Biote's Q1 2025: Unraveling Contradictions on CDSS Impact, Sales Strategy, and GLP-1 Shortages

Impact of CDSS on revenue and new providers, focus on sales force realignment, CDSS software impact on procedure numbers, GLP-1 production and shortage status are the key contradictions discussed in Biote's latest 2025Q1 earnings call.



Strong Financial Performance in Dietary Supplements:
- Biote's dietary supplement revenue increased 25.5% to $9.3 million, outperforming expectations.
- The growth was primarily driven by the expansion of their e-commerce channel and strong consumer demand.

Procedure Revenue Challenges and Restructuring:
- Procedure revenue decreased 3.6% to $36.0 million, mainly due to reduced commercial effectiveness and competitive pressures.
- Biote announced a strategic organizational restructuring to drive sustainable growth, focusing on accelerating new provider wins, strengthening relationships with top-tier providers, and improving commercial accountability.

Gross Profit Margin Improvement:
- Biote's gross profit margin increased 300 basis points to 74.3%, benefiting from vertical integration of their 503(b) manufacturing facility.
- This improvement reflects the company's cost-saving initiatives and effective cost management strategies.

Realignment and Sales Force Expansion:
- Biote realigned its commercial team to increase productivity and drive new clinic growth, effectively expanding the sales force by 25%.
- The realignment aims to increase focus on growth and address inefficiencies in the sales organization, aligning incentives with sales goals.