Biote Corp.'s Q4 2024: Unpacking Contradictions in Practitioner Focus, CDSS Impact, and Revenue Growth

These are the key contradictions discussed in Biote Corp.'s latest 2024Q4 earnings call, specifically including: Focus on New Practitioners, Clinical Decision Support Software (CDSS) Impact, and Procedural Revenue Growth:



Revenue and Financial Performance:
- Biote reported revenue of $49.8 million for the fourth quarter, up 9% from the prior year period.
- The increase was driven by a 5% growth in procedure revenue and a 10.2% year-over-year increase in dietary supplement revenue.
- The growth in procedure revenue was supported by the expansion of established top-tier clinics, and dietary supplement sales benefited from the transition to the Amazon channel.

Gross Margin Improvement:
- Biote's gross profit margin improved to 71.8%, an increase of 247 basis points year-over-year.
- This improvement was attributed to cost savings from vertical integration of the 503B manufacturing facility and effective cost management.

Procedure Revenue Guidance for 2025:
- The company expects 2025 procedure revenue to increase approximately 2% to 4% from 2024.
- The growth is anticipated to be driven by a return to adding new practitioners and the adoption of new strategies to enhance efficiency.

Impact of CDSS Launch:
- The launch of the upgraded clinical decision support software (CDSS) affected new customer growth and procedure volume in Q4 2024.
- The disruption in new customer growth was due to the focus on training existing practitioners to transition to the new software, impacting the company's ability to add new clinics at the expected rate.