Lifevantage Corporation · NASDAQ:LFVN
Lifevantage — Investor Presentation (February 2024)
34 slides from Lifevantage's investor presentation, Feb 20, 2024
Slide 1: Investor Presentation
Investor Presentation February 20, 2024 We offer people around the world a better path to wellness and a healthy, vibrant 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 $6.26 Shares outstanding1 12.9 million Float1 10.2 million Market Capitalization1 $80.6 million Enterprise Value1 $63.2 million Average Daily Volume1 51,974 Fiscal 2023 Revenue $213.4 million Cash at December 31, 2023 $17.3 million Fiscal 2023 A
Slide 4: LifeVantage Activating Wellness
LifeVantage Activating Wellness COMPANY AT-A-GLANCE We inspire the remarkable through wellness products and entrepreneurial programs that help people feel better and fuel their purpose. We are world leaders in using nutrigenomics to activate a healthy body, mind, and mood with science-backed product
Slide 5: Our Unique Products Attract Wellness Enthusiasts
INVESTOR PRESENTATION Our Unique Products O PTI M I ZE HEALTH Attract Wellness Enthusiasts ACHI EVE M O RE Our products are nutrigenomically active, proven to work, provide demonstrable benefits, and are delightful to use every day. Each Activation Path features products that empower a consumer’s LO
Slide 6: Optimize Health Achieve More Look Radiant
Optimize Health Achieve More Look Radiant
Slide 7: Patented Innovations Support Healthy Aging – Inside, and Out
Patented Innovations Support Healthy Aging – Inside, and Out Patent-pending Protandim® Tri-Synergizer™ addresses prominent Patented Nrf2 Synergizer® ingredients in TrueScience® products theories of aging by activating 3 key natural age-defying processes activate antioxidant defenses against environm
Slide 8: Market-Driven Products Made for Social Selling
Market-Driven Products Made for Social Selling Introduced in June 2022, TrueScience® Liquid Collagen taps into one of the fastest growing consumer product markets, and the proprietary blend activates, replenishes, and maintains collagen density in as little as 4 weeks. Customers and Consultants are
Slide 9: Subscriptions for Health Solutions
Subscriptions for Health Solutions We offer a wide-range of unique, science-based product solutions & stacks to help our consumers activate wellness: Anti-Aging General Wellness Targeted Concerns Energy Weight Management Skin & Personal Care Product subscriptions deliver stable, recurring orders, ac
Slide 10: Addressing Global Markets
Addressing Global Markets TOP 10 DIRECT SELLING MARKETS GLOBALLY United States 40,520 Korea 18,475 Germany 17,986 China 15,818 Japan 11,616 LifeVantage operates in 6 of the 10 largest direct Malaysia 8,634 selling markets globally. Brazil 7,632 Mexico 5,888 France 4,583 Taiwan 4,582 Source: World Fe
Slide 11: A Growing Industry
A Growing 8% 6.7 million 8% 41.0 million Industry DI RECT SELLERS 6.7 million direct sellers (a 8% decrease over 2021) CUSTO M ERS More than 41.0 million customers. DIRECT SELLING TRENDS built a business full-time (30 or more hours/week) This total figure represents an 8% decrease or part-time (fewe
Slide 12: Accelerating Growth
Accelerating Growth HISTORY & FOCUS FOR THE FUTURE 12
Slide 13: Significant Progress With Key Strategic Initiatives
Significant Progress With Key Strategic Initiatives Leadership / Product & Platform Development / Capital Allocation Launched Evolve Comp Plan and True Launched Science Liquid Collagen TrueScience® in US, Japan, Australia TrueRenew Daily and New Zealand markets Firming Complex Launched True Science
Slide 14: 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 15: #1 Product
#1 Product Attract and retain new consumers with modern branding and exciting products that fit current industry trends, meet a true health need, and are socially shareable. HI G HLI G HTS TrueScience® Liquid Collagen activates, replenishes, and maintains collagen to deliver visible results that dri
Slide 16: #2 Social
#2 Social Inspire a growing, engaged social community that encourages wellness enthusiasts to continuously 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 consum
Slide 17: #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 18: #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 and a
Slide 19: #5 Digital
#5 Digital Create a connected, digital-first culture to enhance customer relationships and support the Consultant experience. HI GHLI GHTS Improved website experience and Shop by Solution functionality Streamlined subscription and order management Enhanced global LifeVantage App to help Consultants
Slide 20: #6 One LifeVantage Community
#6 One LifeVantage Community Grow the community of those positively impacted by LifeVantage through entering new markets and leaving a legacy of a better world for all. HI G HLI G HTS Opened Philippines market in fiscal 2022 Focused on benchmarking and creating future goals for environmental, social
Slide 21: Financial Overview
Financial Overview INVESTOR PRESENTATION 21
Slide 22: Business Model
Business Model LIFEVANTAGE (as % of revenue) FY 2020 FY 2021 FY 2022 FY 2023 Long-term Target Gross Margin 83.7% 82.7% 81.5% 79.7% 81.0% Commissions and Incentives 47.9% 47.0% 47.1% 44.4% 44.0% SG&A* 28.6% 26.9% 30.7% 32.9% 28.0% Operating Margin* 7.2% 8.7% 3.7% 2.4% 9.0% Adjusted EBITDA Margin* 10.
Slide 23: Revenues
Revenues LIFEVANTAGE Revenue (USD in thousands) $250,000 $200,000 • FY23 revenue of $213.4 million, representing $150,000 growth of 3.4%, or $220.8 million and 7.0% growth in constant currency vs FY22 $100,000 • FY24 estimated revenue of $210 million is the midpoint of $207–$213 million guidance ran
Slide 24: Revenues by Geography
Revenues by Geography LIFEVANTAGE Percent of Total Revenue 120% 100% 30% 33% 27% • Currently selling products in 20 countries 80% • USA largest market at 70% in FY23, an increase 60% of 13.4% vs FY22 40% 73% • Japan next largest at 15% in FY23 70% 67% 20% 0% 2021 2022 2023 Americas Asia Pacific & Eu
Slide 25: Strong Balance Sheet
Strong Balance Sheet LIFEVANTAGE • No debt (USD in thousands) December 31, 2023 June 30, 2023 • Announced special dividend of $0.40 per Cash and Cash Equivalents $ 17,331 $ 21,605 share in August 2023 Inventory 14,972 16,073 Total Current Assets 38,661 44,284 Total Assets $ 62,682 $ 66,123 • Initiat
Slide 26: Robust Capital Allocation Priorities
Robust Capital Allocation Priorities CASH FROM OPERATIONS One-Year Total Shareholder Return Return Value to Invest in Growth Shareholders LifeVantage • Dividends • Quarterly dividend of $0.035 per common share; initiated May ’22 • Expand Capabilities • Special dividend of $0.40 per Peer Group Median
Slide 27: 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 Four Activat
Slide 28: Appendix
Appendix INVESTOR PRESENTATION 28
Slide 29: Recent Operating Results Comparison
Recent Operating Results Comparison LI FEVANTAG E (Unaudited) Year over Previous Sequential Most Recent Quarter Prior Year Period Sequential Change Year Change Quarter (In thousands, except per share data) Q2 of Fiscal 2024 Q2 of Fiscal 2023 % Q1 of Fiscal 2024 % Revenue, net $ 51,624 $ 53,662 (3.8%
Slide 30: Historical Income Statements
Historical Income Statements LI FEVANTAG E CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Six Months ended Fiscal Year ended June 30, December 31, (In thousands, except per share data) 2021 2022 2023 2022 2023 Revenue, net $ 220,181 $ 206,360 $ 213,398 $ 105,436 $ 102,988 Cost of sales
Slide 31: 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, As of December 31, (Unaudited, in thousands, except per share data) 2021 2022 2023 2022 2023 Cash and Cash Equivalents $ 23,174 $ 20,190 $ 21,605 $ 17,370 $ 17,331 Current Portion of L
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations LI FEVANTAG E Adjusted Net Income Three Months ended Six Months ended (Unaudited, in thousands, except per share data) Fiscal Year ended June 30, December 31, December 31, 2021 2022 2023 2022 2023 2022 2023 GAAP net (loss) income $12,894 $3,120 $2,540 ($1,058) ($656) ($448)
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations LI FEVANTAG E EBITDA and Adjusted EBITDA Three Months ended Six Months ended (Unaudited, in thousands) Fiscal Year ended June 30, December 31, December 31, 2021 2022 2023 2022 2023 2022 2023 GAAP net income (loss) $12,894 $3,120 $2,540 ($1,058) ($656) ($448) ($27) Interest (
Slide 34: Thank You
Thank You INVESTOR PRESENTATION