Core Highlights: - Net income increased significantly to $100.0 million for the nine months ended September 30, 2024 from a net loss of $24.8 million for the same period in 2023, driven by strong revenue growth and gross margin expansion. - Revenue grew 59.2% year-over-year to $995.4 million, primarily from online sales of health and wellness products and prescription medications. - Gross margin improved 2.9 percentage points to 80.8%, benefiting from increased scale and product mix.
Revenue Breakdown: Online Revenue (97.2% of total): - Revenue was $967.2 million for the nine months ended 9/30/2024, up 60.1% year-over-year - Driven by strong growth in sales of prescription and non-prescription health and wellness products through the Company's websites and mobile apps. Wholesale Revenue (2.8% of total): - Revenue was $28.2 million, up 38.4% year-over-year - Wholesale sales of non-prescription products to retail partners.
Management Outlook: The Company completed the acquisition of MedisourceRx, a 503B compounding outsourcing facility, in September 2024 to expand its compounding capabilities. Management expects the acquisition will enhance market presence and provide advanced compounding expertise.
Operating Data: Operating expenses increased year-over-year in marketing, operations/support, technology/development, and G&A. The Company had $166.4 million in cash and cash equivalents as of 9/30/2024, providing sufficient liquidity to fund operations for the foreseeable future.
Operational Risks: Key risks disclosed include regulatory risks related to healthcare laws and regulations, reliance on third parties, competition, cybersecurity and data privacy issues, and ability to attract/retain personnel.

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