• Consolidated Revenue: $64.3 million for Q4 2024, a 43% increase year-over-year.
• Telehealth Revenue Growth: 60% increase year-over-year.
• Adjusted EBITDA: $9 million for Q4 2024, up from $5 million in the prior year.
• Telehealth Adjusted EBITDA: $5.9 million for Q4 2024, a 396% increase from the prior year.
• Gross Margin: 85.3% for Q4 2024, a decline of 280 basis points year-over-year.
• Net Loss: $883,000 for Q4 2024, or a loss of $0.02 per share.
• Active Telehealth Subscribers: Over 275,000, a 27% increase year-over-year.
• Cash Position: $35 million at the end of Q4 2024.
• Full-Year 2024 Revenue: $212.5 million, a 39% increase from 2023.
• 2025 Revenue Guidance: $265 million to $275 million.
• 2025 Adjusted EBITDA Guidance: $30 million to $32 million.

• Warning! GuruFocus has detected 5 Warning Signs with LFMD.

Release Date: March 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• LifeMD Inc (NASDAQ:LFMD) reported a 43% increase in consolidated revenue for the fourth quarter, reaching $64.3 million.
• Telehealth revenue grew by 60% year-over-year, with adjusted EBITDA increasing nearly five-fold.
• The company successfully launched several key products, including a male hormone replacement therapy business and a nationwide pharmacy licensed in 47 states.
• LifeMD Inc (NASDAQ:LFMD) plans to expand its virtual primary care offerings, including a new LifeMD Plus membership program and behavioral health services.
• The company is optimistic about the potential growth of its Medicare offerings, which are set to launch soon, targeting a significant market of Medicare beneficiaries.

Negative Points

• Gross margin for the fourth quarter declined by 280 basis points to 85.3% due to changes in revenue mix and one-time impacts related to onboarding a new pharmacy.
• LifeMD Inc (NASDAQ:LFMD) reported a GAAP net loss attributable to common stockholders of $883,000 for the fourth quarter.
• The company faces challenges in the highly fragmented GLP-1 supported weight loss market, with many smaller competitors.
• There are uncertainties regarding the FDA's stance on compounded GLP-1 medications, which could impact LifeMD's offerings.
• The company is still in the early stages of expanding its insurance offerings, with a relatively small contribution to revenue expected from insured lives in 2025.

Q & A Highlights

Q: Can you talk about your relationship with LillyDirect and how it will work? A: Justin Schreiber, CEO: The arrangement is with a third-party pharmacy that LillyDirect uses to ship cash pay vials of medications directly to patients. LifeMD will integrate with this pharmacy to enhance the patient experience for those not covered by insurance for branded therapy. LifeMD does not make money on the pharmacy itself but focuses on increasing access to affordable medications.

Q: As products come off the drug shortage list, how will you personalize compounded medications? A: Justin Schreiber, CEO: LifeMD focuses on providing high-quality virtual healthcare and works with vetted third-party pharmacies. While we have our own pharmacy, we do not use it for GLP-1 medications. We will consider offering personalized versions of GLP-1 medications if it aligns with patient needs and respects pharmaceutical companies' intellectual property.

Q: How is the expansion of commercial insurance acceptance affecting telehealth subscriber growth and patient retention? A: Justin Schreiber, CEO: The insurance business is still small, but we are optimistic about growth. We aim to have around 150 million lives under coverage by the end of the year, which will drive long-term business growth.

Q: Can you explain the decline in gross margin and the outlook for WorkSimpli? A: Marc Benathen, CFO: The decline was due to one-time costs associated with onboarding a new pharmacy. Gross margins are expected to return to normal levels. WorkSimpli has stabilized, consistently producing around $1 million in EBITDA per month, and we expect continued growth.

Q: What are your expectations for Medicare reimbursement for telehealth services? A: Justin Schreiber, CEO: We are optimistic that Medicare will cover these drugs soon. We are preparing to offer comprehensive services for Medicare patients once coverage is available. The current bill includes an extension of telehealth coverage, and we expect a permanent solution with bipartisan support.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.