LifeMD’s Earnings Call: Positive Growth and Strategic Expansion

Lifemd, Inc. ((LFMD)) has held its Q1 earnings call. Read on for the main highlights of the call.

LifeMD’s recent earnings call exuded a positive sentiment, underscored by robust revenue growth in its Telehealth segment, strategic partnerships, and expansion into new areas. The company celebrated its first-ever positive GAAP net income and has raised its financial guidance for the year. While there were some minor setbacks, such as a decline in WorkSimpli subscribers and a decrease in gross margin, the company’s achievements significantly overshadowed these challenges.

Core Telehealth Revenue Growth

LifeMD’s core Telehealth business experienced an impressive 70% year-over-year revenue growth, primarily driven by its weight management program. This surge in revenue helped the company achieve an adjusted EBITDA of $5.3 million, a remarkable turnaround from a $1.3 million loss in the previous year.

Strategic Expansion and Collaborations

The company has forged strategic collaborations with LillyDirect and NovoCare to enhance access to GLP-1 medications for weight management patients. These partnerships are expected to strengthen LifeMD’s competitive position in the virtual obesity care market.

Positive GAAP Net Income

For the first time, LifeMD reported a GAAP net income of $608,000 for the first quarter, a significant improvement from a $7.5 million loss in the previous year. This milestone marks a pivotal moment in the company’s financial journey.

Growth in Subscriber Base

LifeMD’s Telehealth subscriber base grew by 22% year-over-year, reaching over 290,000 subscribers. This growth indicates strong customer retention and acquisition efforts.

RexMD Brand Performance

The RexMD brand continues to thrive, with notable growth in revenue and active patient count, particularly in new verticals such as hormone replacement therapy.

Expansion into New Verticals

LifeMD is venturing into high-growth areas like women’s health and behavioral health. These expansions are expected to diversify revenue streams and contribute to long-term profitability.

Increased Financial Guidance

LifeMD has raised its financial guidance for 2025, projecting total revenues between $268 million and $275 million. The Telehealth segment alone is expected to generate between $208 million and $213 million. The company also anticipates a consolidated adjusted EBITDA between $31 million and $33 million, reflecting strong business performance.

Decline in WorkSimpli Subscribers

Despite a 5% decline in WorkSimpli active subscribers to 158,000, the segment continues to perform well financially, indicating resilience in its operations.

Gross Margin Decline

The gross margin for the first quarter was 86.8%, a decline of 270 basis points from the previous year. This decrease was attributed to changes in revenue mix and temporary changes in pharmacy mix.

Forward-Looking Guidance

LifeMD’s forward-looking guidance remains optimistic, with an upward revision in its financial projections for 2025. The company expects total revenues to range between $268 million and $275 million, with significant contributions from the Telehealth segment. Adjusted EBITDA is projected to fall between $31 million and $33 million, underscoring the company’s confidence in its strategic initiatives and growth potential.

In summary, LifeMD’s earnings call highlighted a positive trajectory for the company, driven by substantial growth in its Telehealth segment and strategic expansions. The achievement of positive GAAP net income and increased financial guidance further reinforce the company’s strong position in the market. While there are minor challenges, the overall sentiment and key takeaways from the call suggest a promising outlook for LifeMD.