Ms. Weber continued, As previously announced, on March 18th, we closed the acquisition of Asteria
Health, a manufacturer of compounded bioidentical hormones. We have begun to integrate Asteria Health into our operations, with a goal of achieving full vertical integration of our pellet manufacturing. We believe this strategic acquisition
strengthens our competitive position and provides deep expertise in 503(B) manufacturing, enabling Biote to develop innovative wellness therapies that complement our existing hormone offerings.
2024 First Quarter Financial Review
(All financial
result comparisons made are against the prior-year period unless otherwise noted)
Revenue for the first quarter of 2024 was $46.8 million, an
increase of 4.4% from $44.8 million for the first quarter of 2023. The increase in revenue was driven by procedure revenue growth of 6.6%, partially offset by a decline in dietary supplement revenue of 11.3%, primarily as a result of one of the
Companys larger dietary supplement distributors exiting the nutraceutical business during the fourth quarter of 2023.
Gross profit margin for the
first quarter of 2024 was 71.4% compared to 69.1% for the first quarter of 2023. The increase in gross profit margin was primarily due to product mix and effective cost management.
Operating income for the first quarter of 2024 was $10.4 million, compared to $7.9 million for the first quarter of 2023. Operating income in the
first quarter of 2024 increased due primarily to improved gross profit.
Net loss for the first quarter of 2024 was $(5.8) million, representing a net
loss margin of (12.4)%, and diluted loss per share attributable to biote Corp. stockholders of $(0.06), compared to net loss of $(21.4) million, representing a net loss margin of (47.8)%, and diluted loss per share attributable to biote Corp.
stockholders of $(0.39), for the first quarter of 2023. Net loss for the first quarter of 2024 and 2023 included a loss of $12.1 million and $25.4 million, respectively, due to a change in the fair value of the earnout liability.
Additionally, net loss for the first quarter of 2023 included a loss of $1.6 million due to a change in the fair value of the warrant liability.
Adjusted EBITDA for the first quarter of 2024 was $14.2 million, with an Adjusted EBITDA margin of 30.2%. In the first quarter of 2023, Adjusted EBITDA
was $13.1 million, with an Adjusted EBITDA margin of 29.2%. The increases in Adjusted EBITDA and Adjusted EBITDA margin were primarily due to growth in revenue and improved gross profit margin.
Subsequent Event
On April 23, 2024, Biote reached a
definitive settlement in the Companys litigation with Dr. Gary S. Donovitz, Biotes founder. Under the terms of this settlement, Biote has agreed to repurchase all the 18.4 million shares beneficially owned by
Dr. Donovitz at the time of the settlement at an average price of $4.17 per share, with the first tranche of shares having been repurchased for $32.2 million on April 26, 2024. The remaining shares will be repurchased over the next
three years. Also pursuant to the settlement, the Company is cancelling all 3.9 million unvested earnout shares that were beneficially owned by Dr. Donovitz at the time of settlement.