Thorne HealthTech, Inc. (NASDAQ:THRN) Q4 2022 Earnings Call Transcript

Paul Jacobson: From a macro standpoint, demand continues to be really strong. We’re not seeing the impacts of it. I do know that we’re hearing a variety of things either from various organizations about the growth rate of the supplement industries being somewhere in the generic level I’m speaking, not quite company, somewhere in the 2% to 3% range in 2022 and even lower with some big companies. But we’re just not €“ we’re not seeing it. We are very focused on this trend I mentioned of scientific wellness and deep personalization, and we think that’s where our future lies. And Michelle also has a comment here.

Michelle Crow: And the one additional thing I would add. As you may recall, when we were in 2022, we pulled back marketing spend in the second half of the year. And the biggest impact of that was just on the rate of new customers acquired. But in the first half of the year and the second half of the year, unit economics remained really strong. So we’re of the mindset that it’s really because of our brand and of the depth of our portfolio that we’re able to reach customers in the luxury segment that want to buy our products frequently. And so as we kind of look to next year, we’re still early in our growth cycle year-over-year group brand awareness 4% to 6.5%. So we’re confident that unit economics will be strong in 2023 as well.

Paul Jacobson: Yes. I’m also going to ask Tom McKenna to make a comment based on some of the things we’re seeing inside the plant. So Tom?

Tom McKenna: Yes, Susan, probably the best way to take a look, at least near term on what we’re seeing for our products in overall demand, is this month we’ll have orders of a little over 95,000, which is a record for us. And in fact, in each of the months thus far this year, we’ve had record orders fulfilled. So we can’t perfectly forecast what’s going to happen in the future, but we can say at the moment, right now, we’re not seeing anything on the downside.

Susan Anderson: Great. That’s really helpful. Thanks for all the details there. Good luck the rest of year .

Tom McKenna: Thank you.

Operator: Thank you. Our next question comes from Steven Mah of Cowen. Steven, your line is open. Please go ahead.

Steven Mah: Okay, great. Thanks for taking the questions. So two follow-up questions on OneDraw. So you mentioned you’re developing a OneDraw proteomic assay for the Cancer Moonshot. Could you get some more color on like what type of markers are going to be in that assay and what types of tumors are going to be targeted in that assay? And then the second one, you mentioned you are in BD discussions with OneDraw. Any sense of timing there? Or is that predicated more on U.S. FDA approval for at-home use?

Paul Jacobson: So I’m going to make a comment on the first one, and then if Crow wants to add anything. So we are currently working in this Moonshot Project but we’re not privy right now to some of the data that they’re working on. So I cannot comment on that specifically. We do know that it’s €“ they’re using €“ that’s being used inside the military right now, testing for various oncological aspects, but I don’t know anything more than what we said. You want to add any?

Unidentified Company Representative: Just one more comment. Besides the proteomics we’re working on OneDraw, independently, we’re also exploring other omics with OneDraw. And one development we have is we’re exploring the possibilities of the OneDraw device to cut blood and analyze metabolomics which is a very important factor that can particularly create health scores for us. We’re working on that, and we’ll keep the team posted.