LFVN - LifeVantage plummets 15% post FQ2 estimates miss lowered guidance

LifeVantage (LFVN -15.4%) shares fall on missing revenue estimates by $6.5M & Non-GAAP EPS estimates by $0.19 for FQ2. Total active accounts declined 6.3% to 163,000 as growth of 6.4% in Asia/Pacific & Europe was more than offset by declines of 11.0% in the Americas. Revenue breakdown: America -17.1% Y/Y; Asia/Pacific & Europe +2.1%Y/Y. Gross margin declined 120 bps to 81.5% which was due to increased inventory obsolescence costs, higher shipping expenses and mix shifts related to product and geography. Adj. operating income was $0.3M compared to $5.1M, in Q2 2021. Adjusted EBITDA decreased 71.6% Y/Y to $1.9M. The Co. repurchased ~0.5M common shares for $3.2M under its share repurchase program. Strong balance sheet with $20.2M of cash and no debt. Lowered 2022 Guidance: Revenue-$212M-220M compared to previous guidance of $225-$235M (consensus of $224.6M); Adj. EBITDA of $18M- $20M compared to previous guidance of $22-$24M, Adj. EPS of $0.67-0.71 compared to previous guidance of $0.83 to $0.87 (consensus of $0.87). Previously: LifeVantage Non-GAAP EPS of $0.05 misses

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LifeVantage plummets 15% post FQ2 estimates miss, lowered guidance