LifeMD (LFMD) 11 Mar 242023 Q4 Earnings call transcript

Good afternoon. Thank you for joining us today to discuss LifeMD's results for the fourth quarter and year ended December 31, 2023.

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

Following management's prepared remarks, we will open the call for a question-and-answer session.

numerous would company remind of to will which subject I this that forward-looking differ begin, that are the uncertainties projected. call, make to materially we from like actual everyone to during statements, may those Before cause and results risks a number in uncertainties time make and with SEC company's from XX-Q that filings These risks the filings may and and time. LifeMD to are described XX-K within other the

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

would like being Investor available section today's the call company's replay remind and will Finally, I be everyone recorded for the of Relations in to website. that is

CEO, turn call to like I'd Now Please over Justin to the go LifeMD's Schreiber. ahead.

where on a everyone. Thank we at our lot today, website Later letter. we headed. issued updated you, will our share shareholder as and market our the and well thoughts post afternoon, and results. presentation of year-end a on corporate fourth good I closed, After ir.lifemd.com journey press quarter our release an my as we're announcing

on read. everyone this to call So a give I it encourage

a for record-setting was year LifeMD. and With that said, XXXX tremendous

program sharply Catalyzing businesses the and become April the and the U.S. patient kind in one to of its profitability growth management of XXXX, our nationwide all Our was base GLP-X has subscriber grown which versus in weight XXXX. since increased launch of largest this revenue, fastest-growing

with XXXX subscribers, program the management we ahead weight of patients our over finished XX,XXX well patient XX,XXX fact, In to. active guided previously

have number weight we call, rapidly. today's that over of patients, and management growing XX,XXX As is

the as Medifast, In date foray coaching nutrition in the with market within a agreement one we our companies largest addition, in made diet, million when of we we U.S. included the to collaboration collaboration and largest to collaboration their announced executed business-to-business December, customers $XX XX,XXX and $XX and while and equity This providing fees investment our a of platform medical industry-leading coaches group. access affiliated with telehealth million Medifast's

direct-to-patient this validates believe differentiated I and platform of highly truly offering. transaction our telehealth the strength

led of its Rex business, by growth. consecutive had Healthcare MD, fourth revenue year Lifestyle Our double-digit annual

Beyond immensely the we've a to the of with XX%. be contribution consistently in profitable, continues finishing seen strong brand margin excess MD, Rex XXXX with growth

EBITDA pleased In revenue XX% and that start a am continued and and strong growth that addition, report works trajectory with growth its exceeding our I is remain year-over-year XXXX for to sustained XX%. profitability. well noncore positioned consistent growth subsidiary simply margins to we off

XXXX. for execution shareholders in X laser-focused performance continuing remain to long-term outstanding We our key deliver through and the of value objectives on

continue to rapid weight market. the loss growth GLP-X our expect we in First, supported

management as subscribers patient XX,XXX program nothing by over in earlier, year-end over And has stated weight from April XX,XXX today. XXXX As we our subscribers to active when XXXX. started grown of

days. be leveraging to management our our after our impressive to Our goals. weight comprehensive differentiated provide end-to-end retention Early is therapy their over who patients of for weight largely with primary tremendous on highly continue continues attributable to pace loss start to care results XX% growth, patients in therapy platform which care accelerate offering XX remaining service-based

net very spend with day remain Economics revenue for ad X these over exceeding strong groups patient Xx.

capacity. services to volumes continued groups operations, scale patient our and as While we medical, additional trend up acquisition have to appointment daily create

in investments well market outstrip technology significant as where make continues to in this the these to to platform supply. needs demand continue our areas of meet as We

on we the more while margins. XXXX, health has been and MD grown consistent contribution continuing our Since its launching through Rex largest this date, our telemedicine. Second, high in health brands maintaining growth become to focused MD's in market. to growth sexual mature in led one grow remain health double-digit has most lifestyle of trusted rates, To by largely care men's achieved men's Rex December business,

designed products capture to provide double-digit in to expect adjacent share market markets, REX cross-sell continued introducing patients. complementary while growth substantial opportunities We also in not this our existing new but only for

lives to deliver. be patients and LifeMD tend Over elevate serve product they share experience their we disposable of receive care growing XXX,XXX income, appreciate enhance investments the affiliated the operational in The ample well in providers. only quality to will we established and expansion are with market and REX our they making and from

private made we will Third, accept by medical group. for provided our services from significant in and have building and to payers government make continue reimbursement progress our medical infrastructure affiliated to

Over the we X group states the plans, are we enrolled medical of XX major spanning quarters, focused past initially have successfully health XX several our in on.

platform effort, As for have compliance support built part a out both best-in-class private have this Medicare significant payer program. to our and program enhancements of we made to and technology reimbursement this

weight outsized to our in delayed top a the While time being demand we us. had This business. on from are meeting line, resources initial initiative due our management priority we've largely remains for focused slightly

this XXXX. to middle expecting We are by now the of on turn

insurance demand this XX largest our to start offset We services our next largest with the for and to our to select to and care states accelerate service cost affiliated states over have allowing of will drive of virtual where and will their We believe in-home carriers those and we group that states expect our group all use retention. enrolled patients a the months. XX expand offering our better medical

drive this growing continuing margins. adjusted XXXX, initiative of focus $XX EBITDA sizable in a loss while delivering Our million in of XXXX. on a profit we key our In XXXX $XX million from to fourth profitability maintaining our our above XXXX to area, made levels in guidance is laser growth progress

operations in flow flow grew almost million to from negative XXXX from cash importantly, More of XXXX. operations $XX million $X in versus cash our

We our than yet, also balance ended cash. more strongest with million sheet $XX the year with of

expect profitable middle our we we January, and line substantially on top guided line stand-alone turning and a in results of focused both we XXXX, business remain bottom As by to basis our improve telehealth in XXXX. the on

mostly a results, financial Lastly, overall solutions XXXX business to XX%. workplace and into strong for some their EBITDA HR positive growth self-managed small profitability be with a and continues contributor to margins This WorkSimpli deliver adjusted and businesses. PDF and LifeMD's document services to has cash year-over-year diversified XX% meaningful pivoted flow. continues from business business WorkSimpli recently and offering consumers exceeding finishing

our Benathen, that, is turn, Marc? in excited margins. who results. to XXXX In revenue has produce business relative per growth in continued line that unit over so, slightly user of doing markets to CFO, a active has, the Marc but its which lot to And spend. doing declined there so, refocused marketing also improve, year-over-year, sizable and our the global has have shareholders. call supported for about and turn WorkSimpli's financial will provide subscriber economics a highest the and summary I'll In with bottom In efforts retention domestic ad be to their improving on short, count

$X Justin, and fourth These and line performance figures of you, good consolidated the had recognition million growing EBITDA top to and program both million on included quarter to the growing record paid LifeMD expenses. Medifast Thank $X.X less everyone. net related with of revenues by fees bottom afternoon, LifeMD $XX.X adjusted million.

aggressive with quarter operations nearly remain XXXX. and the cash versus execute in $XX history position in the ended and growth over profitability upon cash flow. . million $XX million negative are in cash In the was strongest We positive to positioned and plans. company's free we Additionally, well flow million XXXX, in from financial $X our

on strong least million. based the our to guidance at million start our the consolidated the year, performance GLP-X addition, of revenue business, are to in guidance $XXX $XXX led management $XXX million previous to by raising we weight from In

fourth results XXXX. for to of Now turning quarter the the

Subscriber weight strong I As period more remained revenues XX% versus while sequentially. our approximately XX% to ago and ago contracted XX% active fourth with net from increasing than with revenues subscribers the active management X% versus doubled Telehealth very XXX,XXX XXX,XXX same subscribers $XX.X in growth of ago period. telehealth XX% both quarter the business period. over an number compared Net WorkSimpli the mentioned, the year of totaled to grew year increase revenues sequentially. consolidated the million, year

of Weight margin the and prior As by revenue XX.X%, from of patient to period. versus gross guidance per active XX,XXX customer Management an continued $XX.X up subscribers XX% the increase profitability. materially Justin The refocus was over previous efforts for quarter XX,XXX to year-end thus as the subscribers our million, number XXXX Consolidated ago the and points XXX enhanced year fourth user the retention ahead mentioned, grew for of basis on year-end. period. of higher quarter profit totaled Gross generating value and WorkSimpli marketing markets, active of highest on year

depreciation year Operating expenses largely a increase for and versus care marking, selling, due ago an $X increase expenses million, to the fourth of million clinical period, in discretionary partnership the quarter million noncash $X.X patient in program, million the totaled the $XX.X and for of launch expenses Medifast compensation rapid management and support growth support and amortization. $X.X the weight to our to of stock-based expenses increase a

million Net of were up these only X% items, year-over-year. or operating expenses $X

loss in quarter expenses, measure XXXX. the readiness, net transaction stockholders of that for and foreign GAAP financial litigation, of interest, or share. or of a M&A, interest, financing, of net EPS GAAP loss a Adjusted excludes million non-GAAP million currency taxes, $X.X and translation. per stocks attributable attributable to noncontrolling common to is share per noncash $X.XX totaled to quarter Our costs acceptance, a common dividends, $X.XX fourth insurance stockholders fourth compares a This $XX.X loss the loss

quarter adjusted which Reflecting ago diluted the $X.X in is million of a items the adjusted same XXXX, I the million the This for quarter fourth year adjustments, year compares period. with quarter. same that was in for $X EBITDA, adjusted excludes non-GAAP fourth noted EBITDA same XXXX. totaled Adjusted compared the of $X.XX ago with EPS, financial those share of in per $X.XX EPS measure

for year an XX.X%, Telehealth up increase revenues basis were million, versus Consolidated grew to the million, XX% results turning Gross Now of revenues of XX%. for year, XX% WorkSimpli compared for was to the profit versus $XXX.X increase XXXX. prior XXXX. while points for the of XXXX. XXXX grew net margin full full the from totaled Gross the year XX% XXXX. XXX $XXX.X year an revenues

compared with $XX.X common loss non-GAAP stockholders was for adjusted $X.XX to adjusted the million per I items XXXX. EPS adjusted or a This quarter EPS a share XXXX mentioned to million December net Our EBITDA $XX.X loss of I totaled in financial the million per as $XX a $XX.X an of adjustments, XXXX in full XX, Reflecting as to $XX $X.XX compares or of of a This in common loss share the loss excludes GAAP in measure totaled compares net noted of year for XXXX. XXXX. per share. attributable that GAAP EBITDA, $X.XX XXXX. share with fourth The results, Adjusted stockholders million same attributable totaled for $X.XX loss in XXXX. a per of loss million same Cash

our between to we consolidated wraps results. the I'd like our of adjusted reaffirming net As million for financial to guidance revenues call million raising mentioned Justin. million. are our while guidance EBITDA at back and XXXX now over $XX turn to This up $XX least $XXX earlier,

Thanks, Marc.

path want our ahead. reflect up, As on and I to the so journey we wrap far

consistently we past telehealth shareholder. year to be are an XXXX is our than growth building greater I than ever value and will our building days to Over testament our we before. of a operationally, an exciting I've of achieved long-term commitment. stands of technologically. and this that best-in-class in Everything a This in early time stressed terms platform. commitment the our clinically the in technology shareholders. years, XXXX few still believe Financially, a are as execution Today, we We're stronger XXXX be for even and the growth, to

telehealth, of this The at fact the forefront days care revolution. of LifeMD is earliest is we're still in the health and

for dividends. is health building focus care Our patients an experience our incredible paying on

offerings. allowing industry-leading Our are expand medical our platform health us proprietary with and future group, our presence and seamlessly to affiliated care capabilities operational existing

the Our opportunity over outcomes and immense. health Thanks that build and years, work execution few more board us helps more people is a vision strategic makes that to is past the sense, across creates to helping our for system care for the lies better patients. ahead

and remain deliver quarter As and their With that, I year to in we our our us this open providers prepare to to ability in our trust us. to you believe on and shareholders advance for towards journey finish the and who who our beyond I employees this health, us XXXX, patients our healthier continue with future. thank who expectations for support I on to confident call our mission the a like Q&A. first would of joining

first Our David of Instructions] comes with [Operator question the line from BTIG. Larsen

also on the Congratulations over of weight It past sending Medifast seeing about periods returns day XXX terms just what time of maybe the bit quarter. sort maybe like members? relationship Can management talk that you and of more was in particular, XXX months, of bit been the sending X you are little if members to program you adding fantastic in have XXX increased with or a a them there And then you maybe a about understanding you little the talk where day. the this has could pace my them a onboarding. you're

the Just is make And that would and for of to around just any color then sure themselves pace platform clean great. ads any sort neat. in the on the be investments thoughts of the pricing drugs

has take Maybe to Yes. add. he'd some David, half your like Marc I'll first question. Justin. this is of comments

and Medifast live the First the more really We're talked to in kind said. happy got We on publicly all, collaboration to numbers of of not to we've specific regards of Medifast, letter about the detail. In as that release we're some that that just with website. going with pushed shareholder QX. progress

I our think you, the we're for and not that's exceeded ours. super of can . certainly But expectations theirs, rest I the year. their job, first We've about tell I quarter very the excited think, we're and the collaboration, happy. of

diet of today, think, first coaching just To of had your actually second program. that part question, their I up and be we signed couple patients to

a So get took therapy. infrastructure just But program that and there's for compliance place percentage of our to of will meaningful be all by that. the us the a while alongside that really think in patients helped the we

-- your weight second question scale loss relating the of the the to program. On

that Marc and XX over acquisitions over I averaging sharing the we've new last XXX are day. comfortable patient days, per been

extremely you tens we this the super other growth, patients excellent of tens patient we apply in of data to about chronic the learnings So said as it's our and in we bullish exciting for been infrastructure enhancements a it's we're technology bullish And month. it's continue when the this I our improvements on very, really, thousands business we're from mean the Also doing -- can what how as making, the in conditions this and remarks, new experience. think very we very all really large down making the we're as strong road. seeing said to platform. overall. and and just add we're for I mean

we pricing of that have for any management to really to patients memberships question changes still haven't purchasing weight a the On lot X-month made X- of pricing. We are program. yours, the --

XX-K patient why I we really we're board, I to that the for So the continue that's mean, It's in patients. scale the a today. that in and see pricing media on that to still X is we're just operates at We care provider off, kind there single on we because quality. teams, of the not think of had cheapest We're we've that the every but lot sync look brand know filed think amazing you'll of the Across I high-quality I there's at the delivering we platform. doing do. of of to patient not reasons that's there, that ourselves. demand see also our right? of focused the revenue that we at out that haven't but acquisition it's because that do the think only highest the platform deferred We're all. market. And out new we the LifeMD change visits paying built And

lot that lot getting have know we branded care everything branded not, therapy. on can know therapy access them friends getting them into get And to able compounding we people think a they plan them for medications. we're help just -- high-quality that of and doing pharmacies good have they're think a they're We treatment if LifeMD have high-quality great on prices they of that We're I are a a coverage these are delivering therapies. very referring until they're I insurance a to and

then look, some from we're we And they and demand right now question. or market you will seen the do the -- like one like, be? X-part One think when will you That's $X,XXX generic of see seeing month and pulls his pricing I've follow-up to enter around -- that And market in the are and first heard if my GLP-Xs generics view. have a And do very $X,XXX as my solid what into if oil cost of to the if will helpful. you comes launch a LifeMDs launch? the pricing investors for product look on in to the pushbacks is platform, continue think now, it sort back not, a generics "Hey,

improve you it you significantly what is themselves, be response Will So over X or headwind? your What do -- to years how think? impact tailwind a that? the pricing a will that your I guess of the sort Assuming think do does drugs for next platform?

a That's semaglutide generic Victoza. Yes. and of don't But the is the not a quite GLP-X of once-daily there, in to Well, generic a GLP-X you on have is same as first profile I tirzepatide. administered the version that questions first the think coming efficacy doesn't question, XXXX. That's again. with me number June have market of

So relationships we're the board, is if demand mean, have going for we're to certainly players the generic that. I certainly, there's and you're like certainly don't it. for see that deals offer know going space be much we well and across how be, to generic amazing and demand to in life We multiple just positioned going

making a -- just class infrastructure. have We're in prior that getting making intelligence to comes really, whole proof process. in number are of optimize big artificial it We're medications. companies that companies There of these prior a we're are using our -- really are when to the also best evaluating auth that of lot investments really auth prior auth now

So for not as a number talking the to as but use I'd we're love working are it's is this a participants a those as with the great we're yet, at But at LifeMD to going anybody word good -- patients. good anybody there. out And other with to out to as be working to companies. we're priority best, these auth's getting this. be major, for approved major but we're going prior be there are that else there of

be So though patients Even majority of of resort patients is one that, think and keep that's getting mind. the compounded now, to are to of thing right need not high-quality are a to not to therapy they're branded the because therapy in having that investors for LifeMD I a lot positioned. going a approved

government of employers them. to tag decide The price payers private justify with the second that drugs enough there's that long-term outcomes associated or these and

note. important thing to So that's an think I

oral question. that I As for an think There's to It's leads improve your into as drug. going and far the well kind compliance last of patients. -- really

going greater be drugs the going to therapies. of people demand lot these have efficacious. to A orally more are think administered You're for

infrastructure. of like solution. prior role demand others. rely going still platforms comprehensive there'll anything, not going going like you're If same to companies going going a more a you're for auth, to the change. and on virtual to We're to -- still care ours, be it's need the to prior auth be LifeMD We're need

You're still labs. going to need

a oral -- need it's going the need window. comes going to goes of you're not still onto that sudden, still like out therapy -- and an You're to the diet. all market all coaching,

LifeMD. everything the offer next think So we're investment think focused it I fits over I that actually years. changes the on couple perfectly with thesis And don't it of

comes the next B. Riley. Our William of from question Wood line with

Thank really year you questions. so much, and obviously, you overall. quarter a I great nice our And fully and taking appreciate

be be we on about of love fitting additional So first the question, you maybe the about little XX,XXX a get terms a the and how first of of far, makeup color there. bit your to so And how weight guidance, I think that. should on quarter little first million, quarter management in bit should million thinking $XX I'd $XX that the number, above sort in noting that

Yes. William, Marc. this is

starting fit more of XX% ramp in So created patient our all second the and in guidance, the our of and additional we've we've in the half quarter, so onboarding are as week obviously, a activity had and handle to new sales that mentioned the volumes does we February. of subscriptions second X-month first about into however, new clinical really our around before, patient as capacity appointments so teams or significant

amount of to see to going significant a that. deferred revenue We're related

first growth In the we we're a of Medifast in if by in add first could million revenue that end be net first increase you fees see out to the business contributes about the end back revenue the the $X forecasting $X and we're some It of deferred that. Medifast in fees higher end could the the than seeing the the $X potentially of of the million by versus Obviously, quarter of you it year. the fact, even of million quarter, quarter.

million growth. million would couple sequential $X You're be still to million number that. than it seeing $X be of would higher, materially That higher a dollars of

it or without deferred revenue. been would So million have $X million that $X

from meaningful very see those volumes. So numbers we've really acquisition started to

to X then obviously, deferred back of months. chunk come big have XX% subscriptions, and in the QX QX portion outside X-month with subscriptions to X going another of to months months. is Obviously, And a a X or us in that as the even revenue then amortized be it over

X the have about of subscription. XX% that are to only really XX% subs month you So

of for us revenue us lot creates back cash the in phenomenal deferred come to really obviously start a on it's basis, to going a that's to it quarter. So second

markets, that. it. your curious, just follow-up That also some Rex possibly strength you year-over-year, doubling there, I on double-digit very And continued Appreciate was noticed entering you mentioned little MD, add growth maybe color if could helpful. believe. the Got bit we on and a you wondering may was new of what with markets I offerings. when new and/or those expect offerings maybe can them. some be

biggest and the The thing on, an under HRT months. planning MD, coming offering we're launching is Rex focused we're William to in launch that

opinion We their some recently think the involved, they're people in gold have what therapy hormone some clinically. the position leaders to the a and kind become standard to replacement I that now space, in But we're this in gotten going is developing not of have right names. in world disclose of top

going to we with well really this I offerings more it's men's really into going reach part patients XXX,XXX And think interesting of as I to health that offering. MD. to that proprietary we're think population Rex have cater lot a this like stone stepping that's a patient be of

REX. that has about our very, for potential there. little But -- health I'm matured brand offerings So very, very sexual the on very we I to certainly add think that bit. new don't top optimistic of I'm and I think And a offerings excited some product exciting. need

offering shareholders, a really, job and but couple of is which So by course, a of efficacy also as months. and that live satisfaction getting right? it's noting have what on. retention, medical result in this I we're I'm great equals patient have earnings, these offerings next retention of that we're all launching equals and the about focused extremely -- retention high think And will really excited rates, expect for I the group, it worth high to

understand. then last, I one may. And if it. Got I

terms continuing maybe for might you're course the of your payer expecting be that. if your color insurance to on expand we increasing and any insurance, what In coverage over or year just expectations maybe? of curious the I'm there's

feel is not have specific that targeted. most, comfortable Justin do over broad very, we that certainly, all, again. -- releasing a not this of -- the I really states the I'm we're in mean William. very XX saying not we if of good quarters, about couple top will coverage next number. Yes, this I

We on are into investing also are roll planning -- that states, it XX plan we and out we're working and in already. to all also

I out with top the to started states worked going an to be enroll we've but important are a started this initiative states think we of these enroll that to that for -- much XX easier the subsequent look, lot -- that since with, we've is kinks we're us.

in into also X Medicare and the in state. another We got last X of couple weeks, Florida in several plans

as continues that like -- that to So evolve positively well.

to their to LifeMD it's like think see cost business great, year, And of remarks -- we're this that insurance So subsidize and, I numbers milestone their patients of this going I company. think is And out we have, the we the our start it's can to care. using think this going the is big look, tell and we're for something be putting by is doing as that but I internally. you put to a lot a resources into the

with Hallum. Craig question line Fuhrman Alex next from the of Our comes

a on management weight and year launch of program. strong Congratulations the really

are that out can related seems just if maybe Justin, lot how program about a a management management of patients the differentiate GLP-Xs? some really or medications of conditions from receiving many your type little Wondering other to there one others than weight treatment of care. talk things weight bit you for was of that the virtual your launched as primary within are it

a compliment, question. the great Alex. Thanks for Yes. It's

work provider we a they take and I basically We providers medical can't when that we -- aspects would that is have are do management -- a we through every the health on other I pride our lot about primary full-time that Alex. single onboarded are say specific care know speaking fact for of in a that number platform their with offer I our weight have that that a and And of platform. force don't onto you, I patient these of really program. services

would be that that a patients like that's for However, condition. I can treated another we you number with a have don't percentage of specific chronic share

coming lot lot the that are their majority the is. of loss these these very And interest weight of to very, loss intent -- their weight jump using program. patients are where that of A medication. start kind very And GLP-X to on the that's us they're a focused, of

their see most lot see or I where is part, aspects to where what's shine and other like more even of going of LifeMD you're of think use see that's optimization. of providers we of to could I think to more platform start for next, That's a about capabilities this weight to have going So have -- and out. going you're actually you're come people really you're where on, to health kind think the as our our what focused see been goal I the going hit think improvement that more their

helpful. Okay. That's really And [indiscernible].

on being going these right? that's longer think I it's patients and question, other the we're the a that question. just see to term treated data don't and lot have have focused either We these we're on optimized. way, understandable, just initially, don't I don't a -- properly. very and -- are mean conditions But focused to is of And not great answer just we answer to question

comes from question next Freedom [indiscernible] line Broker. with of the Our

please details growth to transformation expect already you Congrats comment with offering completed? you the changed? So nearest please been record how Could And you more in WorkSimpli quarter. recover process us has user the could the another -- do quarters. has give on

regions on and main Yes, recover. expect really they've well the evolved gotten dive highest mean user I'm how going their as notably. regions growth But say to I their because of world that way do tried that the part which strategy. where to we it's diversify as evolved certain platform to return it's focus most as they've investment. of not Yes, Marc. on the it's

stages about include So obviously, -- since as well a several of automation which their business And increased business they've of ago, X to Legal resume in acquired one. functions, the those past space, forms enable launching to they AI technology that evolved year the adoption Two, cover the HR legal as years forms the business. letters this broken of they the to That's actually proprietary early business. in library. again, XXXX, that Simply within launched has

businesses. the XX they gig of consumers a to lastly, consumer businesses. then XX%. smaller their DocuSign months. Essentially, penetration from single small they've about business a digits last consortiums addition, Sign workers, is of In Simply they've about which small taken the over product, penetrate small essentially launched for Today, also and And to begun version

those ways are continued So they've examples just that to. of

would company's new especially continued they've so, if all us. the pretty marketing all These will to panning obviously doing things strategies. or a They've size be those profitability. business, they things private tested by and strategy. are were But their out owned that In increasing typical not their do some are that are refine

while margins still gotten were So step have trial are XXXX as economics did we refined of business top off even in in a more what substantially took lop to subscribers. and now when to of to better their small they the and our grow those we base their they though profitable being in offers line back able that a not earning Similar business. telehealth their user lot per the

to to going growth subscriber are again They XXXX. return in

expand base, that to economics. are better right and to Marc. congrats margins see you, where today. again they back strong appreciate beyond the Now their they're quarter. going you're I with Thank the they and this, And even have

of the Wingright. with comes Chen Next Yi question line HC from

is My have over could patients for comment on -- first you with do market what percentage of GLP-X [indiscernible]. currently question you XX,XXX share program

pretty is pinball everybody this that at market. and mean, discounting, in so end $XXX a call, XX days you're about And a and between people XX first I at coming XX,XXX that the of today's year XXXX, like we've to month. more plus consider we we're so the last is the the it's fact end XX, a ended days. away for management else the already market. much billion weight this March month with at XX both by patients but of XX,XXX. More like first day, are the XXX the and of in XX, -- We're the look, analysts year impossible, up think quarter already a with point, pinball inning It's a

another we So added XX,XXX.

number our sign had slowing service providers even people we is doing a Nobody of there could from could X we're dominant here. the all the Obviously, We're what If pharma more a infinite we massive substantially side. a there's players, side, of up big demand in has at share. signs big supply on today. nobody than we're an long, and day runway share down. showing massive in of but situation has more side, than provider There's runway. those That's a

of very group? towards for comment weight patients for group older age of set recently to stay receiving the do -- on long able a drugs period be program? these groups up GLP-X younger are age age the patients you majority of time? think on these the them will you who it the or they Are management And Would

This now is in is age patients. for these Justin. average mid-XXs right The the

change difficult with we've our very very, goal remarks, comprehensive a help can one in and of the their It's to hopefully, their to so one goal far of have As for shared rates and in on rest retention life. our the strong. diet say they're lifestyle these patients process, in weight And is way. not their therapies these been medications very -- and hit of they

now, these I as therapies are better the that. and they're of that think that be outcomes that are going impossible. and far for patients life to be as think of and -- predicting, be likely their as predicting to far their it to some makes rest But I it's health as right need because on going

of the Our with BTIG. David next question line Larsen comes from

increased Just Teladoc mental in talked and there. about one the customer Can like costs, quick space we health entities follow-up. other have update acquisition pricing an get on companies pressure

be thoughts there any Just would great.

pricing some pressure, had also than and it. mean, much but LTVs getting able Yes. were the quarter, increased we've increases longer look, business, in been in this the the but seen year. to cash, bigger past we've in look, I prior counteract Rex we been year mean, in I there's slightly higher we

to to -- program. return we've seeing to more have actually we spend than ourselves ago So And decline. we're We're hold the actually to used but are will days holding than actually on year not ad last that as in to that and -- ad offset able this going I'm within volume, best investments more a business, get actually weight we've a been business. way, is always a and scaled the that little. higher we've weight saying seen management the we return CAC the what That this had in management on some of spend XX fluctuate slightly of the history

things little. general, consistently do have fluctuate we've day in We're highest scaled volumes obviously, we've a But strong the that seen to we've economics. if those even per really seen

to we've there, look, the I CPMs out flows. pricing but first increases yes, mean, It certainly able ebbs a of through lot counteract that and in and So some had been and quarter, it. manage

somebody So basically -- what's months they [indiscernible]. if it's $XX Is a up signs for it's it and and X sign month on X? they like up, your return and CAC $XXX day and

our more value, are Look, money we're earning Yes. a and over getting, average, they for the Xx real $XXX -- order than on numbers won. little average an we're

was little quarter, a you sales there? marketing What more mentioned effort. color that? Okay. an IQVIA provide Great. a And last for agreement Can with you exactly and just then

Sure. Justin. David, is this

a IQVIA. has collaboration, with we with that really date, joint To that, into relationship So large that -- we're agreement a several since to like down that some IQVIA the a company, medium will fruitful there, team there marketing opportunities pharma optimistic. agreement. is opportunity turned a We've the a was us, explored venture for great like road. we're type but be -- signing different commercial and and signed nothing we optimistic IQVIA

could market. that I right? means that that working they're is manufacturers products to And you to help trying what Is pharma Okay. identify with think are them bring

I yes. exactly. think, I mean, Yes,

companies. commercial of to the directly them things them partner -- in could that a provides solutions interesting that IQVIA world in their deliver or finding direct of pharma the And their to they clients platform was interested patients. to were to that's So different care offer pharma enable for direct one lot a enable or care

has mean the thought, me. including that lot think to has think more if relates -- listen look, to it in whole I I been whole direct-to-patient was think prior the -- a opportunity I the I pharma just much more time opportunity you people telehealth than as over years. I past several materialize and taken calls, pharma companies excited bullish to on

the I been think slow. it's rates for -- a have very reasons, number adoption of been

care. to having part about health issues. to compliance be I think careful with There a a pharma very has large anything lot are of do of delivering that is

business I sync each And so they're I difficult very just to -- with other. think models

end our And Mr. back over to of reached session. I'd have like to floor the We question-and-answer the turn

remarks. closing for Schreiber Justin

a update into quarter forward Thanks, [indiscernible]. dialing evening. call today you next and our next very good and We quarter. appreciate Thank very giving much. earnings everyone you look to a Have positive

concludes teleconference. This today's

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