Good day, ladies and gentlemen. Thank you for standing by. Welcome to today's conference call to discuss LifeVantage's First Quarter Fiscal 2023 Results. At this time, all participants are in listen-only mode. Following the formal remarks we will conduct a question-and-session. Instructions will be provided at that time for you to queue up. Hosting today's conference call will be Reed Anderson with ICR. As a reminder, today's conference is being recorded. And now, I would like to turn the conference over to Mr. Anderson. Please go ahead, sir.

Thank you. Good afternoon, and welcome to LifeVantage Corporation's conference call to discuss results for the first quarter of fiscal 2023. On the call today from LifeVantage with prepared remarks are Steve Fife, President and Chief Executive Officer; and Carl Aure, Chief Financial Officer. By now, everyone should have access to the earnings release, which went out this afternoon at approximately 4:05 p.m. Eastern Time. If you have not received the release, it is available on the Investor Relations portion of LifeVantage's website at www.lifevantage.com. This call is being webcast, and a replay will be available on the company's website as well. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of LifeVantage's most recently filed Forms 10-K and 10-Q. Please note that during today's call, we will discuss non-GAAP financial measures, including results on an adjusted basis. Management believes these financial metrics can facilitate a more complete analysis and greater transparency into LifeVantage's ongoing results of operations, particularly when comparing underlying operating results from period to period. We've included a reconciliation of these non-GAAP measures with today's release. This call also contains time sensitive information that is accurate only as of the date of this live broadcast, November 2, 2022. LifeVantage assumes no obligation to update any forward-looking projections that may be made in today's release or call. Now I will turn the call over to Steve Fife, the President and Chief Executive Officer of LifeVantage.

Thanks, Reed, and good afternoon, everyone. Thank you for joining us today. First quarter results demonstrated continued momentum across our strategic initiatives around innovation and engagement. Revenue of $51.8 million was down 2.7% from the prior year period, but included $2.7 million of FX headwind. Excluding the negative impact of foreign currency, revenue was up approximately 2.3% on a year-over-year basis. While the operating environment remains challenging, we are seeing positive signs in several areas, including our U.S. business, where revenue was up 1.1% versus the prior year period as a decline in the number of customers was more than offset by higher average revenue per account due to strong results from new product launches. We also continue to be encouraged by recent results in our international markets. Revenue in our APAC Europe region increased over 7% versus a year ago, excluding the impact of currency fluctuation reflecting an 18.2% increase in the number of active independent distributors in this region, in part driven by continued momentum from our recent launch in the Philippines. Sales of the new collagen product we launched in June far exceeded our initial expectations. This is a liquid-based product that activates the body's collagen production, replenishes depleting collagen levels and maintains those levels by reducing collagen breakdown in the body. It also helps protect against the damaging effects of oxidative stress caused by free radicals. Our unique formulation of proprietary ingredients has been clinically shown to deliver visible support to skin health and hydration in eight weeks or less including skin that look smoother, softer and has improved elasticity. Quarterly revenue for the product exceeded our sales forecast by 127%. Liquid collagen was placed on backorder intermittently in the quarter due to depleted inventory and extended fulfillment delays. Backorder status places the liquid collagen part…

Thank you, Steve, and good afternoon, everyone. Let me walk you through our first quarter financial results. Please note, that I will be discussing our non-GAAP adjusted results. You can refer to the GAAP to non-GAAP reconciliations in today's press release for additional details. First quarter revenue was $51.8 million, down 2.7% on a year-over-year basis, and up 1.6% sequentially from the fourth quarter. Foreign currency fluctuations negatively impacted revenue by $2.7 million in the first quarter. Excluding the negative impact of foreign currency fluctuations, first quarter revenue was up $1.2 million or approximately 2.3% compared to the prior year period. Revenue in the Americas region declined 0.2% compared to the prior year period to $36.4 million primarily driven by a 7.8% decrease in total active accounts. As Steve mentioned, the decline in total accounts was offset by an increase in average revenue per account as a result of changes in product sales mix, primarily driven by the recent launch of the TrueScience Liquid Collagen product. Revenue in our Asia Pacific and Europe region decreased 8.2% to $15.4 million driven by a 4.1% decrease in total active accounts and negative impact from foreign currency rate fluctuations. The foreign currency impact was primarily a result of currency fluctuations in Japan which drove lower revenue in the country. On a constant currency basis, revenues in Japan increased by 3.2%. Despite the foreign currency headwinds, we continue to be encouraged by this region as a result of the 18.2% growth of active distributors and steady penetration from the recent launch in the Philippines, driven by distributor leadership, development and advancements. Gross margin was 80.8% in the first quarter compared to 82.3% in the prior year period. The decrease in gross margin was primarily due to increased shipping expenses, as well as shifts in…

Thank you. We’ll now begin the question-and-answer session. [Operator Instructions] This concludes the question-and-answer session. I'd like to turn the conference back over to Steve Fife for any closing remarks.

Thank you for joining us today. In closing, I want to take this opportunity to thank all of our employees for their hard work and dedication as well as our outstanding team of independent distributors and loyal customers. We remain confident in our business model and our focus on delivering the LifeVantage products our customers depend on. We hope you all stay safe and healthy and look forward to updating you on our next call. Have a great day. .

This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day. End of Q&A: