The chart below shows how LFVN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LFVN sees a -0.95% change in stock price 10 days leading up to the earnings, and a +2.18% change 10 days following the report. On the earnings day itself, the stock moves by -2.11%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q2 Revenue Growth Analysis: Revenue of $67.8 million in Q2 represents a sequential growth of nearly 44% from Q1 and a year-over-year growth of 31%.
Gross Margin Improvement: Gross margins improved by 190 basis points to 80.5% compared to the prior year, driven by strong sales of the MINDBODY GLP-one system.
EBITDA Growth Surge: Adjusted EBITDA more than doubled to $6.5 million, representing 9.6% of revenue, compared to $3.1 million and 6% in the same period a year ago.
Americas Account Growth: Active accounts in The Americas increased by 23,000 or 25% sequentially from Q1, with a 31% increase in the number of customers.
Revenue Outlook Increase: The company raised its fiscal 2025 revenue outlook to $235 million to $245 million, a 17% increase at the midpoint from previous guidance.
Negative
Regional Revenue Decline: Revenue in the Asia Pacific and Europe region decreased by 15.5% to $10,600,000, primarily driven by a 13.9% decrease in total active accounts.
Increased Sales Incentive Costs: Commissions and incentive expense as a percentage of revenue increased to 48%, up from 42.1% in the prior year period, indicating higher costs associated with sales incentives.
SG&A Expense Increase: Non GAAP adjusted SG&A expense rose to $18,100,000 compared to $17,400,000 in the prior year period, reflecting increased operational costs despite revenue growth.
Tax Rate Shift: The effective tax rate increased to approximately 17% from a tax benefit of 41% in the prior year period, indicating a significant shift in tax obligations.
Share Repurchase Hesitation: Despite strong revenue growth, the company did not repurchase any shares during the second quarter, indicating a potential lack of confidence in stock performance.
Earnings call transcript: LifeVantage Q2 2024 beats forecasts, stock dips
LFVN.O
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