Hi, everybody. I'm George Kelly with Roth. Excited to have Danny Yeung, who's the Co-Founder and CEO of Prenetics, with me today. We don't have a ton of time, just like 25 minutes. I'll stop every once in a while and take questions if there are any from the group. But I wanted to just get started kinda launching into it. Let's start. There's been a lot of change with Prenetics over the last, call it, year to 18 months. Non-core businesses being divested, IM8 just really blossoming quickly and earlier this year, you announced the intention to solely focus going forward on IM8.
I wanna center this conversation on IM8, really. If we could start, there's a lot to talk about, but I wanted to start just with the product and the message. It's a very competitive industry, so I was curious if you could just kinda high level take us through what is so unique about IM8 and the product, that's helped you turn it into a sizable business quickly.
Great. Thanks, George.
Do you have a-
Sorry.
Yes.
Hi. Good morning, everyone. Thank you, George. Very, very glad to be here. Great question, right? I think going back to when we launched, right? We launched the brand in only December of 2024 in a very competitive industry. A lot of people that told... when we were even thinking about getting into the supplement industry, everyone told me actually not to get into it because of how competitive it is, lack of regulatory aspects, blah, blah, all that stuff, right? We felt, you know, starting with a good product, if we had a great product, we can at least be in the playing field. However, with that being said, just having a great product doesn't get you far in today's world, right?
This is where, again, the combination of having David Beckham as a Co-Founder early on really help us cut through the noise from a PR perspective, messaging perspective. Because by having him as a Co-Founder, at least people will pay attention, right? They pay attention, they'll look into the product, they'll look into the ingredients and like, "Oh, wow, this is something very, very good." Again, the core message of IM8, Daily Essentials, is that we want to simplify nutrition. At the core, the USP is that if you're taking supplements, typically you start with multivitamin, and then you add like CoQ10, you add probiotics, you add MSM, and then by the time you're done, you're at like 12-16 different supplements.
What we've been able to do is simplify the nutrition journey and having 16 supplements in one powder sachet that you mix with water very easy and that tastes great, right? That was the core philosophy. Again, we've launched December 2024, and last year, you know, we became, at least on record, the fastest growing supplement brand ever recorded, right? Having reached, you know, $0 to $100 million ARR in less than 11 months on record.
Just still staying on the product, I guess a couple questions. How long did it take for you to put the formulation together? Like, how much planning went in before you launched? Secondly, your retention metrics are good. We'll explore them more in detail later. To me, that just shows that people are really getting results out of your product.
Yes.
Back to the competitive dynamic, like, what's so unique about what you're selling, that's leading to those enhancements to, you know, people, whatever they're looking for from the product?
I think, in terms of the development timeframe, it was about a year and a half, you know, from the time we said, "Let's go." We were able to get on board a very, you know, world-class scientific advisory Board, that, you know, myself and the team talk to on almost a daily basis, right? These are the likes of, you know, Dr. Dawn Mussallem from, you know, from Mayo Clinic, Suzanne Devkota from Cedars-Sinai, and a plethora of other world-class scientists, and then they come together. They came together to create this formulation. Again, going back to, you know, what makes this unique, again, you have the product, you have the ingredients. We also ran clinical trials before we launched the product in 12-week randomized case-control trial with the San Francisco Research Institute.
We have NSF Certified for Sport. We have third-party testing from Eurofins. Don't believe us, but, you know, believe in the research that we put into it and the ability that you go onto our website, you can download any of these results and reports, right? 'Cause I think now consumers, you know, they're just not looking for another product. They want to know, like, does this actual product work? Let's say we look at ingredients, we have 90+ ingredients, so every single ingredient on the label is third-party tested. If we say it's 100 mg on there, you'll see it's 100 mg in the third-party test, right? NSF Certified for Sport is really important because especially if you're a professional athlete, you know, you're not gonna take anything.
By default, if it's, it doesn't have that certification, you're not even gonna try to take it, right? The fact that we have, you know, Aryna Sabalenka, world number one tennis player, on this product, and she took it for three months before even contacting us, is a conviction on the product. Recently we signed up Ollie Bearman, F1 driver, again, on the product. Their whole team is on the product. The effects that they're getting are, again, you know, better gut health, energy, thinking sharper. It's really an all-in-one powder solution that makes you feel better, and you'll actually feel it.
As you mentioned, the product launched in December of 2024. Within a year you were running, doing monthly revenue in excess of $10 million by, I think, December of 2025.
Yep.
Can you take us through last year sort of key timeline issue? Were there different elements? I know you brought on Aryna Sabalenka mid-year. David Beckham, obviously huge partner to launch with. What else happened last year that sort of helped you hit a new level at different points in the year?
I mean, I think starting off, right, we launched it online in December 2024, right? In the first month revenue, we did $581,000 in revenue, right? In January, we did a public launch in New York. You know, David went on to TODAY Show to promote it, talking about IM8 again. We had a lot of PR and media, right? A lot of times, how do you get this organic piece of media push? You know, having David, everyone wants to have David on their talk show, right?
That already got us a significant push, and of course, that's driving a lot of new PR media, right? Again, in June, we brought on Aryna Sabalenka. We saw uplift in June right when we brought her on board because that gave another level of credibility, again, when the world number one tennis player is on the product. It was such an organic story because Jason Stacy, the performance coach of Aryna, was taking it for about a month first. He's like, "Hey, Aryna, try this." They've been having issues with her supplement regimen. She tried it for three months, and he's like, "Yeah, she's feeling much better, recovery, energy, all much better." Because at that level, they're measuring every little thing they're doing on a daily basis in terms of diet, nutrition change, all that stuff. She contact me or my team back in April, and then we struck the deal in June.
Okay.
Right? Of course, we saw the uptake in June, right? In October of last year, we launched the Longevity product, which is our second SKU. Our average order value went from $110 to $150 overnight, right? That was also a very positive moment. By December, we're hitting $10 million monthly revenues. I think key thing also from day one is that we ship to 31 countries from the start, from the outset. Again, logistically, it was a nightmare, right, just to get that all done because a lot of brands, you know, they start with the U.S., and they don't ship international until, like, three, four years out. We did it from day one. The U.S. only represents 40% of our overall revenues, right?
What that means is that we have significant upside opportunity because last year we did $60 million full- year revenue, $25 million in the U.S., but the U.S. can easily do $150 million-$200 million, right, at scale. Right? Canada is number two, U.K. is number three, Australia is number four, Singapore is number five. All of this is done 100% online, with 98% of the sales on our own website, another 2% on Amazon. That was strategically designed that way because we price our products higher on Amazon than our own website because I want to be able to create that whole customer journey on our own website.
Understood. You mentioned all the outside U.S. business. What's the competitive landscape like? Are the brands that many of us are familiar with in the U.S., do they operate outside the U.S. or, like, who do you bump into?
I would say, yeah, to be fair, I mean, AG1, you know, they operate internationally, right? All the markets that we operate in, they operate. I think naturally they're, and again, to be fair, they've done a great job in terms of a lot of education in this space, in terms of the all-in-one powder. I mean, ultimately, we believe we have a much better product. We've been able to take quite a lot of market share from them. You know, they're doing what? $600 million-$700 million this year with pretty much still a one product SKU. Yeah. Yeah, we run into them quite a lot. Yeah, I think, again, we have different marketing channels.
Understood. Okay. You ended last year strongly, doing, as you mentioned, over $10 million in monthly revenue in December. What have you seen so far in 2026? Is momentum still kind of carrying through? Maybe just I wanna talk about your annual guidance that you gave, but just sort of early year trends, anything that is worth noting.
I mean, earlier trends, again, yeah, we're pushing. I mean, the momentum is still there, right? I think we're very confident in terms of hitting our overall projections of $180 million-$200 million for 2026. Early momentum in Q1 is strong, and one of the key things, yeah, again, for us to be able to grow is actually leveraging a lot of content on, you know, socials, right? You know, so for example-wise, right? Right now we're pushing out 2,200 ads. If you look at our public ads library on Meta, you know, we're pushing out 2,200 ads at any given time. We have 50 different landing pages that's targeting different personas, right? So we're going very broad in terms. We're going very broad, but at the same time, very specific, you know.
If you see an ad for recovery, you get into a landing page where it's specific for recovery, right? That goes through across multiple landing pages, right? Again, at our scale, you have to test a lot. We're basically, you know, doing constant testing on a daily basis, which is very encouraging and I'm very optimistic about this year.
Okay, you just got to one element of the $180 million-$200 million. Your target for 2026 is more and more kind of content and supporting the big social platforms with more media advertising, et c. What else? You commented in your most recent quarterly report in the conference call just about new products for this year. I think there's two slated for the back half of the year. Anything more you can share about that? Are they incorporated in guidance? Where do you see opportunity just for SKU, new SKUs? Not necessarily this year, but like, where's their opportunity in the landscape?
I think there's a significant opportunity because I think in a very short amount of time, 14, 15 months, we've been able to build a truly global brand that if you talk to people on the ground, you know, people love the product, right? That's number one. That means we can expand on very quickly on terms of new SKU developments. However, with that being said, we've been very strategic, not launching too many SKUs, you know, because I think the message also goes, gets lost. To be fair, I don't think we can build 15, 20 best-in-class SKUs, right? I think it's quite impossible because every SKU that we look into, there's quite a significant amount of work devoted to making sure whatever product that we push out is truly the best in class.
Two SKUs that we're looking to push out by Q4, we do believe it will be best in class in very large total addressable markets. These two SKUs are, you have brands easily doing $1 billion+ annually on these SKUs, right?
So-
They haven't been forecasted into in terms of guidance, in terms of your question.
Okay. Is there opportunity for super premium products in this category? When I say super premium, I mean products that are much more specifically targeted towards an individual or a small group of people. Is your view that people are willing to pay way in excess of what you're currently charging if it's really tailored to them?
I think the key thing, again, I appreciate the question, right? I think there's two parts to that answer, right? I think what you're seeing globally is you're seeing lots of, you know, premium concierge level services, right? These are individuals that are paying $20,000-$100,000 on an annual basis to getting the doctor, medical, lifestyle, very personalized, right? For us, keep in mind, we are 100% direct- to- consumer company, so we are playing the premium supplement category, but at the same time, it's affordable, right?
Right now, our average or our order value when someone comes online, the average person is paying us roughly a little bit more than $200 , right? The average individual in the U.S., for example, they're paying $50 a month on supplements. Already we're getting at the higher end of that already. We feel that's a market that we want to play in, which is premium, but accessible affordability.
Okay. Understood. Then maybe just one more for me, and then I'll open it up. As we think about the next 12-24 months, you know, China is a place where you're not currently sold. I know that's been something you've contemplated in the past. I also think, you know, some strategic partner, I wonder if that would make sense to kind of unlock some new distribution opportunity or something. I wonder if that's something you've contemplated. What should we be thinking about, not necessarily this year, more longer term, but things where there might be a big unlock, that doesn't get enough attention currently?
China-wise, again, I've spoken to many potential interested partners, I would say that. In China, again, I have a very strong business network in that part of the region. I believe it actually holds significant upside opportunity. I believe whatever revenues we do outside of China, we'll do inside of China at the right time, right? We'll probably enter it. The good thing is that we're not in any rush, right? A lot of people, companies that are entering, again, probably, you know, 95 out of 100 companies in the U.S., they enter, they fail, right? Why, right? Because they're trying to take a product which works outside of the U.S. and then import into China, and it doesn't work. Very, it doesn't work.
We're taking a very strategic approach to launching in China. When we do, I believe we'll have success because it's also very rare that when we go into China, we have such big ambassadors that the Chinese people love, right? They absolutely love, you know, David Beckham. They love Aryna Sabalenka, right? I was just in Shanghai with Ollie Bearman last weekend. They love him, right? It's very rare that you have, again, this level of athletes promoting, endorsing a product as an ambassador as well as a shareholder, right? I'm not worried about China at all.
It's just the right moment and looking ahead, I think realistically, especially given where the AI tools are, and as a company-wise, I believe we're probably top 5% globally in terms of AI companies that are adopting AI at scale. With that, why I say, again, next three years is like I don't see a reason why we can't push the envelope. Let's say in the next three years, how do we get to $500 million revenue, annual revenues, right? With all these advancements that we have available to us. I mean, right now, give you an example, we're pushing out 2,200 ads on Meta, right? Again, that's quite a lot, right? When we started out, we had, like, 50, right? But, you know, I know there's other brands that are doing 10,000 ads, right? My goal is, like, how do we get there in the fastest amount of time possible.
Okay. Any questions from the group? Yeah.
What is a repeat customer rate look like? You know, I feel like we're ahead of the curve on some of these performance metrics.
Correct. No, great. Great question. I think if you think about the past 14, 15 months, right? Given even the first year-wise, right? There's no way we could have gotten so fast to $100 million ARR without a strong retention rate, right? Because right now, a majority of actually our overall revenue is coming from repeat customers. Because at the end of the day, the product has to work, right? If the product doesn't work, you don't get repeat customers, right? We're targeting, again, a 12-month retention rate of roughly about 25%-30%. That's the target. Which if you think about the supplement category as a whole, typically it's in the teens, right? If you think about all of our metrics right now, you know, we are at the top end of all these metrics, right? I think that's what we're targeting, right?
Any other questions?
Besides the fact that you've got obviously a great group of ambassadors, you take that out of the equation, who do you think your most direct competitor is? Because there are other people doing multi, products and a similar product approach. I was just wondering, how do you see yourself versus them?
I mean, there are so many, right? I mean, again, in this category there's like you know, there's probably hundreds, I would say, in competitors, right? If you think back in any industry where there's so much competitors, you probably have a few that are really taking a lot of the market share, right? We think about that, it's like AG1 again, they're doing you know $600 million this year in revenue. They've been around 15 years, right? Then you may have Grüns, right? I mean, Grüns also they're targeting a different customer profile, right? They're targeting that all in one in a gummies format, right? They went basically from $0 to $200 million, $300 million in 14 months. A lot of competitors, correct?
At the end of the day, it actually goes down to, okay, your content strategy, and this is 100% online business, right? I think the key thing, even if it was a retail business, the key thing is distribution. I think the key thing for us is actually maximizing that distribution from an online channel, right? When we get new ambassadors, right? You know, regardless if it's Beckham, Sabalenka, Ollie Bearman, we get then the distribution via whitelisting partnership ads that are targeting their followers, right? That also helps in terms of lowering the customer acquisition costs, and then, guys, we'll be very strategic in terms of who we bring on, 'cause naturally these, number one, have to be real users of the product. With all of our partnerships, it's structured in both cash portion and equity portion, 'cause then everyone's aligned in the long-term wise.
Okay, two more questions from me. I'm gonna first follow up on one of the prior questions about retention. Can you just walk us through, I know that your LTV- to- CAC and, you know, all the dynamics of your subscriber model. Have shifted a bit off, 'cause your business is so new still.
Yes.
Where it sits right now, can you just walk us through, you acquire a customer for X, they generally stick around for this long, and so I guess just getting to the LTV- to- CAC, can you help us build that?
Sure. Yeah. I think again, we're still a very new brand and business, right? Even the last 14, 15 months, we've evolved in terms of our customer acquisition strategy. You know, for the most part of 2025, we were basically having only two options. We had a one-time purchase, and just to the U.S. market, it's $112 for a one-time purchase, and then you had an $89 monthly renewal, right? Which subscribes all the month, every month. In December of last year, we launched a three-month program, which basically lowers your monthly subscription from $89 to $78, but you pay $235 upfront, right? For us, why it works great, because again, individuals are committed for a three-month period of time.
We also ship one time as opposed to three months, and we're also able to recognize the revenue right away because we're now shipping three individual months, right? In terms of the CAC- to- LTV ratio, right now, again, all the numbers-wise, the industry standards are looking at it, LTV- to- CAC ratio of 3:1 over a 24-month period of time, which is basically your gross margins, right? Right now, if we're looking at data, we're right at that 3x mark in terms of LTV- to- CAC ratio. We look at right now, our latest data is, you know, roughly $200 CAC, which is $200 average order value, which from an online perspective is incredibly high.
That means we are getting some customers , we are getting consumers which basically are the top 10% of household incomes, which are very vested in their health, right? Our CAC is roughly about $220-$230. We look at that, you know, we're looking at a lifetime value of roughly $660-$670, right?
One unrelated question I wanted to ask too is, you recently announced a $40 million share repurchase plan, and the executive team made their second round of purchases, which, I forget, that was about a month ago, three weeks ago, something like that. I guess just a quick question is, why did you guys do that? Why did the company do that?
I mean, I think, to be fair wise, right, I think, you know, we see significant momentum into the business, into the brand, right? I think we started last quarter, open market purchase. I think it was like $12-$13 or something like that. The pubco was very significantly undervalued. We started there. Post the earnings, we did it again, this most recent quarter. I think in total, we put $2.75 million. Myself, I put $1.25 million of my own money in open market purchases. Yeah, because we feel that, again, we have significant opportunity for growth. I think we're undervalued. Even though we've been able to grow from like $50 million market cap, it's $350 million today.
Again, we have a lot of cash. We have $160 million in liquid assets today. We announced a further $40 million share buyback, you know, three, four weeks back, right? We're convinced, at least the data that we see and where the business is growing, the amount of inbound interest into the brand, we have significant opportunity for growth in the current sales as well as the additional sales. We believe we have a flywheel when it comes to the marketing engine, that we're able to take advantage of so many tools out there available to us today, which very few brands are able to do.
Any other questions from the group? We still have time for maybe one more. Yeah.
You say you have 2,200 ads on Meta at any given time. Are those live right now?
Yeah, those are live. Yeah.
50, basically funnels, right?
50 landing pages. Yeah
That are taking whatever the hook was that got that specific personality to how much of AI plays into, I mean, growing that. Like you said, someone has 10,000, you have 2,000, you're aspiring to get to 10,000. Is a lot of that AI? Is that like a massive media content team?
Yeah. I mean, I think the great thing about these days, yeah, you don't need a massive content team now, right? For any of these stuff, right? We just need really AI native individuals to work through the content, different hooks . It's a very complicated process, right? It's not something like, "Hey, you wanna do this?" It's overnight, right? Now, we've been testing this, yeah, since inception. We've been getting better. Some people doesn't work, and then we've been able to get new people on board and basically, fine-tune this engine, right? It's a constant process. A significant majority of that is driven by all the tools that are available to us today, right? Because a lot of times it gives us so much insights, right? In terms of what's working.
A lot of things that we're tracking, even let's say for example, even 50 of the different landing pages, right? 50 different landing pages, they have all different add- to- cart ratios, right? We have to measure the add- to- cart ratio to actually add the conversions, right? What works best, you know, what button works, you know, what colors. It's actually quite complex stuff, but that's what will actually allow us to scale to getting to profitability by Q4 2027. Okay? It's very, I would say, in-depth. Yes, the easy thing is about using AI, but just to use it requires a lot of focused attention.
Let's end it there. Thank you so much.
All right.
really appreciate your time.