• Fourth quarter revenue increased 60% year-over-year to $44.9 million with Telehealth revenues increasing 90% versus the year-ago period.
  
• Adjusted EPS of $0.15 per share compared with $0.02 in the year-ago period.
• Consolidated adjusted EBITDA of $5.5 million compared with $1.0 million in the year-ago period.
• Weight Management subscribers exceeded 22,000 as of year-end 2023, ahead of previous guidance.
• Telehealth subscribers grew 27% year-over-year to a record 215,000 patients at year-end 2023.

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

NEW YORK, March 11, 2024 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care, today reported financial results for the three and twelve months ended December 31, 2023.   

Management Commentary

“2023 was a record-setting year for LifeMD, characterized by sharp increases in revenue, telehealth subscribers and profitability. During the year, we launched our GLP-1 weight management program which has rapidly grown to become one of the leading providers of medically supported weight loss management services nationwide. In less than nine months, we scaled this business to over 22,000 subscribers and growing. Year to date in 2024, we continue to see record daily performance in the sale of new weight management subscriptions and at a rate in excess of our previous 2024 guidance. We demonstrated the tremendous value of our proprietary telehealth platform and dedicated 50-state, affiliated medical group through the execution of a substantial platform license and investment agreement with Medifast that provided LifeMD with a $10 million collaboration fee plus a $10 million equity investment,” said Justin Schreiber, Chairman and CEO of LifeMD. “Our RexMD business, once again posted double-digit revenue growth with robust contribution margins that continued to exceed 30%. Looking ahead, we are exceptionally well-positioned to meet or exceed our 2024 financial guidance while continuing to expand our position as a market leading disruptor in telemedicine.”

“We exited 2023 with the strongest financial position in our company’s history and are well capitalized to execute upon our aggressive expansion goals. Last year, we produced record cash flow from operations of approximately $9 million compared with negative operating cash flow of almost $23 million in 2022. We achieved this growth in profitability while simultaneously increasing consolidated net revenues by 28% versus the prior year. As a result of the strong performance we’ve seen across our business, led by performance in our growing GLP-1 weight management program, we are raising our 2024 revenue guidance to at least $200 million, up from previous guidance of $195 to $205 million. As this guidance implies, we expect 2024 revenue growth of at least 31% and we re-affirm guidance for adjusted EBITDA growth of 67%,” commented Marc Benathen, Chief Financial Officer of LifeMD.

Fourth Quarter Financial Highlights

• Revenue increased 60% year-over-year to $44.9 million.
• Telehealth revenue increased 90% versus the year-ago period and 28% sequentially versus the third quarter of 2023. WorkSimpli revenue increased 16% versus the year-ago period.
• The number of telehealth active subscribers increased 27% over the year-ago period to approximately 215,000.
• The number of weight management subscribers exceeded 22,000 as of year-end 2023, a net gain of approximately 12,000 subscribers sequentially versus the third quarter of 2023.
• Gross margin expanded to a record 88.1%, up from 85.5% in the year-ago period.
• GAAP net loss was $4.5 million or $0.12 per share, compared with a GAAP net loss of $12.7 million or $0.40 per share in the year-ago period.
• Adjusted EBITDA increased to $5.5 million compared with $1.0 million in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Adjusted diluted EPS was $0.15 compared with $0.02 in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Generated positive GAAP free cash flow of $3.5 million and exited the year with over $33 million of cash.

Full Year 2023 Financial Highlights

• Revenue increased 28% year-over-year to $152.5 million.
• Telehealth revenue increased 19% versus 2022. WorkSimpli revenue increased 50% versus 2022.
• Gross margin expanded to a record 87.6%, up from 84.3% in the year-ago period.
• GAAP net loss was $23.7 million or $0.70 per share, compared with GAAP net loss of $48.6 million or $1.57 per share in the year-ago period.
• Adjusted EBITDA increased to $12.0 million compared with a loss of $14.1 million in 2022 (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Adjusted diluted EPS was $0.35 compared with a loss of $0.45 in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Generated full year positive GAAP cash flow from operations of $8.8 million, as compared with negative cash flow from operations in 2022 of $22.9 million.

Fourth Quarter Key Performance Metrics

Financial Guidance

For the first quarter of 2024, the Company expects:

• Revenue to be between $42 million and $43 million.
• Adjusted EBITDA to be between $1 million and $2 million.
• Cash-basis adjusted EBITDA (adjusted EBITDA including the increase in Deferred Revenue from multi-month, prepaid subscriptions primarily from our weight management program) is expected to be between $5 million and $6 million.

For the full year 2024, the Company expects:

• Revenue to be at least $200 million reflecting performance to date in our GLP-1 weight management program exceeding previous guidance, raised from previous guidance of $195 million to $205 million.
• Adjusted EBITDA guidance of between $18 million and $22 million, consistent with previous guidance.

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 and women's health, weight management, and hormone therapy. The Company leverages a vertically-integrated, proprietary digital care platform, a 50-state affiliated medical group, and a U.S.-based patient care center to increase access to high-quality and affordable care. For more information, please visit ir.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
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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.