Lifevantage Corporation · NASDAQ:LFVN
Lifevantage — Investor Presentation (October 2024)
35 slides from Lifevantage's investor presentation, October 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 $12.98 Shares outstanding1 12.5 million Float1 9.9 million Market Capitalization1 $162.0 million Enterprise Value1 $145.1 million Average Daily Volume1 96,289 Fiscal 2024 Revenue $200.2 million Cash at June 30, 2024 $16.9 million Fiscal 2024 Adj
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 INVESTOR PRESENTATION 5 See the Sales by Product Category Report here: https://heyzine.com/flip-book/WFDSASTATS2024#page/28
Slide 6: Addressing Global Markets
Addressing Global Markets TOP 10 DIRECT SELLING MARKETS GLOBALLY (USD MILLIONS) LifeVantage operates in 6 of the 10 largest direct selling markets globally. Source: World Federation of Direct Selling Associations: https://heyzine.com/flip-book/WFDSASTATS2024#page/28 INVESTOR PRESENTATION 6
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 health—inside and out—with products that help your body make essentials it needs to thrive u
Slide 9: The Activation Approach - Take It To Make It
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 The Activation Approach - Take It To Make It 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, s
Slide 10: Protandim Nrf2 Antioxidants
TAKE IT Protandim Nrf2 ® MAKE IT Antioxidants Oxidative stress is a key contributor to the signs of aging, and Protandim Nrf2 Synergizer is the only supplement shown to reduce oxidative stress by 40% in just 30 days. Support your body’s own production of powerful antioxidants to fight the signs of a
Slide 11: Healthy Glow Essentials Antioxidants, Collagen
TAKE IT Healthy Glow Essentials MAKE IT Antioxidants, Collagen Life is hard on your body. You need antioxidants to fight stress, stay balanced and recover. You need collagen support because it's crucial and your body stops making enough in your early 20’s. Do nothing and let life and aging process t
Slide 12: MindBody GLP-1 System
TAKE IT MindBody GLP-1 System MAKE IT GLP-1 This innovative, patent-pending System is clinically shown to naturally increase GLP-1 by an average of 140% as it balances hunger hormones—no injections or prescriptions required. Build better habits, achieve your ideal weight, and become a stronger, heal
Slide 13: Transformative, Patent-Pending Results
Transformative, Patent-Pending Results Participants in a 12-week human clinical study: • Increased GLP-1 by 140% on average Ω • Lost 9 lbs in 8 weeks on average and up to 25 lbs in 12 weeks‡ • 100% who lost weight did not lose muscle‡ • Lost up to 27% in visceral fat and 5% total body fat‡ • 95% had
Slide 14: A Natural Approach
A Natural Approach What is GLP-1? GLP-1 (Glucagon-like Peptide – 1) is a hormone produced naturally in the lower GI tract. It regulates appetite and blood sugar levels, while slowing down the rate at which food leaves the stomach. GLP-1 communicates with the brain along the brain-gut axis to promote
Slide 15: Understanding the Weight Loss Market
Understanding the Weight Loss 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 t
Slide 16: Stacks + Subscriptions for Health Synergies — Inside and Out
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 17: 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 18: Accelerating Growth
Accelerating Growth HISTORY & FOCUS FOR THE FUTURE 18
Slide 19: 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 19
Slide 20: 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 21: Financial Overview
Financial Overview INVESTOR PRESENTATION 21
Slide 22: 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 23: 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 23
Slide 24: 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 25: 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 26: Robust Capital Allocation Priorities
Robust Capital Allocation Priorities One-Year Total Shareholder Return CASH FROM LifeVantage 83% OPERATIONS Peer Group Median Invest in Growth Return Value to Shareholders Russell 2000 • Dividends -60% -40% -20% 0% 20% 40% 60% 80% 100% • Quarterly dividend of $0.04 per common share • Special dividen
Slide 27: 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 28: 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 29: Appendix
Appendix INVESTOR PRESENTATION 29
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: Investor Presentation
Park gou INVESTOR PRESENTATION 35