LifeMD (LFMD) 8 Nov 232023 Q3 Earnings call transcript

Good afternoon. Thank you for joining us today to discuss the results for LifeMD's Third Quarter Ended September 30, 2023.

Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer; and Marc Benathen, Chief Financial Officer of LifeMD.

Following management's prepared remarks, we will open the call for a question-and-answer session.Before we begin, I'd like to remind everyone that during this call, the company will make a number of forward-looking statements which are subject to numerous risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties are described in the company's 10-K and 10-Q filings and within other filings that LifeMD may have with the SEC from time to time.

this company based X, as during available current XXXX. made the to of statements call on are information Forward-looking today, November forward-looking that note performance. that The or will evaluating be except obligation LifeMD's no non-GAAP management believes required statements financial are certain any in measures as please company call, company after law.Also, to by discussing today's the assumes revise update important measures found to reconciliations Details the the comparable these on the earlier and be relationship GAAP issued thereof release non-GAAP can in between press measures most today.

and Schreiber. today's turn Finally, to be I'd Please go everyone the the remind replay like of Investor Justin like I'd the for ahead. to call call company's that is Relations website.Now section over being recorded to available in CEO will LifeMD's

market at good issued with third had results and quarter Thank afternoon, we release our presentation the corporate ir.LifeMD.com. and record website updated revenue After everyone. on third close, announcing and our LifeMD posted quarter profitability. press a tremendous you a an

Our in business GLP-X businesses, both quarter's short growth our business period, our nothing extremely the by growing men's offering.Our our far management Virtual of performance the surpassing our strong brand, third rapidly exceptional, health led results of core by margin RexMD, healthcare Primary led in revenue lifestyle versus grew quarter. Care results, ago with produced been of XX% with weight RexMD telehealth year operations and over The business our management our net a XX% prior the has in projections. GLP-X quadrupling weight

our record-setting tremendous across the telehealth $XX uniquely on is the deliver we strategic WorkSimpli. in following believe excellent growth initiatives: attracted major than continue for ahead sustain our focus shareholders, remain already positioned largest million in is throughout businesses year has weight subscribers, QX and patient a revenue. laser to Since XXXX the management management XX,XXX to annual value year.To is on year Looking recurring of just our continued program. ahead of this to LifeMD experienced beyond, the LifeMD program for build accelerating launching be initiative the upon we've QX weight to year, our but focused with more positioned over representing I our X success and first, not of

weight Even accept as we offering; insurance X acquisition the the adults substantial from program. our X, loss growth options new including we of I day this moment; XXXX, about growth in today making are of spend brand X, for beginning LifeMD of BXB tremendous works.Second, this to return that growth of GLP-X consistently further therapeutic our remain progress and growth on the volume, including X, in weight scale business exceeding with continued to partnerships class, of on commercial ad and programs, our we focused in Moreover, economics in liraglutide availability offering's daily insurance for Xx. government expanded XXXX the better management likely in and drug Mounjaro several medications; approval, into FDA generic GLP-X of which medications X, with coverage and in expansion within which a already tailwinds recognition accelerate anticipate our enterprise speak obesity; channels happened remain will

our ASCEND telehealth additional generates not medical fees cutting-edge all-important relationship BXB agreement its and make our in ASCEND which quarter, our only a allows in pipeline, with IQVIA's Therapeutics, to opportunities With partnership affiliated with we execute sales near with comprehensive patient-provider solutions. LifeMD's a progress leverage in platform, executed women's As leading medical data and telehealth the capabilities, group. robust we places to This and enrolling marketing affiliated continue to expertise have commercialization executed also agreement markets, the in will group made LifeMD, and in joint products. marketing insurance announced infrastructure but also ongoing significant third for health during an to commercial a leveraging IQVIA, the within we hormonal leader healthcare future.Third, expect we LifeMD support plans. the

We throughout expect to bill out consult QX, our and we'll rolling be first coverage in nationwide XXXX.

retention. insurance big commercial our cost be significantly it our overall driver becomes As services the to of embedded within to expect more offerings, satisfaction a and out-of-pocket our patient lower patients to we and of

and industry-leading believe we patients participation for and being to an will in sense and for our initiative soon leg we significant Medicare by on to led business. it drive growth for is government prepared this compliance makes already Additionally, participation double-digit infrastructure lifestyle launch We that have margins business as begun and healthcare continued scale our building our our anticipate as another fuel key focus net exceeding where of with LifeMD.And growth programs XX%. RexMD commercial insurance fourth continue

languages business WorkSimpli PDF including and business, business in additional operates profitable hormone see in globally base this deliver slowing. shows AI HR WorkSimpli forms, LifeMD's to solutions we both ones signs the through penetration plans and small negligible the services successfully total to and to and XXXX, today. diversified signing, once health profitability of cash of customer bottom top replacement cardiovascular results management, to diversified health.Lastly, profitability opportunities introduction markets adjacent of approximately lines. This workplace exceptional XX% new and of a increased men's therapy, and now continues highly be to WorkSimpli Moreover, XXXX. flow. business further its digital has on geared subscriber has toward weight Our enter XX products, from no In growth meaningful a self-managed complementary including business is technology, continues solutions, to overall the sexual proprietary and expand rate a to contributor

our provide of XX% short, financial Marc and margins We to EBITDA summary really XX%.In in over CFO, results. turn in growth who approximately annual I'll the Marc. expect call WorkSimpli will with least a with exciting XXXX our to at of generate we're Benathen, adjusted spot that a

million afternoon, quarter growing good consolidated bottom and record had and third adjusted EBITDA Justin, $XX.X to revenues and with consolidated you, on LifeMD everyone. $X.X the performance growing both top Thank million. net to line

ended cash we operating second $XX with positive flow. cash the Additionally, million and our consecutive quarter of in quarter over

We growth our turning a and profitability to well-capitalized in for upon are XXXX. execute the aggressive third plans.Now to of position results to continue the quarter

million third a number interest, loss XXXX. quarter Total expenses, diluted revenue increasing of weight quarter and X% excludes compares $X.X gross mentioned, XX% management totaled amortization I EBITDA to common the flat and record $XX.X up EPS a stockholders to same strong a share noncontrolling profitability the business. $XXX,XXX period M&A $X.XX increase ago included in third the transaction of share, active compares Adjusted compared an per ago loss readiness, grew telehealth with basis to versus million year points year. Net totaled as quarter. or of ago and same a stock-based the GAAP $X.X of X% equivalents measure, operating XXX,XXX loss ago of care is the XX% XX%, XX% financial loss of litigation noted of per our period. from increases our of quarter non-GAAP million, third $X.XX a versus growth current second investments, strength XXXX believe that a measure subscribers totaled year $X.X a were ago quarter XXXX. these to in $X.XX the expenses expenses period.Operating reflecting than expenses.Our support of noncash over quadrupled sheet of third to the with up translation. and expense, $XX.X adequately period our increasing in for of revenues telehealth year associated SOX more for $XX.X and of noncash allow with As from quarter rapid attributable adjusted the $X.XX versus remained depreciation EPS EPS, the with year revenues the insurance marketing, interest, same share Adjusted excludes million sequentially. loss in compared $X.X $X.X business XXXX. quarter expenses common per than the I over GAAP totaled XX, XX% prior very ago and increase Adjusted the share. for more prior and XXX that the items currency Reflecting million, financing Net versus active weight third to million in noncash This a third net non-GAAP offering. $XX.X for patient dividends, and September will for the us the operations our adjusted of to Gross million, EBITDA, We of ago quarter.Cash those clinical, year approximately was the subscribers foreign expenses expenses third Consolidated margin adjustments, loss per same financial the acceptance stockholders quarter comp, attributable growth our an was balance discretionary the cash period. totaled Subscriber fund a and year versus quarter. increase both in WorkSimpli net an period. year expenses, a costs, XXX,XXX, of This or growth year in third our in with an XX% versus year the profit Operating quarter of period, of totaled for the selling, of million, quarter management million, the

For to estimated range. related disclosed amortization and million revenue adjusted subscription specifically, XXXX, resulting More revenue turn results. like of of of midpoint the we period.This between over now the $XX million, impact initial amounts EBITDA of and approximately I'd wraps financial revenue and the to $XXX between expect management million, Justin. our our $X deferred up including call their time fully-paid GAAP-required million to to achieve over previously from back $XX weight $XXX the million

Marc. Thanks,

our I conclude ahead. to moment we journey path reflect to and As take today's the on a call, want

constantly continued by our platform, quarter rapidly-growing success Over exceptional XX group stressed efforts. Primary At RexMD telehealth past guided have business. technology that years, a and achievements third and our our Care the our our technology validate medical believe the powers best-in-class I Virtual an state-affiliated heart I commitment to platform. our few building is telehealth purpose-built of

has forecasts, getting our management we're of started. all weight Our offering in particular exceeded and GLP-X just

strength. Looking ahead, we're of in position a

partnerships, BXB impressive ongoing more planned the we and our expect of WorkSimpli businesses our results. even deliver to With success

we I maintain not call to Q&A. and that, it.With our to As ability our XXXX, to like but would finish accelerate am I momentum, enter in confident the prepare this open to only quarter for

Cantor Instructions] first Our David, you Fitzgerald. James with are question from [Operator Sarah there? comes

Yes, now. I can hear you

weight your on hear I a you I'm Did program and were correctly XX,XXX I you, a million you EBITDA. saying annual trend great $XX me, quarter, for you're here. Congratulations yes, hear didn't in calling management at If but great revenue that with lives? for

Yes, quoted. so to at we're currently month lives that $XXX about the about a the XX,XXX-plus you $XX-ish get is at where we pricing, that's million

expectations year, And that most not? Okay. heading for count people portion what your program Do and do to life into the are retain? next you then on expect or stay what

this is Yes, Marc.

follow and on, been plan guidance thus guidance year couple it's to we lives more and The again, by fulsome next months. very We of though, going will the number is next -- in the Board. we're of So the fully far giving early of within guidance significant that up giving growth has very next see approved expectation, year, for we're XXXX not the after full for again, anticipate next with seeing we're January XXXX year.

on management. after. weight XX%, optimistic folks early retention to model XX% very I retention, falloff coverage the After that, range due from copay. And people data staying there numbers days, in XX% very is seeing talked of on, insurance the a we before the the but think of and the XX% as seeing built Again, as with to place. in about the we're far may we recall within We're high entirely around to little As of are cost XX very really original program we've of calls, earlier retention. pessimistic initial is the strong about which extremely first bit

way retention considerable in some be expect if we that could out seen we've there play to continues coming years. early So the on, the upside

some Just Okay. maybe margins you if thoughts of come and think you Will off-patent? And when talk your that various the then from pricing these happens? about that for products? any there? benefit will can When do

a the use patent. our Justin. Sure. now $XXX with December. for That's our being do David. off is around coming everything affiliated that a this We -- I We're discounting think charge a comes have right to access with charging patient receive it's happening to and month first GLP-X of right that patients LifeMD. now nice platform, providers, in

supply So manufacturer by a liraglutide. with of we generic expect the have to in place agreement QX

category. refunding help controversial, we continues and cost will to year, this end because I I'm think also that to optimistic be right but issues.I'm of X/X next know throughout patients that I of pressure optimistic, up Mounjaro saw price of and today, month within Even away that now access reduce very $X,XXX that saw for we thinking to is there a that downward some And was around there's weight Lilly's we management. they expect the a coupon. discount GLP-X prices on what approval well, XX% that Eli and with that, right

Medicare contracting over country. that down process the going through think come these private drugs. being or we're on for will or plans time us prices enable the quarterly and We major LifeMD patients also services. to So network across medications eventually lower to that is going when covers are optimistic of price our think we Medicare, that us the is also to a that with going with insurance of monthly enable treatment, this insurance,

yes, covered So U.S., price think more companies us of diet term, down. these the expect for by the throughout getting of as we And and help to with coverage large, and longer before, some we we're approved their working very those we've partnerships biggest also that very, medications. side some will some mentioned patients come companies insurance and the on also the

people So offering. on ultimately complete the that in results less spending

are sort use health to weight you CGMs? to GLP-Xs would program to thoughts right your it or traditional in call could then do now? with what like to if the So from your products introduce be in Do more, them do wanted a to they partnership transition a with on we'll And you have have of, those management over place a program, And a able members a you members? then And that? place Nutrisystem coaching? your just Medifast

Sure.

did regards We're with about now, any weren't talked haven't previously So of Medifast that with. we public. any companies companies, prominent said -- plan, partnership medications. publicly LifeMD offers companies. that essential and companies we've very diet as we've these these announce with a of we or transformational -- a with and with programs access that on that to excited working health we've I right about we diet I'm pilot food with also plan, Nutrisystem, And partnerships to are a done expect X of it's nationwide although GLP-X X wellness programs these announced think pilot other along to

is also throughout on, it's which offer nutritional else we that pilot working Medifast. I has think interesting important States. coaching with an and coaching we the also did is Medifast we're advice, the amazing network that which that something in United

thing we're something that at So looking solutions. about the potentially that think down really that's is we're road.I the other technology excited

eating, that of track eating health. So properly, their their them hold I would are and can patients platform, in-license, different that we think to would maximizing that bolt lot metabolic there solutions a our technology existing technology onto help that accountable

as I about the CGM well. excited early the devices, we stages also the that incorporate our think that Also front, manufacturers we'll are to over of leading on very into time, CGM some talking offering. of that's in I'm of So something and

Our James next Fitzgerald. with Sarah question comes Cantor from

Apologies for earlier.

and about from to your staff's management staff? get perspective, you pacing, an that do now. like time wanted thinking then How the pipeline where weight care? And you're of recruitment is think understanding I of ROI a right primary about clinical bit So how between on little allocating just bringing an

proud is this our lot in We've the spoken reputation we has Justin. of medical industry. that built That's question. how are the group good a affiliated Sarah, a about

interest for when amount of LifeMD. enormous working an comes to it have We

said couple we of going well. I've over the our result of growth That's have not the at the couple providers onboarding the a offering. to concerned weeks. all. that XXX medical I'm resumes GLP-X X in scaled to weight come next have we've think as management We're in over XXX X another process of before, I of last months as the group very

providers I with next XX And and months. extremely also do not to have the all probably concerned picky we're to with about think at our onboard to the interact allow providers that I'll that. And XX we're X LifeMD going to ability we over treat least patients. at to I'm mention,

to recruit So when the to I providers, we're out say be we're able it to going recruit to be going always means best providers able there.

in some And I'm movement going certain front New if conversations then in it's be positive GLP-X volumes my in be wondering through the in early. and in York, states, acquiring your to California Democratic there like and regulatory of that in or too flow could payers, business around seeing coverage that the New seems you're if on with any coverage. for York, California

I think early. it's too

coverage struggling Our still in issues these neighborhood with having medications. -- patients to still Patients still them issues. supply there's There's are oftentimes for are pharmacies. find

So I'm But those not at initiatives. we're, with of course, all that LifeMD. familiar for legislative

how we impacted day, long-term One find long-term on But are understand positive, by highly of these about based last outcomes I that all many not people's seeing the is it's we're positively months, very XX And things it pronounced, see firsthand, going all every from over medications. interesting outcomes. we've therapies. lives to what see day, being I unlikely the been these

any going Care? and on Shapiro Any businesses update if And guys last between on Primary Can give there? you I update question, efforts and like legacy could. the that the Rex you us cross-selling your have

today. management cross that portal. offering RexMD we're #X is numbers patients to the weight specific have member in you I don't share service their is I sold that prepared to that the any can tell

to to is that numbers I Sarah. we this I'm don't But have that share And dramatically successful. expect in So specific accelerate. prepared that's something really any today, been XXXX

Chen Wainwright. Yi from H.C. comes question with next Our

second ] quadrupled that's the Do primarily do of LifeMD? this more weight offerings you at offer that's combination versus management product because available of some the your competitors because there's revenue So or think quarter. unique not [ than

There offering telehealth are this a lot of providers companies, product. other

So for no, I reason that's don't our success. think the

LifeMD because their already out I that the or amazing in, because recognize; very, a high and efficacy. great from patients at access that think for on We're that a a patients brand and to drugs job demand friend of heard more more very a medication. that there them we're people I us strong coming there's these X, are that's across I very helping seeing has country think about doing And bringing think LifeMD, care. family member they

competitive think I extremely think there, job great I at we do it's an So doing environment we're out best. but doing a what

believe the weight grow revenue forward? you sequentially potential every twice, to management Xx has or quarter Xx going the Do

get to revenue future. Yes, this is Is end quarter weight potential Marc. single grow going bigger, The every the forward quadruple it No, quarter? completely number. insane the has the numbers obviously, a substantially single for you as going foreseeable management extremely to up with would every

However, next the see I it don't guidance any do versus very the heightened signs in expect weight all year revenue expect factored we But so the for of I slowing growth growth, see down. XXX% do we see more to quarter the this sequential XXXX. management than to in year. of XXXX more And into This provide quarter. will be that on in next doubling than quarter beginning

fact, to business matter continues a accelerate. As the of

keep to throughout intend XXXX? you Do question. last And WorkSimpli

options evaluating We're for WorkSimpli. all Marc. is this Yes,

at determinations. value company, point, any to some to generating will business of did business, a amount lot a final the we shareholders. year, next our substantial of we and a exit we returning exit significant If expect We obviously haven't it for the and back be cash made exit, the

to we be but do no exploring, made beneficial we're it final have that determinations shareholders. But substantially been expect to Something yet.

next Riley. with Our from is Chatterji Neil B. question

Congratulations a This is thanks great for for Brandon Neil. on our Carney quarter and taking on questions.

loss growth how the new Just the Zepbound of accelerate with to weight of ask could on I today, the start, business. maybe maybe approval some GLP-X addition color potential options for the

is I'll Sure. that. Justin. This answer

offering to I have think options weight more their be. patients affiliated to is going the the more providers our that objectives, comprehensive the better loss that help and achieve

all So help these approvals us.

well. in class to help this are patients be Liraglutide working some also way the their through drugs to The for are that going as other is going us. an FDA option

very this certainly helpful. is So stuff

and being more for the though, to to covered think then thing. ultimately Affordability drugs is I being helpful, off what's insurance shortage is them available end these the going list, coming by patients, like being them plans. up #X accessible patients,

And then just the back guess I retention question. going to

the So down wondering first just strategies or things you that to was if just like XX% like number mentioned that talking you down if think that you're mitigation the going XX% I days. what off into in push drop number. XX pushing any there's about will naturally just

and they've it, about we number it's everything they is what are of for to find qualify or cost can. heard the family that's and doing patients a have a not because there's GLP-X, that The going most these read drug. on patients about it, friend article program their those they or is signing the they if We're $X,XXX cover insurance want. in a they reality for member an don't a news well up coming this or out month, heard or they as them of going And that to because

to on we very that's strongly adhere these So medications. label the

don't a at the medications. affiliated a that medications XX LifeMD prescribe are them have them. and will BMI BMI, not X that prescribe under are XX that the provider to comorbidity, patients we least XX Obviously, between So patients not will

on formally be LifeMD are to be just the until careful, we abundance Medicare very medication So don't of have caution or that to our are XX% doesn't able program. number, it's an that Medicare afford patients there not are and treat medication. coverage age, like There's so out in Medicare prescribe some to of only patients age or patients the also turn that for that not of

can those see of and the happens find out order actually sign patients end even even offer will that But refunded.So numerous patients goal a when up they on what we're incredible won't these the it's those focused more X/X to we a to LifeMD are number, A as are at then there of platform, check other And provider, we a people for them people bit. are what think to interacting technology lot least and the sign we're we refunded. with a come lot And though that the up a do on mix. one care sign are those of on number all that for therapy. of keep there let patients can now of our X/X we our up how actually little weight. affiliate that's just things most of we XX% then That their after obviously providers, using patients those team. reasons So do X/X doing that a really our And keep birth their I technology, of right everything on in how offer, program, and focused is And focused people what people ID change why reach years. up. also we're on we down date their

last the expecting And how just commercial one the XX expansion by end programs maybe year? outlook states for year? the still you of And does look insurance the X next on in further launch. Are

We of these majority a would we're little place and have month. by schedule. active this thought we in bit the So plans behind

the all states we end I XX plans with think by in of will year. major that the be contracted

process. think the from learned coverage probably those lot initial broad it's it's we And probably across -- to I states. this until a think XX going going up to take we've being have us I end QX

us I expand lot first XX the So program it throughout rest the the plans get do in taken states. as a we can the think to it's country, quicker in than place of we these

call I'd Justin question-and-answer closing now back We have the to end Schreiber for like of comments. to the turn reached over the session.

you financial We in Thank to our LifeMD. good speaking your once XXXX. we Have interest report with in again a March questions results when for evening. and for year-end you your look forward

conference. This concludes today's

disconnect thank this lines at your your time, may for and participation. You you we