LifeMD (LFMD) 7 Aug 242024 Q2 Earnings call transcript

Good afternoon. Thank you for joining us today to discuss LifeMD's Results for the Second Quarter Ended June 30, 2024.

Joining 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.

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. to are within the may other the from uncertainties XX-Q XX-K make and SEC and filings filings time risks described company's in and with These time. that LifeMD

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

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

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

you, website After updated closed, presentation press our issued a posted ir.lifemd.com. second the announcing results corporate everyone. and our good we release an quarter on market financial Thank at afternoon, and

earlier strong, our business also LifeMD's achieved of telehealth the the guidance. surpassing This expectations. XX% while than quarter, quarter our business During performance year-over-year positive GLP-X offering. achieved EBITDA business led was This core management very by weight revenue X growth, adjusted

rate a begun the metrics. some monthly performance. the environment, year, to was line for advertising during expectations with advertising XXXX to have both expect revenue consolidated and EBITDA, telehealth executional in in we on are a WorkSimpli's quarter. adjusted expectations peak been WorkSimpli We continued results our addressed These translate improvements the the of by line end driven since due coupled missteps bottom second expected our to with see we've by quarter pressured and care sign-up pleased return and with improved we the performance met half bottom EBITDA performance from to efficiency, the XXXX. On top both back rates run the and basis, health business. will tougher-than-expected from to And for our which the core business of for exceeded outperformance in

However, performance on We long-term the guidance. don't EBITDA first adjusted our financial to on WorkSimpli's have impact for results revise to nor year a impact WorkSimpli's drove the our EBITDA consolidated performance. from revenue material expect our decision consolidated half

the LifeMD Additionally, and driving net the even profit the strength with of year, WorkSimpli's business, which positive consolidated This growth. future company's still for force basis. cash core half flow generated on of performance be first a will the in the our telehealth revenue reflects

we WorkSimpli's benefits is the holder. and Our long-term objective be continues continue WorkSimpli way excess to in a its divest majority to of to shareholders, shareholders regularly cash distribute that to which LifeMD

and enhanced As our focused to continued including our development management of commercial of tremendous we acceptance insurance. infrastructure comprehensive market the remain initial One, capabilities, operation, weight offering. brand. on three, new telehealth RexMD potential following expansion expansion areas. continue capitalize core the of key of we Two, our on And the for

of above with revenue XXXX. XX% offering versus perform expectations, management first the continued up weight sequentially Our to quarter

During over XX,XXX QX, we new subscribers. at the patient added patients just nearly quarter weight management XX,XXX finishing

therapy. largely XXX X point XXX per with day cohort our to on sign-ups We going continue broke economics a cash month robust to to a average day over that most showing basis. basis patients improve Retention continued even in for with X retention improvement recent unit XXX rates new on

basis points with patients is This growing Wegovy nearly rates approximately last up prior approved branded for figure see getting approval to authorizations. month. continue and XX% We XXX for therapies success in over Zepbound the

auth prior resources overall as over well as drive and to metric in and streams to this. actively approval continue rates investing work time third-party implementing improve to this are expect We

our Importantly, to this both business branded with high-quality, clinical to our if and evolving is holistic we a the model weight continues provides trusted that therapies therapies are weight markets. the only and care it compounded needs and provide loss branded to a bulk medically-supported I ensures offer model GLP-X not experience management access but come we revenue of that continue the the services patients from differentiated patient to of and continue durable services not also adaptable to accessible, and options. believe

scales our fully their During integrated affiliated the blood providing integrate second management quarter, group highest virtual into devices, medical pressure further with including and to the of Withings our in offering, care. patients smart weight rolled we level monitors collaboration with out a supporting

expect This we quarter, additional program. updates capabilities provide part weight new on offerings to out rolling as of we are and management our

use this care to want to what of solely medications. improving We dangers our transformational metabolically nutritiously, services. In health. prescription our platform to comprehensiveness eat of to management access it teaching the weight sleep to helps exercise, and committing mental We of the are want sugar We also the refined means of foods the weight ultra long-term be means platform case be that resources people processed importance our access program, be and patients and a how healthy, significant to and management patients don't that a health offering.

our provide AI population lifestyle patient these applications personalized components person. mobile tools all on in-home and healthy metabolically treatment of to capabilities, reminders our using timely We our and diet and educate of are intelligently support a to plans, and

and the for appropriate diet also have be we of that OPTAVIA, a one will believe segment our We partnership population. in a leading with strong country the of companies coaching

platform this is committed area. this are very you I America quarters to the and what the in just excited comprehensive to in about end mentioned keep our of most progress in updated having weight passionate development, by coming much calendar we personally management I'm for still year. While I'm on this in the of

extensive commercial integrating AI management significant this in following made patient support the build-out steps our June, accepting progress an also clinical and offering expanding support began effectively we compliance insurance our compliantly. of we of and launching notably revenue quarter, technology, capabilities and cycle second the operations. In commercial to program capabilities, and within During our insurance first

are plan having in goal small, to our nationwide states coverage. While broad expansion with we volumes the patient still additional continue of phased

we Additionally, and are launch scale this offering enrolled in Medicare private more expect gaining after payers. to with

fulfillment under We've departments implemented individuals, order classification for AI-powered and most to the calls, to it this the and this and billion alone, service already or staff, messages from ranging communications As AI message provider an prior routing. discussed support This rolled data providers for routine system tasks. appropriate system leverage incoming care, out directs our more. advanced efficiently I'm coverage, on our recently systems In categorizes our We've dramatic to communications improved medical excited care month area. we average specialized a for these which AI across us. initiative to is seen large in in technology and improvement assist response support our July and also initiatives, our some for we've significant has significantly AI time. efficiency. We've progress providers, over in X and support staff. of a assistance response developed to our Thanks assistance tokens begun share and utilized

quality about care. fact, than provide. enhancing inquiries address Xx AI-driven we've they're of concerns now able the care achieved patient improvement, and means efficiency, not to faster also These improvements In which about a just we before. professionals more we're tasks, XXX% health are to from delivering platform priority creating allowing their our on experience our for amazing up #X By freeing incredible choose for routine and the them patients medical use of we're to care focus an that

the in experience that quarter, Additionally, pharmacists and managing significant I large deep of XX-state we pharmacies. to in-house This announce support personnel exceptional am commercial that pleased progress compounding pharmacy. are an team build-out of we our recruited have making past and

handle will within mail be We online, month existing operations have fully center expect fourth and operational to the of year. well the to to order licensed non-sterile pharmacy. be as quarter the integrating capabilities as Once this our in and our distribution pharmacy this compounding both we

realize and some as enhanced product into more margin shorter areas. We gross expand this nimbleness as distribution, XXXX we in and benefit fulfillment expect from efficient times as to well service initiative new

growth Lastly, RexMD source and continues revenue be LifeMD. of steady high-margin to a for

we outlook. And remain Benathen, Marc? who our a our our in or say this weight that HRT HRT management years, temporary performance will program we of we therapy hormone business, financial For I'll summary, over business to very pleased bullish launch that, launched a expect later our umbrella. of I'm about turn and month. provide with the WorkSimpli's replacement the treatments. These despite under potential anchored and very the strong a indications include the time Marc RexMD our new first optimistic In core summary results. several CFO, the to soft by telehealth from challenges, call

prior for from active growth, quarter you, than growth business subscribers of up on afternoon, the with XXX,XXX. Consolidated quarter strategic versus in the Based the the a to at adjusted net monthly LifeMD we on trends strong ahead quarter our by profitability for year XXX The period. consolidated basis X current active Thank second the tremendous ago our EBITDA WorkSimpli profit to following peak Telehealth third Justin, business, number contracted second from record by of telehealth supported XXXX. prior consecutive return a year year-over-year actions of also quarter leadership flow cash of good WorkSimpli, basis $XX.X a recent remained standalone business million, X% cash the with a the revenue XX% XXX,XXX. was margin approximately and of increasing subscribers period. strong versus outsized Gross positive XX% an to guidance. points with only not flow to The growing increase subscriber had a telehealth profitability expect generating the LifeMD XX.X%, strong, year sign-up for everyone. telehealth basis. rate but gross on XX% strength very totaled and and more this run rates, of end quarter number performance

or the to loss million $X expense, to loss a from and and of guidance excludes litigation a stock and increase $X.XX readiness, are core measure an balances non-controlling compared preferred the the $X.XX our $X.X driven share. totaled EPS, per non-GAAP net which quarter. of second excludes adjusted $XXX,XXX full XXXX. acceptance measure of defined in EPS ago period. Adjusted while revenue attributable profitability year core second our to quarter. LifeMD an was of as over core company's long-term $X.X reiterating loss million year of quarter, raising third and consecutive from quarter period. Adjusted financial by will to dividends million severance, generated $X.X was per guidance net million million excluding second decreasing adjusted quarter quarter for represents interest, $XXX approximately those positive telehealth and XXXX of to $XXX the cash EBITDA net adjusted of measure non-cash costs our of from gain that compared revenue the is $X.X operations important a non-GAAP the telehealth share. million $X.XX is LifeMD I telehealth of for of a This attributable for XX, business. the with is with foreign first common WorkSimpli we for of from previously. business quarter June Cash year growth loss with a insurance common ago our same adjustments, the for telehealth least $X.X for the GAAP second we ago and taxes, Reflecting a EBITDA, WorkSimpli of XXXX, GAAP transaction for investors came during dividends, $X.X totaled diluted the compares stockholders guidance which translation. million $XX of items for which expenses, XXXX million service of million EPS Our This revenue the also in be $X.XX of the business, strong currency which as second reporting stocks This interest, year cash or profitability. to EBITDA, loss stockholders of telehealth that quarter quarter quarter, understand a flow stand-alone noted non-GAAP This of measure compares financial $XXX,XXX of flow at the our this million adjusted million is performance consolidated in $XX adjusted the debt telehealth after our end for million as $XXX the our in XXXX, generated Beginning business, a CapEx, driver the EBITDA of Today, $XX.X million, business. totaled measure the

guidance EBITDA level for XXXX, adjusted prior also a year which the to stand-alone introducing full above is are We million million in $X range telehealth expectations. of of $X the

in the XXXX consistent telehealth and only was year million in continue stand-alone $XX our rapidly actual for gains we XXXX to consolidated guidance over EBITDA continue $XX implied WorkSimpli. to versus For do core immense historical $XX of million to a full prior in context, to a EBITDA but not revising full loss we million. million adjusted so are telehealth increases half by solely a driven the our sustainable $XX basis, with business business, guidance subsidiary, first from on our on and Despite in expectations, basis. We million, to $XX softness the year our profitability non-core adjusted grow

the to by achieving now to end over softness call the turn behind monthly to the us this financial that year. This results. is and rate up path wraps on of run WorkSimpli believe back be expect EBITDA a our peak Justin. to I'd like we earlier, indicated As

Thanks, Marc.

our we truly remarks, experiencing. prepared about the LifeMD conclude excited As am I is momentum

Our growth and retention offerings, operations, the performance particularly new setting shows benchmark which management telehealth this acquisition, potential also a have patient expectations, quarter not our satisfaction. exceeded but weight in only robust and of our core

strategically we landscape. to are telehealth the Looking redefine positioned ahead,

and We efficiencies, imminent our advanced build delivery. in-house AI actively will and in expanding patient for our mission America. commercial with platform The most are launch enhance operational pharmacy our new capabilities further technology to integrating standard the of coverage, and telehealth interaction insurance setting care robust aligning a cutting-edge our

turn of open to to thank I'd Operator? and leads market the for we in also tech-enabled brand innovative to setting care our treatments, call -- benchmarks health crafting now in for LifeMD of where expansion initiatives, future the that, RexMD we'll like comprehensive everyone like us but rollout today, solutions. With joining I'd a Q&A. alongside and and the these new not With are only performance,

We Thank BTIG. sir. you, Instructions] [Operator Larsen our from first question take will from David

ad in good fantastic. earnings? you about peak health you'll what bit the and in talk I the to profitability What the the Can caused the costs? the on guess, get profitability end And in quarter that a back Congratulations confidence up care, WorkSimpli of decline by business, you gives increase it's XXXX?

Marc. Yes. This is

corrected don't which the but over want improved the really WorkSimpli a strategic of of made lot since significantly was, take last of cause balance weeks, issue. did couple the the largely for We've seen the expect missteps. personnel environment which was made definitely of of of on we that they able bit major competitive back process us as sign-up and over by performance course changes step achieved a then they fact to a to nothing year. a little changes peak improved there EBITDA that be a certainly what to into confidence tax executional the will the weeks performance, a advertising the forward the end I about more personnel So, of for peak one, made is following the shifts, half see details have as to the sustained which some EBITDA rates a get X the them actually which X a had get and carry the to there's monthly couple in first building of because ago. they year about well competitive backwards. But of take the year. strategic reasons, year, And they is to couple key gives They've of Obviously, that last two, a back

in What you if get so, health flow partnership the bit is like are bundled For month? within patient terms Like, great. profitability a forth? you progressing of of the And per ahead that your then the little month? Does up in has work? costs is example, can include And Like And to mind sort how there it what care business? is of for to how it example, does expectations? part That's that your back of what pricing enabled profitability per and Medifast? then about a more new solution? talk

Yes.

really biggest our profitability driven of first offering weight like obviously had driver had management good have patients. of than model. for be retention a been acquisitions we sense that Marc. the we year for. care-based We been population ahead we differentiated the is we've has weight of But of revenue. getting the shown That this to by One, expected a two-fold. offer. year. that, that model originally had originally outperforming compounds more expected, also the others was the has Well, percentage Obviously, of where existing retention strong half in to offer was in So, management Yes, there's rate makes of we that think and bundled really quicker of the strong the traditional we new the

be the able guidance, It going that thought. you basically is be the higher in to year. we translated retention in put being us through a leading to trajectory to next than year the and us our for have profitability which anticipated has, one ability into forward patients original to indicator our than acquisition So, balance had able originally to of dollars we in of quarter slightly business able together led sustain turn, existing rebuild get quicker the also more with to rate, to it's

answer a a business. model this directly. I very is fairly and to think job in the them service their great the is core Justin. at retention as and the percentage helping patients, compounding we've get this to to an competitive think acquiring therapies. they're use going Still the small these new just care But of And a be Dave, bundled good clarity, better. our for health are script, like, a we amazing Marc coverage insurance I'll mentioned lot And providing numbers in add did patients environment. business for frankly, is very quite look, we done

last me. one for one And quick Great.

you sort mentioned weight of management. Justin, a approach holistic to

want with to longer-term the little be access a bit simply including Withings just don't of talk that, of your more point of organization? relationship mission Can compounded medications. maybe You an vision the sort your you for about and

lifestyle doctors, and off. just right this. viewpoint, it intelligence. My part I do the I've do most then essential is to everybody at very the will helping also have Make But can enjoying and and component, just are I market don't that that side, the intelligent for what job a is the at Dave, an connected it, not participants using right, like proud in make incredible delivered question. patients when a like get I a to kind we that this and and offering them of it's look, doing everybody an the myself. is of going the I into the to nutritional wearables incredible artificial vision it's and it. with going in-home to thoughtful proud tools, this like wrote really big record by will committed I not want patients that to upload our an coaching with this prescription technology them sure challenged section we do claims that just them educational record, simple. I for LifeMD on earnings keep a DXC by of if of a my when Sure, in don't And And the of those best to diet at we're products, is Dave. components to right? of engaged delivered of script difference partnership, everybody. and and and and most think to time the And patients. lot big it. be only really a really Withings weight our side recipes, and the enabled also the that throw It's shown people what doing be with But is offering but really, program, isn't create end work incredible the thinking right? I'm really, intelligently I a am is like team to whatever offer Don't And will we've -- both incredible job platform say this could means but year everything -- area, management don't good most business, make be mobile educational and have awesome something not said. bunch metabolically for love we And and of be what for component, a I the even weight know Don't only it XX% all that And and we're is what that actually good we're like encompasses that change available think claims comprehensive use I of everybody app always lives and think on that's to we truly vision. going content our to I you of to XX% to really that nobody my patients healthy that recipes, enterprise really teach and

Thank next, Dechert go going with you. And KeyBanc. to to Steve we're

Thanks for question. the

of here quarter subscriber growth. management solid Another weight

year And to Medicare, out subscriber for then in insurance and also, Just trajectory roll on as the growth how thoughts then see the you and the how continue rest to of that XXXX? as do of your your impacting wanted subscribers well? into commercial see get you also you XXXX

Yes.

expand some you consistent see to can offerings upon expect the heading this balance Steve, script comes throughout spoke Justin in few think year. Yes. the upside. there's I potential of partnership. from Look, about potential The for the a Marc. the earlier growth is upside of places. Two today. is the that is continuing subscriber Obviously, Medifast the One to So very

do of And don't insurance into there's services we and level large market a the question, patients do us. I that definitely large it we then infancy market growth. part -- there those second much, patients a rolling we accelerate XXXX, the out for of program, get for By away turning within entirely an providing. there's new think today. that that obviously our care And the as that's several how your segment far will in I today. know We once we're but As market We're say Medicare, now. treat market in our of we're and can't subscriber exactly can't

could it potentially on meaningful in have So, a XXXX. impact growth subscriber

think say I for too number which me it's exact a but you to bit definitely to see increase little here's going it's accelerate an it. early would by, by that

the right for One, now (sic) add job companies. mentioned Scott great one listening auths [ as we're well points that the a Steve our approved -- to like doing call. questions we just I people ], it's by most prior script, with add this as is patients I'll because just to Justin. this think I'll of couple getting in of a probably insurance important

therapy. new I to patients think a therapy our forward of accessing of XX if population could branded fast a X you on months, easily XX%, XX% branded you see

partnership So that's to we're XX% right with. company new therapies XX% excited something providers with we're with that is other that that working rates about. now large really -- technology they're working approval I'm have seeing we And a new branded for a it's

We that's important -- to that's think I excited point. we're get think So, a that implemented. really

especially therapies and with also to we're I of now a year oftentimes people enrolled. candidates but in patients There's it's when a going being handful to most As are or GLP-X the be therapies -- are lot Medicare, to in patients. going comes space. too a for ready, GLP-X right I said, There focus Medicare, right Marc helping program. late whether think be access used innovation Medicaid these on think Medicare early We're and year, there's are comprehensive this it that that of this much we're new to process the next of be now. lot big therapies development our and already branded, leader going And are opportunities by

doesn't people branded that going to compounded that I think be insurance whose is can therapies. for cover unique there be always probably therapies like

So and that's program think not can't we're in really important be that of we're a great lot is efficacy prescription a will GLP-X, And has another point. launching excited either weeks we for tolerate or a that profile, the coverage really lastly, about loss -- a and coming this. will patients weight compounded that safety it a don't it have think GLP-X. appropriate GLP-X We a for

to going next, Securities. William Perfect. Riley B. go to And Wood with we're

nice very quarter. a on Congratulations

you about So, actually your but how just -- talk was of you offering. curious early, that maybe launched I been with seeing offering? having mean, is appreciable are you've been it's building? going appreciable your comparison LifeMD what that has the I RexMD sort I to LifeMD uptake? any -- of RexMD if towards more or And GLP-X essentially, more people could recently seen know launch sort an That's you have are the

Justin. William, that is This one. I'll take

business, like launch than we're resources it's it's direct GLP-X answer I in invest but weight of the a launch process RexMD continuing to that a great some slower now, the the -- growth really small scaling we've just of slower has we been LifeMD continuing of to RexMD loss and we've not expected. definitely think -- -- your up. into we're very, there right been on sub-X%. a than improve And little the to little the RexMD overall just the -- that question is business, just has improve very lot the is But a percentage So, seen such been because side

just the going you've on side telehealth LifeMD what has side, as you general, prescribers revenue they're or the give sort I just to been the us taking additionally, post if overall, side, X-month quarter-to-date weight color well then wondering an actually the on highlighted if us us seeing additional LifeMD been new any past, in maybe on on color could management deferred that you specifically in idea as are was of telehealth giving or just of present quarter. the how program. more side specifically the on the on And quarter coming second some mentioning give the how the

our so end mid-quarter, that strongly. quarter consistency different as around script. tend some seen business we're very mostly There's be going the to highlighted been quarter, we as end in Yes. the at what mature, consistent look, Acquisitions quoting actually very has Look, gotten We've we start to people the with has retention to confusion. they've subscriber been of purposes. But reporting obviously, to in wanted the past for sticking second in amounts post more continued improvements the to before. business perform confusion

you'll but be it little but where a or higher, might so around weeks sign-ups levels improving with in some have consistently lower, a very be also it retention. a XXX some that been day, general, might have where of little You'll gross have weeks

that you or under retention. expect get $X than smaller of Obviously, side, a recognized. offering. did continue And typically the grow million the in of retention, reason not discounts people We're we revenues have people create more just So, discount. see on as to, There's the quarter. more you not continuing when bigger take on growth because half just we are retention see, think in get to rate you getting the see a as rebuilds it revenue initial and deferred slightly about grew being to revenue the momentum. Deferred bigger X-month to really not the will you'll be

seeing we're offering. that area, speaks fact the the the So, to that I really of in quality improvements think,

outsourcing and divestment may bumps the earlier WorkSimpli just have With about really past, and last still may that on telehealth you the one actually picked of the offer potentially you I the slide I on mentioned discussions and call products it you in been discussed, focusing seeing, more that WorkSimpli one. divesting sort then just on have Or the and that of or know any? in And that. and burner believe not quick through or you've something those is pursue? back up some the WorkSimpli partner you those the

Yes, I -- ahead. would say go

think WorkSimpli. we Yes, of I calls, I make and -- like some our for think really presentation. right future, be one. we something we've year, do peak in get about. year sell mean, in to what's committed with the that we could to and And working business look, next to we I conservative that interest and the in that But have with the when, you tell that we prior like back acquirers is doing what point happen point we've on guided happen. What price shareholders now but have that's supportive back at seeing this regular WorkSimpli, very we're the on we're business can presently, could being potential focused for some as when think it be We're be William, from I'll right? we'll shareholders. that going interest it investor what's our and of when in strong that, Sean -- right we at forecast which confident that -- business take we're shareholders we're to really will we'd likely EBITDA, and just but said half

that a a will have We business that kind business to just very that Sean working large pretty there's was actually further markets are its few exciting products lot where recovering it where competition. a clarity new of are less of on and the is lot diversify at peak. now on

we this sell we're And we'll working very of -- very We and think the at asset. it -- highly are we to business. valuable it's so, appropriate time. And think -- but a

jump on in nice back quarter. a queue congratulations I'll and

go we're James you. Thank with to And next, Sarah going to Cantor.

margin quarter telehealth huge when you it or thought detail retention which you a expectations, your time a reaching is us you quarter to you profitability Can where customer accomplishment. the a back ahead can for to go of retained is little bit period break-even I where feel would now whatever in be a contribution talk more either is on about And initially you or would what thought want remind most the versus X-month been bring when there like be when relevant? ramp frame they've looks a later? you versus

Yes. is Sarah, Marc. this

mark as earlier, are seeing patients to essentially, for on the we So go at we mentioned X-month therapy.

have patients very before, off access As therapy then initial denials wanting and not within is companies which there's who the XX% we April expect in related XX launched just to by mark not insurance can't to wanting out to the from in to consistent. pay. access X rates flow basis you those we're are talked we cash driven therapy, to Where people. or about to compounded a about through we would improvement Those and seeing well, about number as XXX as improvement months days we XX% of an 'XX. to is heavily XX this to We're the first a months since in XX-month get seeing point limited XXX people fall

We're XX% would initial somewhere around that XX% like you and days includes and the not on XX XX-month in see somewhere therapy. then get And starting seeing fell we in to the X-month off to more to typically that range the mark. XX%, when the So had folks XX% that previously, we XX%. go that XX% at mark of be did expected

what therapy. expect mark basis through to through to least obviously, has to that what a majority that to we after at and creating improvement, We be see of the driven is would though amount XXX year. has expect good been people our fair see in So, first of portion on because upside. would of a point turn, seen business the how XXX XX-month flow the to flows that is That, remains getting it

XX% had dollars, quarter top us couple profitability for quarter roughly to of expected. through of the On about saw of bottom we contributed to creating to which upside we about a line, than the quicker that that, of which XX% line, X the of million flow getting it's obviously

where fees, in returns merchant have far through of patients, you costs you those As XX large, in costs on but a and about you after flow basis and some have a dollars on rebuilds looking because the you're typically, line. That's before, basis, to the those to as acquisition go-forward X But a costs it, by retention guidance clinical to you're and months that. the on obviously, flowing and increasing as new you typically, growing Rebuild X COGS, rates spending looking majority modeled net are you're about slightly line. bottom have bottom than additional to investment first, at said break-even the advertising I return incremental months. vast patients, we've call support faster new of XX% at rebuild then some patient, when better the mean where and obviously originally layer ad a X:X on dollars do had to acquisitions. of the the we all

we us And and by can job then what on a going bigger way impacted is mix picture help basis, be any is market how frame your headlines now? it the demographic on telehealth the might consumer up customers and of see that you there

Sarah, try a is I Justin. stab can this that. to take at

So, with we're -- if very -- LifeMD. businesses of we large X inside have

of are low-XXs. health a For significant. side, the Average RexMD there The kind patient business. -- on age is a of in their men's still the RexMD RexMD it's AOVs

of lot spend $XXX dysfunction, for on a upfront have treatment We to $X,XXX patients erectile for that instance.

is we past, haven't the And the a population pressure pride economic expensive We're we patient we've you're of services -- So there. we've lot lives, Health that you that's slightly not effect average the We an weight women. really bit about are It's than business, about as we're female. seen big if historically, is that priority the for treat. swings every our is where from a a care American. there. And look are little at types I care also it's out really going loss something you offering skews clearly to are look take not not patients. since affordable going the The see almost We more in side. conditions area some that of a side we most a back RexMD environment. launched LifeMD and -- even the think health that on demographic more -- people's that these XX%. that the think difficult seen of age It's It's XX% consumer. big softness on younger priorities -- the that if around average the age in a business, then concerned of to

And in will demand so see economy, if yes, that we the we're for pretty a strong our products slowdown and there even services. confident that be

And Yi we'll with to Thank you. Chen go H.C. next, Wainwright.

which have you achieve WorkSimpli? the time of frame within goal Do rough to a divesting

is this Yi, Yes. Marc.

for that. an a But As a I until people. not potential do to Obviously, is signed. pinpoint we're deals. goal going have line divestiture. this of and to a actually to mean, And exact we're of quarter we received amount year, our year. continue we've divestiture time exact to pursue we get this year There always can going definitive obviously point, that to update a the is or next obviously an agreement We've said, to we appropriate when fair not commit month interest

shortage that in way? of Tirzepatide the drug fact [ weight business affect ] management over, your And -- shortage any is drug in

I'll Justin. take is This that one.

or optimistic away weight these will Medicare for branded able about help patients the process. improve that in future, feel for we We're we for -- Again, again, to able being We're a really and all, access very avenue is medications that do future, business therapies through that. list the pharmacy a always Tirzepatide be think like prescription branded GLP-Xs that list come And believe for them mean we expect at our alternative were shortage point -- shortage feel compounding management the to where are said, patients auth being about drugs. if therapies coverage have the that's strength we website really there. near will then have soon. according cover today. is anytime compounding to there that going do efficacious. some I FDA's good of not don't -- access on prepared prior But We're are also First the to good in I still off really the Tirzepatide even other we coverage the through we continuing to

there insurance doesn't even to prior auth be be insurance their than to put these of medication. more are place therapies. clear, let's a this lose there's these going Americans -- for for weight the have get people manufacturers for not to long-term And don't insurance, to And be we, not which medications. are, therapies. -- a as percentage population business. have until believe there's to price that we insurance don't programs pharma points, coverage as access these LifeMD those will are GLP-X comprehensive X we more and another program we if even anybody is a very right in helping period, anybody providers use there's the have the going or better and to do a avenue durable those all a country by care that going So, need in and to going access help we there's that's assistance blue-chip And things, approved patient with a patients and have be helping still with at has country until But people that health

environment that's to don't what's covers therapies. a assistance so we that's continue don't patients, And we're It's insurance and that or thing changes. to ethical to patients right compounded to right patient the have do help that we're these insurance to do there always for access And again thing continue Until until it's do. company, priority the to access medications the going to enough first our do going as have programs help Americans because them. what are

quick drugs? majority access branded A your our of Do today patients have platform to on the follow-up.

that in range our therapy. patients on the XX% No. branded a of this are number about talked We've It's before.

And Fuhrman with next, Capital go going Craig-Hallum Alex to we're to you. Group. Thank

area in a where some there seem that talking a Everyone that's prior doing has in not authorizations, offering. Can about there? been certainly getting in signs wins about really really expected don't only there to is Justin, even you compounded about maybe other are lot terms It challenging, bit see that has is a it cheapest it than of it's for very just companies new is be you're out branded brand medications enabling not the prior and sooner a results I growing be It's starting offering you're great What like little branded what therapies. name some terms inflecting seems on continuing that weight entrants. authorization of these management more coverage impressive like and program profitably in the big terms the it of the the some scale bit competition you're challenging. certainly terms business. you certainly business, little profitably medications really LifeMD mean, have profitability offer because to Really positive of you business? an adds seeing that differently of talk sounds than of different you pushing and a household the your your gross insurance to to are

Thanks, Alex.

questions turn us You gave surprised getting them. me of little schedule. all, a about to answer do and my business and and me not we're of a ahead let mean, best there, of profitability lot the bit to first I look, profitability the

numbers do We The expected to They're where be. are really retention them to good. that. right we expected

of is right not knows? doing When point other many I have whatever that loss about optimization the just that important like programs weight we launching key I of -- everybody There's out there's do of other to we're can you the brand that do lot you really like we're that so just all household help care. mean, opportunities is thing -- inside about long I and programs we're a providing look, to their think kind wellness long-term what think is. And an that we're is a we better. launching help a -- when LifeMD. think No. term goal health incredible get to think think I like patients But LifeMD the

or of this, talk care I unique think recently there really patients virtual that's that our mission providing, our model, almost great around into X think, found that almost think strategy out -- of X out every a are this other and companies not. I are our that most I making doing are but one bought to Very few there providers and really also really are for I special. one

on And and we something the really patients lot an starting of And in we're are equity therapy referring brand seeing And we a of theirs. of. that that's proud so brand. friends to of that LifeMD incredible are super look, are are build I lot a think that and

the they've lot on question them. process, diligenced first We your are out companies prior that with therapy. there. the We XX double we think there shared approval numbers we as far really that one than patients auth on more a of of prior as auth exceptional. on rates these branded a of So, yes, number found would that is at have The least us

for And these patient really access list. going So, about is And and help patients a them. next these for of to And as things drugs those assistance people able supplied conversation everybody people. But It's once excited coverage are need pharma many have to helping to the that we have optimistic as one the to let's patient be about help other really by to well to the like about that really, It's that going great generally going really, that, what way, those LifeMD. U.S. the weeks. well positioned through incredible with programs. we be to It's guess part live drugs to be population, do the drugs great. of to these off assistance programs is don't that. talking you can online, society to And really coverage drugs, that this going about talking access who's really a companies these talk assistance going these concurrent talking so imagine, really, to likes as programs. made about we're start as start about I'm drugs as be and -- we're the now that come happy couple make shortage think -- can are coming that I in That's improving. no I'm

is a like make agree We And drugs This therapies. still know People lifestyle just these if of all I people I through that on people use, Even things for we're helps here, these these going A offering changes program perfectly you that long-term maximize are other virtual drugs are very access want comprehensive the It's to and a we that. essential. comprehensive not environment. there's Everything major positioned really for. outcomes is that diet said are major, what so and breakthrough going long-term what happens people. a to likely away. no thing. doing matter think look, incredible most so a -- is many

and So for a very, lot feel very us this of other virtual for certainly really care confident that's long-term out why being business a about companies I there.

That's that answer. helpful, Justin. thorough Really really appreciate

next And Zubkov from Ilya go you. we'll Broker. Thank Freedom to

retention business. And congrats I new quarter. with on care health members' have record question in another a

members weight plan management on these to weight users the count met Probably, I'm could to color they total once have you curious some with reach their you So, have And these for the users their users have weight us in level products share of desired your who taking users already GLPs. active is growing. And you retain to perspective options the how go? loss stay longer? on liking a these get give

actually think question. I your I I Yes. understood --

Let it. at me a take stab

of of We people our really weight with programs care LifeMD by like goal and primary people mental a inside their by delivered sleep patients One for program, like everything else tools using complete have helps really of alongside program, to that just is wellness offers. program access supported health, focus wellness. on this a things of LifeMD. which is -- and LifeMD that platform and other our aspects lifestyle, urgent we that and patients their is X reach XS and app in-home that program have And And their their lots provider. their

is to GLP-X don't past. want We use dose designed is to want also have goal designed weight patients to in to patients their for full that maybe a or program, second term, a for reach a a and GLP-X than less want longer the which regularly use use which have they

this or for that help step And I programs there programs then are patients so, well. with health next maintenance a that weight more are to we've as that that built also mention some other LifeMD. situation other some really of appropriate patients that are unique, that number what we less think we're have like And building experience I'll call the GLP-X in transformational optimization loss

lot And those you mean, patients women if for of to and weight have the do them of ask platform about telehealth lifestyle just use those -- want of would to offerings to number of to I interesting and testing some is their interest hormone and us like doctor metabolic that really large have to on I we of that lose a that hormone patients improve a think are naturally therapy talk weight. lose successfully our I there that think number more their a be to platform that, health that a program

progress growth I'm And wondering one what is is partnership. and contribute the launch subscriber this products bundled to much on of the to anticipated brief the partnership the how Medifast current in the this year?

we've for results question numbers, And spoke a they're their of for also the Medifast. their not going if given at to you at fairly recent look especially we're bundled think I Medifast the earnings discuss report, -- -- they're a that patient That's of with public We've guidance I they extensively would where any offering. launch or about company. recent suggest

And back to Schreiber closing to now any remarks. like Justin for you. call I'd the Thank turn over

we look Have LifeMD. Thanks, quarter interest continued in in to when everybody November. third and for evening. your report for great forward a again once your results with questions We you speaking our

program. you you. conclude Thank does Thank today's for participation. And this your

You time. may disconnect any at