• Total revenues increased 38% year-over-year to $53.4 million with telehealth revenue up 65%
• Record gross margin of 90.6%, up 300 basis points from the year-ago period
• Adjusted EBITDA increased 33% to $3.7 million
• Telehealth adjusted EBITDA of $2.5 million, a 200% sequential increase versus the second quarter
• Cash of $37.6 million as of September 30, 2024
• Generated $6.2 million of cash flow from operations in the third quarter and positive net cash flow in each of the last four quarters
• Conference call begins at 4:30 p.m. Eastern time today

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

Management Commentary

“LifeMD’s core telehealth business had another very strong quarter, led by outperformance in both our Rex^® MD and virtual primary care verticals. We not only are very pleased with our tremendous growth rate, but also with the exponential increase in sequential profitability of our telehealth business,” said Justin Schreiber, Chairman and CEO of LifeMD. “As we pursue our vision to become the leading provider of direct-to-consumer virtual healthcare services, we continue to make significant investments in our technology platform, affiliated medical group and differentiated products that help patients live healthier and happier lives. In the third quarter, we launched in-home laboratory services, a safe and efficacious non-GLP-1 weight management therapy, and our men’s hormonal therapy offering under our Rex MD brand. We also made progress with our 6S Framework wellness program, including the launch of a 50-state nutrition counseling program. I am particularly excited about the recent opening of our national, vertically integrated pharmacy, which will be accretive in 2025 and enables LifeMD to become a fully integrated, end-to-end provider of virtual healthcare services. These advancements continue to underscore our commitment to virtual healthcare market leadership across a range of categories and capabilities.”

“LifeMD had a strong quarter with top- and bottom-line growth led by our core telehealth business. Not only did this business achieve 65% year-over-year growth on a standalone basis and patient subscriber base grew to approximately 269,000 at quarter-end, but telehealth adjusted EBITDA increased 200% sequentially to $2.5 million. Although WorkSimpli’s financial results continued to be pressured, the business returned to sequential subscriber growth and is still forecasted to reach peak monthly profitability by year-end,” commented Marc Benathen, Chief Financial Officer of LifeMD. “Cash flow continued to increase and remained exceptionally strong. For the third quarter, LifeMD generated over $6 million of operating cash flow and bolstered its cash balance by approximately $2 million to $37.6 million as of September 30^th. Our strong unit economics, consistent cash flow generation and strengthened balance sheet continue to support our ability to optimize our corporate investment needs.”

Third Quarter Financial Highlights

All comparisons are with the third quarter of 2023.

• Total revenues increased 38% to $53.4 million with telehealth revenue up 65%.
• Telehealth active subscribers increased 30% to approximately 269,000 at quarter-end.
• WorkSimpli active subscribers decreased 6% to approximately 161,000 at quarter-end but grew sequentially by approximately 2,000 subscribers.
• Gross margin expanded to 90.6%, up from 87.6%.
• GAAP net loss was $5.9 million or $0.14 per share, compared with $6.9 million or $0.20 per share.
• Adjusted EBITDA was $3.7 million compared with $2.8 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• The telehealth business achieved adjusted EBITDA profitability of $2.5 million compared with a loss of $2.3 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Adjusted diluted EPS was $0.09 compared with $0.08 (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Cash and cash equivalents were $37.6 million as of September 30, 2024.

Third Quarter Key Performance Metrics

Financial Guidance

For the fourth quarter of 2024, the Company expects:

• Total revenues in the range of $57 million to $58 million, with telehealth revenue in the range of $43 million to $44 million and WorkSimpli revenue of approximately $14 million.
• Adjusted EBITDA in the range of $6.5 million to $7.0 million, with telehealth adjusted EBITDA in the range of $4.0 million to $4.5 million.

For the full year 2024, the Company expects:

• Total revenues of at least $205 million, unchanged from previous guidance, with telehealth revenue guidance increased to a range of $151 million to $152 million, from $150 million previously, and WorkSimpli revenue guidance decreased to $54 million, from $55 million previously.
• Adjusted EBITDA narrowed to a range of $13 million to $14 million, from $13 million to $15 million previously, with telehealth adjusted EBITDA guidance increased to a range of $6 million to $7 million, from $3 million to $4 million previously.

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, a 22,500-square-foot affiliated pharmacy, 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 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 and reserve adjustments on discontinued products, extraordinary 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 and reserve adjustments on discontinued products, extraordinary 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 Company’s core telehealth business excluding WorkSimpli, LifeMD’s majority owned subsidiary. WorkSimpli does not have any overlap of revenues nor expenses with LifeMD’s telehealth business.

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. Telehealth adjusted EBITDA is specifically relevant to LifeMD to provide shareholders a comparable measure of profitability for our core telehealth business without the impact of our majority owned, but separately managed non-core subsidiary, WorkSimpli. 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.