Q3 2021 LifeMD Inc Earnings Call
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Good afternoon. Thank you for joining us today to discuss the results for life in the third quarter ended September 30th 2021 doing.
Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Mark benefit Chief Financial Officer of like M. D.
Finally management's prepared remarks, we will open the call for a question and answer session I'd.
I'd like to remind everyone that today's call is being hosted via webcast and the recording will be made available via the link in today's press release, which is available in the recipe aggressive relations section of the company's website.
Before we begin I would 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 the company's actual results to differ materially from those projected.
These risks and uncertainties are I described [laughter] companies 10, dash K and tend to ask you filings and within the other finally that life and the May make with the S. E C from time to time.
For legal statements made during this call are based on current information available available to the company as of today November 10th 2021, the company assumes no obligation to update or revise any forward looking statements. After today's call except as required by law also please note that management will be discussing certain non-GAAP financial measures that the company believed.
These are important and evaluate your life M. D performance details on the relationship between these non-GAAP measures to their most compared to half measures and reconciliation thereof can be found in the press release issued earlier today.
Finally, I would like to remind everyone that today's call is being recorded and I will and will be available for replay an investor relations section of the company's website now I'd like to turn the call over to life M. D. C E O. Justin Schreiber. Please go ahead.
Thank you should mall and good afternoon, everyone. Thank you for joining us today to discuss our third quarter, 20th 21 results.
I Wanna start this call by giving a huge congratulations to the life M. D team for launching earlier this week the life of the virtual care platform.
I believe this launches a transformational turning point for the company for our patients and for our shareholders.
Are there more I believe the business models supporting our primary care platform will help change and disrupt the U S health care system and will serve as a model for how exceptional health care can be delivered in a virtual environment that is affordable convenient and most importantly resolved and better outcomes for patients.
But those of you who I haven't seen our platform yet I would encourage you to visit our new website, we just launched a license D dot com.
Side from virtual primary care and telehealth, there are too big and important take away I think are important for everyone on this call to understand.
First our new platform will enable us develop deeper broader and longer term relationships with our current patient population and have a bigger impact on their overall health and wellbeing.
As most of that you know, we have an extensive and expanding business treating specific conditions like erectile dysfunction hair loss and dermatological issues. We're very proud of these businesses, they're standalone unit economics and their growth trajectories, they're likely going to be around for an extremely long time never.
Nevertheless, I believe the incorporation of our virtual primary care platform will create a tectonic change in our business that will dramatically improve the level of satisfaction and the overall experience of all of these patients.
It goes without saying, but I'll say happier patients who are invested a longterm relationship with an outstanding Doctor provided by life M. D are going to be very loyal and will help generate unit economics and overall profit levels that are best in class and the industry.
On a side note as.
As I said time over the past several months with our founding team a primary care physician.
Realize that our doctors with their expertise and compassion and their relationships, they're going to build with patience. These.
These doctors are without a doubt one of our strongest assets or intellectual property that any company can all.
I believe this intellectual property and the deeper relationships, we will begin to foster with our patients will be transformative not only for our new light from D primary care offering, but all of our existing browse Americans crave access to great doctors and life of D is going to be the company that meet this need.
The second important takeaway is that our new virtual care platform dramatically expand the scope of our business and the clinical areas in which we can offer telehealth products and services.
From urgent medical issues like sinus infections, cold and flu U T. I S. T d's to chronic conditions like diabetes weight management asthma allergies anxiety life would be now as a platform supported by license providers, who can treat a wide range of conditions.
And perhaps most importantly, we don't just offered telehealth services. In addition to the same day guaranteed virtual treatment, we offer discounted prescriptions conveniently delivered to the patient Tom and this kind of diagnostics that can be collected in the patient Tom and most major metro areas.
Most of you also know we have a great relationship with quest diagnostics that patients could conveniently visit throughout the country.
Additionally, we are working on incorporating other than home tools and continuous monitoring devices like wearables that will truly revolutionise. The relationships are patient have with their doctors.
As you can probably tell I'm very excited about this platform and what it can do for our patients launching it was the vision, we always had for life in deep and I'm extremely excited to watch are proven team of clinicians technologists and marketing gurus grows into a substantial business.
All this has been made possible by the accomplishments we achieved this quarter. We continued to see strong order grout with telehealth products and services up 153% driven by both strong acquisition and more significantly by strong retention of our existing patients.
Currently 93% of our revenue comes from occurring subscriptions I think this.
<unk> the high level of satisfaction, our patients have with the telehealth services and the products that we provide.
Thanks for the closing of our capital raised with net proceeds of $55 million life M. D is now in the strongest capital position, it's ever been since our founding not only was this offering oversubscribed, but we believe that the funds rates from it have sufficiently capitalize their business to reach profitability while continue.
<unk> are aggressive growth strategy.
Mark and I view, it as permanent capital for the company.
In an earlier call I mentioned, our commitment to preserving and growing shareholder value I believe that's recent raise reflects those commitments we looked for a minimally diluted transaction to finance the company and that's exactly what we achieved the raise allowed us to eliminate all of our debt, which was approximately $15 million.
Paying off this debt prior to maturity, we avoided a million shares of additional W. Dilution.
We sold 3.8 million shares in the common offering alongside our Nondilutive preferred offering so total dilution to shareholders to permanently capitalize the company was around 2.8 million shares or approximately eight per cent of the company on a fully diluted basis for $55 million more than enough.
Capital to propel us through the next stage of growth.
Also during the quarter, we made a key appointment to our board, adding Nadine by T. V is a highly accomplished investor in private equity professional who has an extensive career in the investing world most notably with 10 years of experience as a senior member of Blackstone's tactical opportunities team and extensive board experience.
Thrilled to have him on board as he provides helpful guidance heading into what is sure to be our most exciting your yet as a company and as a provider of exceptional health care through tell out.
With that I will now turn the call over to our CFO Mark Burnett, then who will provide the summary of this quarter's financial results Mark.
[noise]. Thank you just send it good afternoon everyone.
We are extremely proud of our third quarter performance not only did we achieve record revenue, but we began to successfully achieve operating and marketing expense leverage ahead of our expectations, resulting in a 24% sequential improvement and adjusted EBITDA versus the private corner.
We also successfully close the largest financing in company history, raising $55 million net proceeds led by a preferred stock offering supplemented by an institutional I really loved common stock offering.
Following those financing we believe lights on D. A sufficiently capitalized to support both our investment and aggressive growth of Jack lives and obtaining adjusted EBITDA profitability.
This financing also allowed us to eliminate our previously existing senior secured that with a permanent source of flexible capital then minimize pollution common shareholders.
Now turning into results for the third quarter.
Revenue in the third quarter of 2021 totaled a record 24.9 million up 127% less compared to the same quarter a year ago.
93% of the total revenues in the third quarter regenerating from recurring subscriptions compared to 61% in the same year ago period.
Hello Health net revenues grew over 97% to $18.5 million and 17% sequentially versus the prior quarter.
I work Someplace subsidiary contributed net revenue of 6.4 million, 309% from the year ago quarter with sequential revenue essentially flat work simply revenue was temporarily impossible by approximately 700000 related put a one time cost of new trial offers which works.
Simply since this continue following work simply is back on track with sequential revenue growth in the fourth quarter.
Hello Hall corner volume grew 153% a year ago period to 232293 orders.
Following our continued robust performance reiterating our full year of 2021 revenue guidance of 90 to 100 million, reflecting annual growth in 2021 of between 141% on 168% versus primary or.
Gross profit in the second quarter increased 113% of 19.9 million compared to 9.3 million in the same year ago quarter.
Gross profit as a percentage of revenue on the third quarter of 2021 was 80% compared to 85 per cent in the same year ago quarter with the decreased primarily due to a change in the product sales mix, coupled with the one time non-cash right off of legacy products available.
Our platform contribution a non-GAAP financial measures to find that gap operating loss before general and administrative expenses, excluding payment processing fees.
Selling and marketing expenses and other expenses was unimportant non-GAAP financial measure, which monitors are performance based on the direct costs of the living room of products and services, we solid cross our brands. We believe it is useful to measure how we are controlling you got a direct variable costs and how effectively we're we would cannot provide most patients can customer.
Subscribers.
Platform contribution in the third quarter called 17.5 million compared to 8.1 million in the same year ago quarter, an increase of 115%.
Now turning to operating expenses.
Offer any expensive in the third quarter of 2021, more 32.4 million up from 29.9 million in the same year ago quarter.
The increase was predominantly due to increases while discretionary growth selling and marketing expenses of 9.8 million. Other operating expenses of 272000 customer service as expensive as 275000 and development costs of approximately 13000 general and administrative expenses.
Decreased 7.7.
Like water and industries and include a non-cash expenses for Spock based compensation and navigation of $4.8 million does increase was primarily due to a 13.3 million dollar decrease in stock compensation expense.
Additionally, operating expenses decreased by 1.8 million sequentially versus the prior quarter, driven primarily by increased efficiency realized and selling your marketing spend resulting in a $2.1 million sequential decrease in that category and a 1900 basis points to <unk>.
And shall improvement and selling and marketing expenses as a percentage of total net revenues.
Our GAAP net loss attributable to common stockholders for the second quarter totalled 14.4 million or negative and 54 cents per share. This compares to a net loss attributable to common stockholders of 24.2 million or $1.60, 5% in the third quarter of 2020.
Adjusted EPS as a non-GAAP measure that excludes $3.1 million in non-cash soccer's compensation expense 118, K, a non-cash depreciation and amortization expense 187000 of nonrecurring financing transaction expenses and 1.6 million of non-cash set.
Discount that realisation disfigured totaled the loss of 36 cents per share for the third quarter as compared to a loss of 52 cents in the same year ago period. Additionally, adjusted EPS them for 25% sequentially versus the problem with water.
Adjusted EBITDA, and non-GAAP financial measure, which factors out non-cash stock based compensation depreciation and amortization financing transaction expenses litigation cost Uhm interest expenses totaled a loss of nine nine in the third quarter of 2021 as compared to a loss.
Oh 3.8 million in the same year ago period.
Just the name of it though improved 24% sequentially versus the prior leather.
Now turning to our balance sheet cash called $9.4 million. So September 30th 2021.
As discussed earlier on October 2021, we completed that they preferred equity offering supplemented with a complimentary common equity offering raising approximately 55 million and that person is which we believe will sufficiently capitalize us to reach our savings all of achieving adjusted EBITDA breakeven by the fourth quarter of two.
Thousand 22.
This wraps up our financial results I'd now like to turn to call back over to Justin.
[noise]. It's March overall, we had a tremendous third quarter of 2021, <unk> operationally with record revenues and fundamentally with the launch of our virtual care platform.
And minimally dilutive financing.
Something else I'd like to point out Yep. We we've also a big focus of the company. This year has been institutionalized you know our our shareholder base and our company is now.
Add the today 40 per cent of the float isn't institutionally held and you know I believe that number by the end of this quarter you know could be closer to 50% you know given the number of institutions that participate in our last financing. So I think that's an awesome metric and I I think it speaks to the quality of the business that <unk>.
Can attract the caliber of institutions that you know now make up 40% to 50% of our float and that's something that we're going to continue to focus on as a company.
I.
I I remain extremely confident that we'll be able to continue growing aggressively while achieving our goal of adjusted EBITDA breakeven by the fourth quarter of 2022.
Uhm before you open the call for Q&A I Wanna leave everybody with the following.
We now have an outstanding World class virtual care technology platform powered by our Premier Doctor Network, and the best direct to consumer marketing team in the industry when.
When you reflect on all of this it seems clear we are well positioned to benefit from the changes sweeping through the U S health care system.
Everybody knows our health care system is broken change is inevitable with our proprietary technology and our network of physicians, who truly care about their patients we stand poised to disrupt health care for the better.
We're combining diagnostics prescription medication medical records and eventually wearable to deliver totally integrated health care. We were building something that has the potential to become the biggest medical practice in America, we can honestly and truly say what patients want to hear the Doctor will see you know not four D.
As from now or three weeks from now but now.
That's health care, where and when you need it.
But what's most exciting is the thought the millions if not tens of millions of Americans, who will be happier and healthier because of life M. D to me that's the most thrilling thing about my job.
Going forward, we will have to wage the battle for the mind share of our customers.
Till now we've focused on lifestyle concerns such as E D hair loss and skincare, which are all great businesses with strong muted economics, they should be seen as a case study for what we can do in direct to consumer health care, we've already crushed it and an incredibly competitive markets with much less capital than our competitors the license.
D as changing now we have a platform that allows us to go after the entire U S health care system and we're just getting started it's been a very busy fall and there's more exciting news on the way.
They've been working on some significant new partnerships and the farmer and technology sectors.
We plan to hold an investor day in the new year to showcase our our technology platform introduced the leaders of our physician team and of our partner companies and much much more.
So stay tuned we're just getting started 2022 is looking to be our greatest your yet recently posted our shareholder letter and the Investor Relations section of life M. D. Dot com. So please give it a read we're also gonna send it out this evening via Twitter.
With a big final thanks to our providers our patients our team and our shareholders or support I would like to open the call for Q&A operator.
Thank you at this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line and then the question Q U.
You May press Star too if you would like to remove your question from the queue for participants usually speaker equipment. It may be necessary to pick up your handset before pressing his car keys.
One moment, please while he pull for questions.
Our first question comes from the line of David Larsen with B T. I G people see what your question.
Hey, Justin and Mark and team congratulations on your success so far.
Just a couple of quick ones for me can you talk about you know maybe revenue growth revenue came in a little bit lighter than what we were modeling.
The number the the grocery in telehealth orders was up 153% year over year.
Uhm that compares to the year over year growth and product revenue, which I think was around 96%. So the number of orders are up with a product revenue isn't up as as high in terms of the growth rate.
And then it looks like the the revenue per order was was good I mean, it was flat sequentially, but down 20% year, where you just any color there and what's going on with revenue per order and.
Why the grocery and product revenue isn't as high as the growth rate an actual orders.
Yeah, It's Mark you know what a primary reason Saddam was if you look at Q2 last year. There were some the business was far less subscription based on the worst them outside average order guys. It took place in that that particular quarter as we transition to having a business too.
We believe as much longer on a long term basis has more of a pension and a subscription driven versus having about half of the business not subscription driven some of the a O V is will be lower than what they were about a year ago. So very compatible for the industry and still I have as many of our competitors on a subscription basis.
But that's the main reason why you see that belt in between.
Growth in the number of orders I'm Gonna go out from the revenue with that being said, we believe that the growth that we have this particular year, while I'm a you know a different one of them to be C. I G model was very much in line with our expectations for the border 17% sequential revenue growth.
Obviously, I'm not 100% you're on your growth and there's also been very consistent with the sequential growth read them, saying, a private park lettuce.
Okay.
And then with a slight decline in a O V is part of that being driven by the derm product Nava, how is that progressing and it is part of that being driven by the primary care solution, how how is that progressing yeah. So.
So none of US are primary care solution, we just actually better launched a couple of days ago, a little bit of the trial offer and and then a little bit of it is the fact that rather than go and try to scoop up an initial sales or no. If you looked at a year ago in queue to Shapiro all the hair loss brand.
I have multiple O T C products bundled for a fairly high L. V that also didn't drive a lot of attention saw some along long-term perspective, it wasn't necessarily a strong of a model. The car model. Obviously has you know bundling products, but driving at at and.
It'll be that is much more competitive as long a longterm day sauce, and it's really a lot of it has to do with the subscription model versus give me more of a one off transaction that a much much higher it will be.
Okay, and then when you say subscription model can you just remind me what what that means does that mean.
You be sure to get by and what.
What it means you will put me will sign up.
M D. You'll put down your payment information, we'll get either a 1234 months, we've started to move with a six month subscription you'll get that quantity of supply and you'll get billed on that frequency you know how's. Your your supplies went out so if you're on a three months of scripture.
And you'll get billed once every three months from us when you've got a three months supply that's on a one month subscription they'll get billed every single month and get a one month supply from that's the subscription model and the one off transaction model would be we bundle everything together, we sell it to you and you know get billed for you know additional water.
As in the future it becomes a one off transaction and then you have to go and take the stuff to buy again subscriptions, obviously drive substantially more attention and frankly, it's a lot easier for a lot of our patients is Walter manage which is why most people have made the election to move on to that particular model and it's one of the reasons why you know.
I'm in L. T V standpoint, you're gonna do better in the subscription model. If you look at all the 12 month period and then we're getting out T. V is now 350 to 401, we were not on that subscription is having a subscription model cute too last year. There was one year old T. V's will closer to 250 to 300, albeit you would crown.
Everything into a shorter time period.
Okay, I don't I don't want a hug all the Q&A time here I'm sure. There's other folks that have questions, but can you maybe just talk a little bit about the sales and marketing spend per order that as a metric that I think actually looks pretty good. Congratulations on me EBITDA improvement can you just talk about the source of the 22%.
Percent sequential improvement in sales and marketing per order spend.
Is it.
And also like I've I've heard from other areas like the the online advertising cause it's not a slight increase that has occurred over the past six months in some cases, it's been like a tenfold increase so just any color on what drove the improvement in sales and marketing spend would be very helpful.
Yeah, two fold one was configured to work optimize our media I'm Gonna I'm not gonna get into the specifics by channel because that's somewhat of a trade secret for us, but we're we're very laser focused on that I'm really digging into the day by making sure that we optimize across online and offline media we saw it.
Out in the last couple of quarters as well, we continued that trend. The second pieces retention you know at the end of the day, we've continued particularly in the prescription side of the business continues to have stronger attention, which has enabled us to be able to drive more and more revenue associated with rebuilding of existing.
Patients that we don't actually have to go out and pay money in marketing to acquire those people and in fact, if you look at the sequential growth of our revenue that comes from rebelling with existing patients every quarter that number tends to be very much in line for sometimes a little bit better than what a sequential revenue.
You got those overall for the company. So it's really it's the optimization. So that was really sort of tightening down on the data behind it and and then the second pieces, obviously with tension, which you know that's gonna serve the business for a very long time.
Okay, and then just <unk> without getting ahead of ourselves can you maybe just talk about your expectations for EBITDA.
As we progressed into 2022, just any sort of high level color like since you just launched the primary care platform would you expect EBITDA margin pressure in four Q is that gonna be an.
<unk> earnings headwind and then.
Any <unk> any thoughts on how sustainable 130% year over year revenue growth rate is thanks.
Yeah, so from a neighbor with.
And for them, we can tell you to expect even with some of those launches that will have some mild improvement heading into the fourth quarter and EBITDA versus the third quarter I don't think it'll be substantial book an old mild mild improvement I'm heading into next year, we're still very much on track to achieve our state of Gulf getting too.
EBITDA breakeven so slight profitability by the fourth quarter of next year, and we expect to see sequential improvement throughout the year next year I would say that sequential improvement is probably gonna be most pronounced between the second quarter of fourth quarter of next year versus the first quarter, but we do expect to continue to see.
That from the top line growth standpoint, you know we're in the process of finalizing a budgeting and planning for next fear as we speak but you know we still continue to remain very optimistic about growth in the business do I expect to see consistent triple digit growth year on year.
Sure I think you know from a you know an estimate standpoint, I think it's probably safer to assume as you know has been the same date that is gonna be a substantial double digit top line growth.
Substantial double digit okay. Thanks, very much I'll hop back in the queue.
And as a reminder, if anyone has any questions you may <unk> one on your telephone keypad join the queue and a.
Session.
Our next question comes from the line of Mark Weisenberger with B right Security. Please proceed with your question.
Thank you good afternoon, and congrats on a very good quarter and the progress on the primary care offering I'm wondering if you could start off by updating us on the percentage of Tele health orders that are currently under <unk> multi month subscriptions and your expectations for that going forward.
Yeah, So where are approximately 50% of a telehealth all of those are all multimode subscriptions you know our expectation is that number will slowly and shop over the next 12 months do I think it's gonna get the 70, 80% no, but you know what I think you can get to someone else.
850, and 60%, Yes, you know we believe that we have a greater percentage at least from what I've seen publicly multimodal orders versus you know smaller players in the industry, but that's kind of where we are right now.
Great and and are you seeing any changes in in patient behavior or ordering patterns across cohorts as as the duration on the platform extend.
No no not really you know at the end of the day.
You know even as restrictions can be the most somewhat transitioning to post COVID-19 will be really haven't seen any changes in order of any patterns. What I do think came hopping in stroik lost without it we're not gonna know this until we can probably get closer to make 2022 is with the launch of virtual primary care or has the potential that.
We have the ability to drive even greater you know economics really can change potentially some no additional cross sell opportunities and some changes in ordering behavior. You know is that platform continues to gain traction, but like I said, it's too early for us to.
I'll be able to tell that at this point.
Sure I understood and I think you alluded to it a little bit before but if you could talk about the advertising environment across your different channels that'd be helpful and then.
There was some discussion with kind of the Apple I L. S update and associated privacy kinda changes. There I was wondering if you were impacted at all in your ability to target new patients.
Yeah, maybe yeah, Yeah go ahead and Mark.
Yeah, It looks like Hi, Marcus Justin [noise], but we're we're.
<unk>.
As a company, we're continuing to diversify kind of our advertising mix, which is which is really helping us out on the acquisition side Uhm. We're seeing some you know we have we have at least.
Three to five new channels that are really started we're starting to see if they can if contraction on in the last in the last quarter.
And you know, we we actually believe that you know those channels and others are more scalable. So you know that's a very positive for the business and kind of goes to what we've we've always said about.
Now there's just that these are these are massive markets and there's there's still enormous opportunity and we think there will be for a long time.
You know everybody everybody that everybody, that's and that kind of data seaworld is going to be impacted by.
You know by these changes to kind of tracking users right across devices.
And you know I actually believe that it's I actually believe that life in D. And our expertise is is you know I think we're in a better position than anybody to you know to respond to this and and actually the two in a in a way benefit from US I mean, I've been really clear you don't Wanna, even in this call with <unk>.
You know it.
Aside from providing amazing health care, which is obviously, our first priority or were awesome at marketing and acquisition and and you know.
We've got a lot of tools in our toolbox I don't think other companies have and that's that's gonna continue to grow drive to grow so as you take away maybe some the call low hanging fruit that you know we've all benefited from through being able to kind of track and better target customers, you know where where where.
If you want to buy it if you if you want to you know if you're gonna bet on something that's gonna benefit from these changes in my opinion, that's like M. D. So that's helpful. But that's that's our perspective, we actually think this could be a positive for our business.
Got it <unk> very helpful and then I'd like to hear about how the expansion of the the customer support center has gone in and maybe how that's improved conversion and upsells.
Sure I mean look we we we've continued you know.
<unk>. This is Ah obviously like Ah Ah.
You know big a really important part of our business you know we have an <unk> an Austin team in in South Carolina that runs our call center, it's our patience love. It you know, it's I I won't I would prefer not to give like specific numbers, but I'll just say that.
That that business.
And that operation continues to to shine it could easily double easily double over the next six to 12 months uhm inside.
And it it is certainly.
It is certainly very helpful right on the on the acquisition side and and also you know obviously, providing America is is that there's a big part of that operation that that's that's patient and customer focused and you know really proud of like wait times, and and response times and all of that stuff, including you know we now have you know a significant M. A.
<unk> medical assistant operation that we started to build you know and and in Greenville, along with Credentialing and you know also looking at nurses. All all all of these things that are going to be supportive of our 50 States primary care business. So it's it's a really great asset when they're allowed to show up to investors I always bring people down here and.
Yeah, great part of the business.
Great and in two more from me and turning to the primary care offering and you've you've talked a lot about how important longitudinal care is I'm wondering if you could talk about really the technology infrastructure that you built that will help to sell a tech facilitate that and maybe even more broadly help pay.
<unk>.
Who then have more complex.
Uhm conditions be able to really get the care that they need through life N D and then partners as well.
Sure so on the technology side.
We've been working on this billed for.
I don't know the exact probably probably at least a year you know, it's our first native mobile application.
Also there's a desktop version as well we've already integrated quest and kind of real time lapse, where we are also working on finalizing before the end of the year that kind of in home collection component of lab. So that's all integrated.
You know it also combines the <unk> you know the prescription like intelligence piece. So you know all of the someone needs prescription filled in a refill to up to local pharmacy or through one of our regional pharmacies, whether that'd be a traditional pharmacy or compound. The pharmacy you know all of that is in.
Graded <unk>.
Patience importantly to get are you gonna be able to get really significant discounts you know on on all of those prescriptions as an addition to diagnostics and I'd like to point out that the price points on common diagnostics that we'll be able to offer through life M. D. R.
Or just are unheard of bright people, probably won't won't believe them.
You know we're also we we've we've integrated with particle help curb so most People's Medical Records will also be pulled immediately the platform. We're looking at integrating you know and and and potentially partnering with one of the biggest manufacturers in the world for and the wearable space. So.
That's what I think is very very exciting and can be done very quickly. We're now we're actually not only giving you. This great Doctor that you know all of a sudden really cares about you has time for you to get back to you takes the time to explain your your your Bloodwork, but also like now can even see your respiratory rate your blood oxygen level, you're maybe.
<unk> you know all of these very important metrics, which really has never been done.
Uhm so.
The the technology is complex, it's it's going to be involved with something that's always going to be evolving and we're gonna continue to to make a significant investment in it.
So as far as <unk> and by the way Mark We're gonna that's one of the reasons why we're doing this investor day I pushed it to January intentionally because I want all of these features to be alive and everybody to be able to play with all the stuff and but but we're gonna spend a half a day to day and like literally go through all the technology all the capabilities bring in.
Like put our different clinical director is our chief Medical officer, let them talk about like you know how they built the south it's going to be a great day right also I Wanna pulling the C E OS with like some of these technology companies with partner with and let our investors hear from them like why they think like have D of one of their most important partnership so uhm that'll.
Something to look forward to for everybody Oh look on the complex side, they're they're going to be limited. When you mentioned your second part of your questions was about treating <unk> complex conditions.
I mean, we're going to have to obviously have.
Some restrictions I mean, we're not going to be able to do everything obviously, we can't do everything virtually you know some pretty prominent academic medical centers are you know kind of done a lot of work on this recently and the number is probably somewhere in the 60, 70% you know range of what what platform like ours can treat virtually.
Obviously, it's 100 per cent for a lot of people that are healthy, but we we are going to again. This full of greatly expand like the number of conditions that we can treat.
But there are going to be you know some limitations, obviously certain things that two managed by a specialist and that's that's that's something that you know will be very clear to patients when they when they are on board and the platform.
Most most urgent conditions you have a great team of ER docs supporting like the 50 stay at launch Archie medical officers former.
E R. Doctor. So it has like you know has a lot of experience with urgent care Uhm certainly chronic conditions that you know that are prevalent you know almost all of those we're gonna be able to treat and then a lot of wellness right like a big part of this is you know like our <unk>, our chief Medical officer, and a lot of the team of our founding physicians.
We've attracted to the platform like are trained in like Integrative Medicine right. Tony went to Tony is a graduate of the Andrew Island, two in Arizona, which is kind of the world's leading integrative Health Center.
And so that's something else I'm really excited about it.
I think there's a big opportunity for on the wellness and like held optimization site as well for this platform. So you know they're they're they're the opportunities are endless we need to kind of you know, we're gonna figure out kind of where to focus this thing and of course, focusing it on existing patient you know we have.
It's very big business very Big Medical group right now, where we have a large number new patients coming in every day, we have hundreds of thousands of prior customers and patience and.
There's <unk>, there's no there's an opportunity there to to kind of build up fairly you know to build a big business around US you know.
Quickly just from that existing population.
Sure No that's very helpful. At a good color there just just the final one to talk about the experienced thus far onboarding doctors kind of how we should expect that to ramp over the coming quarters, and then also kind of resource allocation between the established telehealth brands and then new primary care offering going forward.
Yeah. So.
You know, we we've been able to leverage a lot of our existing so we brought on a few.
Fulltime medical professionals as doctors that are 50 state license to.
To help support the launch and filled out a lot of the protocols for you know our our new primary care offering.
You know we we also have a lot of other doctors that we got we were very fortunate to find you know just through our network that are kind of have agreed to you know basically commit 30 hours a week because that's when we have we have you know we we have the capabilities right now to you know to service like a very large patient population.
<unk> and we've done and we've also we these done many of these doctors are also treating patients in our condition specific businesses. So you know they're already very happy with the relationship they have with life and D. In there to kind of you know, they're they've committed to certain number of hours and schedules to support the launch of this business that the primary care business.
In addition to like that other those other consult they're doing with US moving forward. The plan is to to you know.
Hire full time positions, you know and and there'll be there'll be affiliated providers that work for our medical group and you know that probably <unk>, it's great for the doctors. They they really enjoy these kind of virtual practices. You know, we we can we can pay them.
Extremely well, just as good or or even better than they're making it then they're doing it a brick and mortar setting and so as the business scales were will continue to one of our doctors, but it's a it's a it's a it's a it's an attractive set up where you know we we don't really have to take because of the because of the existing infrastructure that we have with our other telehealth business.
<unk> like <unk>, we didn't have to go out and hire you know even 10 or 20 right doctors that are 50 state license or 30 to 50 state license in one $300000 a year right. We've kind of managed to get this thing launched with our existing infrastructure and some small investments and medical personnel and then we'll just.
Full scale the medical personnel as the business grows with a number of doctors that are awesome.
Awesome doctors that are you know kind of there and they're they're ready to to leave traditional practices and and work for life and be fulltime and they're very excited about it.
I think you mentioned like resources, you know other businesses versus you know life M D. It's what gets.
We we know it's probably one of those common criticism. So the company is we're trying to do too much you know I think look I'm very confident that we can execute on both of these businesses. You know we've greatly expanded the the team and our infrastructure over the last 12 months you know are are.
Our our lifestyle in dermatology dermatology businesses are very complimentary for life from D. As I pointed out there essentially like Legion for this kind of longer term you know broader primary care model and I I I I don't see an issue uhm executing on both.
Got it very helpful also get color and congrats on a on a good quarter. Thanks.
Thanks Mark.
And we have reached the end of the question and answer session on now I'll turn the call with suggestions for you before closing remarks.
<unk>. Thank you operator, thanks, everybody for taking the time to listen to our call. We really appreciate everyone's support and yeah. Please reach out to Mark right. If any of you have any specific questions for us we we always do our best service.
<unk>.
Anybody that emailed us to our Investor relations email address so thanks. Thanks really appreciate your support and <unk>, we're really excited about the future.
A life M D have a great evening.
And this concludes today's conference and you may disconnect. Your line at this time. Thank you for your participation.
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