Good day, ladies and gentlemen. Thank you for standing by. Welcome to today's conference call to discuss LifeVantage's Third Quarter Fiscal 2023 Results. [Operator Instructions] Hosting today's conference 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 third quarter of fiscal 2023. On the call today from LifeVantage with prepared remarks are Steve Fife, President and Chief Executive Officer; and Carl Aue, 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 measures 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, May 4, 2023. 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, President and Chief Executive Officer of LifeVantage.

Thanks, Reed, and good afternoon, everyone. Thank you for joining us today. In January and on our second quarter earnings call, we publicly announced our major strategic initiative, a project we call LV360. As a reminder, LV360 is an all-encompassing business transformation. The holistic approach includes major program and experience updates for each of our primary business functions while also ensuring each of the updates fit together seamlessly. The overarching objective of LV360 is to stimulate growth through industry-leading experiences for both consultants and customers. We are extremely pleased with where we are today as our LV360 initiatives roll out and begin to take hold. The early momentum in Q2 continued to build in our third quarter, including accelerating trends on the top line as total revenue increased 7.5% year-over-year to $53.7 million and was up 10.4% and on a currency-neutral basis. Our Americas region was the key driver, with revenue up 18.2%, reflecting higher average revenue per account due to continued strong demand for our TrueScience Liquid Collagen product. Revenue in our Asia Pacific and Europe region was down 14.2%, which is made up of 9% from negative currency headwinds, primarily in Japan and 5% year-over-year change in active accounts. Ex currency revenue in Japan increased 5.8% in the third quarter. Our new innovative compensation plan Evolve plays a central role within LV360 in our future growth. Evolve is designed to support a consultant along a clear consultant path, which includes 3 progressive stages. The first stage, Share, incentivizes consultants to share our activating products with customers. At this stage, it is easily understood that as you share this, you get that, meaning consultants know exactly what their income potential is as they are building confidence and their own experience with LifeVantage products. The second stage, Build and Grow…

Thank you, Steve, and good afternoon, everyone. Let me walk you through our third 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. Third quarter revenue was $53.7 million, up 7.5% on a year-over-year basis and up slightly from the second quarter. Foreign currency fluctuations negatively impacted revenue by $1.5 million in the third quarter. Excluding the negative impact of foreign currency fluctuations, third quarter revenue was up $5.2 million or 10.4% compared to the prior year period. Revenue in the Americas region increased 18.2% to $39.5 million in the third quarter, including a 19.5% increase in the United States as compared to the prior year period. This increase was primarily driven by the continued success of our TrueScience Liquid Collagen product. Revenue in our Asia Pacific and Europe region decreased 14.2% to $14.2 million, driven by a 16.3% decrease in total active accounts and negative impact from foreign currency rate fluctuations. Excluding the negative impact of foreign currency fluctuations, third quarter revenue in our Asia Pacific and Europe region was down 5.1%. The foreign currency impact continues to be driven by fluctuations in Japan accounting for $1.1 million of this impact. Adjusting for this impact, Japan delivered a 5.8% growth on a constant currency basis in the quarter, driven by the successful launch of NAD earlier this year and TrueScience Liquid Collagen launched in March. Gross margin was 80.2% for the third quarter compared to 80.7% in the prior year period. The decrease in gross margin was primarily due to increased shipping expenses as well as shifts in geographic and product sales mix. We are now starting to recognize the positive impact of the cost savings initiatives across…

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 consultants and loyal customers. We are very excited about this modernization of our company and remain focused on the opportunity that lie ahead. We hope you all are safe and healthy and look forward to updating you on our next call. Have a great day.

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Thank you. This concludes today's conference. You may disconnect your lines at this time.