Medifast Inc (MED) 2023 Q3 法說會逐字稿

Greetings. Welcome to the Medifast Third Quarter 2023 Earnings Conference Call. (Operator Instructions). Please note that this conference is being recorded. I will now turn the conference over to your host, Steven Zenker, Vice President, Investor Relations. You may begin.

問候。歡迎參加 Medifast 2023 年第三季財報電話會議。 （操作員說明）。請注意，本次會議正在錄製中。現在我將會議交給東道主、投資者關係副總裁史蒂文·贊克 (Steven Zenker)。你可以開始了。

Good afternoon, and welcome to Medifast's Third Quarter 2023 Earnings Conference Call. On the call with me today are Dan Chard, Chairman and Chief Executive Officer; and Jim Maloney, Chief Financial Officer. By now, everyone should have access to the earnings release for the quarter ended September 30, 2023, that went out this afternoon at approximately 4:05 p.m. Eastern Time. If you have not received the release, it is available on the Investor Relations portion of Medifast website at www.medifastinc.com. This call is being webcast, and a replay will also be available on the company's website.

下午好，歡迎參加快驗保 2023 年第三季財報電話會議。今天與我通話的是董事長兼執行長 Dan Chard；吉姆·馬洛尼，財務長。到目前為止，每個人都應該可以查看截至 2023 年 9 月 30 日的季度收益發布，該發佈於今天下午 4:05 左右發布。東部時間。如果您尚未收到該新聞稿，可在快驗保網站 www.medifastinc.com 的投資者關係部分取得。這次電話會議正在網路直播，並且公司網站上也將提供重播。

Before we begin, we would like to remind everyone that today's prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. The words believe, expect, anticipate and other similar expressions generally identify forward-looking statements. These statements do not guarantee future performance, and therefore, undue reliance should not be placed on them. Actual results could differ materially from those projected in any forward-looking statements. All of the forward-looking statements contained herein speak only as of the date of this call. Medifast assumes no obligation to update any forward-looking statements that may be made in today's release or call.

在開始之前，我們想提醒大家，今天準備的言論包含前瞻性陳述，管理階層可能會針對您的問題做出額外的前瞻性陳述。相信、期望、預期和其他類似表達方式通常可識別前瞻性陳述。這些陳述並不保證未來的表現，因此，不應過度依賴它們。實際結果可能與任何前瞻性陳述中的預測有重大差異。本文所包含的所有前瞻性陳述僅代表本次電話會議當天的情況。快驗保不承擔更新今天的新聞稿或電話會議中可能做出的任何前瞻性聲明的義務。

And with that, I would like to turn the call over to Medifast's Chairman and Chief Executive Officer, Dan Chard.

說到這裡，我想將電話轉給快驗保董事長兼執行長 Dan Chard。

Thanks, Steve, and thanks to all of you for joining us on the call. With me today is Jim Maloney, Medifast's Chief Financial Officer. I will take a few minutes to share some insights from Medifast journey over the last 12 months and then provide you with some context for where we're taking the business. I'll then turn the call to Jim, who will take you through the Q3 financials.

謝謝史蒂夫，也謝謝大家加入我們的電話會議。今天和我在一起的是快驗保 (Medifast) 財務長吉姆馬洛尼 (Jim Maloney)。我將花幾分鐘時間分享過去 12 個月快驗保歷程中的一些見解，然後為您提供一些有關我們業務發展方向的背景資訊。然後我會將電話轉給吉姆，他將帶您了解第三季的財務狀況。

There are 2 key takeaways from our latest results. First, our financial position remains very strong, and we continue to deliver solid profitability despite continued top line headwinds. Second, we are making steady progress on several initiatives to expand our offering into the broader health and wellness market and drive sustainable long-term growth. Our recent entry into the sports nutrition market with our new OPTAVIA ACTIVE line is one example.

我們的最新結果有兩個關鍵要點。首先，我們的財務狀況仍然非常強勁，儘管營收持續面臨阻力，但我們仍繼續實現穩健的獲利能力。其次，我們正在多項舉措上取得穩步進展，以將我們的產品擴展到更廣泛的健康和保健市場，並推動可持續的長期成長。我們最近透過新的 OPTAVIA ACTIVE 系列進入運動營養市場就是一個例子。

Weight loss medications are another major opportunity for us as the surging awareness and popularity of these products has prompted a huge change in the way that consumers think about weight loss and lifestyle modification solutions in general.

減肥藥物對我們來說是另一個重大機會，因為這些產品的知名度和受歡迎程度的提高促使消費者對減肥和生活方式改變解決方案的看法發生了巨大變化。

As a result, earlier this year, we commissioned an extensive independent market research study to understand consumer sentiment in regard to the medications and our coach-based, habit-centered lifestyle program within this evolving business environment. What was immediately clear is that our addressable market is split relatively evenly regarding weight loss medications. Around half of those looking for weight loss solutions are accepting of medication-based therapies and around half of them reject the idea of using GLP-1 medications like Wegovy to support weight loss.

因此，今年早些時候，我們委託進行了一項廣泛的獨立市場研究，以了解消費者在這個不斷變化的商業環境中對藥物和我們以教練為基礎、以習慣為中心的生活方式計劃的看法。顯而易見的是，我們的目標市場在減肥藥物方面的分配相對均勻。大約一半尋求減肥解決方案的人接受基於藥物的療法，大約一半的人拒絕使用 Wegovy 等 GLP-1 藥物來支持減肥。

The research clearly demonstrates that most of those who are interested in medical weight loss medications are also looking for support beyond a prescription that includes clarity on how they should incorporate healthy eating and exercise into their lifestyle while using these medical solutions. Additionally, they generally do not see weight loss medications as a lifelong commitment but rather something that when paired with lifestyle modification can help them to make a long-lasting change.

該研究清楚地表明，大多數對醫療減肥藥物感興趣的人也在尋求處方以外的支持，包括明確他們在使用這些醫療解決方案時應如何將健康飲食和運動融入他們的生活方式。此外，他們通常不認為減肥藥物是終生的承諾，而是認為與改變生活方式相結合可以幫助他們做出持久的改變。

So with this in mind, we're focused on developing an approach that will enable us to make this new business environment our sustainable growth environment. We recently launched a pilot initiative with 3 different telehealth companies to explore how we might incorporate weight loss medication into our coach centered business model.

因此，考慮到這一點，我們專注於開發一種方法，使我們能夠使這種新的商業環境成為我們的永續成長環境。我們最近與 3 家不同的遠距醫療公司啟動了一項試點計劃，探索如何將減肥藥物納入以教練為中心的商業模式中。

These pilots have given us some good insights around positioning and approach. What particularly appears to be resonate with customers who are interested in medically supported weight loss is a compelling 3-way partnership between customer, clinician and coach. Importantly, the efficacy claim of GLP-1 medications for weight loss is based specifically on their incorporation with lifestyle changes that include a reduced calorie diet and increased physical activity.

這些試點為我們提供了有關定位和方法的一些很好的見解。尤其引起對醫療支持減肥感興趣的客戶的共鳴的是客戶、臨床醫生和教練之間令人信服的三向合作關係。重要的是，GLP-1 藥物減肥的功效聲稱是基於它們與生活方式改變的結合，包括減少熱量飲食和增加體力活動。

As a result, under Medifast offering, weight loss medications become one important element in an overall Tailored lifestyle plan that also includes coaching, community support, healthy habit development, and nutritionally balanced minerals along with exercise. This holistic approach we are piloting is collaborative between the customer, coach and clinician, focusing on helping customers achieve lasting health and wellness as they learn to make a healthy lifestyle second nature.

因此，在快驗保服務下，減肥藥物成為整體客製化生活方式計劃的重要組成部分，該計劃還包括指導、社區支持、健康習慣養成、營養均衡的礦物質以及運動。我們正在試驗的這種整體方法是客戶、教練和臨床醫生之間的合作，重點是幫助客戶實現持久的健康和福祉，同時他們學會將健康的生活方式變成第二天性。

As part of the telehealth pilot program I mentioned, we have been working closely with a set of select coaches to bring them up to speed on the benefits of the OPTAVIA solution for those who are currently using or are considering using GLP-1 or other weight loss medications. Initial feedback suggests that most coaches involved in the pilot are optimistic about having another tool at their disposal for use with customers and that the partnership between clinician and coach is productive for customers who want an approach that fits their own unique needs. This pilot program has provided us with some important data and understanding, and we'll use this information to inform our thinking now that we have shifted into the second phase of our pilot program.

作為我提到的遠距醫療試點計劃的一部分，我們一直在與一組精選的教練密切合作，讓他們盡快了解 OPTAVIA 解決方案對那些正在使用或正在考慮使用 GLP-1 或其他體重的人的好處損失藥物。初步回饋表明，參與試點的大多數教練對擁有另一種可供客戶使用的工具持樂觀態度，並且臨床醫生和教練之間的合作關係對於想要適合自己獨特需求的方法的客戶來說是富有成效的。這個試點計劃為我們提供了一些重要的數據和理解，現在我們已經進入試點計劃的第二階段，我們將使用這些資訊來指導我們的想法。

During the second phase, we are measuring key metrics associated with OPTAVIA customers who are combining prescribed medical weight loss medicines with our OPTAVIA program. We believe there is significant potential to maintain our market share and growth position by tapping into this important new market, whether that's through a partnership, acquisition, investment or an organically developed solution, and we expect to provide more details on our approach in the coming months. Of course, for all those people who are not interested in weight loss medications, OPTAVIA continues to offer a compelling lifestyle modification opportunity with our clinically proven Coach-led model that is built on the 6 macro habits of health providing the cornerstone of reaching a sustainable healthy lifestyle.

在第二階段，我們正在衡量與 OPTAVIA 客戶相關的關鍵指標，這些客戶將處方醫療減重藥物與我們的 OPTAVIA 計劃相結合。我們相信，透過進入這個重要的新市場，無論是透過合作夥伴關係、收購、投資還是有機開發的解決方案，我們都有巨大的潛力來維持我們的市場份額和成長地位，我們希望在未來提供有關我們方法的更多細節。幾個月。當然，對於所有對減肥藥物不感興趣的人，OPTAVIA 繼續透過我們經過臨床驗證的教練主導模式提供引人注目的生活方式改變機會，該模式建立在6 個宏觀健康習慣的基礎上，為實現可持續的目標奠定了基礎。健康的生活方式。

Customers benefit from the support of an OPTAVIA Coach who understands the challenges one faces when looking to improve their overall health and wellness with most coaches having started as customers themselves. The active role the Coach takes as well as the support of thousands of like-minded individuals in the OPTAVIA community who are also on their own health and wellness journeys, is what continues to make our solutions so effective. What is clear to the Medifast leadership team is that medical weight loss solutions have to sit within an overall health and wellness ecosystem. Medications alone are not a long-term solution and only by helping drive holistic lifestyle shifts can we help customers achieve lifelong transformation.

客戶受益於 OPTAVIA 教練的支持，他了解人們在尋求改善整體健康時所面臨的挑戰，而大多數教練本身就是客戶。教練發揮的積極作用以及 OPTAVIA 社區中數千名志同道合的個人的支持（他們也在自己的健康和保健之旅中）是我們的解決方案繼續如此有效的原因。快驗保領導團隊清楚的是，醫療減重解決方案必須置於整體健康和保健生態系統中。僅靠藥物治療並不是長期解決方案，只有幫助推動整體生活方式的轉變，我們才能幫助客戶實現終生轉變。

Exercise is one important element of that which is why we're excited by our entrants into the sports nutrition market that took place in mid-September with the launch of our new OPTAVIA ACTIVE product line. Initial products in our new OPTAVIA ACTIVE line consists of essential amino acids, whey protein powders and a digital exercise program offered through a partnership with Aaptiv. The products are aligned with the habits of Healthy Motion, one of the six macro habits that underpin our business health model, and can be used by individuals actively looking to move forward along the health spectrum by adding exercise to their health routine, whether as part of a medication supported or non-medication supported approach.

運動是其中一個重要的因素，這就是為什麼我們對 9 月中旬推出新的 OPTAVIA ACTIVE 產品線進入運動營養市場感到興奮。我們新的 OPTAVIA ACTIVE 系列的初始產品包括必需氨基酸、乳清蛋白粉以及透過與 Aaptiv 合作提供的數位運動計劃。這些產品符合「健康運動」的習慣，這是支撐我們商業健康模式的六大宏觀習慣之一，並且可以被那些積極希望通過將運動添加到他們的健康習慣中來沿著健康方向前進的個人使用，無論是作為其一部分藥物支持或非藥物支持方法。

The products include 2 flavors of essential amino acids or EAAs, as well as 2 flavors of way protein and are developed to help support healthy muscle maintenance in conjunction with both exercise and everyday activity. Aging and weight loss are 2 common causes of reduced muscle mass, which is why it is important to have a diet that is inclusive of EAAs and quality protein and is nutritionally balanced.

該產品包括 2 種口味的必需氨基酸或 EAA，以及 2 種口味的蛋白質，旨在幫助支持運動和日常活動中的健康肌肉維護。老化和體重減輕是肌肉質量減少的兩個常見原因，因此包含 EAA 和優質蛋白質且營養均衡的飲食非常重要。

The objectives of this launch are threefold. First, we believe these products expand our addressable market, allowing our coaches to attract a new demographic to OPTAVIA. Second, they're expected to extend the lifetime value of OPTAVIA customers by extending their time with OPTAVIA as they learn to live the habits of Healthy Motion during and after achieving their healthy weight. And lastly, they extend our offering by adding exercise to the lifestyle program, making it ideal for those who are interested in using lifestyle modifications along with the support of medical weight loss. All the products are designed to be used in conjunction with our existing OPTAVIA plans.

此次發布的目標有三。首先，我們相信這些產品擴大了我們的潛在市場，使我們的教練能夠吸引新的人群加入 OPTAVIA。其次，他們有望透過延長使用 OPTAVIA 的時間來延長 OPTAVIA 客戶的終身價值，因為他們在達到健康體重期間和之後學會了健康運動的習慣。最後，他們透過在生活方式計劃中添加運動來擴展我們的產品，使其成為有興趣使用生活方式改變以及醫療減肥支持的人的理想選擇。所有產品均設計為與我們現有的 OPTAVIA 計劃結合使用。

The new OPTAVIA ACTIVE product line expands the breadth of our overall addressable market in an important way. The business opportunity within the sports nutrition market is substantial with the total addressable market that is over 3x the size of the structured weight management market in which our products operated exclusively in the past. We expect to add further ACTIVE products to the line next year. The work with weight loss medications and the entry into the sports nutrition market are really just the first steps in Medifast work to transform into a total lifestyle company helping our customers make a healthy lifestyle second nature.

新的 OPTAVIA ACTIVE 產品線以重要方式擴展了我們整體潛在市場的廣度。運動營養市場的商機是巨大的，其潛在市場總量是我們產品過去專門經營的結構化體重管理市場規模的三倍以上。我們預計明年將在該系列中添加更多 ACTIVE 產品。減肥藥物的開發和進入運動營養市場實際上只是快驗保轉型為全面生活方式公司的第一步，幫助我們的客戶養成健康的生活方式。

Regardless of whether a customer wants to explore weight loss with or without a medical solution, Medifast has a compelling option for them. Long-term success is driven by the adoption of a healthier lifestyle built on nutrition, exercise, and other lifestyle habits. Our scientifically developed products are effective in achieving weight loss when following our clinically proven plans, including the support of our independent coaches. In a clinical study, it was shown that those on the Optimal Weight 5&1 Program who had the support of a coach lost 10x more weight than the self-directed group. Our approach is flexible and inclusive and we're excited by the opportunities that lie ahead.

無論客戶是否想在有或沒有醫療解決方案的情況下探索減肥，快驗保都能為他們提供令人信服的選擇。長期的成功取決於採用基於營養、運動和其他生活習慣的更健康的生活方式。當遵循我們經過臨床驗證的計劃（包括我們獨立教練的支持）時，我們科學開發的產品可有效實現減肥。一項臨床研究表明，在教練支持下參加最佳體重 5&1 計畫的人比自我指導組減掉的體重多 10 倍。我們的方法靈活且具有包容性，我們對未來的機會感到興奮。

Turning to the third quarter numbers. Our revenues for the quarter were at the high end of our guidance, though down year-over-year by 39.6%. And as challenges faced earlier in the year continued as expected. We continue to believe that the efforts we are taking to expand our product offerings, incorporate medical weight loss into our programs, and diversify our customer base will add improving these trends. However, we would not expect to see this improvement until 2024.

轉向第三季的數據。儘管同比下降了 39.6%，但我們本季的收入仍處於指導的最高水平。今年早些時候面臨的挑戰正如預期的那樣持續存在。我們仍然相信，我們正在努力擴大我們的產品範圍，將醫療減肥納入我們的計劃，並使我們的客戶群多樣化，這將有助於改善這些趨勢。然而，我們預計要到 2024 年才能看到這種改善。

The operating margin for the quarter of 10.8% was ahead of our expectations as cost reduction actions taken as part of our Fuel for the Future initiative continue to generate savings ahead of schedule. Operating margin is down approximately 150 basis points compared to last year as investments in customer acquisition and the loss of leverage of fixed costs due to lower revenues year-over-year had a negative impact on the margin. As a reminder, 70% to 75% of our expenses are typically variable in nature, which speaks to the adaptability and resiliency of our business model.

本季營業利潤率為 10.8%，超出了我們的預期，因為作為「未來燃料」計劃的一部分而採取的成本削減行動繼續提前產生了節省。與去年相比，營業利潤率下降了約 150 個基點，因為客戶獲取投資以及由於收入同比下降而導致的固定成本槓桿損失對利潤率產生了負面影響。提醒一下，我們 70% 到 75% 的費用通常是可變的，這說明了我們業務模式的適應性和彈性。

As we move into the fourth quarter, we continue to focus on a number of growth initiatives using our strong debt-free balance sheet and our Fuel for the Future expense reduction initiatives to help fund them.

當我們進入第四季度時，我們將繼續專注於一些成長計劃，利用我們強大的無債務資產負債表和未來燃料費用削減計劃來為其提供資金。

As mentioned earlier, in addition to our new OPTAVIA ACTIVE product line and the medically supported weight loss opportunities we are processing, we are also pursuing the expansion of our customer base by focusing on demographic groups in the U.S. where we are underrepresented. Specifically, we have been taking steps to further penetrate the Hispanic market, and we have made great strides in translating our main materials and website into Spanish to better connect with this group. We have now translated more than 70% of our core materials into Spanish and expect to be completed by the end of the year.

如前所述，除了我們新的 OPTAVIA ACTIVE 產品線和我們正在處理的醫療支持減肥機會外，我們還透過關注我們代表性不足的美國人口群體來擴大我們的客戶群。具體來說，我們一直在採取措施進一步滲透西班牙裔市場，並且在將我們的主要材料和網站翻譯成西班牙語以更好地與該群體建立聯繫方面取得了巨大進展。目前，我們已將超過 70% 的核心材料翻譯成西班牙語，預計今年年底完成。

In October, in conjunction with the National Hispanic Heritage Month, we executed on our first ever OPTAVIA Spanish language social and digital pilot, targeting the U.S. Hispanic market. It was intended to begin building the OPTAVIA brand awareness and measure the effectiveness of our efforts to learn how to best market our clinically proven health benefits and scientifically developed products, plans, coaches, and community to this growing demographic. It also enabled us to test and learn how to most effectively match Spanish-speaking coaches with U.S. Hispanic customers.

10 月，結合全國拉丁裔傳統月，我們針對美國拉丁裔市場實施了首個 OPTAVIA 西班牙語社交和數位試點計畫。其目的是開始建立 OPTAVIA 品牌知名度，並衡量我們努力的有效性，以了解如何向這一不斷增長的人口最好地推銷我們經臨床證明的健康益處和科學開發的產品、計劃、教練和社區。它還使我們能夠測試和學習如何最有效地將西班牙語教練與美國西班牙裔客戶配對。

The goal is to leverage the learning from the social and digital pilot as we anticipate launching a larger, more comprehensive media effort to the U.S. Hispanic market in 2024. We believe that advancing our business in the U.S. Hispanic demographic will help us set the stage for future expansion into Latin America. Also, we continue to evaluate the effectiveness of our customer acquisition initiatives, including our recent limited testing of company-led digital marketing, which we conducted over a 3-month period to generate prospects. We are conducting attribution, analytics, and path to purchase optimization, which should all result in more efficient advertising spend and scalability.

我們的目標是利用從社交和數位試點中學到的經驗，我們預計在2024 年向美國西班牙裔市場推出更大規模、更全面的媒體工作。我們相信，推進我們在美國西班牙裔人口中的業務將幫助我們為以下目標奠定基礎：未來將擴展到拉丁美洲。此外，我們繼續評估客戶獲取計劃的有效性，包括最近對公司主導的數位行銷進行的有限測試，我們進行了超過 3 個月的測試以產生潛在客戶。我們正在進行歸因、分析和購買路徑優化，這一切都應該會帶來更有效率的廣告支出和可擴展性。

As a company that has a history of marketing directly to consumers, we understand the benefits of corporate advertising to generate prospects for our coaches. It allows our coaches to better optimize their time and focus more of their energy on supporting their customers. We just have to ensure that the return we are getting on these expenditures is commensurate with the costs. We also continue to grow our efforts around our corporate social responsibility initiative, Healthy Habits For All.

作為一家有著直接向消費者行銷歷史的公司，我們了解企業廣告為我們的教練創造前景的好處。它使我們的教練能夠更好地優化他們的時間，並將更多的精力集中在支援客戶上。我們只需確保這些支出所獲得的回報與成本相稱。我們也持續圍繞企業社會責任倡議「全民健康習慣」加大努力。

At our OPTAVIA convention in July, our Coach community raised funds for our nonprofit partners, No Kid Hungry and Living Classroom Foundation. Together with our coaches, we assembled over 6,000 kits for local Metro Atlanta kids. As kids headed back to school, our curriculum reached a new milestone, impacting an estimated 100,000 plus students in thousands of schools across the nation, free of cost since it launched last fall.

在 7 月的 OPTAVIA 大會上，我們的 Coach 社群為我們的非營利合作夥伴 No Kid Hungry 和 Living Classroom Foundation 籌集了資金。我們與教練一起為亞特蘭大都會區當地的孩子們組裝了 6,000 多套裝備。隨著孩子們重返校園，我們的課程達到了一個新的里程碑，自去年秋季推出以來免費，影響了全國數千所學校的約 10 萬多名學生。

And in September, we officially opened a new kitchen at the facility of our local partners Living Classroom Foundation. Medifast provided capital funds to renovate the kitchen. Previously, instructors were teaching healthy cooking classes on hot plates by welcoming kids into the kitchen and inviting them to experiment with healthy ingredients from a young age. We can cultivate a habit in them that can last a lifetime.

九月份，我們在當地合作夥伴 Living Classroom Foundation 的設施中正式開設了一個新廚房。快驗保提供資本資金來翻新廚房。此前，教師們在熱板上教授健康烹飪課程，歡迎孩子們進入廚房，並邀請他們從小就嘗試健康的食材。我們可以在他們身上培養一種可以持續一輩子的習慣。

So to summarize, backed by a strong balance sheet with no debt, we are building out a new approach that better reflects the new realities of the weight loss and health and wellness marketplace and which plays to the competitive strengths of our existing offering. We continue to seek to broaden our offerings to integrate medical weight loss, expand our addressable market and extend our demographic and geographic reach, along with optimizing our coach compensation and increasing corporate advertising to bring in new customers. These efforts are expected to aid in turning around the recent decline in new customers and coaches we have experienced over the past year.

總而言之，在沒有債務的強勁資產負債表的支持下，我們正在製定一種新方法，更好地反映減肥和健康市場的新現實，並發揮我們現有產品的競爭優勢。我們繼續尋求擴大我們的產品範圍，以整合醫療減肥，擴大我們的目標市場並擴大我們的人口和地理範圍，同時優化我們的教練薪酬和增加企業廣告以吸引新客戶。這些努力預計將有助於扭轉我們在過去一年中經歷的新客戶和教練數量下降的局面。

We do not expect to start seeing a meaningful impact from these efforts until 2024. And our guidance for our fourth quarter, which Jim will cover in just a minute, reflects the continued short-term challenges we face in customer acquisition in what is seasonally a weaker quarter. However, we do expect our highly variable cost structure and expense reduction efforts under our Fuel for the Future initiative to continue to shore up our profit as we mitigate some of the revenue weaknesses in the quarter.

我們預計這些努力要到 2024 年才會開始產生有意義的影響。吉姆將在一分鐘內介紹我們對第四季度的指導，反映了我們在季節性客戶獲取方面持續面臨的短期挑戰。較弱的季度。然而，我們確實預計，隨著我們緩解本季度的一些收入弱點，我們在「未來燃料」計劃下的高度可變的成本結構和費用削減努力將繼續支撐我們的利潤。

With that, I'll turn it over to Jim to go over the specifics of the quarter.

這樣，我將把它交給吉姆，讓他討論本季的具體情況。

Thank you, Dan. Good afternoon, everyone. Third quarter 2023 results were at or above our guidance. As we continue to execute our cost reduction initiatives with the savings intended to be utilized for key initiatives to stimulate growth.

謝謝你，丹。大家下午好。 2023 年第三季業績達到或高於我們的指引。我們將繼續執行降低成本的舉措，並將節省下來的資金用於刺激成長的關鍵舉措。

Revenue of $235.9 million was at the upper end of our guidance range of $220 million to $240 million, but decreased 39.6% versus the year earlier period, primarily driven by a decline in the number of active earning OPTAVIA Coaches and lower productivity per active earning OPTAVIA Coach.

收入為 2.359 億美元，處於我們指導範圍 2.2 億至 2.4 億美元的上限，但與去年同期相比下降了 39.6%，這主要是由於主動盈利 OPTAVIA 教練數量下降以及主動盈利 OPTAVIA 生產率下降所致教練。

Customer acquisition continues to be pressured by the macroeconomic shift impacting inflation and interest rates and the growth in popularity of weight loss medications. We ended the quarter with approximately 47,100 active earning OPTAVIA Coaches, as a decrease of 28.9% from the third quarter of 2022. Average revenue per active earning OPTAVIA Coach for the third quarter was $5,008, a year-over-year decline of 15.1%, reflecting the continued headwinds to customer acquisition partially offset by a price increase we implemented in November of last year.

宏觀經濟變化影響通貨膨脹和利率，以及減肥藥物的普及，客戶獲取持續受到壓力。本季末，我們約有 47,100 名活躍盈利 OPTAVIA Coach，較 2022 年第三季度下降 28.9%。第三季度每個活躍盈利 OPTAVIA Coach 的平均收入為 5,008 美元，同比下降 15.1%，反映出我們在去年11 月實施的價格上漲部分抵消了客戶獲取方面的持續阻力。

Gross profit decreased 37.3% year-over-year to $177.4 million driven by lower revenue, while gross profit margin improved 270 basis points to 75.2%, positively impacted by efficiencies in inventory management and lower supply chain costs, including benefits from the optimization of our distribution center footprint.

由於收入下降，毛利同比下降 37.3% 至 1.774 億美元，而毛利率提高了 270 個基點至 75.2%，這受到庫存管理效率和供應鏈成本降低的積極影響，包括優化我們的配送中心佔地面積。

SG&A expense was down 35.3% year-over-year to $151.9 million due to the decreased coach compensation on lower volumes and fewer active earning coaches, as well as progress on several cost reduction and optimization initiatives and the impact of charitable donations in 2022. SG&A as a percentage of revenue increased 430 basis points, primarily reflecting the loss of leverage on fixed costs due to lower sales volumes compared to 2022 as well as market research and investment cost in this year's third quarter related to medically-supported weight loss activities.

SG&A 費用年減 35.3% 至 1.519 億美元，原因是教練數量減少、活躍收入 教練減少，教練薪酬減少，以及多項成本削減和優化舉措的進展以及 2022 年慈善捐贈的影響。SG&A 費用佔收入的百分比增加了430 個基點，主要反映了由於銷售量低於2022 年而導致固定成本槓桿損失，以及今年第三季與醫療支持減肥活動相關的市場研究和投資成本。

Income from operations was $25.5 million in the third quarter of 2023, down 47% versus the year earlier period, driven by lower gross profit, partially offset by lower SG&A, and aided by the Fuel for the Future cost reduction efforts. As a percentage of revenue, income from operations was 10.8% in the third quarter, a 150 basis point decline versus the year earlier level. The effective tax rate of 12.9% was lower than expected and meaningfully lower than the 24.5% recorded in the prior year's third quarter due to an increase in the tax benefit for charitable donations of inventory, an increase in research and development tax credits, and a decrease in state income taxes.

2023 年第三季的營運收入為 2,550 萬美元，較上年同期下降 47%，原因是毛利下降，但 SG&A 下降部分抵消了這一影響，並得益於「未來燃料」成本削減工作。第三季營運收入佔營收的比例為10.8%，較去年同期下降150個基點。 12.9%的有效稅率低於預期，顯著低於去年第三季的24.5%，原因是庫存慈善捐贈稅收優惠增加、研發稅收抵免增加以及國家所得稅減少。

During the quarter ended September 30, 2023, the company completed its 2022 Federal income tax return, which included an update to the estimated tax-basis, cost of charitable donations of inventory, and the estimated research and development tax credits. Net income in the third quarter of 2023 was $23.1 million or $2.12 per diluted share compared to $36.2 million or $3.27 per diluted share in the year-earlier period.

在截至 2023 年 9 月 30 日的季度中，該公司完成了 2022 年聯邦所得稅申報表，其中包括估計稅基、庫存慈善捐贈成本以及估計研發稅收抵免的更新。 2023 年第三季的淨利為 2,310 萬美元，即稀釋後每股收益 2.12 美元，而去年同期淨利為 3,620 萬美元，即稀釋後每股收益 3.27 美元。

Turning to our balance sheet and cash flows. Our financial position remains strong with $157.8 million in cash, cash equivalents, and investment securities, and no interest-bearing debt as of September 30, 2023. Cash flow from operations continued to be strong at $137.1 million from the 9 months ended September 30, 2023, relatively in-line with a year ago period.

轉向我們的資產負債表和現金流。截至2023 年9 月30 日，我們的財務狀況依然強勁，現金、現金等價物和投資證券為1.578 億美元，沒有帶息債務。截至9 月30 日的9 個月，營運現金流繼續強勁，為1.371億美元。2023 年，與去年同期基本一致。

Turning to the guidance. While our third quarter results were ahead of our guidance, the operating environment remains challenging, and we continue to expect that future growth initiatives will take time to gain traction and deliver meaningful results.

轉向指導。雖然我們第三季的業績超出了我們的指引，但營運環境仍然充滿挑戰，我們仍然預計未來的成長舉措將需要時間才能獲得牽引力並取得有意義的成果。

For the full year 2023, we are estimating revenue in the range of $1.05 billion to $1.07 billion, and diluted EPS to be in the range of $8.65 to $9.55. Our guidance assumes a 20.5% and to 21.5% effective tax rate. In summary, we remain confident that our strong financial position, coupled with the progress we are making towards exciting new growth opportunities discussed by Dan, will enable us to evolve our business like we have successfully done in the past and allow us to continue to generate significant cash flow and strong returns on capital in the years ahead.

對於 2023 年全年，我們預計營收在 10.5 億美元至 10.7 億美元之間，攤薄後每股收益在 8.65 美元至 9.55 美元之間。我們的指導假設有效稅率為 20.5% 至 21.5%。總而言之，我們仍然相信，我們強大的財務狀況，加上我們在丹所討論的令人興奮的新增長機會方面所取得的進展，將使我們能夠像過去成功完成的那樣發展我們的業務，並使我們能夠繼續產生未來幾年可觀的現金流和強勁的資本回報。

With that, let me turn the call back to the operator for questions.

接下來，讓我將電話轉回給接線生詢問問題。

(Operator Instructions) Our first question comes from the line of Linda Bolton-Weiser with D.A. Davidson.

（操作員說明）我們的第一個問題來自 Linda Bolton-Weiser 和 D.A.戴維森。

Yes. Hello. So your gross margin was very impressive in the quarter, the 75% number. It sounds like those are kind of permanent-type improvements you've made along the lines of the supply chain. Is that 75% gross margin level, is that something that's roughly sustainable going forward? Or how should we think about that level?

是的。你好。所以你們這個季度的毛利率非常可觀，達到了 75%。聽起來這些是您在供應鏈方面所做的永久性改進。 75% 的毛利率水準是否可以大致持續下去？或者說我們該如何看待這個層面？

Yes. Linda, this is Jim. So the gross margin improvement we saw in Q3 at the 75%, we saw that through our Fuel for the Future initiatives. We're starting to see the benefits of optimizing our distribution centers, which we've seen improvement in our inventory controls with less obsolescence compared to the prior year. And we've also seen improvement in our procurement practices, which have lowered costs.

是的。琳達，這是吉姆。因此，我們在第三季看到的毛利率提高了 75%，這是透過「未來燃料」計劃看到的。我們開始看到優化配送中心的好處，與前一年相比，我們的庫存控制得到了改善，過時的情況也減少了。我們也看到了採購實務的改進，從而降低了成本。

The thing when you're -- we're not really going to talk to the gross -- at a gross margin level since we haven't provided guidance going forward. But what I can say on that is there is some fixed cost within our cost of sales. As we see lower revenues that are forecasted, we will lose some leverage on our P&L within the gross margin level. So that will impact Q4. So right now, we're projecting the revenue range in Q4 between $170 million and $190 million in Q4, and that loss on leverage will impact gross margin.

當你——我們真的不會談論毛利率水平——因為我們沒有提供未來的指導時，事情就這樣了。但我可以說的是，我們的銷售成本中有一些固定成本。由於我們預期收入會下降，我們將在毛利率水準內失去一些損益槓桿。這將影響第四季。因此，目前我們預期第四季的營收範圍在 1.7 億美元至 1.9 億美元之間，槓桿損失將影響毛利率。

Right. Okay. And then I'm curious about, Dan, you're talking about the testing or trying out some digital marketing methods. And that's a little unusual being that you pay a lot of commissions to your coaches to kind of drive demand. Do you think down the road, like if you were to adopt some kind of permanent method of digital marketing, is there any way to quantify like what percentage of revenue you might spend on that? Are we talking it's like just a few percentage points of revenue or could it be higher than that?

正確的。好的。然後我很好奇，丹，你在談論測試或嘗試一些數位行銷方法。這有點不尋常，因為你向教練支付大量佣金來推動需求。您是否認為將來，如果您要採用某種永久性的數位行銷方法，有沒有什麼方法可以量化您可能會在這方面花費的收入百分比？我們是說這只是收入的幾個百分點還是可能更高？

Yes, Linda, we're at the very beginning stages of doing these tests. As you know, from the past, this is not new to us. In the past, we had a direct marketing organization that market it directly to end users. We, as you pointed out, moved away from that, letting our coaches, use their word-of-mouth campaign over social media rather than us spending our dollars to do that. The reality is that the environment has changed. And through some of the things that we've talked about in the past, including changes in social media algorithms, as well as a more crowded and more, I'll say, dynamic messages going on out there.

是的，琳達，我們正處於進行這些測試的最初階段。如您所知，從過去來看，這對我們來說並不新鮮。過去，我們有一個直接行銷組織，直接向最終用戶行銷。正如您所指出的，我們放棄了這一點，讓我們的教練在社交媒體上利用他們的口碑宣傳活動，而不是我們花錢來做這件事。現實是環境已經改變了。透過我們過去討論過的一些事情，包括社群媒體演算法的變化，以及更擁擠、更多的動態消息。

We think it's a good time for us to take some of those learnings that we have from the past, some of the learnings that we talked about in the future around medical weight loss, and to introduce a new message through the company's led advertising. We've been doing small tests. We feel good about what we've seen so far. Anything that we do will be done only once we understand the benefits from a financial standpoint of doing it.

我們認為現在是一個很好的時機，我們可以吸取過去的一些經驗教訓，以及我們在未來討論的有關醫療減肥的一些經驗教訓，並透過公司的主導廣告引入新的資訊。我們一直在做小測試。我們對迄今為止所看到的感覺很好。只有當我們從財務角度了解這樣做的好處時，我們才會做任何事情。

So I'd say the important thing is assume that we are going to test right now, which is what we've been doing, both in the Hispanic market and more broadly, understand how we improve that client acquisition cost and use it to get a new message out there that ties to our broader offering that includes the things that we're learning about the ability to offer medical weight -- medically-supported weight loss, our ability to offer a broader offering, which includes inclusive of the ACTIVE program. And we believe all this will help make our coaches more productive and return to some of the productivity levels we've been in the past.

因此，我想說，重要的是假設我們現在要進行測試，這就是我們一直在做的事情，無論是在西班牙裔市場還是更廣泛的市場，了解我們如何提高客戶獲取成本並利用它來獲得一條新消息與我們更廣泛的產品相關，其中包括我們正在了解的有關提供醫療體重的能力的資訊——醫學支援的減肥，我們提供更廣泛產品的能力，其中包括ACTIVE 計劃。我們相信所有這些都將有助於提高我們的教練的工作效率，並恢復到我們過去的一些工作效率水平。

Okay. And then I was just wondering about if you could give any color on what you saw in October. With the return to people paying educational loan payments, like are you seeing kind of worsening trends or kind of the same? What are you seeing kind of so far in the most recent couple of weeks?

好的。然後我只是想知道你是否可以對你在十月看到的情況給出一些顏色。隨著支付教育貸款的人們的回報，您是否看到了某種惡化的趨勢或類似的趨勢？最近幾週到目前為止，您看到了什麼？

Yes. I mean when you look at our metrics, and really, I'll speak to our metrics, when you look at retention of customers, when you look at average revenue per order, those types of metrics have held steady in the month of October. It's really -- the customer acquisition is the one metric that we're seeing that is below our historical norms, and that is reflected in the guidance we provided.

是的。我的意思是，當你查看我們的指標時，實際上，我會談論我們的指標，當你查看客戶保留率時，當你查看每個訂單的平均收入時，這些類型的指標在10 月保持穩定。事實上，客戶獲取是我們看到的低於我們歷史標準的指標，這反映在我們提供的指導中。

Okay. And then I guess I can do the math, but Jim, what are you guiding for tax rate for the fourth quarter?

好的。然後我想我可以算一下，但吉姆，你對第四季的稅率有何指引？

Yes. For the fourth quarter, just to step back on the tax rate. So we're actually seeing that the -- so as we noted in the earnings release, we finalized our 2022 tax return in Q3. And as a standard practice, we adjust prior estimates to the actual amounts per the tax return during this time frame. Typically, it's not this large of an adjustment. And we actually weren't anticipating it to be that size. But it's really just a onetime adjustment. You can see that we're projecting on a full year basis, our tax rate to be between 20.5% to 21.5% on a full year basis. So on the quarter basis, I wouldn't expect that you're going to see 12.9%, again, you're just going to -- you're going to see something much closer to the 20% level.

是的。第四季度，只是降低稅率。因此，我們實際上看到——正如我們在財報中指出的那樣，我們在第三季度完成了 2022 年納稅申報表。作為標準做法，我們會根據這段時間內報稅表的實際金額調整先前的估計。通常情況下，調整幅度不會這麼大。事實上我們並沒有預料到它會有這麼大。但這其實只是一次性的調整。您可以看到，我們預計全年稅率將在 20.5% 至 21.5% 之間。因此，以季度為基礎，我不會期望您會看到 12.9%，同樣，您只會看到更接近 20% 水平的數字。

Okay. And is that onetime tax benefit, is that cash or non-cash?

好的。一次性稅收優惠是現金還是非現金？

That was a cash benefit that we got in 2023.

這是我們在 2023 年獲得的現金福利。

So it's essentially reflected in your year-to-date cash flows.

因此，它基本上反映在您的年初至今的現金流中。

Correct. Yes.

正確的。是的。

Our next question comes from the line of Jim Salera with Stephens Inc.

我們的下一個問題來自 Jim Salera 和 Stephens Inc. 的電話。

I wanted to ask a little bit around the consumer that seems to not want to engage with the medically-supported weight loss. To be honest, a 50-50 split is frankly better than we would have anticipated just given all kind of the headline news about the GLP-1 drugs. Can you maybe offer some color around what their hesitation is to use kind of the pharmaceutical option on that? And is that something that maybe over time their opinion could change?

我想問一些似乎不想參與醫療支持減肥的消費者。老實說，考慮到有關 GLP-1 藥物的各種頭條新聞，50-50 的比例坦率地比我們預期的要好。您能否提供一些關於他們在使用某種藥物選擇方面猶豫不決的資訊？隨著時間的推移，他們的觀點可能會改變嗎？

Yes, Jim, this is Dan. I think this has been an interesting part for us, too, because I think what we -- we would have expected something slightly different as well. But I think that set of consumers are those who are, I'll say, more confident in their ability to do it on their own and don't feel like they are ready for medical intervention. What we do know is that as the amount of weight loss and individual has a loose goes up, their interest in medically supported wage loss goes up as well.

是的，吉姆，這是丹。我認為這對我們來說也是一個有趣的部分，因為我認為我們的預期也會略有不同。但我認為，這群消費者對自己的能力更有信心，覺得自己還沒準備好接受醫療介入。我們所知道的是，隨著減重量和個人減重量的增加，他們對醫療支持的工資損失的興趣也會增加。

But equally important for us was that we saw that those individuals who are interested in medically supported weight loss were also those individuals who are most interested in the OPTAVIA program. So, we tested a variation on our program that specifically designed and focused on helping those who are either thinking about using medically-supported weight loss or who are currently using medically-supported weight loss and that group was roughly 4x as interested in our program as those who are not interested in medically-support weight loss. So really, it's about their confidence in doing on their own and their ability or their need for greater weight loss in terms of overall weight to lose.

但對我們來說同樣重要的是，我們發現那些對醫療支持減肥感興趣的人也是對 OPTAVIA 計劃最感興趣的人。因此，我們測試了我們計劃的一個變體，該計劃專門設計並專注於幫助那些正在考慮使用藥物支持減肥或目前正在使用藥物支持減肥的人，而該群體對我們計劃的興趣大約是其他人的4 倍。對醫學支持減肥不感興趣的人。所以實際上，這與他們對自己做事的信心和他們的能力有關，或者就整體減肥而言，他們需要更大的減肥。

That's helpful. I think in your prepared remarks, you mentioned that you were working with a select group of coaches to help kind of train them on the cross-sell with the GLP-1 drugs. Could you just give us an idea for -- what was just kind of a random selection of coaches and you just wanted to have a smaller pilot program? Or were they selected based on maybe their existing customer base that might be more susceptible or more likely to pair the GLP-1 drugs with your program?

這很有幫助。我認為在您準備好的演講中，您提到您正在與一組精選的教練合作，以幫助培訓他們與 GLP-1 藥物的交叉銷售。你能否給我們一個想法——什麼是隨機選擇教練，而你只是想有一個較小的試點計畫？或者他們的選擇是基於他們現有的客戶群，這些客戶群可能更容易受影響或更可能將 GLP-1 藥物與您的專案配對？

Yes. Typically, what we do is, and this is this rotates depending on what we're trying to test. So we work quite consistently with our Coach leadership to identify different things that we want to test. So these coaches were selected based on their ability to pivot to test a new message, and based on their, I'll say, performance in the past of being able to generate activity from their client base. So they're not -- so we didn't go out and try to find -- we didn't pre-screen them to find out whether they were open to the idea. We took a small subsample of our over 40,000 coaches and with a very specific focus on understanding how clients that they pulled in would respond and also how coaches would respond to this new model of creating a partnership between clinician, coach and client.

是的。通常，我們所做的是，這取決於我們要測試的內容。因此，我們與教練領導層的工作非常一致，以確定我們想要測試的不同事物。因此，這些教練的選擇是基於他們測試新資訊的能力，以及他們過去在客戶群中激發活動的表現。所以他們不是——所以我們沒有出去嘗試尋找——我們沒有預先篩選他們來了解他們是否對這個想法持開放態度。我們從 40,000 多名教練中抽取了一小部分樣本，並特別關注了解他們吸引的客戶將如何反應，以及教練將如何應對這種在臨床醫生、教練和客戶之間建立夥伴關係的新模式。

And what we found was very positive. I think there was initially a lot of questions from our coaches about how this might work. And as we have proceeded through the pilot, what we have found is that there is an increasing number of clients who are being coached who are currently on medical weight loss, and this addition of the ability to offer this service, if you will, of a prescription for medically-supported weight loss along with the program supported by an OPTAVIA Coach has significant appeal.

我們的發現是非常積極的。我認為最初我們的教練提出了很多關於這如何運作的問題。當我們進行試點時，我們發現越來越多的客戶正在接受醫療減肥指導，並且如果您願意的話，增加了提供這項服務的能力藥物支持的減肥處方以及OPTAVIA 教練支持的計劃具有很大的吸引力。

So with that in mind, we have moved from Phase I of that pilot to Phase II. So now what we're really specifically focused on is understanding what a medically-supported weight loss client or customer looks like as they move through their health transformation journey with the coach. But initial results were positive enough for us to move to the next phase, and we have a strong belief that there's some -- that the OPTAVIA program, lifestyle program, that now includes the ACTIVE line is actually more relevant than it ever has been before, but it requires us to be able to offer that ability for that 50% who want medically-support and weight loss to be complete.

因此，考慮到這一點，我們已從該試點計畫的第一階段轉向第二階段。因此，現在我們真正關注的是了解醫療支援的減肥客戶或客戶在與教練一起經歷健康轉型之旅時的樣子。但初步結果足夠積極，足以讓我們進入下一階段，而且我們堅信 OPTAVIA 計劃、生活方式計劃，現在包括 ACTIVE 系列，實際上比以往任何時候都更相關，但這要求我們能夠為那50% 想要完成醫療支援和減肥的人提供這種能力。

That's helpful color. Maybe since you mentioned the ACTIVE line, if I could shift to ask a question or two there. It sounds like it's really meant to be complementary to someone who's already engaged with the broader program. Do you have a sense for if there's an opportunity to lead with ACTIVE for maybe a customer that's at kind of their target weight already, but wants to help -- wants to maintain that and wants a kind of a collaborative environment where they can work with a coach? Or is it really something that comes in after the client has already signed up for the broader program and that just kind of helps them as they get closer to their weight loss goal.

這是有用的顏色。也許既然你提到了 ACTIVE 行，我是否可以在那裡問一兩個問題。聽起來它確實是為了對已經參與更廣泛計劃的人進行補充。您是否知道是否有機會透過 ACTIVE 為可能已經達到目標體重但想要提供幫助的客戶提供幫助 - 想要維持這一點並想要一種可以與他們合作的協作環境一個教練？或者這真的是在客戶已經註冊了更廣泛的計劃之後出現的，這只是在他們更接近減肥目標時有所幫助。

I think it's actually a little bit of both. What it does is it expands our addressable market significantly. And it does that by both the examples that you used. For those who are coming in and interested in weight loss specifically, it allows our coaches to include the habit of Healthy Motion or exercise as part of that program. From that standpoint, it helps drive up lifetime value, both by increasing expenditure while they are on program as well as extending the lifetime value as they transition off.

我認為實際上兩者都有一點。它的作用是顯著擴大我們的目標市場。它透過您使用的兩個範例來實現這一點。對於那些進來並對減肥特別感興趣的人，我們的教練可以將健康運動或運動的習慣納入該計劃的一部分。從這個角度來看，它有助於提高終身價值，既可以增加他們在計劃中的支出，也可以延長他們退出計劃時的終身價值。

It also allows us to extend that target to those who are already closer to their healthy weight and are focused on moving more towards an optimal health state in their health journey. And so in that case, it can take somebody who is already at a healthy weight and improve their overall health by adding exercise to it.

它還使我們能夠將該目標擴展到那些已經接近健康體重並專注於在健康之旅中更加接近最佳健康狀態的人。因此，在這種情況下，可以透過增加運動來改善體重已經健康的人的整體健康狀況。

Equally important, and the third reason that we've talked about this is adding the ACTIVE line and an ACTIVE program completes our overall lifestyle management solution. I don't think it's lost on anyone that all of the research that was done, clinical research side, the medical weight loss pharma companies. Their claims are tied to a healthy diet or reduced calorie diet and increased activity in addition to taking the GLP-1 drugs. And so the addition of the ACTIVE line and coaches who can coach to increased physical activity completes our offer from that standpoint as well, allowing us to be very complementary and even at the center of the long-term solution for those who are using GLP-1 drugs.

同樣重要的是，我們討論的第三個原因是加入 ACTIVE 系列，而 ACTIVE 計畫則完善了我們的整體生活方式管理解決方案。我認為任何人都不會忽視臨床研究方面、醫療減肥製藥公司所做的所有研究。他們的主張與健康飲食或低熱量飲食以及除了服用 GLP-1 藥物之外增加活動有關。因此，從這個角度來看，增加 ACTIVE 系列和可以指導增加身體活動的教練也完善了我們的服務，使我們能夠非常互補，甚至成為那些使用 GLP 的人的長期解決方案的中心- 1 藥物。

That's very helpful. Maybe one more question on the ACTIVE line. I know we're still early days. Is there to expand the product offering there beyond just kind of your core protein and amino acid? Are there other products we could think about, whether it's like supplements or like a pre-workout that would be complementary? Or is that too much kind of outside the core of what you're trying to do?

這非常有幫助。也許還有一個關於 ACTIVE 行的問題。我知道我們還處於早期階段。除了核心蛋白質和氨基酸之外，是否可以擴大那裡的產品範圍？我們是否可以考慮其他產品，無論是補充劑還是運動前的補充品？或者這是否超出了你想做的事情的核心範圍？

Yes, the plan is to extend the line with products being launched next year, again, reflective of what we learn about this initial launch. But we're already receiving feedback from, and had already identified some close-in opportunities to make the line more competitive and more complete. So the intention is to introduce additional products next year.

是的，我們的計劃是透過明年推出的產品來擴展該系列，這也反映了我們對首次發布的了解。但我們已經收到了回饋，並且已經確定了一些近距離機會，以使產品線更具競爭力和更完整。因此，我們的目的是明年推出更多產品。

Our next question comes from the line of Doug Lane with Water Tower Research.

我們的下一個問題來自水塔研究中心的 Doug Lane。

The case for the GLP-1 is pretty compelling, Dan, that you make, and I understand wanting to add it to your product offerings. I guess I look at your balance sheet, I would just assume that outright acquisition makes a lot of sense. That's what WeightWatchers did. But you mentioned a number of other possible arrangements, partnership investments, et cetera. Maybe help us understand why something other than an outright acquisition could make sense here?

Dan，您提出的 GLP-1 案例非常引人注目，我理解您希望將其添加到您的產品中。我想我看看你的資產負債表，我只是認為直接收購很有意義。這就是慧儷輕體會做的事。但你提到了一些其他可能的安排、合夥投資等等。也許可以幫助我們理解為什麼除了直接收購之外的其他方式在這裡也有意義？

Sure, Doug. It's good to hear from you. We have -- we've been taking a very thoughtful approach to this. Initially, we were evaluating what role GLP-1 drugs might play in a coach-centered habit-based model. We moved from analyzing to exploring by partnering with 3 different telehealth companies. And that's allowed us to get a feel for what we have that's complementary, what they have, that gives us the ability to make this offer compelling for our customers and our coaches.

當然，道格。很高興收到你的來信。我們對此採取了非常深思熟慮的方法。最初，我們正在評估 GLP-1 藥物在以教練為中心的基於習慣的模型中可能發揮的作用。透過與 3 家不同的遠距醫療公司合作，我們從分析轉向探索。這讓我們能夠感受到我們擁有什麼是互補的，他們擁有什麼，這使我們有能力使這項優惠對我們的客戶和教練有吸引力。

What we found is there are some things that we do very well that telehealth companies don't. And there are some things that they do very well or they have the capability of doing that we don't have the capability of doing. But there's a lot outside of that crossover.

我們發現，有些事情我們做得很好，而遠距醫療公司卻做不到。有些事情他們做得很好或他們有能力做而我們沒有能力做。但除了這種交叉之外還有很多東西。

So as we're moving into this next phase, we're trying to ensure that we do what is right for the business. And by that, I mean, both coaches, clients, but also our financials. There are different levels of success and profitability inside telehealth companies. And as you know, we have one of our success marks in the past has been high cash generation and improved margins. So we're thoughtful about how we maintain that. But also have the potential of leveraging some of these outside capabilities. So it's an evaluation, and that evaluation is being made on an even deeper level now that we're moving into Phase 2 of these pilots.

因此，當我們進入下一階段時，我們正在努力確保我們做適合業務的事情。我的意思是，教練、客戶，還有我們的財務狀況。遠距醫療公司內部有不同程度的成功和獲利能力。如您所知，我們過去的成功標誌之一是高現金產生和提高的利潤率。因此，我們深思熟慮如何維持這一點。但也有可能利用其中一些外部能力。所以這是一個評估，而且現在我們正在進入這些試點的第二階段，該評估正在更深層次上進行。

That makes a lot of sense. That's good color. I mean can we see an instance where you start with an investment -- or start with a partnership moves to an investment moves to an acquisition. I mean this could be a multistage process, right?

這很有意義。這顏色真好啊我的意思是，我們是否可以看到一個例子，從投資開始，或從合作開始，再到投資，再到收購。我的意思是這可能是一個多階段的過程，對吧？

Yes, absolutely. I think one of the things that we are all very aware of is that this -- well, GLP-1 drugs in the first generation and second generation have been around for a while. There's a lot of changes that are taking place, including insurance coverage, including different types of products that are coming out are currently in testing. So we're watching very closely, making sure that we remain nimble and we'll do what's right for our investors and what works from a capital standpoint.

是的，一點沒錯。我認為我們都非常清楚的一件事是，第一代和第二代的 GLP-1 藥物已經存在了一段時間。正在發生許多變化，包括保險範圍，包括正在測試中即將推出的不同類型的產品。因此，我們正在密切關注，確保我們保持靈活性，我們將做對投資者有利的事情以及從資本角度來看有效的事情。

I think you pointed out accurately, Doug, we have a lot of flexibility because we have no debt on our balance sheet, a strong cash position. and the ability to make a lot of good decisions for the long term as we -- as the long-term start continues to unfold, and we learn more about the market and how it works inside our model.

道格，我認為你準確地指出，我們有很大的靈活性，因為我們的資產負債表上沒有債務，現金狀況強勁。隨著長期的開始不斷展開，我們能夠更多地了解市場及其在我們的模型中的運作方式，從而做出許多長期的良好決策。

It looks like we have reached the end of the question-and-answer session. I'll now turn the call back over to Dan Chard for closing remarks.

看來我們的問答環節已經結束了。現在我將把電話轉回給丹·查德（Dan Chard）做總結發言。

Thank you, and thanks for your continued interest in Medifast. As a team, we're excited by the opportunity that lies ahead, and we look forward to sharing more on our progress in the coming weeks and months. We hope to see many of you at the upcoming investor conference, including the Stephens Annual Conference on November 14th and the ICR Annual Conference in early January. Again, thank you for your time today.

謝謝您，也謝謝您對快驗保的持續關注。作為一個團隊，我們對未來的機會感到興奮，並期待在未來幾週和幾個月內分享更多有關我們進展的資訊。我們希望在即將舉行的投資者會議上見到你們，包括 11 月 14 日的史蒂芬斯年會和 1 月初的 ICR 年會。再次感謝您今天抽出時間。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。