LifeMD Reports Third Quarter 2023 Results; Record Revenue and Adjusted EBITDA

• Revenue increased 23% year-over-year to $38.6 million with both telehealth and WorkSimpli achieving record revenues.
• Adjusted EPS of $0.08 per share compared with a loss of $0.03 in the year-ago period.
• Consolidated adjusted EBITDA increased to $2.8 million compared with a loss of $0.8 million in the year-ago period, and a 60% improvement versus the second quarter of 2023.
• Weight Management revenue more than quadrupled versus the second quarter of 2023.
• Telehealth subscribers grew 22% year-over-year to a record 207,000 patients.
  

Conference call begins at 4:30 p.m. Eastern time today

NEW YORK, Nov. 08, 2023 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care, today reported financial results for the three and nine months ended September 30, 2023.

Management Commentary

“During the third quarter of 2023 LifeMD achieved record revenue and adjusted EBITDA, largely driven by significant patient subscriber growth. Our GLP-1 Weight Management program alone added over 8,000 net new patients, ending the quarter with over 10,000, a number that has grown to over 16,000 today. Central to this acceleration is our industry-leading telehealth technology platform, complemented by an incredible provider network spanning all 50 states,” said Justin Schreiber, Chairman and CEO of LifeMD. “Our lifestyle healthcare businesses, led by RexMD, once again posted double-digit revenue growth with robust bottom-line margins that continued to exceed 30%. We also made sizeable progress in leveraging our best-in-class platform to drive meaningful B2B partnerships, including the execution of an agreement with Ascend Therapeutics to service the women’s health market and a joint marketing and sales agreement with IQVIA leveraging LifeMD’s tremendous telehealth infrastructure with IQVIA’s comprehensive commercialization solutions. We expect to execute additional opportunities in the near future. Given our sustained record performance and LifeMD’s leadership in key telehealth markets, including weight management with GLP-1s, I believe we are extremely well positioned for continued growth next year.”

“We finished the third quarter with outstanding top- and bottom-line financial results, with revenue increasing 23% and adjusted EBITDA increasing to a record $2.8 million. For the second consecutive quarter we achieved positive cash flow from operations and exited the third quarter with our strongest balance sheet and liquidity position ever. All of these factors continue to position 2023 to be a tremendous year for LifeMD while setting the stage for what we believe will be breakout performance in 2024,” commented Marc Benathen, Chief Financial Officer of LifeMD.

Third Quarter Financial Highlights

• Revenue increased 23% year-over-year to $38.6 million.
• Telehealth revenue increased 14% versus the year-ago period and 9% sequentially. WorkSimpli revenue increased 42% versus the year-ago period.
• Telehealth active subscribers increased 22% over the year-ago period to approximately 207,000.
• Weight Management revenue more than quadrupled sequentially.
• WorkSimpli active subscribers increased 14% over the year-ago period to approximately 170,000.
• LifeMD branded Virtual Primary Care products and services subscribers finished the third quarter at over 26,000 with over 10,000 active patients on our GLP-1 Weight Management platform.
• Gross margin expanded to a record 88%, up from 85% in the year-ago period.
• GAAP net loss was $6.9 million or $0.20 per share, compared with GAAP net loss of $8.1 million or $0.26 per share in the year-ago period.
• Adjusted EBITDA increased to $2.8 million compared with a loss of $0.8 million in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Adjusted diluted EPS was $0.08 compared with a loss of $0.03 in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Second consecutive quarter of positive cash flow from operations and exited the quarter with $15.3 million of cash.
  

Third Quarter Key Performance Metrics 

Financial Guidance

For the fourth quarter of 2023, the Company expects:

• Revenue to be between $40 million and $41 million.
• Adjusted EBITDA to be between $3 million and $4 million.

For the full year 2023, the Company expects:

• Revenue to be between $148 million and $149 million.
• Adjusted EBITDA to be between $10 and $11 million.

Guidance for 2023 includes a $4.0 million impact of deferred revenue related to GAAP accounting rules for the Weight Management business. Net of this impact, both revenue and adjusted EBITDA would be higher by $4.0 million.

Conference Call

LifeMD’s management will host a conference call today at 4:30 p.m. Eastern time to discuss the Company’s financial results and outlook, and answer questions. Details for the call are as follows:

A replay of the webcast will be available in the Investors section of the Company’s website at ir.lifemd.com.

About LifeMD

LifeMD is a leading provider of virtual primary care. LifeMD offers telemedicine, laboratory and pharmacy services, and specialized treatment across more than 200 conditions, including primary care, men’s health, women’s health, allergy & asthma, and dermatology. Leveraging a vertically-integrated, proprietary digital care platform, a 50-state affiliated medical group, and a US-based patient care center, LifeMD is elevating healthcare by increasing access to top-notch and affordable care. For more information, please visit LifeMD.com.

Cautionary Note Regarding Forward Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition.

Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods.

Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation.

Investor Contact
LifeMD, Inc.
Marc Benathen, CFO
[email protected]

Media Contact
[email protected]

Tables to Follow

About the Use of Non-GAAP Financial Measures:
To supplement our financial information presented in accordance with GAAP, we use adjusted EBITDA and adjusted EPS as non-GAAP financial measures to clarify and enhance an understanding of past performance. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance. We further believe that these financial measures are useful financial metrics to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors.

Adjusted EBITDA is defined as income (loss) attributable to common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, inventory valuation, sales return reserves, litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EBITDA to net loss attributable to common shareholders, its most directly comparable GAAP financial measure.

Adjusted EPS is defined as the diluted net loss attributable to LifeMD, Inc common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, inventory valuation, sales return reserves, litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EPS to Diluted loss per share attributable to LifeMD, Inc common shareholders, its most directly comparable GAAP financial measure.

We believe the above financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms adjusted EBITDA and adjusted EPS may vary from that of others in our industry. Adjusted EBITDA and adjusted EPS should not be considered as an alternative to net loss before taxes, net loss per share, operating loss or any other performance measures derived in accordance with GAAP as measures of performance.