LifeVantage Corporation reported first quarter fiscal 2023 revenue of $51.8 million, a 2.7% decrease from the same quarter last year. Total active accounts were down 6.7%, which the company says reflects a 7.8% decline in the Americas and a 4.1% decline in the Asia/Pacific and Europe markets.
Gross profit during the quarter was $41.8 million, or 80.8% of revenue, a marginal decline from 82.3% of revenue for the same period in fiscal 2022. The company attributes this decrease to elevated shipping costs, inflation and shifts in its geographic and product sales mix.
Adjusted EBITDA was $2.8 million, compared to $5.8 million for the same period last year.
“Results in the first quarter demonstrated continued momentum across our strategic initiatives around innovation and engagement,” said Steve Fife, President and Chief Executive Officer of LifeVantage. “The number of active independent distributors was up 1.6% on a year-over-year basis driven by an 18% increase in Asia/Pacific & Europe and revenue versus the prior year period was up 2.3% on a constant currency basis. Sales of the new Collagen product we launched in June far exceeded our initial expectations and the recent expansion of our flagship product Protandim NAD to Japan, Australia and New Zealand should help to propel growth in these key markets. At our global convention in October, energy levels remained very high and sharper messaging around our core focus on optimizing health and evolving possibilities continues to resonate well with distributors. Profitability is also poised to improve as we recently implemented a price increase that will serve to alleviate margin pressures stemming from inflationary factors. While the macroeconomic environment remains challenging, we are off to a solid start in fiscal 2023, making steady progress on transforming LifeVantage into a more dynamic, customer-centric organization that delivers consistent, sustainable growth and increases value for shareholders.”
The company ended the quarter with a strong balance sheet of $17.6 million of cash and no debt.