Q2 2025 Biote Corp Earnings Call

Iot second quarter 2025 earnings conference call.

Today, all participants will be in a listen only mode should you need assistance during todays call. Please signal a conference specialist by pressing the star key followed by zero.

After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please note that today's event is being recorded I would now like to turn the conference over to Simon Cerro Verde Ski Investor Relations.

Please go ahead.

Thank you for joining us today.

This afternoon about the published financial results for the second quarter ended June 30 to $3 25.

This news release is available on the Investor Relations section of the company's website.

Hosting todays call are brokerage Hudson, Chief Executive Officer, Bob Peterson, Chief Financial Officer, and Michael <unk> Executive Chairman.

Before we get started I'd like to remind everyone that major onyx statements. During this call that include forward looking statements regarding among other things the company's venture results.

Performance of those opportunities.

This outlook strategies goals.

Listen development manufacturing commercialization activities competitive position regulatory process operations benefits of our solutions anticipated impact of macroeconomic conditions business lots.

Joseph operations, Angela conditions, and other matters that do not relate to historical facts.

These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties some of which are beyond company's control.

Actual results could differ materially from expectations reflected in any forward looking statements.

These statements are subject to risks uncertainties and assumptions that are based on management's current expectations as of today.

<unk> undertakes no obligation to update them in the future there.

Therefore, DCM and should not be relied upon.

The company's views as of any subsequent date.

For a discussion of risks and other important factors that could affect our actual results. Please refer to our SEC filings available on the Sec's website, and the Investor Relations section of our website as well as risks and other important factors discussed in the earnings release.

Management also fruits, such as EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures to provide additional information for investors.

A reconciliation of the non-GAAP to GAAP measures is provided in earnings release with the primary differences being stock based compensation.

Fair value adjustments certain liabilities transaction related expenses and other non operating expenses.

Please refer to our second quarter 2025 earnings release for reconciliation of these non-GAAP measures the most comparable GAAP measure.

I'll now turn the call over to Brett.

Thank you Simon and thank you all for joining us I'll provide an update on our business and our reorganization initiatives then I will turn the call over to Bob for a review of our second quarter financials, and our 2025 financial outlook.

After our comments, we'll open the call for your questions.

In the second quarter, our procedure revenue was softer than we anticipated.

Bob will discuss the reasons for the shortfall in our financials in more detail, while I detail our strategic initiatives the.

The second quarter was pivotal for <unk> as we implemented a strategic organizational restructuring designed to drive increased and sustainable growth launched in May is comprehensive reorganization encompass difficult, but necessary changes to our people our processes and our culture in.

In making these adjustments we have moved forward swiftly with the strategic clarity to build up more fundamentally sound business that can scale efficiently to capture significantly more of our addressable market opportunity.

As a reminder, we aim to realize three key strategic objectives, one accelerate new provider wins to strengthen relationships with our existing practitioners and three generate improved financial performance to greater accountability consistency and discipline.

Over the last few months, we have achieved solid initial progress against our goals.

While progress will not be linear and will take time I have been pleased to see renewed energy and enthusiasm across our organization and our team is unified in committed in pursuit of our strategic objectives.

As we implement both organizational and cultural changes our initial efforts have centered on two key categories. One commercial priorities that drive revenue growth and two foundational priorities that enhance our core capabilities and enable corporate process improvements.

To start I will review some of our key initiatives on the commercial side.

First we brought in new leadership. These strategic additions include Joey Lopes, our senior VP of strategy and commercial operations I previously worked with Joe at Insulet and I'm excited about the expertise and capabilities he brings to <unk>.

Julia spearheading our efforts to Reaccelerate procedure growth improved commercial productivity and instill a high performance culture in our commercial team.

In addition to new leadership, we continue to recruit external sales talent, who collectively bring fresh energy and a proven track record of success to biotech.

We continue to rebuild and enhance our sales team following head count adjustments related to our reorganization.

We remain focused on capturing the large and underpenetrated addressable market opportunity in hormone replacement therapy and therapeutic Wallace.

We have also updated our sales compensation structure rewarding initiative and achievement by aligning incentives with our sales growth strategy.

Revamped sales compensation program is highly focused on new clinic conditions as well as new clinic revenue generated from our successful quick start program.

Because progress in these key metrics strongly correlates with long term procedure revenue growth. These remain among our top strategic priorities.

In conjunction with our new sales compensation framework, we have made fundamental improvements to continue how we recruit and train our commercial team.

For example, we expanded the depth of our sales training program and implemented targeted commercial sales strategies that align with our shift to a performance based culture.

We believe these enhancements will ensure that our commercial team is equipped with essential knowledge skills and support to optimize their success.

Moving now to our foundational priorities, we have undertaken a top to bottom review of our core functions and internal processes.

And thoroughly reviewing our operations and making necessary adjustments, we seek to enhance our internal efficiency deepen our connection to both our patients and practitioners and establish greater consistency and discipline throughout the company.

We have several initiatives currently underway and I am confident that these actions will ultimately strengthen our operations, enabling <unk> to achieve a higher level of performance.

Before I turn the call over to Bob I will close my remarks by saying that while I am pleased with the initial progress we have achieved in such a short timeframe, we still have work to do.

Across the organization, we are rapidly implementing many necessary changes and improvements that I believe are critical to our long term success.

While these changes have been disruptive to our business specifically with respect to procedure related sales I strongly believe we are on the right path to drive long term growth and build sustained value for our shareholders I'll now turn the call over to Bob.

Thank you Brett and good afternoon, everyone unless otherwise noted all quarterly financial comparisons in my prepared remarks are made against the second quarter of 2024.

Second quarter revenue was approximately flat at $48 9 million.

Reflecting an eight 4% decrease in procedure revenue that was partially offset by more than 30% sales growth and dietary supplements.

Similar to the first quarter of 2025 procedure revenue was impacted by a combination of factors, including a slower growth rate of new clinic additions higher than normal attrition of established clinics and lower procedure volume in the second quarter of 2025.

As Bret noted the organizational changes we implemented in the quarter contributed to this performance as did the lingering effects of the clinical decision support software disruption.

Dietary supplement revenue increased 34% to $10 $7 million, primarily driven by the growth of our E Commerce channel.

We continue to expect solid growth this year from our dietary supplements business.

Gross profit margin was 71, 6%.

280 basis point increase the improvement primarily reflected cost savings from the continued vertical integration of our fiber <unk> manufacturing facility.

Selling general and administrative expenses decreased 12, 2% to $24 2 million.

While we continue to invest in sales and marketing to drive new customer growth. The decrease in SG&A was in part due to the timing of our annual marketing event.

Which last year was held in the second quarter and will be held this year in the third quarter.

This timing effect will move approximately $2 million of SG&A spend into.

Into the third quarter.

Second quarter 2025, SG&A expense was also temporarily lower.

Due to head count adjustments.

Net income was $3 9 million inclusive of a $1 $8 million loss due to the change in the fair value of the earn out liabilities.

Diluted earnings per share attributed to biotech Corp shareholders was <unk> 10 per share.

This compares to a net loss in the second quarter of 2024.

Of $10 $4 million inclusive of a $13 $9 million loss due to the change in the fair value of earn out liabilities.

And diluted loss per share attributable to Iot corp's stockholders of <unk> 21 per share.

Adjusted EBITDA increased 19, 1% to $15 $2 million with an adjusted EBITDA margin of 31, 1%.

This compares to adjusted EBITDA of $12 7 million and adjusted EBITDA margin of 25, 9%.

The increases in adjusted EBITDA and adjusted EBITDA margin were due to improved gross profit and lower operating expenses, which included the timing shifts of our annual provider event previously noted.

Second quarter cash flow from operations was $7 1 million and $13 6 million for the first half of 2025.

I would highlight our continued strong cash flow, even as we undergo organizational restructuring and execute against our strategic objectives.

As of June 32025, cash and cash equivalents were $19 6 million compared to $41 7 million as of March 31, 2025, the reduction in cash and cash equivalents reflected payments for the previously announced share repurchases.

Related to our founder and affiliated parties.

Now turning to our financial outlook for 2025 as Bret discussed biotech has achieved meaningful initial progress in realigning, our commercial organization and aligning on our strategic priorities to drive long term growth.

As we have implemented improvements to our core sales and marketing functions procedure volume has been negatively impacted to a greater degree than we anticipated.

At the same time, we have continued to experience stronger than expected revenue growth and our dietary supplements business. This growth has served to partially offset the shortfall in procedure revenue.

As a result, we are adjusting our fiscal 2025 revenue guidance to be above $190 million and our fiscal 2025, adjusted EBITDA guidance to be above $50 million.

For the full year, we forecast procedure revenue declines of high single digits and dietary supplement growth at approximately a mid teens percentage rate.

We are forecasting second half trends in our procedure revenue growth to be similar to that of the second quarter with strong, but moderating sales growth and dietary supplements.

This revised guidance reflects the impacts we are seeing as we continue to reorganize our commercial organization and drive towards our strategic priorities.

I'll now turn the call back to Bret for his closing comments.

Thanks, Bob as we continue to execute our corporate growth plan with urgency I would emphasize that our actions represent more than simply a collection of discrete operational fixes. We are recommitting to excellence in everything we do in pursuit of a higher and more consistent level of operational and financial performance.

While 2025 as a transition year from a financial perspective, I believe the decisive actions. We are taking now will enable us to elevate our growth achieve our strategic objectives and further advanced patient health and wellness.

Operator, let's now open the call for questions.

Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad. If you are using a speakerphone. Please pick up your handset before pressing the keys as a reminder to withdraw your question. Please press Star then two at this time we were.

Pause momentarily to assemble our roster.

And today's first question comes from Jeff Van <unk> with B Riley. Please proceed.

Hi, everyone.

I Wonder if we could just start with the vertical innovation process.

Wondering I guess at this point how far along you are in that process what percentage of your pellets are being made there and then what is still left to do and so.

So I guess as far as Youre going to go on verticals issue.

Hey, Jeff It's Bob Yes.

Just to give you a little bit of a visibility into.

Where we are on a serious so.

Given as we talked last call. We have highlighted that we are in that low 40% penetration for and it also lights are anywhere from about 48 to around 50%.

We are currently in that same range.

And the primary driver there is as you know.

At the end of the first quarter call, we said that we didn't want to disrupt.

Any of the commercial activities given the C DSS and now given the shifts that we've had in the.

And the restructure we have kind of pause on that also but we do intend to start back up in Q3 to drive.

To drive up.

On attrition.

Should have some solid benefits to margin.

Okay.

And then turning to the procedure revenue decline.

How much I'm not sure you necessarily report, but how much was the absolute number of procedures down in the quarter.

That's not necessarily apples are 100% with a percentage of revenue how much is the absolute number of procedure style.

Yeah, Hey, Jeff This is Brent.

Speak to that kind of just qualitatively so.

Really the headwinds that we are having are volume related and that's twofold. It's it's clinic attrition. So any customers that we've lost and then volumes within our existing clinics.

All of that is of course, offset sometimes with new clinic start, but all three of those categories have been headwinds for us in 2025, we have highlighted that we saw that start actually with the launch of C. DSS in Q3 of last year.

That's when we started to see attrition tick up slightly and new starts ticked down as our sales force was distracted with the launch of that product and making sure all of our customers.

Got got able to use that product and trained in the right way. We saw that continue into the first part of this year, which is why we have always categorize. This year is a transition year for <unk> and its why the caution in the guide as we are.

Everything we've done this year is.

Focused on growth, but it's been disruptive and so we compounded a little bit with the reorganization that we did in may.

And all of those were the right things to do with the launch of <unk>, which is going to be great for us going forward.

The organization of the team, including the sales team that's going to be amazing for us because it's a growth focus but all of those things have been disruptive and have really slowed our growth volume growth with procedures. This year.

And we will continue until we start to see those normalize and trend up.

Uh huh.

What do you think needs to happen for the I mean, there's a number of different metrics sorry, you've got clinic attrition, you've got new physician adds you've got price procedure volume, what do you think needs to happen and I realize some of those are <unk>, one is dependent on the others, but.

What do you think needs to happen for those metrics to turnaround at this time.

Well I think the actions we've taken already are going to bear fruit and start to turn volume around our existing clinics and get new clinic additions headed back in the right direction in a meaningful way, we just can't predict that yet we havent seen a trend or an uptick in volume to suggest that those changes are having an effect yet.

Remember the reorganization that we did was it was it made within this past quarter that led to some vacancies in the sales territory. Some some of those we initiated some of those have been due to the cultural change and the new focus on growth the new compensation plans, the new level of accountability I'll tell you I'm thrilled with the team's attitude the curve.

Team's attitude and energy level and accepting the new way forward. We've also had a number of <unk>.

Really exciting training classes with some fantastic new hires that are going to bring us new energy and new blood to the team. So the changes are exactly the right thing to do and will it's not a matter of a problem for me.

If it's just a matter of when did we start to see those those changes start to get the business growing again those are all sort of short term and then we've got a laundry list of longer term initiatives to improve the value proposition with our customers, which should drive retention higher.

And allow us to have a better value pitch to new customers. So there's a lot going on here, where we're just as excited about the long term as we've ever been but again this year as a transition year for us and all the changes have yet to bear fruit.

Okay, and then sorry, if I could just add one more on that.

What do you think is the timeframe I realize it's early in the process you haven't really seen it bear fruit yet, but what do you think the timeframe is for those kpis.

Start to turn upward.

If I wouldn't project that yet which is why the guide was somewhere north of $190 million total revenue.

We want to see a trend in the right direction, we do have earlier kpis as.

As far as training classes, new starts, which we know will have an effect.

We just want to wait to make sure that we see that trend headed the right way too early to project still.

Okay. Thanks for taking my questions I'll take the rest offline.

Some fantastic new hires that are going to bring us new energy and new blood to the team.

Okay. Thanks, Thank you.

And the next question comes from less salute ski with Truest. Please proceed.

So the changes are exactly the right thing to do and will it's not a matter of a problem for me.

Good evening. Thank you for taking my questions I have two.

If it's just a matter of gwent.

Got to see those those changes start to get the business growing again those are all sort of short term and then we've got a laundry list of longer term initiatives to improve the value proposition with our customers, which should drive retention higher.

Maybe one from a more fundamental view what is driving the attrition the faster expected attrition would you say the hormone replacement therapy is being sidelined potentially by strong <unk> adoption across the same patient pool.

Essentially are you losing market share to <unk> or is the pressure across your clinics driven by more of our internal factors.

And allow us to have a better value pitch to new customers. So there's a lot going on here, where we're just as excited about the long term as we've ever been but again this year as a transition year for us and all the changes have yet to bear fruit.

And then second I guess, Brett what are some of these longer term initiatives that you have in place. Thank you.

Yes, Thanks lets say the answer to the first part of your question I would say absolutely not in fact, we've always viewed.

Okay, and then sorry, if I could just add one more on that.

<unk> and hormone replacement therapy is complementary which is the reason why we added <unk> to our portfolio last year, it's an immaterial amount of revenue for us and not a focus of the team but is an offering that we want to be able to provide to our providers now I wouldn't say that's impacting procedure revenue at all.

What do you think is the timeframe I realize it's early in the process you haven't really seen it bear fruit yet, but what do you think the timeframe is for those kpis to start to turn upward.

If I wouldn't project that yet which is why the guide was.

The the real.

With a $190 million total revenue.

Headwind for a procedure revenue for us this year started with the launch of <unk> in Q3 of last year, they're just distract the team. It was a it was a multi.

We want to see a trend in the right direction, we do have earlier kpis.

As far as training classes, new starts, which we know will have an effect.

We just want to wait to make sure that we see that trend headed the right way too early to project still.

Headwind for us as it slowed new starts down clearly we have those data we know for sure that nuclear starts slowed down starting with the launch of <unk> as it also distracted us from launching some of the new starts that we had launched earlier in the year in the right way and doing what we call our quick start program.

Okay. Thanks for taking my questions I'll take the rest offline.

Okay. Thanks, Thank you.

And the next question comes from less salute ski with Truest. Please proceed.

Again, the fields are focused on making sure that software launch went more smoothly and helping our customers adjust.

Good evening. Thank you for taking my questions I have two.

Maybe one from a more fundamental view what is driving the attrition the faster expected attrition would you say the hormone replacement therapy is being sidelined potentially by strong <unk> adoption across the same patient pool.

And then as we as we moved into this year and shortly after I started and recognized we needed to change the culture of the organization and have a sole focus on topline growth.

We've made the reorganization we changed territories we changed.

Essentially are you losing market share to <unk> or is the pressure across your clinics driven by more of our internal factors.

Alignment, we made some adjustments to people's titles, so that everybody had a growth focus we changed comp plans all of that was disruptive as well.

And then second I guess, Brett what are some of these longer term initiatives that you have in place. Thank you.

So you know while some of the factors if it remained constant and some of the historical headwinds of competition macroeconomic factors. What we did is we just we should distract the team two times with <unk> and with the reorganization and again both of those in those initiatives, where exactly the right thing to do for us.

Yeah, Thanks, Les I the answer to the first part of your question I would say absolutely not in fact, we've always viewed.

<unk> and hormone replacement therapy is complementary which is the reason why we added <unk> to our portfolio last year, it's an immaterial amount of revenue for us and not a focus of the team but is an offering that we want to be able to provide to our providers I wouldn't say that's impacting procedure revenue at all.

But it did slow us down and we're still feeling those effects as an annuity business, we feel those effects for 12 months.

Forward. So we're still feeling the effects of those two major activities, but again those will start to bear fruit and get us going in the right direction.

The real.

Headwind for a procedure revenue for US this year started with the launch of C. D. S. S. At in Q3 of last year. They just distract the team. It was a it was a multi.

That's helpful. Thank you.

Yeah.

And the next question is from Caitlin CT with Jefferies. Please proceed.

Headwind for us as it slowed new starts down clearly we have those data we know for sure that Nucleonic starts slowed down starting with the launch of C. D. Assess it also distracted us from launching some of the new starts that we had launched earlier in the year in the right way and doing what we call our quick start program.

Hi, everyone. Good evening. Thanks for taking my question I, just wanted to drill into that new clinic conditions, a little bit more and just understand where the biggest delta is between performance versus your expectation coming out of last quarter and that resulted in the guide down and then secondly, just if anything has changed in the marketplace as it relates to competition or.

Again, the field, we're focused on making sure that software launch went more smoothly and helping our customers adjust.

And then as we as we moved into this year and shortly after I started and recognized we needed to change the culture of the organization and have a sole focus on topline growth.

More broadly the consumer.

Yes, Thanks Caylin foot for the question you know are our guide down was essentially we took a look at a number of scenarios. So we've seen a slowdown of new starts we've seen volume at existing clinics go down slightly and then of course, we've seen attrition tick up this year and all of those things we have.

We've made the reorganization we changed territories we changed.

Alignment, we made some adjustments to People's title, so that everybody had a growth focus we changed comp plans all of that was disruptive as well and so you know while some of the factors if it remained constant.

Spoken about and highlighted including last quarter. So as those headwinds persist we looked into the future and said you know what are the different scenarios throughout the years, which got us comfortable with the guide of something north of $190 million for 2025.

Historical headwinds of competition macroeconomic factors, what we did is we just.

Which would distract the team two times with <unk> and with the reorganization and again both of those are those initiatives, where exactly the right thing to do for us.

Again, all of our initiatives are focused on the top line and essentially.

But it did slow us down and we're still feeling those effects as an annuity business, we feel those effects for 12 months.

Made to drive growth in that number but it does take a little bit of time, and we do need to get new clinic conditions going in a better direction higher and we also need to <unk>.

Forward. So we're still feeling the effects of those two major activities, but again those will start to bear fruit and get us going in the right direction.

Improved retention with our existing clinics so the.

The initiatives that we've got in place to do that in both short term and long term and we've spoken a lot about the short term initiatives around the reorganization and sales force changes and then we've got longer term initiatives. We haven't spoke about too much yet that are really designed around improving the value proposition to our customers, which will do two things to help us bring more.

That's helpful. Thank you.

Yeah.

And the next question is from Caitlin CT with Jefferies. Please proceed.

Hey, everyone. Good evening. Thanks for taking my question I, just wanted to drill into more clinic conditions, a little bit more and just understand where the biggest delta is between performance versus your expectation coming out of last quarter and that resulted in the guide down and then secondly, just if anything has changed in the marketplace as it relates to competition or.

Clinics onboard and make our offering more sticky to improve retention so that that will continue to be our focus.

Got it thank you.

And our next question comes from Joanna Kim with TD Cowen. Please proceed.

More broadly the consumer.

Yes, Thanks Kaitlin foot for the question you know are our guide down was essentially you know we took a look at a number of scenarios. So we've seen a slowdown of new stores, we've seen volume in existing clinics go down slightly and then of course, we've seen attrition tick up this year and all of those things we've spoken.

And thank you for taking my question. My question was just around what would be the biggest change in the sales force and the way they market.

Structuring their would love any color there.

You did mention that Tricia will go at a bit higher on that one what are some of the tangible changes, but you are right.

About and highlighted including last quarter, so as those headwinds persist we we've looked into the future and said you know what are the different scenarios throughout the years, which got us comfortable with the guide of something north of $190 million for 2025.

<unk>.

Based on your restructuring that'd be helpful. Thank you.

Hi, Joanne Thanks for the question.

The the Salesforce changes that really.

In all of our initiatives are focused on the top line and essentially.

Needed to happen, one and theyre going to be essential for us to drive growth going forward.

Made to drive growth in that number but it does take a little bit of time, and we do need to get new clinic additions going in a better direction higher and we also need to improve retention with our existing clinics. So.

Essentially just all been around what the focus of that team and what we've incentivized with that team so without getting into too much detail, we had a compensation plan and a <unk>.

The initiatives that we've got in place to do that are both short term and long term and we've spoken a lot about the short term initiatives around the reorganization and sales force changes and then we've got longer term initiatives. We haven't spoke about too much yet that are really designed around improving the value proposition to our customers, which will do two things to help us bring more.

Focus that was around maintaining the business essentially and that's not uncommon with a company.

That's new is as we were so, especially the way. We started was growing you grow your business you get compensated for that book of business and that just sort of happens in perpetuity. The challenge with that model is you get reps that have really large territories and not only don't get compensated on growing those territories, but just have a hard time.

Clinics onboard and make our offering more sticky to improve retention so that that will continue to be our focus.

In large territories because all of your efforts are around servicing the existing base and so in order for us to scale, we need smaller territories, we need growth targets and we need a comp plan that piece everybody on a growth target. So that in a nutshell is are the biggest changes but on top of that we wanted a single voice.

Got it thank you.

And our next question comes from Joanna Kim with TD Cowen. Please proceed.

Thank you for taking my question. My question was just around what would be the biggest change in the sales force and the way that market just given the.

That everybody heard so we we consolidated leadership and elevated individuals. So that we have one person leading the sales team everybody is hearing the same thing and that's going to lead to a greater accountability better message messaging greater.

The restructuring there a would love any color there and you did mention that Tricia will go at a bit higher also in that fund what are some of the tangible changes that you are already looking at that.

Yes.

<unk> across the team and then we've done a number of initiatives around hiring profiles, our recruiting and our sales training, which all have been revamped. So we've got a team that's starting to come together that we think is going to be fantastic enable to drive growth in the short term and then we.

<unk>.

Based on your restructuring that'd be helpful. Thank you.

Hi, Joanne Thanks for the question.

The the Salesforce changes that really needed to happen, one and are going to be essential for us to drive growth going forward have essentially just all been around what the focus of that team and what we've incentivized with that team so without getting into too much detail, we had a compensation plan and.

As far as your question on attrition attrition is essentially about.

Making sure you've got that sales team in place because if you've got vacancies, it's hard to service and defend your business and then to making sure as a as a leader in this space like we are and a premium product you got to make sure your value proposition is strong and always getting stronger and so we do have a number of initiatives there that will.

Our focus that was around maintaining the business essentially and that's not uncommon with a company.

What's new is as we were so, especially you know the way. We started was growing you grow your business you get compensated for that book of business and that just sort of happens in perpetuity. The challenge with that model is you get reps that have really large territories.

Just make doing business with biotech easier and we think increase the gap of what we offer versus others in the industry and make us a strong with retention.

And not only you know don't get compensated on growing those territories, but just have a hard time growing large territories because all of your efforts are around servicing the existing base.

Thank you so much.

And this concludes our question and answer session I would now like to turn the conference back over to Bret Christensen for any closing remarks.

And so in order for us to scale, we need smaller territories, we need growth targets and we need a comp plan that pays everybody on a growth target. So that that in a nutshell is are the biggest changes but on top of that we wanted a single voice that.

Thank you everyone for joining us today, we appreciate your interest in <unk> and look forward to speaking with you on our next conference call.

That everybody heard so we we consolidated leadership and elevated individuals. So that we have one person leading the sales team everybody is hearing the same thing that's going to have greater accountability better message messaging greater.

Thank you for attending today's presentation. You may now disconnect your lines and have a pleasant day.

Efficiency across the team and then we've done a number of initiatives around hiring profiles, our recruiting and our sales training, which all have been revamped. So we've got a team that's starting to come together that we think is going to be fantastic enable to drive growth in the short term and then.

As far as your your question on attrition attrition is is essentially about one making sure you've got that sales team in place because if you've got vacancies, it's hard to service and defend your business and then to making sure as it is a leader in this space like we are in a premium product you got to make sure your value proposition is.

Strong and always getting stronger and so we do have a number of initiatives there that will.

Just make doing business with biotech easier and we think increase the gap of what we offer versus others in the industry and make us a strong with retention.

Thank you so much.

And this concludes our question and answer session I would now like to turn the conference back over to Bret Christensen for any closing remarks.

Thank you everyone for joining us today, we appreciate your interest in biotech and look forward to speaking with you on our next conference call.

Thank you for attending today's presentation. You may now disconnect your lines and have a pleasant day.

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