out <unk>.
Speaker Change: Have adjusted to it.
Speaker Change: And we'll just continue to make it better and get them more and more comfortable over time.
Speaker Change: Okay. Thanks for taking my questions.
And your next question today will come from George Kelly with Roth Capital Partners. Please go ahead.
Speaker Change: Everyone. Thanks for taking my questions.
Speaker Change: A few for you first.
Speaker Change: I'm curious do you expect gross margin to stay in the kind of low 70 range in 2025.
Speaker Change: So right now George we can we can tell you that we are seeing solid.
Speaker Change: Accretion from or benefit from Syria, and it is currently baked into the guide.
Speaker Change: Okay understood and I guess, where did exterior what kind of penetration did a steer you end the year on as far as the hormone pellets.
Speaker Change: Yes, so right now I would say very similar to where we exited and I would just say we are taking a tempered approach we don't want to move too quickly into into pushing pellets into into clinics, we want to make sure that we do it in the right way.
Speaker Change: To ensure that we meet the practitioner needs while expanding.
Speaker Change: But we do just that.
Syria perspective, we definitely have the capability to push the throttle when needed.
Speaker Change: Okay, and then a couple more questions for you on the guide.
I know, there's there's been some under your procedure growth target that 2% to 4% maybe just one more for you.
Speaker Change:
Speaker Change: Hence has there.
Speaker Change: There have been any kind of uptick in churn among your productive clinics as you saw I don't know year on year and a half ago I'm just wondering if the CSS or anything else has kind of led there to be an uptick in churn and a second question.
Still on the 2% to 4%.
Speaker Change: The C D S S changes or anything else, maybe it's macro pressure and lead to any kind of changing behavioral patterns.
Speaker Change: Among your patients or the clinics patients and of usage changes or macro impact anything that you've noted.
Speaker Change: No good good questions, George and I will just tell you on the first front.
Speaker Change: We are not seeing or maybe on the second front end of the first one we are not seeing any.
On the churn front, we have not seen any loss of.
Speaker Change: Loss of customers, we haven't lost clinics due to the C. D. S S. Let's put it that way.
Speaker Change: We are successful we have been successful of getting in and training on the new C. D. S. S and one of the things I think Brent was alluding to is the clinicians are starting to see the value really seeing the value of what a biotech is bringing to the table. So I'm not seeing churn I would really just drive your attention to.
Speaker Change: <unk>.
Speaker Change: That new growth is.
Speaker Change: Brent was mentioning on the annuity model.
Speaker Change: Okay understood and just one last one on your guide on the other side of the business supplements.
Speaker Change: Sure Amazon I know you've recently turned on that business are not too long ago like has that just been slower to ramp than expected or anything else. That's impacted it's just I expected growth in that segment should be a little little stronger as well. So curious if there's any issues you're seeing early this year.
Speaker Change: No I would tell you on Amazon, we're really not seeing any any any issues from an Amazon perspective as it stands now I will tell you that as we mentioned with quick starts.
Speaker Change: One we do quick starts as it relates to.
Speaker Change: Pellet procedures, so for our four procedures, but we also have in the beginning we tried to place from a new perspective Nutraceuticals. So that I would just tell you the guide.
Speaker Change: Is really centered around that but I can tell you we're in the.
Speaker Change: We're progressing well from an Amazon perspective.
Speaker Change: Alright, thank you.
Speaker Change: Thanks George.
And your next question today will come from Alex Fuhrman with Craig Hallum Capital Group. Please go ahead.
Alex Fuhrman: Hey, guys. Thanks, very much for taking my question I'm, sorry, if I missed this earlier, but I was wondering if you can give us an update if you haven't already on how big your clinical network is today or was at the end of the year.
Speaker Change: Then as you think about that 2% to 4% expected growth in procedure revenues. This year, how much growth in the practitioner network are you expecting to get to that level.
No sure so.
Speaker Change: These are some of the figures will be produced in the in the K here shortly but we are.
Speaker Change: We did highlight that we are over 8000.
Speaker Change: Providers around 8600 providers and then.
A little bit over 4500.
Speaker Change: Clinicians. So 4700 I believe is the exact number.
Speaker Change: I would just tell you right now the real focus is less on driving.
Driving the new providers, it's really getting them and getting them focused into the quick start program and getting them getting them effective. So I would just say I wouldnt really pin us down to a specific number but I can tell you when we as I said, a little bit earlier, we kind of make the market in certain pockets. So I.
Speaker Change: I really do feel like if we can get these individuals and train them up.
Speaker Change: And get them going in the next two quarters I think we are.
Speaker Change: And we and we do what we said, we'll do what we did last year from Q1 Q2 and into the into Q3 before we launch the C. D. S S.
Speaker Change: I think we can we can really get this moving in the right direction Bryan anything to add I'll just I'll just.
Speaker Change: And I hope everybody appreciates, what what it means for us to do what we say we have a trained practitioner.
Speaker Change: Yes.
Speaker Change: What I'm used to is dramatically easier than welcome Julian J biotech, we're asking and physicians to adopt <unk> to use our products, but essentially pay their own way to trade spend the weekend getting trained by our clinical staff.
Speaker Change: The lineup patients with blood work. So they can do this fixture program immediately go back to their practice in June around 10 biotech procedures very quickly. So these are these are really strongly committed clinicians and I think the message that we have been very impressively.
Speaker Change: It does build a tremendous amount of skill and commitment from them.
Speaker Change: Buyers are field statue.
Speaker Change: Strong close in value proposition to get them there so.
Speaker Change: It's why we know that they are going to be the drivers of our growth and that again that new start metric for us internally is going to be a kpis that we are going to push hold people accountable to you because we know likes to drive revenue annually.
Speaker Change: Okay. That's really helpful. Thanks, both of you and then if I could ask just one more on the on the buyouts.
Speaker Change: Our X program.
Speaker Change: You know as you think about how your your clinicians are using that and getting their patients on it can you give us a sense of how much of the use of that program. So far has been weight loss injections and specifically compounded <unk> tied and what is your thinking as the year progresses I know.
Speaker Change: You know weight losses, and isn't a core offering for you, but you know as you as you think about some advertising coming off the FDA shortage list and and you know some companies, saying that they're likely to stop selling it just just what is your thinking on an odd that you know as the as the coming months and quarters unfold.
Speaker Change: Yeah, Alex I'll, just make a few comments and if Bob wants to clarify or give any more details again.
Speaker Change: The semi blue tie in just at the time, the GLC ones or the majority of our of our biotech Rx program at the moment. It's again, it's an offering that we developed and acquired simply to serve our clinicians because they were asking for it.
Speaker Change: Yes.
Speaker Change: Even at the time when we did it we didn't know how long it would last we still don't know we're going to pay attention to two that will of course too with the FDA advisors and requires and will operate as long as we can to our clinicians, but again, it's not it's not a key component of our growth is simply a service that we're offering to our traditions too much till the end.
Yes, they are experienced by us.
And just sorry again, one more follow up I guess, what would it take to be able to.
Speaker Change: Have older G. L. P ones like met form intersect center or things like that on that that program would that be a heavy lift to be able to pivot to some of those drugs.
Speaker Change: Well I won't comment on any of those specifically outfit.
Speaker Change: What I said earlier list.
The real sort of side benefits, we got from the <unk> was the introduction to buy a crs in that platform because it will enable us in the future to accommodate and deliver on their products. If we choose to do so so we're constantly evaluating under product offerings because we.
We want to maximize the value we offer to our clinicians and again, what we believe we are selling is this system <unk> Iot and the platform we have to help them get these wellness clients into the clinic and that does mean, we can add products in the future. So we will look at those individually. If we think it makes sense, we will have the platform that goes on.
Speaker Change: That's terrific. Thank you both very much.
Speaker Change: Thank you.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Bret Christensen for any closing remarks.
Thank you operator, and thank you everyone for joining us today.
Speaker Change: We have Iot will attend the Roth Conference next week on March 17th and 18th and I really look forward to seeing some of you there and meeting some of you in person I also look forward to meeting the rest of you throughout the year we did.
Speaker Change: And by telling you to come to our facility in Dallas, we're not going to see you at Investor conferences and look forward to meeting you in person.
Speaker Change: We appreciate your interest in biotech and look forward to updating you on our progress on the next conference call.
Speaker Change: Yeah.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].