• Revenue increased 41% year-over-year to $50.7 million with telehealth revenue up 67%
• Telehealth achieved standalone profitability one quarter ahead of guidance, with adjusted EBITDA of $820,000
• Weight management subscribers exceeded 60,000 as of June 30, 2024
• Adjusted EBITDA increased 44% to $2.5 million
• Cash of $35.7 million as of June 30, 2024, and positive net cash flow in three of the last four quarters
• Conference call begins at 4:30 p.m. Eastern time today

NEW YORK, Aug. 07, 2024 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care services, today reported financial results for the three and six months ended June 30, 2024.

Management Commentary

“LifeMD’s core telehealth business had a very strong quarter, led by continued outperformance in our GLP-1 weight management offering. Telehealth revenue increased 67% over the prior year and our patient subscriber base grew to approximately 254,000 by quarter end. Importantly, our telehealth business became profitable on an adjusted EBITDA basis, one quarter ahead of guidance,” said Justin Schreiber, Chairman and CEO of LifeMD. “The demand we continue to generate for our virtual care services and pharmacy offerings is indicative of the significant market opportunity that exists for the convenient and affordable access to high-quality healthcare our telehealth platform and affiliated medical group offers. What we continue to demonstrate, quarter over quarter, is that we have a sustainable and now profitable business that is well positioned to leverage the transformational shift that is occurring in how consumers access healthcare.”

“WorkSimpli’s performance during the quarter was pressured by an unexpectedly challenging advertising environment for its products and executional issues, which have since been addressed by their leadership. Based on its current operational performance and following recent strategic efforts, we expect WorkSimpli’s financial results to improve in the second half of the year, and to return to peak profitability by year-end 2024 on a monthly run-rate basis with significant growth in 2025. While we remain confident in our ability to monetize this non-core asset, we expect our core telehealth business will be the driving force of long-term growth in revenue and profitability,” he added.

“We are extremely pleased with the performance of our telehealth business, which led to positive net cash flow for LifeMD on a consolidated basis. On a standalone basis, this business posted cash flow from operations of approximately $3 million for the quarter and generated positive adjusted EBITDA,” commented Marc Benathen, Chief Financial Officer of LifeMD. “Our core telehealth business’ performance continues to be ahead of expectations and, as such, we are raising our 2024 telehealth revenue guidance to $150 million from $140 million previously and are introducing adjusted EBITDA guidance for telehealth of $3 to $4 million, both ahead of previous expectations. Despite the outperformance of telehealth, due to WorkSimpli’s first half results we are revising 2024 consolidated adjusted EBITDA guidance to $13 million to $15 million, with no change to consolidated revenue guidance. We remain bullish on the consolidated business led by our core telehealth platform, which remains well positioned as the long-term growth driver.”

Second Quarter Financial Highlights

• Revenue increased 41% year-over-year to $50.7 million with telehealth revenue up 67% versus the year-ago period.
• Telehealth active subscribers increased 32% over the year-ago period to approximately 254,000 at quarter-end.
• WorkSimpli active subscribers declined 8% versus the year-ago period driven by softness in first half 2024 customer acquisition.
• Weight management revenue grew 82% versus the first quarter of 2024.
• Gross margin expanded to 90%, up from 87% in the year-ago period.
• GAAP net loss was $7.7 million or $0.19 per share, compared with GAAP net loss of $7.5 million or $0.23 per share in the year-ago period.
• Adjusted EBITDA was $2.5 million compared with $1.7 million in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Telehealth achieved adjusted EBITDA of $820,000, reaching profitability one quarter ahead of guidance (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Adjusted diluted EPS was $0.06 compared with $0.05 in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Cash and cash equivalents were $35.7 million as of June 30, 2024.

Second Quarter Key Performance Metrics

Financial Guidance

For the third quarter of 2024, the Company expects:

• Revenue of $53 million to $54 million, with telehealth revenue of $39.5 million to $40.5 million and WorkSimpli revenue of approximately $13.5 million.
• Adjusted EBITDA of $3.0 million to $4.0 million, with telehealth adjusted EBITDA of $500,000 to $1.5 million and WorkSimpli adjusted EBITDA of approximately $2.5 million.

For the full year 2024, the Company expects:

• Revenue of at least $205 million, unchanged from previous guidance, with telehealth revenue guidance increasing to $150 million from $140 million and WorkSimpli revenue guidance decreasing to $55 million from $65 million.
• Adjusted EBITDA of $13 million to $15 million, from $18 million to $22 million previously, with telehealth adjusted EBITDA of $3 million to $4 million and WorkSimpli adjusted EBITDA of $10 million to $11 million. This revised guidance is solely due to lower-than-expected customer acquisition at WorkSimpli, with telehealth outperforming previous expectations.

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 live and archived 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, access to 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 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, Chief Financial Officer
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Media Contact
Jessica Friedeman, Chief Marketing Officer
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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, cash-adjusted EBITDA and adjusted EPS as non-GAAP financial measures to clarify and enhance an understanding of past performance. Additionally, we report telehealth adjusted EBITDA as a non-GAAP financial measure to clarify the financial performance of our core telehealth business excluding WorkSimpli. 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.

Cash adjusted EBITDA is defined as adjusted EBITDA before the change in the Company's deferred revenue balance. We have provided below a reconciliation of cash adjusted EBITDA to adjusted EBITDA.

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.

Telehealth adjusted EBITDA is defined as adjusted EBITDA for the telehealth business excluding WorkSimpli. We have provided below a reconciliation of telehealth adjusted EBITDA to net loss attributable to common shareholders solely related to the telehealth business excluding WorkSimpli.

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, cash adjusted EBITDA, telehealth 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.