LifeVantage Corporation released its financial results for the second quarter of fiscal 2022, announcing an 11.6% decrease in revenue from the prior year and a 1.9% decrease sequentially. Revenue for the quarter, which totaled $52.2 million, reflected a 17.1% decrease in the Americas that was offset by a 2.1% increase in the Asia/Pacific and Europe markets. Total active accounts declined by 6.3% to 163,000, but on a sequential basis, total active accounts were only fractionally lower.
Gross profit for the quarter was $42.5 million, down from $48.8 million during the same quarter last year. The company attributes this decline to “increased inventory obsolescence costs, higher shipping expenses and mix shifts related to product and geography.”
Selling, general and administrative (SGA) expense for the quarter was $17.4 million, up from $16.2 million in the previous year’s quarter. The company posted an operating loss for the quarter of $0.4 million compared to an operating income of $5.4 million in 2021.
Adjusted EBITDA was $1.9 million, a significant decrease from $6.7 million during the same quarter of 2021, and earnings per diluted share were $0.01.
The company’s balance sheet remains strong, with $20.2 million in cash and no debt.
“The second quarter proved to be more challenging than we anticipated as COVID factors caused our early momentum to stall by limiting in-person activity,” said Steve Fife, Chief Executive Officer of LifeVantage. “We also encountered unexpected, but related, delays with our recent Philippines launch that pushed the initial revenue ramp into January. While we are disappointed that revenue and earnings results did not meet our expectations, we still made meaningful progress on several initiatives to position the company for its next stage of growth. Most notable was the recent appointment of two new executives, a Chief Marketing Officer and a Chief Digital Officer, effectively completing our senior leadership team and providing LifeVantage with additional depth in the key areas necessary to transform our business and accelerate growth. Despite tempering our fiscal 2022 outlook to reflect recent results, the company’s financial position remains strong and I’m confident in our ability to drive long-term value for all stakeholders.”
