Lifevantage Corporation · NASDAQ:LFVN
Lifevantage — Investor Presentation (September 2024)
40 slides from Lifevantage's investor presentation, September 2024
Slide 1: Investor Presentation
Investor Presentation MISSIO N : W E O FFER PEO PLE AR O U ND TH E W O R LD A BETTER PATH TO WELLN ESS AN D A H EALTH Y VIBR AN T LIFE.
Slide 2: Forward Looking Statements
Forward Looking Statements SAFE HARBOR STATEMENT This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects
Slide 3: LifeVantage Fact Sheet
LifeVantage Fact Sheet NASDAQ Ticker LFVN Share price1 $9.77 Shares outstanding1 12.5 million Float1 9.9 million Market Capitalization1 $121.9 million Enterprise Value1 $105.0 million Average Daily Volume1 98,101 Fiscal 2024 Revenue $200.2 million Cash at June 30, 2024 $16.9 million Fiscal 2024 Adju
Slide 4: LifeVantage At a Glance
LifeVantage At a Glance • Pioneer in Activation with formulas using nutrigenomics to crack the human aging code • Patented and scientifically validated Activation supplements and skin care products • Over 125,000 active accounts across 20 markets worldwide, including an active independent consultant
Slide 5: We Address Key Categories
We Address Key Categories OUR PRODUCTS ADDRESS THE TWO LARGEST CATEGORIES OF DIRECT SELLIN G GLOBALLY Global Sales by Product Category Wellness Cosmetic & Personal Care Household Goods & Durables Other Financial Services Clothing & Accessories Home Care Books, Toys, Stationary, Etc. Utilities Foodst
Slide 6: Addressing Global Markets
Addressing Global Markets TOP 10 DIRECT SELLING MARKETS GLOBALLY (USD MILLIONS) United States Germany Korea China LifeVantage operates in 6 of the 10 Japan largest direct selling markets Malaysia globally. Brazil Mexico France Taiwan Source: World Federation of Direct Selling Associations: https://h
Slide 7: Activation Around the Globe
Activation Around the Globe LIFEVANTAGE PERCENTAGE OF SALES BY AREA $167.7 Billion Industry* 2% Europe 78% USA, Canada, Puerto Rico, Mexico 20% Japan, Taiwan, Hong Kong, Singapore, Thailand, New Zealand, Australia, *Source: World Federation of Direct Philippines Selling Associations 2023 Data Note:
Slide 8: The Activation Company
The Activation Company ACTIVATING WELLNESS AROUND THE WORLD We inspire the remarkable through wellness products and entrepreneurial programs that help people feel better and fuel their purpose. We ACTIVATE a healthy body—inside and out—with products that go beyond typical supplements or skincare to
Slide 9: Transformation through the Power of Activation
Here’s a heading for this slide. This is the second line. T H IS IS A S U B - H E A D IN G Transformation through the Power of Activation As the years go by, the toll of time, the environment, and daily choices add up. Most turn to supplements to fill the voids left by modern life. But the truth is,
Slide 10: Protandim Nrf2 Antioxidants
TAKE IT Protandim Nrf2 ® MAKE IT Antioxidants PATENTED SCIENCE BACKED PEER-REVIEWED Several U.S. Studies conducted at the following institutions: PUBLISHED RESEARCH and international Ohio State University Free Radical Biology patents, including Louisiana State University & Medicine “Compositions Uni
Slide 11: Healthy Glow Essentials Antioxidants, Collagen
TAKE IT Healthy Glow Essentials MAKE IT Antioxidants, Collagen INVESTOR PRESENTATION 11Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease. * These statements have not been evaluated by the Food and
Slide 12: New GLP-1 System
TAKE IT New GLP-1 System MAKE IT GLP-1 In October 2024, LifeVantage will be activating production of another thing your body needs for health – GLP-1. What is GLP-1? • GLP-1 is a hormone produced naturally in the lower GI tract • GLP-1 regulates appetite and blood sugar levels, while slowing down th
Slide 13: Understanding the Market
Understanding the Market GLP-1 MARKET OVERVIEW In recent years, drugs including those classified as semiglutides and tirzepatides, have not only changed the approach to diabetes treatments, but obesity and weight management as well. This broad class of drugs work by mimicking hormones that stimulate
Slide 14: A Natural Approach
A Natural Approach LifeVantage’s new GLP-1 System, launching in the US October 2024, targets a demographic looking for a natural approach to GLP-1 health benefits. Staying true to the Activation differentiation, this innovative, two-product solution is clinically shown to increase GLP-1 production n
Slide 15: Stacks + Subscriptions for Health Synergies
Stacks + Subscriptions for Health Synergies — Inside and Out We offer several product stacks designed for Subscription. Each provides a unique health solution by delivering activation synergies when the products are used together. Consumers save on products and see and feel even more benefits while
Slide 16: Modernized Compensation Plan Attracts Independent Business Owners
Modernized Compensation Plan Attracts Independent Business Owners Our new Evolve Compensation Plan helps Consultants activate financial wellness and evolve possibilities in their lives. They can choose to earn supplemental income solely through Customer sales or also by building a team of Consultant
Slide 17: Accelerating Growth
Accelerating Growth HISTORY & FOCUS FOR THE FUTURE 17
Slide 18: Significant Progress with Key Strategic Initiatives
Significant Progress with Key Strategic Initiatives LEADERSHI P / PRO DUCT & PLATFO RM DEVELO PM ENT / CAPI TAL ALLO CATI O N INVESTOR PRESENTATION 18
Slide 19: LV360 Growth Strategy
LV360 Growth Strategy DRI VI NG FUTURE M O M ENTUM W I TH ENHANCEM ENTS TO EVERY ASPECT O F O UR BUSI NESS We are laser-focused on increasing active monthly purchasers, enrolling new business builders and Customers, and retaining them longer. The key is ensuring every piece of our business fits toge
Slide 20: #1 Product
#1 Product Attract and retain new consumers with exciting products that fit current industry trends, meet a true health need, and are socially shareable. Our activators are scientifically shown to be nutrigenomically active, and every product is designed with high- quality ingredients proven to prov
Slide 21: #2 Social
#2 Social Inspire a growing, engaged social community that encourages wellness enthusiasts to feel better, fuel their purpose, and celebrate what it means to live activated. LifeVantage shares performance- driven digital content that creates conversations and attracts and delights consumers with the
Slide 22: #3 Compensation
#3 Compensation Modernized Evolve Compensation Plan helps new Consultants earn faster, rewards them for any way they want to work, and gives them the flexibility to earn only on sales to Customers or also through building a team of Consultants. HI G HLI G HTS Fully redesigned Evolve Compensation Pla
Slide 23: #4 Consumer Experience
#4 Consumer Experience Build trust, create positive experiences, and provide compelling motivators for placing repeat orders. HI G HLI G HTS Created LifeVantage® Rewards Circle loyalty program in which Customers can earn credits to use for future orders when they order products on Subscription. Cons
Slide 24: #5 Digital
#5 Digital Create a connected, digital-first culture to enhance customer relationships and support the Consultant experience. HI G HLI G HTS Improved website experience and Shop by Solution functionality. Streamlined subscription and order management. Enhanced global LifeVantage App to help Consulta
Slide 25: #6 Activation Nation Community
#6 Activation Nation Community Grow the community of those positively impacted by LifeVantage through building our Activation Nation and by leaving a legacy of a better world for all. HI G HLI G HTS Increased number of events to 4 times per year – 2 virtual and 2 in-person—to help keep Consultants a
Slide 26: Financial Overview
Financial Overview INVESTOR PRESENTATION 26
Slide 27: Business Model
Business Model LIFEVANTAGE (as % of revenue) FY 2021 FY 2022 FY 2023 FY 2024 Long-term Target Gross Margin 82.7% 81.5% 79.7% 79.3% 80.0% Commissions and Incentives 47.0% 47.1% 44.4% 42.9% 43.0% SG&A* 26.9% 30.7% 32.9% 31.3% 28.0% Operating Margin* 8.7% 3.7% 2.4% 5.0% 9.0% Adjusted EBITDA Margin* 11.
Slide 28: Revenues
Revenues Revenue (USD in thousands) $250,000 $200,000 • FY24 estimated revenue of $205 million is the $150,000 midpoint of $200–$210 million guidance range, an increase of 2.4% vs. FY24 $100,000 $50,000 $- 2022 2023 2024 2025E INVESTOR PRESENTATION 28
Slide 29: Revenues by Geography
Revenues by Geography Revenue (USD in thousands) $250,000 $200,000 $32,793 $38,618 $27,496 $32,083 $26,989 • Currently selling products in 20 countries $150,000 $36,810 • USA largest market at 73% in FY24 $100,000 • Japan next largest at 13% in FY24 $148,522 $145,679 $50,000 $130,932 • Approximately
Slide 30: Strong Balance Sheet
Strong Balance Sheet (USD in thousands) June 30, 2024 June 30, 2023 Cash and Cash Equivalents $ 16,886 $ 21,605 Inventory 15,055 16,073 • Debt Free Total Current Assets 37,646 44,284 Total Assets $ 60,299 $ 66,123 • $15.3MM in working capital at 6/30/24 • Clean Equity – one class of common shares ou
Slide 31: Robust Capital Allocation Priorities
Robust Capital Allocation Priorities One-Year Total Shareholder Return CASH FROM LifeVantage OPERATIONS Peer Group Median Invest in Growth Return Value to Shareholders Russell 2000 • Dividends -60% -40% -20% 0% 20% 40% 60% • Quarterly dividend of $0.04 per common share • Special dividend of $0.40 pe
Slide 32: Fiscal 2024 Capital Allocation Summary
Fiscal 2o24 Capital Allocation Summary • Cash Flow From Operations: $12.2MM • Capital Expenditures: $2.2M • Free Cash Flow: $10.0MM • 339% of Net Income Converted to Free Cash Flow in Fiscal 2024 • 235% of Net Income Converted to Free Cash Flow over prior 3 Fiscal Years • Cash Returned to Shareholde
Slide 33: Summary
Summary LIFEVANTAGE Well-positioned with on-trend, scientific products in a growing, global sales channel Continuous focus on product innovation, international market expansion, and positive experiences Subscription-based business model with strong cash flow and high incremental margins Modern busin
Slide 34: Appendix
Appendix INVESTOR PRESENTATION 34
Slide 35: Recent Operating Results Comparison
Recent Operating Results Comparison LI FEVANTAG E CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Year over Previous Sequential Sequential Most Recent Quarter Prior Year Period Year Quarter Change Change (In thousands, except per share data) Q4 of Fiscal 2024 Q4 of Fiscal 2023 % Q3 of Fi
Slide 36: Historical Income Statements
Historical Income Statements LI FEVANTAG E CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Fiscal Year ended June 30, (In thousands, except per share data) 2022 2023 2024 Revenue, net $ 206,360 $ 213,398 $ 200,164 Cost of sales 38,097 43,387 41,440 Gross profit 168,263 170,011 158,724 Co
Slide 37: Historical Balance Sheet and Cash Flows
Historical Balance Sheet and Cash Flows LI FEVANTAG E SUMMARIZED BALANCE SHEET AND CASH FLOW METRICS As of June 30, (Unaudited, in thousands, except per share data) 2022 2023 2024 Cash and Cash Equivalents $ 20,190 $ 21,605 $ 16,886 Current Portion of Long-term Debt, net - - - Net Cash (Cash and equ
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations LI FEVANTAG E Adjusted Net Income Three Months ended (Unaudited, in thousands, except per share data) Fiscal Year ended June 30, June 30, 2022 2023 2024 2023 2024 GAAP net income $3,120 $2,540 $2,937 $1,966 $1,305 Adjustments: Executive team recruiting and transition expense
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations LI FEVANTAG E EBITDA and Adjusted EBITDA Three Months ended (Unaudited, in thousands) Fiscal Year ended June 30, June 30, 2022 2023 2024 2023 2024 GAAP net income $3,120 $2,540 $2,937 $1,966 $1,305 Interest (income) expense 10 (198) (430) (107) (78) Provision for income taxe
Slide 40: Investor Presentation
Park gou INVESTOR PRESENTATION 40