- First quarter revenue increased 33% year-over-year to
$44.1 million with telehealth revenue growing 53% versus the year-ago period. - Raising full-year revenue guidance to at least
$205 million , up from prior guidance of at least$200 million . - Growth in all business segments, with weight management subscribers growing to 42,000 as of
March 31, 2024 . As of today, weight management subscribers exceed 50,000. - Including the increase in deferred revenue from prepaid weight management subscriptions, cash-adjusted EBITDA was
$4.8 million , a 108% increase versus the comparable measure in the year-ago period. Excluding this increase, adjusted EBITDA for the first quarter was$0.5 million . - Generated
$5.2 million of cash flow from operations and a$2.0 million net increase in cash during the first quarter.
Conference call begins at
Management Commentary
“During the first quarter of 2024,
“Our lifestyle healthcare businesses, led by RexMD®, continued to produce consistent double-digit growth with robust contribution margins that exceeded 30%,” he added. “We continued to make progress on several key fronts that will provide new, long-term growth levers for
“We continued our strong financial performance during the first quarter with outstanding topline growth led by a 53% increase in telehealth revenue and over
First Quarter Financial Highlights
- Revenue increased 33% year-over-year to
$44.1 million . - Telehealth revenue increased 53% versus the year-ago period. WorkSimpli revenue increased 3% versus the year-ago period.
- Telehealth active subscribers increased 31% over the year-ago period to approximately 235,000 at quarter-end.
- WorkSimpli subscribers grew by 8,000 sequentially over the prior quarter as performance in this business rebounded in the back half of the quarter.
- Weight management revenue grew 66% sequentially versus the fourth quarter of 2023.
- Gross margin expanded to a record 90%, up from 87% in the year-ago period.
- GAAP net loss was
$7.5 million or$0.19 per share, compared with GAAP net loss of$4.8 million or$0.15 per share in the year-ago period. - Adjusted EBITDA was
$0.5 million compared with$2.0 million in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP). - Including the
$4.3 million increase in deferred revenue during the quarter related to weight management growth, cash-adjusted EBITDA was$4.8 million , up 108% versus the comparable measure in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP). - Adjusted diluted EPS was
$0.01 compared with$0.06 in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP). - Generated
$5.2 million of cash flow from operations and positive net cash flow.LifeMD exited the quarter with$35.1 million of cash, an increase of$2.0 million on a net cash flow basis versus the prior quarter driven by continued strong cash flow from operations.
First Quarter Key Performance Metrics | |||||||
($ in 000s) | Three Months Ended | Y-o-Y | |||||
Key Performance Metrics | 2024 | 2023 | % Growth | ||||
Revenue | |||||||
Telehealth | $ | 30,841 | $ | 20,203 | 53% | ||
WorkSimpli | $ | 13,303 | $ | 12,924 | 3% | ||
Total Revenue | $ | 44,144 | $ | 33,126 | 33% | ||
Subscription Revenue as % of Total | 97% | 94% | 3% | ||||
Active Subscribers | |||||||
Telehealth Active Subscribers | 235,452 | 179,933 | 31% | ||||
WorkSimpli Active Subscribers | 166,352 | 173,333 | -4% | ||||
Total Active Subscribers | 401,804 | 353,266 | 14% | ||||
Financial Guidance
For the second quarter of 2024, the Company expects:
- Revenue to be between
$48 million and$50 million . - Adjusted EBITDA to be between
$2 million and$3 million . - Cash-adjusted EBITDA (adjusted EBITDA including the increase in Deferred Revenue from multi-month, prepaid subscriptions primarily from our weight management program) to be between
$6 million and$7 million .
For the full year 2024, the Company expects:
- Revenue to be at least
$205 million , raised from previous guidance of at least$200 million . - Reaffirming adjusted EBITDA guidance to be between
$18 million and$22 million .
Conference Call
LifeMD’s management will host a conference call today at
Toll-free dial-in number: | 1-888-886-7786 |
International dial-in number: | 1-416-764-8658 |
Conference ID: | 51137398 |
A live and archived webcast will be available in the Investors section of the Company’s website at ir.lifemd.com.
About
Cautionary Note Regarding Forward Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the
Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the
Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation.
Investor Contact
Marc Benathen, CFO
marc@lifemd.com
Media Contact
press@lifemd.com
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash | $ | 35,110,929 | $ | 33,146,725 | |||
Accounts receivable, net | 5,336,491 | 5,277,250 | |||||
Product deposit | 288,938 | 485,850 | |||||
Inventory, net | 2,373,640 | 2,759,932 | |||||
Other current assets | 1,298,737 | 934,510 | |||||
Total Current Assets | 44,408,735 | 42,604,267 | |||||
Non-current Assets | |||||||
Equipment, net | 585,980 | 476,303 | |||||
Right of use assets | 1,674,014 | 594,897 | |||||
Capitalized software, net | 12,023,248 | 11,795,979 | |||||
Intangible assets, net | 2,763,297 | 3,009,263 | |||||
Total Non-current Assets | 17,046,539 | 15,876,442 | |||||
Total Assets | $ | 61,455,274 | $ | 58,480,709 | |||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 12,395,032 | $ | 11,084,855 | |||
Accrued expenses | 14,555,480 | 13,937,494 | |||||
Notes payable, net | 115,907 | 327,597 | |||||
Current operating lease liabilities | 447,559 | 603,180 | |||||
Current portion of long-term debt | 3,958,333 | - | |||||
Deferred revenue | 13,202,757 | 8,828,598 | |||||
Total Current Liabilities | 44,675,068 | 34,781,724 | |||||
Long-term Liabilities | |||||||
Long-term debt, net | 14,069,838 | 17,927,727 | |||||
Noncurrent operating lease liabilities | 1,311,452 | 73,849 | |||||
Contingent consideration | 100,000 | 131,250 | |||||
Total Liabilities | 60,156,358 | 52,914,550 | |||||
Commitments and Contingencies | |||||||
Mezzanine Equity | |||||||
Preferred Stock, Series B Convertible Preferred Stock, | - | - | |||||
Stockholders’ Equity (Deficit) | |||||||
Series A Preferred Stock, | 140 | 140 | |||||
Common Stock, | 407,317 | 383,586 | |||||
Additional paid-in capital | 220,721,095 | 217,550,583 | |||||
Accumulated deficit | (221,810,154 | ) | (214,265,236 | ) | |||
(163,701 | ) | (163,701 | ) | ||||
(845,303 | ) | 3,505,372 | |||||
Non-controlling interest | 2,144,219 | 2,060,787 | |||||
Total Stockholders’ Equity | 1,298,916 | 5,566,159 | |||||
Total Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit) | $ | 61,455,274 | $ | 58,480,709 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenues | |||||||
Telehealth revenue, net | $ | 30,841,402 | $ | 20,202,803 | |||
WorkSimpli revenue, net | 13,302,862 | 12,923,532 | |||||
Total revenues, net | 44,144,264 | 33,126,335 | |||||
Cost of revenues | |||||||
Cost of telehealth revenue | 4,194,595 | 3,920,182 | |||||
Cost of WorkSimpli revenue | 405,582 | 294,787 | |||||
Total cost of revenues | 4,600,177 | 4,214,969 | |||||
Gross profit | 39,544,087 | 28,911,366 | |||||
Expenses | |||||||
Selling and marketing expenses | 24,173,880 | 16,717,645 | |||||
General and administrative expenses | 15,305,732 | 10,602,763 | |||||
Other operating expenses | 2,300,447 | 1,704,765 | |||||
Development costs | 2,087,232 | 1,183,599 | |||||
Customer service expenses | 1,848,041 | 1,555,404 | |||||
Total expenses | 45,715,332 | 31,764,176 | |||||
Operating loss | (6,171,245 | ) | (2,852,810 | ) | |||
Other expenses | |||||||
Interest expense, net | (477,678 | ) | (264,465 | ) | |||
Loss on debt extinguishment | - | (325,198 | ) | ||||
Net loss | (6,648,923 | ) | (3,442,473 | ) | |||
Net income attributable to noncontrolling interests | 119,432 | 565,983 | |||||
Net loss attributable to | (6,768,355 | ) | (4,008,456 | ) | |||
Preferred stock dividends | (776,563 | ) | (776,563 | ) | |||
Net loss attributable to | $ | (7,544,918 | ) | $ | (4,785,019 | ) | |
Basic loss per share attributable to | $ | (0.19 | ) | $ | (0.15 | ) | |
Diluted loss per share attributable to | $ | (0.19 | ) | $ | (0.15 | ) | |
Weighted average number of common shares outstanding: | |||||||
Basic | 39,242,237 | 31,680,776 | |||||
Diluted | 39,242,237 | 31,680,776 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net loss | $ | (6,648,923 | ) | $ | (3,442,473 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Amortization of debt discount | 100,444 | 38,461 | |||||
Amortization of capitalized software | 1,787,404 | 1,088,645 | |||||
Amortization of intangibles | 245,966 | 233,560 | |||||
Accretion of consideration payable | 13,644 | 65,478 | |||||
Depreciation of fixed assets | 65,915 | 47,651 | |||||
Loss (gain) on debt extinguishment | - | 325,198 | |||||
Operating lease payments | 206,809 | 184,333 | |||||
Stock compensation expense | 2,544,430 | 2,663,514 | |||||
Changes in Assets and Liabilities | |||||||
Accounts receivable | (59,241) | (102,249 | ) | ||||
Product deposit | 196,912 | (119,014 | ) | ||||
Inventory | 386,292 | 320,781 | |||||
Other current assets | (364,227 | ) | (387,041 | ) | |||
Operating lease liabilities | (203,944 | ) | (193,546 | ) | |||
Deferred revenue | 4,374,159 | 348,039 | |||||
Accounts payable | 1,310,177 | (3,203,759 | ) | ||||
Accrued expenses | 1,246,342 | 97,803 | |||||
Other operating activity | - | (579,319 | ) | ||||
Net cash provided by (used in) operating activities | 5,202,159 | (2,613,938 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Cash paid for capitalized software costs | (2,014,673 | ) | (1,777,983 | ) | |||
Purchase of equipment | (175,592 | ) | (33,656 | ) | |||
Net cash used in investing activities | (2,190,265 | ) | (1,811,639 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from long-term debt, net | - | 14,473,002 | |||||
Proceeds from notes payable | - | 2,000,000 | |||||
Cash proceeds from exercise of options | 7,813 | - | |||||
Preferred stock dividends | (776,563 | ) | (776,563 | ) | |||
Net payments for membership interest of WorkSimpli | - | (306,514 | ) | ||||
Contingent consideration payment for ResumeBuild | (31,250 | ) | (62,500 | ) | |||
Distributions to non-controlling interest | (36,000 | ) | (36,000 | ) | |||
Repayment of notes payable, net of prepayment penalty | (211,690 | ) | (3,299,959 | ) | |||
Net cash (used in) provided by financing activities | (1,047,690 | ) | 11,991,466 | ||||
Net increase in cash | 1,964,204 | 7,565,889 | |||||
Cash at beginning of period | 33,146,725 | 3,958,957 | |||||
Cash at end of period | $ | 35,110,929 | $ | 11,524,846 | |||
Cash paid for interest | |||||||
Cash paid during the period for interest | $ | 644,919 | $ | 273,000 | |||
Non-cash investing and financing activities: | |||||||
Cashless exercise of options | $ | 641 | $ | - | |||
Cashless exercise of warrants | $ | 12,685 | $ | - | |||
Stock issued for noncontingent consideration payments | $ | 642,000 | $ | 642,000 | |||
Warrants issued for debt instruments | $ | - | $ | 873,100 | |||
Right of use asset | $ | 1,285,926 | $ | 93,115 | |||
Right of use lease liability | $ | 1,285,926 | $ | 93,115 | |||
About the Use of Non-GAAP Financial Measures:
To supplement our financial information presented in accordance with GAAP, we use adjusted EBITDA and adjusted EPS as non-GAAP financial measures to clarify and enhance an understanding of past performance. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance. We further believe that these financial measures are useful financial metrics to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors.
Adjusted EBITDA is defined as income (loss) attributable to common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, inventory valuation, sales return reserves, litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EBITDA to net loss attributable to common shareholders, its most directly comparable GAAP financial measure.
Cash-adjusted EBITDA is defined as adjusted EBITDA before the change in the Company's deferred revenue balance from the most recent fiscal year-end. We have provided below a reconciliation of Cash adjusted EBITDA to adjusted EBITDA.
Adjusted EPS is defined as the diluted net loss attributable to
We believe the above financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms adjusted EBITDA and adjusted EPS may vary from that of others in our industry. Adjusted EBITDA and adjusted EPS should not be considered as an alternative to net loss before taxes, net loss per share, operating loss or any other performance measures derived in accordance with GAAP as measures of performance.
Reconciliation of GAAP Net Loss to Adjusted EBITDA to Cash-Adjusted EBITDA | |||||||
(in whole numbers, unaudited) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net loss attributable to common shareholders | $ | (7,544,918 | ) | $ | (4,785,019 | ) | |
Interest expense (excluding amortization of debt discount) | 377,234 | 113,812 | |||||
Depreciation, amortization and accretion expense | 2,112,929 | 1,435,334 | |||||
Amortization of debt discount | 100,444 | 38,461 | |||||
Loss on debt extinguishment | - | 325,198 | |||||
Financing transactions expense | 172,229 | 144,451 | |||||
Litigation costs | 182,547 | 72,800 | |||||
Inventory and reserve adjustments | 302,629 | 99,639 | |||||
Severance costs | 160,495 | - | |||||
Acquisitions expenses | - | 25,126 | |||||
Insurance acceptance readiness | 706,341 | - | |||||
Sarbanes Oxley readiness | 159,908 | - | |||||
Accrued interest on Series B Convertible Preferred Stock | - | 112,192 | |||||
Foreign exchange (gain) loss | (26,248 | ) | 355,622 | ||||
Taxes | - | - | |||||
Dividends | 1,079,380 | 812,563 | |||||
Stock-based compensation expense | 2,544,430 | 2,663,514 | |||||
Net income attributable to noncontrolling interests | 119,432 | 565,983 | |||||
Adjusted EBITDA | $ | 446,832 | $ | 1,979,676 | |||
Change in Deferred Revenue | 4,374,159 | 348,039 | |||||
Cash-Adjusted EBITDA | $ | 4,820,991 | $ | 2,327,715 |
Reconciliation of GAAP Diluted Loss per Share Attributable to Common Shareholders to Adjusted EPS | |||||||
(unaudited) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Diluted loss per share attributable to | $ | (0.19 | ) | $ | (0.15 | ) | |
Adjustments to Reconcile GAAP Diluted Loss Per Share to Adjusted EPS | |||||||
Interest expense (excluding amortization of debt discount) | 0.01 | - | |||||
Depreciation, amortization and accretion expense | 0.05 | 0.05 | |||||
Amortization of debt discount | - | - | |||||
Loss on debt extinguishment | - | 0.01 | |||||
Financing transactions expense | 0.01 | - | |||||
Litigation costs | 0.01 | - | |||||
Inventory and reserve adjustments | 0.01 | - | |||||
Severance costs | - | - | |||||
Acquisitions expenses | - | - | |||||
Insurance acceptance readiness | 0.02 | - | |||||
Sarbanes Oxley readiness | - | - | |||||
Accrued interest on Series B Convertible Preferred Stock | - | - | |||||
Foreign exchange (gain) loss | - | 0.02 | |||||
Taxes | - | - | |||||
Dividends | 0.03 | 0.03 | |||||
Stock-based compensation expense | 0.06 | 0.08 | |||||
Net income attributable to noncontrolling interests | - | 0.02 | |||||
Adjusted EPS | $ | 0.01 | $ | 0.06 |
Source:
2024 GlobeNewswire, Inc., source