Q3 2023 LifeMD Inc Earnings Call
Speaker 1: Good afternoon. Thank you for joining us today to discuss the results of the Life MD's third quarter and its September 30th, 2020.
Good afternoon, and thank you for joining us today to discuss the results for life M. DS third quarter ended September 30th 20 twenty-three join.
Speaker 1: join the call today are justin driver chairman and chief executive officer and mark bethan chief financial officer of life and
Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Mark <unk>, Chief Financial Officer of Life M. D. Following management's prepared remarks, we will open the call for a question and answer session.
Speaker 1: Following management's prepared remarks, we will open the call for a question and answer session.
Speaker 1: 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.
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.
Speaker 1: These risks and uncertainties are described in the company's 10-K and 10-Q filings and within other filings that Life MD.
These risks and uncertainties are described in the company's 10-K, and 10-Q filings and win within other filings that life M D.
Speaker 1: … with the SEC from time to time.
May have with this with <unk> with the SEC from time to time.
Speaker 1: For the statements made during the Scholar based on current information available to the company as of today, November 8, 2023.
Forward looking statements made during this call are based on current information available to the company as of today November eight 2023.
Speaker 1: The company assumes no obligation to update or revise any forward-looking statements after today's call except as required by law.
The company assumes no obligation to update or revise any forward looking statements after today's call except as required by law.
Speaker 1: Also, please note that management will be discussing certain non-GAAP financial measures that the company believes are important in evaluating life MD's performance.
Also please note that management will be discussing certain non-GAAP financial measures that the company believes are important and value in valuation life M D performance.
Speaker 1: Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release issued earlier today.
He tells on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release issued earlier today.
Speaker 1: Finally, I'd like to remind everyone that today's call has been recorded and will be available for replay in the investor relations section of the company's website.
Finally, I'd like to remind everyone that today's call is being recorded and will be available for replay in the 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 trial. Please go ahead.
Speaker 1: Now I'd like to turn the call over to Life MD CEO Justin Treiber. Please go away.
Speaker 2: Thank you and good afternoon everyone. After the market closed, we issued a press release announcing our third quarter results.
Thank you and good afternoon, everyone. After the market close we issued a press release announcing our third quarter results.
Speaker 2: and posted an updated corporate presentation on our website at ir.lifemd.com.
And posted an updated corporate presentation on our website at IR Dot life and <unk> Dot com.
Speaker 2: Life in D had a tremendous third quarter with record revenue and profitability. Our core telehealth operations produced extremely strong results in both our lifestyle healthcare businesses led by Rex and D, our men's health brand, and our rapidly growing virtual primary care business led by growth in our GLP1 weight management off.
<unk> had a tremendous third quarter with record revenue and profitability our core telehealth operations produced extremely strong results in both our lifestyle health care businesses led by Rex Indeed, our men's health brand.
And our rapidly growing virtual primary care business led by growth in our G. L. P. One weight management offering.
Speaker 2: Our RexMD business grew 12% versus the year-ago period, with a net margin of 38% in the third quarter.
Our <unk> business grew 12% versus the year ago period, with a net margin of 38% in the third quarter.
Speaker 2: The performance of our GLP-1 weight management business has been nothing short of exceptional. With revenue quadrupling over the prior quarter's results, far surpassing our projects.
The performance of our G. L. P. One weight management business has been nothing short of exceptional with revenue quadrupling over the prior quarter's results far surpassing our projections.
Looking ahead to Q4 and beyond license D is positioned to not just sustain but continue to build upon the tremendous success, we've experienced throughout the year across our telehealth businesses and with work simply.
Speaker 2: Looking ahead to Q4 and beyond, LifeMD is positioned to not just sustain, but continue to build upon the tremendous success we've experienced throughout the year across our telehealth businesses and with works in place.
Speaker 2: I believe LifeMD is uniquely positioned for 2024 to be a record-setting year. To deliver excellent value for our shareholders, we remain laser-focused on the following four major strategic initiatives.
I believe life and D is uniquely positioned for 'twenty 'twenty four to be a record setting year two.
To deliver excellent value for our shareholders. We remain laser focused on the following four major strategic initiatives.
Speaker 2: First, our largest initiative in the year ahead is continued focus on accelerating the growth of our weight management program.
First our largest initiative in the year ahead is continued focus on accelerating the growth of our weight management program.
Since launching in Q2 of this year, our weight management program has already attracted over 16000 patients subscribers, representing more than 24 million of annual recurring revenue.
Speaker 2: Since launching in Q2 of this year, our weight management program has already attracted over 16,000 patients subscribers, representing more than 24 million of annual recurring
Speaker 2: Even as we scale our daily acquisition volume, this offerings economics remain tremendous. With our day one return on ad spend consistently exceeding one X.
Even as we scale our daily acquisition volume this offerings economics remained tremendous with our day, one return on AD spend consistently exceeding onex.
Speaker 2: Moreover, we anticipate several tailwinds to further accelerate the growth of this business into 2024, including continued growth in brand recognition of our weight management offering.
Moreover, we anticipate several tailwind to further accelerate the growth of this business into 2024, including <unk>.
Continued growth in brand recognition of our weight management offering to life M. D. Beginning to accept commercial and government insurance programs, which I will speak about in a moment.
Speaker 2: Two, Life MD beginning to accept commercial and government insurance programs, which I will speak about in a moment.
Speaker 2: Three, better availability of medications and likely expansion of insurance coverage in 2024 for GLP-1 medication.
Three better availability of medications and likely expansion of insurance coverage in 'twenty 'twenty four for G. L. P. One medications.
Speaker 2: for expanded therapeutic options within the GLP-1 drug class, including generic Lyric Lyudglutide and FDA approval, which happened today of Majuro for weight loss in adults with obese.
For expanded therapeutic options within the G. L. P. One drug class, including generic Liraglutide and FDA approval, which happened today of majority for weight loss in adults with obesity.
Speaker 2: and five new growth channels from partnerships that are already in the work.
And five new growth channels from partnerships that are already in the works.
Speaker 2: Second, we remain focused on making substantial progress in the growth of our B2B Enterprise program.
Second we remain focused on making substantial progress in the growth of our B to B Enterprise program.
Speaker 2: As we announced during the third quarter, we executed an agreement with a send therapeutics, a leader in the hormonal and women's health markets, which allows a send to leverage life of these cutting-edge telehealth platform, data capabilities, and healthcare marketing expertise to support its product.
As we announced during the third quarter, we executed an agreement with ascend therapeutics, a leader in the hormonal and women's health markets, which allows US then to leverage the life of these cutting edge telehealth platform data capabilities and health care marketing expertise to support its products.
Speaker 2: This not only generates ongoing fees for life and D, but also places the all-important patient-provider relationship within our affiliated medical.
This not only generates ongoing fees for license D. But also places the all important patient provider relationship within our affiliated medical group.
Speaker 2: LifeMD also executed a joint sales and marketing agreement with IQVIA. Leveraging our leading telehealth infrastructure in partnership with IQVIA's comprehensive commercialization solution.
Life M. D also executed a joint sales and marketing agreement with IQ via leveraging our leading telehealth infrastructure in partnership with IQ V as comprehensive commercialization solutions.
Speaker 2: With a robust B2B pipeline, we expect to execute additional opportunities in the near future.
With a robust b to B pipeline, we expect to execute additional opportunities in the near future.
Third we have made and will continue to make significant progress in enrolling our affiliated medical group in commercial insurance plans.
Speaker 2: We expect to build our first console in Q4, and we'll be rolling out commercial, we'll be rolling out coverage nationwide throughout 2024.
We expect to Bill our first console in Q4, and we will be rolling out commercial will be rolling out coverage nationwide throughout 'twenty 'twenty four.
Speaker 2: As commercial insurance becomes more embedded within our offerings, we expect it to significantly lower the out-of-pocket cost of our services to our patients and to be a big driver of overall patient satisfaction and retention.
As commercial insurance becomes more embedded within our offerings, we expect it to significantly lower the out of pocket cost of our services to our patients and to be a big driver of overall patient satisfaction and retention.
Speaker 2: Additionally, we have already begun building an industry-leading compliance infrastructure for Medicare participation and anticipate being prepared to launch and scale this as soon as it makes sense for our patients and our businesses.
Additionally, we have already begun building an industry, leading compliance infrastructure for Medicare participation and anticipate being prepared to launch and scale. This as soon as it makes sense for our patients and our business.
Speaker 2: We believe that participation in commercial and government insurance programs will fuel another leg of significant growth for Life MD.
We believe that participation in commercial and government insurance programs will fuel another leg of significant growth for life M D.
Speaker 2: And our fourth key initiative is continued focus on our lifestyle healthcare business, led by Rex MD, where we continue to drive double digit growth with net margins exceeding 30%.
And our fourth key initiative is continued focus on our lifestyle health care business led by Rex Indeed, where we continued to drive double digit growth with net margins exceeding 30%.
Speaker 2: Our men's sexual health business continues to be highly profitable and shows no signs of slowing.
Our men's sexual health business continues to be highly profitable and shows no signs of slowing.
In 'twenty 'twenty four.
Speaker 2: we see further opportunities to expand this rate of growth and profitability through the introduction of new complementary products, including ones geared toward hormone replacement therapy, weight management, and cardiovascular health.
We see further opportunities to expand this rate of growth and profitability through the introduction of new complementary product products, including ones geared toward hormone replacement therapy weight management and cardiovascular health.
Lastly work simply continues to deliver exceptional results on both the top and bottom lines.
Speaker 2: Lastly, work simply continues to deliver exceptional results on both the top and bottom lines. This self-managed business is a meaningful contributor to life-em-dees overall profitability and cash flow.
This self managed business is a meaningful contributor to life M D as overall profitability and cash flow Mauro.
Speaker 2: Moreover, WorkSimply has successfully diversified from a PDF solutions business to a diversified workplace services business, including HR solutions, digital signing, proprietary forms, AI technology, and plans to enter additional adjacent markets in 2024.
Moreover, work simply has successfully diversified from a PDF solutions business to a diversified workplace services business, including HR solutions digital signing proprietary forms AI technology and plans to enter additional adjacent markets in 'twenty 'twenty four.
Speaker 2: where it simply now operates in 20 languages globally and has increased its once negligible, small business, customer penetration to approximately 15% of the total subscriber base today.
We're simply now operates in 20 languages globally and has increased its once negligible small business customer penetration to approximately 15% of the total subscriber base today.
Speaker 2: We expect work simply to generate at least 20% annual growth in 2024 with adjusted EBIT margins of approximately 30%.
We expect work simply to generate at least 20% annual growth in 'twenty 'twenty four with adjusted EBITDA margins of approximately 30%.
Speaker 2: In short, we're in a really exciting spot. And with that, I'll turn the call over to our CFO , Mark Benetton, who will provide a summary of our financial results. Mark.
In short we're in a really exciting spot and with that I'll turn the call over to our CFO, Mark <unk>, who will provide a summary of our financial results Mark.
Speaker 3: Thank you, Justin, and good afternoon, everyone. LifeMD had record third quarter performance on both the top and bottom line with consolidated net revenues growing to 38.6 million and consolidated the adjusted ebid the growing to 2.8 million.
Thank you Justin and good afternoon, everyone.
If somebody had record third quarter performance on both the top and bottom line with consolidated net revenues growing to $38 6 million and consolidated adjusted EBITDA growing to $2 8 million.
Speaker 3: Additionally, we ended the quarter with over $15 million in cash and our second consecutive quarter of positive operating cash flow.
Additionally, we ended the quarter with over $15 million in cash and our second consecutive quarter of positive operating cash flow.
Speaker 3: We are in a well-capitalized position to continue to execute upon our aggressive growth and profitability plan.
We are in the wall capitalized position to continue to execute upon our aggressive growth and profitability plans.
Speaker 3: Now turning to the results for the third quarter of 2023.
Now turning to the results for the third quarter of 2023.
Speaker 3: As I mentioned, revenue in the third quarter total 38.6 million, an increase of 23% compared with the same year ago period, and up 7% versus the second quarter.
As I mentioned revenue in the third quarter totaled $38 6 million, an increase of 23% compared with the same year ago period, and up 7% versus the second quarter.
Speaker 3: Total telehealth revenues grew 14% versus a year ago period and 9% sequentially.
Total Tau House revenues grew 14% versus a year ago period, and 9% sequentially and.
Speaker 3: Net revenues from our weight management business more than quadrupled versus the prior quarter.
Net revenues from our waste management business more than quadrupled versus the prior quarter.
Speaker 3: Subscriber growth remained very strong with the number of telehealth active subscribers increasing 22% to approximately 207,000 and work simply active subscribers increasing 14% to over 170,000 both versus a year ago period.
Subscriber growth remained very strong with the number of telehealth active subscribers, increasing 22% to approximately 207000 and works simply active subscribers, increasing 14% to over 170000, both versus a year ago period.
Consolidated gross margin for the third quarter was a record 88% up 300 basis points versus the prior year period.
Speaker 3: Consolidated gross margin for the third quarter was a record 88% of 300 basis points versus the prior year period.
Speaker 3: Gross profits for the quarter totaled 33.8 million, an increase of 27% from the year ago period.
Gross profit for the quarter totaled $33 8 million, an increase of 27% from the year ago period.
Speaker 3: Operating expenses for the third quarter total 38.4 million, an increase of 4.6 million versus a year ago period, reflecting our discretionary increases in selling, marketing, clinical and patient care expenses to support the rapid growth of our weight management offering. Net of these investments, operating expenses, were flat year over year.
Operating expenses for the third quarter totaled $38 4 million, an increase of $4 6 million versus a year ago period, reflecting our discretionary increases in selling marketing clinical and patient care expenses to support the rapid growth of our weight management offering.
Out of these investments operating expenses were flat year over year.
Speaker 3: Operating expenses in the third quarter included $5.2 million of non-cash expenses associated with stock-based comp, non-cash interest, depreciation, and amortization expenses.
Operating expenses in the third quarter included $5 2 million of noncash expenses associated with stock based comp noncash interest depreciation and amortization expenses.
Our GAAP net loss attributable to common stockholders for the third quarter totaled $6 9 million or a loss of <unk> 20 per share. This compares to a GAAP net loss attributable to common stockholders of $8 1 million or a loss of 26 cents per share in the third quarter of 2022.
Speaker 3: Are GAAP net loss attributable to common stockholders for the third quarter totaled $6.9 million or a loss of $0.20 per share? This compares to a GAAP net loss attributable to common stockholders of $8.1 million or a loss of $0.26 per share in the third quarter of 2022.
Speaker 3: Adjusted EPS is a non-GAF financial measure that excludes non-cash expenses, dividends,
Adjusted EPS is a non-GAAP financial measure that excludes noncash expenses dividends Socs and insurance acceptance readiness litigation expense Noncontrolling interests, M&A expenses financing transaction costs and foreign currency translation, reflecting those adjusted.
Speaker 3: stocks and insurance acceptance readiness, litigation expense, non-controlling interest, M&A expenses, financing transaction costs, and foreign currency translation. Reflecting those adjustments, adjusted the looted EPS for the third quarter of 2023 was $0.08 per share, compared with a loss of $0.03 per share in the same year-ago period.
<unk> adjusted diluted EPS for the third quarter of 2023 was eight cents per share compared with a loss of three cents per share in the same year ago period.
Speaker 3: Adjusted EBITDA, a non-GAAP financial measure that excludes the same items I noted for adjusted EPS, total 2.8 million in the third quarter of 2023. This compares with an adjusted EBITDA loss of 806,000 in the same year-go quarter.
Adjusted EBITDA, a non-GAAP financial measure that excludes the same items I noted for adjusted EPS totaled $2 8 million in the third quarter of 2023.
This compares with an adjusted EBITDA loss of 806000 in the same year ago quarter.
Speaker 3: Cash and cash equivalents totaled 15.3 million as of September 30th, 2023.
Cash and cash equivalents totaled $15 3 million as of September 30 of 2023.
Speaker 3: We believe the strength of our balance sheet and profitability of our current operations will more than adequately allow us to fund the growth in our business.
We believe the strength of our balance sheet and profitability of our current operations were more than adequately allow us to fund the growth in our business.
For 'twenty to 'twenty, three we expect to achieve the midpoint of our previously disclosed revenue range more specifically revenue between 148 million and 149 million and adjusted EBITDA between $10 million and $11 million, including the estimated impact of approximately $4 million of deferred revenue.
Speaker 3: For 2023, we expect to achieve the midpoint of our previously disclosed revenue range more specifically revenue between 148 million and 149 million and the justity but the between 10 million and 11 million including the estimated impact of approximately four million dollars of deferred revenue related to weight management resulting from the gap required amortization of fully paid subscription amounts over their initial time period.
Related to weight management, resulting from the GAAP required amortization of fully paid subscription amounts over their initial time period.
This wraps up our financial results I'd now like to turn the call back over to Justin.
Yeah.
Okay.
Speaker 2: Thanks, Mark. As we conclude today's call, I want to take a moment to reflect on our journey and the path ahead. Over the past few years, I've constantly stressed our commitment to building a best in class telehealth technology platform.
Thanks Mark.
As we conclude today's call I wanted to take a moment to reflect on our journey and the path ahead over.
Over the past few years I have constantly stress our commitment to building a best in class Telehealth technology platform.
I believe our third quarter achievements validate our continued efforts.
At the heart of our success is our telehealth platform guided by an exceptional 50 state affiliated medical groups and purpose built technology that powers Rex M D and our rapidly growing virtual primary care business.
Speaker 2: At the heart of our success is our telehealth platform, guided by an exceptional 50-state, facilitated medical group, in purpose-built technology that powers RECS-MD and are rapidly growing virtual primary care business.
Speaker 2: Our GLP-1 weight management offering, in particular, has exceeded all of our forecast, and we're just getting started. Looking ahead, we are in a position of strength.
Our G. L. P. One weight management offering in particular has exceeded all of our forecast and we're just getting started.
Looking ahead, we are in a position of strength with the ongoing success of our businesses.
Speaker 2: Work simply and our plan B2B partnerships, we expect to deliver even more impressive results.
Work simply in our plan B to B partnerships, we expect to deliver even more impressive results.
Speaker 2: As we prepare to finish this quarter and enter 2024, I am confident in our ability to not only maintain our momentum, but to accelerate it. With that, I would like to open
As we prepare to finish this quarter and enter 2024, I am confident in our ability to not only maintain our momentum to accelerate it.
With that I would like to open the call for Q&A.
Speaker 1: Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question.
Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you like to remove your question from the queue for participants using speaker equipment.
Speaker 1: You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we.
It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
[laughter].
Our first question comes from Sarah James with Cantor Fitzgerald. Please proceed with your question.
Speaker 4: Our first question comes from Farrah James with Cantor Fitzgerald. Please proceed with your question.
Sarah are you there are you muted.
Your line is live with the speakers.
Okay.
Sarah James are you muted.
Okay.
Speaker 5: No.
[music].
Okay.
David are you there.
Speaker 6: Yep, I can hear you now. If you were calling for me, I didn't hear you. But yes, I'm here. Congratulations on a great quarter. Great revenue and EBITDA. Did I hear you correctly in saying that you're at a 20 million annual sort of trend for your weight management program with 15,000 lives?
Yes, I can hear you now.
If you recall from I didn't hear you, but yes, I'm here congratulations on a great quarter.
Revenue and EBITDA.
Did I hear you correctly, you're saying that you're at a 20 million annual sort of trend for your weight management program with 50000 lives.
Speaker 3: Yes, we're currently at about 16,000 plus lives, but about $129 a month is the pricing. So that's where you get to the 24-ish million that we quoted.
Yes. We're currently at about 16000 plus lives at about $129. A month is the pricing. So that's where you get to the 24 ish million that we quoted.
Speaker 6: Okay, and then what are your expectations for that life count heading into next year? And like what portion do you expect to repeat? The most people stay on the program or not. Thanks.
Okay, and then what are your expectations for that life count heading into next year.
And like what portion do you expect to retain to most people stay on the program or not thanks.
Speaker 3: Yeah, this is Mark. So we're seeing thus far, and again, it's very early on, we're not giving
Yeah. This is Marc so we're seeing thus far and again its very early on we're not giving full guidance for the number of lives next year, we anticipate giving 2024 guidance in January of 2024. After the plan for next year has been fully approved by the board the expectation though is that.
Speaker 3: Full guidance for the number of lives next year, we anticipate giving 2024 guidance in January of 2024 after the plan for next year has been fully approved by the board. The expectation though is that we're going to see very significant growth next year, and again we will follow up with more fulsome guidance within the next couple of months.
We're going to see very significant growth next year and again, we will follow up with more for a fulsome guidance are within the next couple of months.
Speaker 3: As far as retention, there is a little bit of the initial falloff, which we've talked about before in the range of around
As far as retention.
There is a little bit of the initial falloff, which we've talked about before in the range of around 25% to 30% within the first 30 days entirely due to insurance coverage and the cost of copay. After that we're seeing really strong retention, we're seeing 80% to 90% a very high numbers of people are saying on the program after again.
Speaker 3: 25 to 30% within the first 30 days, entirely due to insurance coverage and the cost of copay. After that, we're seeing really strong retention. We're seeing 80 to 90%, very high numbers of people staying on the program after. Again, the data is very early on, but we are very optimistic about wave management and the...
Data is very early on but we are very optimistic about weight management than does I think folks may recall from earlier calls we built the original model with extremely pessimistic a retention in place of retention continues to play out the way.
Speaker 3: Folks may recall from earlier calls, we built the original model with extremely pessimistic.
Speaker 3: retention in place. So if retention continues to play out the way that we've seen early on, we expect there could be some considerable upside in the coming years.
That we've seen early on we expect there could be some considerable upside in the coming years.
Speaker 6: Okay, and then can you maybe talk about pricing for the various products? When do you think some of these will come off patent? Will you benefit? Will your margins benefit from that if and when that happens? Just any such there.
Okay, and then can you maybe talk about pricing for the various products.
When do you think some of these will come off patent and will you will you benefit will your margins benefit from that if and when that happens I'm just any any thoughts there.
Speaker 2: Sorry, David, I mean, we're charging right now, this is Justin, we charge right now around $100 a month with discounting for patients to use our platform, access our affiliated providers, and receive everything that comes with being a patient of LifeMD.
Sorry, David I mean, we were charging right now this is Justin we charge right now around $100 a month with discounting.
Four.
For for.
For patients to use our platform access our affiliated providers.
And receive everything that comes with being a patient of of life M D.
Speaker 2: I do think that it's nice to have the first GLP-1 coming off a patent that's happening in December . So, we expect to have a supply agreement in place by Q1 with the generic manufacturer of lyriglutide. You know, I think that will help to reduce...
I do think that I do think that it's nice to have you know another the first G. L. P. One coming off of patent that's happening in December. So we expect to have a supply agreement in place by Q1 with the generic manufacturer of Liraglutide, you know I think that will help to reduce.
Speaker 2: that you know third of patients that we end up refunding right away because of you know access and cost issues. You know I'm also very optimistic and I know this is controversial but I'm optimistic that you know throughout next year prices you know there could there's there continues to be downward pressure on prices it within the kind of GLP1 category you know even today we saw the approval.
That you know a third of patients that we ended up refunding right away because of access and cost issues. I'm. You know I'm also very optimistic and I know this is controversial, but I'm optimistic that throughout next year prices you know they.
There's there continues to be downward pressure on prices.
Within that kind of G. L. P. One category you know even today, we saw the approval.
Speaker 2: We saw Eli Lilly's approval of Monjaro for weight management and there's
Eli Lilly's approval of <unk> for weight management and theirs.
Speaker 2: you know there's some there's some thinking right now that what we saw was that they expect a price that around a thousand dollars a month and with with a fifty percent discount coupon
Theres some theres some thinking right now that well what we saw was that they expect the price at around $1000. A month, then with with a 50% discount coupon.
Speaker 2: So, you know, we're optimistic that over time, prices are going to come down on the drugs. Life MD is also, you know, going through the process of contracting with major insurance plans across the country. You know, we think that being in network is going to enable us to, you know, also for patients with private insurance or eventually Medicare, when Medicare covers these medications and this treatment, we think that will enable us to, you know, to lower that monthly or quarterly price of our services.
So you know we're optimistic that over time prices are going to come down the drug's life and D. Is also you know going through the process of contracting with major insurance plans across the country. We think that being in network is going to enable us to you know also for patients with with private insurance or eventually.
Care with Medicare covers these medications in this treatment and we think that will enable us to you know.
To lower that in monthly or quarterly price of our services. So longer term, yes, we think that the prices will come down and as you know as we've mentioned before we're also working with some very very large some of the biggest diet companies.
Speaker 2: So, longer term, yes, we think that the price will come down. And as we've mentioned before, we're also working with some very, very large, some of the biggest diet companies.
Speaker 2: throughout the U.S., and we expect some of those partnerships to also help us on the coverage side and, you know, getting more patients approved and covered by their insurance companies for these medications.
Throughout the U S and we expect some of those partnerships to also help us on the coverage side and you know getting more patients approved and covered by their by their insurance companies to these medications. So that that ultimately results in people spending less you know on the complete offering.
Speaker 2: So that ultimately results in people spending less on the complete offer.
Speaker 6: Right. So do you have a partnership in place with like a meta fast or a nutrisystem right now? And then could you introduce those products to your members? And then if your members wanted to transition from the GLP ones over to a more sort of we'll call it traditional sort of weight management program, would they be able to do that? And just what are your thoughts on CGMs? Do you have a program in place to use them with health coaching? Thanks very much.
Right.
So do you have.
Partnership in place with like a matter of faster than Nutrisystem right now and then could you introduce those products to your members and then if you're members wanted to transition from the G. O P wines over to a more sort of we'll call. It traditional sort of weight management program would it be able to do that and just what are your thoughts on C. G EMS.
Do you have a program in place to to use them with health coaching.
Thanks very much.
Sure. So with regards to Medifast Nutrisystem. These are two companies we've talked about previously that we did pilot programs with.
Speaker 2: Sure, so with regards to Metafast and Nutrisystem, these are two companies we've talked about previously that we did pilot programs with.
Speaker 2: We're also working on pilot programs with other companies that we haven't, that weren't public. And as of right now, we haven't announced any partnerships with any of these companies, although we've said publicly that we expect to announce a transformational partnership with one of these very prominent nationwide health and wellness or diet companies.
We're also doing pilot. We're also working on we've done pilot programs with other companies that we havent, they werent public and as of right. Now you know we haven't announced any.
Partnerships with any of these companies, although we've said publicly that we expect to announce the transformational partnership with one of these kind of very prominent a nationwide health and wellness our diet companies.
Speaker 2: I'm excited about, you know, I think it's essential that Life MD offers.
I'm excited about you know I think it's essential that life M. D offers.
Speaker 2: You know, a food plan, a diet plan, you know, along with, you know, access to GLP1 medications. I think it's also important that we offer coaching and nutritional advice, which is something else that we're working on, which, you know, is interesting in the pilot that we do with Medifast. Medifast, you know, also has, you know, an amazing coaching network throughout the United States. So that's something that we're potentially excited about down the road.
You know our food planned a diet plan you know along with access to G. L. P. One medications I think it's also important that we offer coaching and nutritional advice, which is something else that we're working on which is interesting in the pilot that we did with Medifast manifest you know also has an amazing coaching network throughout the.
United States.
So that's something that we're potentially excited about down the road.
Speaker 2: I think the other thing that we're really looking at is technology solutions. So I think that there are a lot of different technology solutions that we can in-license that would bolt on to our existing technology platform that would help patients kind of track their eating, hold them accountable to eating.
The other thing that we're really looking at is technology solutions. So I think that you know there are a lot of different technology solutions that we can in license that would bolt on to our existing technology platform that would help patients kind of track their eating holds.
Hold them accountable to to eating properly.
Speaker 2: properly, you know, and maximizing their metabolic health. So I'm very excited about that as well. You know, also on the CGM front, you know, we've, we've, we, we are in the early stages of talking to some of the leading manufacturers of CGM devices. And I think that's something that over time will also incorporate into our, into our off.
And and and maximizing their metabolic health. So I'm very excited about that as well you know also on the CGM front you know we've we were in the early stages of talking to some of the leading manufacturers.
Manufacturers of CGM devices, and I think that's something that over time will also incorporate into our into our offering.
Speaker 6: Okay, fantastic. I'll hop back in the queue. I don't want to take a bubble time here. Thank you. Great quarter. Congrats.
Okay Fantastic I'll hop back in the queue I don't want to take up all the time here. Thank you great quarter Congrats.
Thank you.
Speaker 4: Our next question comes from Sarah James with Cantor Fitzgerald. Please proceed with your question.
Our next question comes from Sarah James with Cantor Fitzgerald. Please proceed with your question.
Speaker 7: Hey guys, I'm going to apologies for earlier. So I want to say that, get a little bit of understanding of where your clinical recruitment pipeline is right now, how you're thinking about pacing, bringing on the staff, and then just from like a ROI perspective, how do you think about allocating that staff time between weight management and primary care?
Hey, guys apologies for earlier.
Sounds.
Got a little bit of understanding of.
Clinical.
The pipeline is right now.
We're thinking about.
Bringing.
Yes.
And then just sound like the Iowa perspective, how do you think about allocating that staff time between management and panic.
Speaker 2: Thanks, Sarah. This is just the... Thank you, Sarah. That's a good question. We've spoken a lot about...
Thanks, Sarah this is Justin.
That's a good question, we've spoken a lot about.
How proud we are the reputation that our affiliated medical.
Speaker 2: how proud we are of the reputation that our affiliated medical group has filled in the industry. We have an enormous amount of interest when it comes to working for life in D. I think I've said before we have four or five hundred resumes that have come in over the last couple of months as we've scaled the medical group.
Ed.
Built in the industry, we have an enormous amount of interest you know when it comes to working for life and D. I think I've said before we have four or 500.
No.
<unk> made that have come in over the last couple of months you know as we've scaled the medical group.
Speaker 2: as a result of the growth of our GLP1 weight management offering. I'm not concerned at all. We have, we're in the process of onboarding, you know, another three to five providers over the next couple of weeks. You know, that's going very well. I think that you're going to, yeah, I think we're going to have to onboard.
As a result of the growth of our G. O P. One weight management offering I'm not I'm not concerned at all we have we're in the process of Onboarding.
Another three to five providers over the next couple of weeks you know that that's that's going very well I think that I think that youre going to I think we're gonna have to onboard.
Speaker 2: Probably at least 10 to 20 providers over the next six months. And I'm not concerned at all about our abilities to do that. And I'll also mention we're extremely picky with the providers that we allow to interact with and treat life and depotion.
Probably at least 10 to 20 providers over the next six months and I'm not concerned at all about our ability to do that and I'll also mentioned, we're extremely picky with the providers that we allow to interact with and treat life and D patients.
Speaker 2: So when I say we're going to be able to recruit providers, it always means we're going to be able to recruit the best providers out.
So when I say, we're gonna be able recruit providers. It always means we're gonna be able to recruit the best providers out there.
Speaker 7: Got it. And then in my conversations with the payers, there seems to be some movement going on in the regulatory front in certain Democratic states like California and New York around GLP1 coverage.
Got it.
And then in my conversations with the payers there seems to be some movement going on.
The regulatory front.
States like California, and New York around G. L. P. One coverage.
Speaker 7: that that could be positive for acquiring coverage. I'm wondering if you're seeing any of that flow through in your business in in volumes and California and New York or if it's too early.
That could be positive for <unk>.
And I'm wondering if you're seeing any of that flow through in Europe.
And in fact.
California, and New York.
Right.
I think it's too early to our patients.
Speaker 2: Our patients are still having, you know, there's still issues.
Our patients are still having you know there's there's still issues.
Speaker 2: You know with coverage, these medications, they're still supply issues around.
With coverage. These medications, there's still supply issues, you know around still supply issues patients are oftentimes struggling to find them and neighborhood pharmacies. So I'm not I'm not familiar with with those kind of legislative initiatives, but we're of course off where that life M D.
Speaker 2: supply issues, patients are oftentimes struggling to find them in neighborhood pharmacies. So I'm not familiar with those kind of legislative initiatives.
Speaker 2: We're of course off of that life of D. I mean, one of the interesting things is we see firsthand all day every day how many people's lives are being positively impacted by these medications.
One of the interesting things is we see firsthand all day every day, how many people's lives are being positively impacted by these medications.
Speaker 2: and you know i understand it is all about long-term outcomes but you have based on what we've been seeing over the last twelve months i find it i find it highly unlikely that we're not going to see pronounced long very positive long-term outcomes from you know from these their
And you know I understand it it's all about long term outcomes, but based on what we've been seeing over the last 12 months I find it I find it highly unlikely that we're not going to see pronounced long very positive long term outcomes from you know from these therapies.
Speaker 7: Great. And last question, if I could, can you give us any update on the cross-selling efforts that you guys have going on between the legacy businesses, like Shapiro and Rex and your primary care, any update there?
Okay.
And last question if I could.
Just any update on that.
The cross selling efforts.
You guys have going on.
Dream that the legacy business at Lake Superior and rack and Youre planning, Okay any update.
Speaker 2: We don't have any specific numbers that were prepared to share today. I can tell you that the weight management offering is the number one.
We don't I don't have any specific numbers that were prepared to share today.
I can tell you that the weight management offering is the number one.
Service that is that is cross sold and by.
Speaker 2: service that is cross-sold and by, you know, two RECS MD patients in their member portal. So that's been really successful, and this is something that, in 2024, we expect to dramatically accelerate, but I don't have any specific numbers that I'm prepared to share today, Sarah. Okay, thank you.
Two racks M D patients in them and their member portal. So that's been really successful in this this is something that in 2024, we expect to dramatically accelerate but I don't have any any like specific numbers that I'm prepared to share today Sara.
Thank you.
Speaker 4: Our next question comes from the HN with HC Wainwright. Please proceed with your question.
Our next question comes semi Chen with H C. Wainwright. Please proceed with your question.
Oh, Thank you for taking my questions, so I'll be waiting management rapidly.
Speaker 8: Thank you for taking my questions. So the weight management revenue more than quadrupled versus second quarter, do you think that's primarily because some of the competitors do not offer this product or because the use something, so unique company of offerings that's available.
More than quadrupled versus the second quarter do you think that's primarily because setup.
Some of your competitors do not offer this product or because.
The Euro is something so unique company shelf offerings.
It's available.
Empty.
Yeah.
Speaker 2: There are a number of other companies.
There are a number I mean, there is there are a lot of other companies tell all providers offering this product. So no I don't think that's the reason for our success I think the demand. There's there's very very high demand across the country for these drugs because of their efficacy.
Speaker 2: telehealth providers offering this product. So, no, I don't think that's the reason for our success. I think that demand, there's very, very high...
Speaker 2: across the country for these drugs because of their efficacy. And I think that, you know, life and deeds doing in X has one, has already has a very strong brand out there that people recognize.
C.
And I think that life and D is doing an X has one has already has a very strong brand out there that people recognize and I think we're doing a great job at bringing patients and getting them get helping them access amazing care, we're seeing more and more patients that are coming to us because they heard about life M D.
Speaker 2: And I think we're doing a great job at bringing patients in, getting them, helping them access amazing care. And we're seeing more and more patients that are coming to us because they heard about life MD from a friend or family member that's on a medication. So.
A friend or family member that's on the medications so.
Speaker 2: I think it's an extremely competitive environment out there, but I think we're doing a great job at doing what we do best.
I think it's extremely competitive it competitive environment out there, but I think we're doing a great job of doing what we what we do best.
Do you believe the lead management revenue has the potential to sequentially grow.
Speaker 8: Do you believe the wheat management revenue has the potential to sequentially grow twice, three times or four times every quarter going forward?
Twice three times or four times every quarter going forward.
Yeah. This is Marc.
Speaker 3: the weight management revenue as the potentials of the war extremely substantially uh... every single quarter going forward for for foreseeable future uh... is it going to quadruple every single quarter now i mean the number is getting bigger obviously you would end up with
The weight management revenue has the potential to grow our extremely substantially.
Every single quarter going forward for the foreseeable future.
Is it going to quadruple every single quarter no I mean as the numbers get bigger obviously, you would end up with a completely insane.
Speaker 3: Completely insane number however. I do expect in the next quarter to see in weight management more than 100% So, Quantra growth so the revenue more than doubling quarter on quarter and I do expect to see very heightened
Number however, I do expect in the next quarter to see and weight management and more than 100% sequential growth. So the revenue more than doubling quarter on quarter and I do expect to see very heightened.
Speaker 3: growth next year versus this year. This will all be factored into the guidance that we provide for 2024 in the beginning of 2024, but we don't see any signs of it slowing down as a matter of fact the business continues to accelerate.
Growth next year versus this year. This will all be factored into the guidance that we provided for 2024 and the beginning of 'twenty 'twenty four.
But we don't see any signs of it slowing down as a matter of fact, the business continues to accelerate.
Thank you and last question is do you.
Speaker 8: And last question, do you intend to keep works in play throughout 2024? Yes.
You tend to keep work simply throughout 2024.
Yeah. This is Marc.
Speaker 3: We're evaluating all options for work simply. We haven't made any final determinations. If we did exit the business next year, and at some point we will exit the business, we expect it to be a substantial exit, returning a significant amount of cash back to the company, and obviously generating a lot of value for shareholders. Some.
We're evaluating all options for simply.
We haven't made any final determinations, if we did exit the business next year and at some point, we will exit the business, we expect it to be a substantial exit returning a significant amount of cash back to the company and obviously generating a lot of value for our shareholders.
Shareholders are something that we're exploring but no final determinations have been made yet, but we do expect it to be substantially beneficial to shareholders.
Speaker 3: that we're exploring, but no final determinations have been made yet, but we do expect it to be substantially beneficial for shareholders.
Got it thank you.
Yeah.
Speaker 4: Our next question is from Nail Chattery with B. Wiley. Please proceed with your question.
Our next question is from Neil Chatterji with B Riley. Please proceed with your question.
Speaker 9: Hi, this is Brandon Carniam from Yale. Congratulations, great quarter and thanks for taking our...
Hi, this is brandon cardiac or Neil congratulations.
Good quarter and thanks for taking our questions.
Speaker 9: Just to start maybe with the step-down approval today, maybe I could ask for some color on how the addition of new GLP-1 options accelerate the potential growth of the weight loss movement.
Just to start maybe with the shutdown approval today, maybe I could ask for some color on how the addition of new G O P weren't options accelerate the potential growth of the.
The weight loss business.
Yeah.
Speaker 2: Sure, this is Justin. I'll answer that. I think that the more...
Sure. This is Justin I'll answer that.
I think that the the more.
The more options that our affiliated providers have to help patients achieve their weight loss objective.
Speaker 2: The more options that our affiliated providers have to help patients achieve their weight loss objective.
Speaker 2: The better and more comprehensive the offering is going to be. So all of these approvals help us. You have the other drugs in this class that are also working their way through the FDA or are going to help us.
You know the better and more comprehensive the offering is going to be so.
All of these approvals help us the other the other.
Drugs in this class that are also working their way through the F D a or are going to help us.
Speaker 2: The rear gluteide is going to be an option for some patients as well. So this stuff certainly is very helpful. I think what's more helpful though is going to end up being like these drugs coming off the shortage list, them being available for patients.
Liraglutide is.
Going to be an option for some patients as well so the stuff. So certainly is very helpful. I think what's more helpful. Though is is going to end up being like these drugs coming off the shortage list you know them being available for patients.
Speaker 2: accessible to patients and then, and then, you know, then being covered ultimately by insurance plans.
Accessible to patients and then and then you know them being covered ultimately buy buy insurance plans.
Affordability is the number one thing.
Great.
Speaker 9: And then I guess just going back to the retention question. So you mentioned like the 25 to 30% drop off in the first 30 days. I just wondering if there's any mitigation strategies going into pushing down that number or if you think that things like what you're just talking about will just naturally push down that number.
And then I guess, just going back to the retention question.
So you mentioned like the 25% to 30% drop off in the first 30 days I'm just wondering if theres any mitigate litigation strategies going into pushing down that number or do you think the things like what you were just talking about will just naturally push down that number.
Yeah.
There are some that we're doing everything we can but the reality. The reality is most of these patients.
Are coming in.
Speaker 2: are coming in and signing up for this program because they've heard about.
And signing up for this program because they've heard about.
Speaker 2: a GLP one because they have a friend or family member or they heard about the news or read an article on it and that's what they want and if they They find out that their insurance is not going to cover it's going to cost them a thousand dollars a month or There's a there's a number of those patients as well that
G L. P. One because they have a friend or family member or they heard about the news or read an article on it and that's what they want and if they they find out that their insurance is not going to cover it it's going to cost them a thousand dollars a month.
Or is that Theres, a number of those patients as well.
Speaker 2: are just not, they don't qualify for the drug. So, you know, we adhere kind of very strongly to the label that's on these medications. So patients that are between 27 and 30 BMI that don't have at least one comorbidity.
We're just not that they don't qualify for the drug. So we we we adhere kind of very strongly to the label. That's on these medications. So patients that are between 27% and 30 BMI that don't have at least one comorbidity.
Speaker 2: a life and deaculated provider will not prescribe them the medications, obviously patients that are under 27 BMI, we will not prescribe the medications to them. So that's 30% number. It's not only patients that are...
M D affiliated provider will not prescribed them. The medications, obviously patients that are under 27, BMI, we will not prescribe the medications to them. So that 30% number it's not only it's not only patients that are.
Speaker 2: It's not only patients that are not able to afford the medication or don't have coverage for the medication. There's also some patients in there that are Medicare-aged, so to be out of an abundance of caution and just to be very careful, like life MD doesn't prescribe or treat patients that are of Medicare-aged until we turn on formally our Medicare program.
It is not only patients that are not able to afford the medication or don't have coverage for the medication. Theres also some patients in there that are Medicare age. So to be you know out of an abundance of caution and you know just to be very careful like Latham D doesn't prescribe or treat patients that are Medicare age until we turn on formerly our Medicare.
Program.
Speaker 2: So, you know, there are a lot of people that sign up, even though our technology won't let them sign up. A lot of people will...
So those there are a lot of people that sign up even though our technology won't let them sign up a lot of people will change their data birth in order to sign up for the program and and we obviously find that out when we check their idea and they they see a provider and then those people or refunded. So it's a mix that 30% number theres a mix of a mix of.
Speaker 2: change their date of birth in order to sign up for the program and we obviously find that out when we check their ID and they see a provider and then those people are refunded. So it's a mix that 30% number, there's a mix of mix of, there are,
Our mix of.
They're there.
Speaker 2: There are numerous reasons why those people are, you know, are refunded. And we, I think that number can come down a little bit, but what we're more focused on is actually...
There are numerous reasons why those people are you know are our refunded and we will I think that number can come down a little bit, but we're what we're more focused on is actually.
Speaker 2: You're just doing everything we can to offer incredible care to the two thirds of patients that end up on a therapy. And then we're also really focused on what happens after these patients reach their goalways.
You're just doing everything we can to offer incredible care to the two thirds of patients that end up on a therapy and then we're also really focused on what happens. After these patients reached there theyre going and like how do we how do we keep.
Speaker 2: And how do we keep at least a third of those patients even on the license and deed platform interacting with one of our affiliate providers, using our technology, all the other things we offer? How do we keep a third of those patients for years?
At least a third of those patients even.
On a on the licensing platform interacting with one of our affiliate providers using our technology all the other things we offer you know how do we how do we keep the third of those patients for years and that's actually what we're most focused on right now is as a team.
Speaker 2: And that's actually what we're most focused on right now as a...
Yes.
Okay, Great. That's really helpful. Thanks, and maybe just one last one.
Speaker 9: Great, then that's really helpful. Thanks, and maybe just one last one on the commercial insurance launch. Are you still expecting programs in 10 states by the end of the year, and how does the outlook for further expansion next year?
You know on the commercial insurance launch are you still expecting the programs in 10 states by the end of the year and how does the how does the outlook look.
For further expansion next year.
Yeah.
So I would I would.
Speaker 2: We're a little bit behind schedule. We thought we would have the majority of these plans in place and active by this month. I think that we will have major plans. We will be contracted with major plans in all 10 states. By the end of the year, I think it's probably going to take us, we're probably going to end up.
We're a little bit behind schedule.
We thought we would have the majority of these plans in place and active.
Bye Bye this month I think that we will have major plant, we will be contracted with major plans in all 10 states by the end of the year I think it's probably going to take us where it's probably going to end up.
Speaker 2: being Q1 until we have the broad coverage across those initial 10 states. And I think we've learned a lot from this process. So as we expand the program to throughout the rest of the country, I think we can do it a lot quicker than it's taken us to get these plans in place in the first 10.
Being Q1 until we have the broad coverage across does does initial 10 states and I think we've learned a lot from this process. So as we as we expand the program throughout the rest of the country. I think we can do it you know a lot a lot a lot a lot quicker than it's taken us to get you know get these plans in place.
In the first 10 states.
Speaker 9: Got it. Thanks for taking our questions and congratulations again on a really great quarter.
Got it yeah. Thanks for taking my questions and congratulations again on a really great quarter.
Yeah Youre welcome it's our pleasure.
We have reached the end of the question and answer session I'd now like to turn the call back over to Justin Shreiber for closing comments.
Speaker 4: We have reached the end of the question and answer session. I'd now like to turn a call back over to Justin Shriver for closing.
Speaker 2: Thank you for your questions and for your interest in life and deep. We look forward to speaking with you once again when we report our year and financial results in March 2024. Have a good evening.
Thank you for your questions and for your interest in life and D. We look forward to speaking with you once again when we report our year end financial results in March 2024 have a good evening.
Speaker 4: This includes today's conference. You may disconnect your lines at this time, and we thank you for your participation.
This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.