Q2 2024 LifeMD Inc Earnings Call

August 7, 2024

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Operator: Good afternoon. Thank you for joining us today to discuss Life Meds results for the second quarter and did June 30, 2024.

Operator: Thank you for joining us today to discuss LifeMed's results for the second quarter ended June 30, 2024. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Marc Benathen, Chief Financial Officer. Following management's prepared remarks, we will open the call for a question and answer session. 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 Change: Good afternoon. Thank you for joining us today to discuss blacksmith results for the second quarter ended June 30th 2020 for joining the call today are Jeffrey Schrieber, Chairman and Chief Executive Officer, and Mark do Nathan Chief Financial Officer. Following management's prepared remarks, we will open the call for a question and answer session before we begin I'd like to remind everyone.

Operator: Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Marc Benathen, Chief Financial Officer.

Operator: Following management's prepared remarks, we will open the call for question-and-answer session. 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. These risks and uncertainties are described in the company's 10-K and 10-Q filings, and within other filings that Life Meds may make with the SEC from time to time.

Operator: These risks and uncertainties are described in the company's 10-K and 10-Q filings and within other filings that LifeMed may make with the SEC from time to time. Forward-looking statements made during this call are based on current information available to the company as of today, August 7, 2024. 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 believes are important in evaluating LifeMed's performance.

Speaker Change: 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 these risks and uncertainties are described in the company's 10-K, and 10-Q filings and within other filings that life Med may make with the SEC from time to time.

Operator: Forward-looking statements made during this call are based on current information available to the company as of today, August 7, 2024. The company assumes no obligation to update or revise any forward-looking statements after today's call, except as required by law.

Speaker Change: Forward looking statements made during this call are based on current information available to the company as of today August 7th 2024, 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 believes are important in evaluating.

Operator: Also, please note that management will be discussing certain non-GAAP financial measures that the company believes are important in evaluating Life Meds' performance. Details on the relationship between those non-GAAP measures to the most comparable GAAP measures and reconciliation thereof can be found in the press release issued earlier today.

Speaker Change: Life's merch performance details on the relationship between those non-GAAP measures to the most comparable GAAP measures and reconciliations 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 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 Les.

Operator: Details on the relationship between those non-GAAP measures and the most comparable GAAP measures and reconciliations 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 will be available for replay in the investor relations section of the company's website. Now, I would like to turn the call over to LifeMed's CEO, Justin Schreiber. Please go ahead.

Operator: Finally, I would 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.

Operator: Now, I'd like to turn the call over to Life Meds CEO, Justin Schrieberg. Please go ahead.

Speaker Change: Smith CEO Justin Schrieber. Please go ahead.

Justin Schreiber: Thank you, and good afternoon, everyone. After the market closed, we issued a press release announcing our second quarter financial results and posted an updated corporate presentation on our website at ir.lifemd.com. During the quarter, the performance of Life MD's core telehealth business was very strong, led by our GLP-1 weight management offering. This business achieved 67% year-to-year revenue growth, well surpassing our expectations. This business also achieved positive adjusted EBITDA one quarter earlier than guidance. We were pleased with the results from our core healthcare business during the quarter, and for the year, we expect continued outperformance on both top and bottom line metrics.

Justin Schreiber: Thank you and good afternoon everyone. After the market closed, we issued a press release announcing our second quarter financial results and posted an updated corporate presentation on our website at ir.lifemd.com. During the quarter, the performance of LifeMD's core telehealth business was very strong, led by our GLP-1 weight management office. This business achieved 67% year-over-year revenue growth, well exceeding our expectations. This business also achieved positive adjusted EBITDA one quarter earlier than guidance.

Justin Schrieber: Thank you and good afternoon, everyone. After the market closed we issued a press release announcing our second quarter financial results and posted an updated corporate presentation on our website at IR Dot license <unk> Dot com.

Justin Schreiber: During the quarter, the performance of LifeMD's core telehealth business was very strong, led by our GLP-1 weight management office. This reflects the strength of our core telehealth business, which will be the driving force for the company's future revenue and profit growth. Our long-term objective continues to be to divest work simply in a way that benefits shareholders.

Justin Schrieber: During the quarter the performance of life from these core health business was very strong led by our G. L. P. One weight management offering.

Justin Schrieber: This business achieved 67% year over year revenue growth well, surpassing our expectations.

Justin Schrieber: This business also achieved positive adjusted EBITDA, one quarter earlier than guidance.

Justin Schreiber: We are pleased with the results from our core health care business during the quarter. And for the year, we expect continued outperformance on both top and bottom line metrics. WorkSimply's performance was pressured in the second quarter due to a tougher-than-expected advertising environment, coupled with some executional missteps from the business.

Justin Schrieber: We are pleased with the results from our core healthcare business during the quarter and for the year. We expect continued outperformance on both top and bottom line metrics.

Justin Schreiber: Work simply performance was pressured in a second quarter due to a tougher than expected advertising environment, coupled with some executional missteps from the business. These have since been addressed, and we've begun to see improvements in the sign-up rates and advertising efficiency, which will translate to improved bottom line performance in the back half of 2024, which works simply expected to return to peak monthly run rate EBITDA by the end of 2024. On a consolidated basis, we exceeded our expectations for revenue and met our expectations for adjusted EBITDA, both driven by Telehouse performance. of course.

Speaker Change: Works simply performance was pressured in the second quarter due to a tougher than expected advertising environment, coupled with some execution missteps from the business is.

Justin Schreiber: These have since been addressed, and we've begun to see improvements in signup rates and advertising efficiency, which will translate to improved bottom-line performance in the back half of 2024, with work simply expected to return to peak monthly run rate EBITDA by the end of 2024. On a consolidated basis, we exceeded our expectations for revenue and met our expectations for adjusted EBITDA, both driven by telehealth performance. However, the impact on adjusted EBITDA from WorkSimply's first half results drove our decision to revise consolidated EBITDA guidance. We don't expect WorkSimply to have a material impact on our consolidated revenue performance for the year, nor our long-term financial performance.

Speaker Change: These have since been addressed and we've begun to see improvements in the sign up rates and advertising efficiency, which will translate to improved bottom line performance in the back half of 'twenty 'twenty four with work simply expect it to return to peak monthly run rate EBITDA by the end of 2024.

Speaker Change: On a consolidated basis, we exceeded our expectations for revenue and met our expectations for adjusted EBITDA. So it's driven by <unk> performance. However, the impact on adjusted EBITDA from work simply its first half results drove our decision to revise consolidated EBITDA guidance.

Justin Schreiber: However, the impact on adjusted EBITDA from work simply first half results drove our decision to revise consolidated EBITDA guidance. We don't expect work simply to have a material impact on our consolidated revenue performance for the year, nor our long term financial performance. Additionally, even with work simply performance in the first half of the year, LifeMD still generated positive net cash flow on a consolidated basis. This reflects the strength of our core telehealth business, which will be the driving force for the company's future revenue and profit growth.

Speaker Change: We don't expect works simply to have a material impact on our consolidated revenue performance for the year, nor our long term financial performance.

Justin Schreiber: Additionally, even with WorkSimply's performance in the first half of the year, LifeMD still generated positive net cash flow on a consolidated basis. This reflects the strength of our core telehealth business, which will be the driving force for the company's future revenue and profit growth. Our long-term objective continues to be to divest WorkSimply in a way that benefits shareholders.

Speaker Change: Additionally, even with work simply its performance in the first half of the year life and do you still generated positive net cash flow on a consolidated basis.

Speaker Change: This reflects the strength of our core telecom business, which will be the driving force for the company's future revenue and profit growth.

Justin Schreiber: Our long term objective continues to be to divest work simply in a way that benefits shareholders. And we continue to regularly distribute work, simply excess cash to a shareholders, of which LifeMD is the majority holder.

Speaker Change: Our long term objective continues to be to divest works simply in a way that benefits shareholders and we continue to regularly distribute work simply used excess cash to its shareholders.

Justin Schreiber: And we continue to regularly distribute WorkSimply's excess cash to its shareholders, of which LifeMD is the majority holder. As we continue to capitalize on the tremendous market potential for our core telehealth operation, we remain focused on the following key areas. One, the continued expansion of our comprehensive weight management offering. Two, the development of new and enhanced infrastructure capabilities, including the initial acceptance of commercial insurance, and three, the expansion of our RexMD brand. Our weight management offering continues to perform above expectations, with revenue up 82% sequentially versus the first quarter of 2024.

Speaker Change: Which license D as the majority holder.

Justin Schreiber: As we continue to capitalize on a tremendous market potential for our core telehealth operation, we remain focused on the following key areas. One, continued expansion of our comprehensive weight management offering; two, development of new and enhanced infrastructure capabilities, including the initial acceptance of commercial insurance; and three, expansion of our RECS MD brand. Our weight management offering continued to perform above expectations, with revenue up 82% sequentially versus the first quarter of 2024. During Q2, we added nearly 20,000 new weight management patients, finishing the quarter at just over 60,000 patient subscribers. We continue to average over 400 new signups per day with robust unit economics that largely broke even on a day-one cash basis.

Justin Schreiber: As we continue to capitalize on the tremendous market potential for our core telehealth operation, we remain focused on the following key areas. One is the continued expansion of our comprehensive weight management offering, finishing the quarter at just over 60,000 patient subscribers. We continue to average over 400 new signups per day with robust unit economics that largely broke even on day one cash-based. We continue to see growing success in getting patients approved for branded therapies with approximately 50% approval rates for Zepound and Wigovi prior authorization. This figure is up nearly 700 basis points over the last month.

Speaker Change: As we continue to capitalize on the tremendous market potential for our core <unk> operation. We remain focused on the following key areas. One continued expansion of our comprehensive weight management offering.

Speaker Change: To development of new and enhanced infrastructure capabilities, including the initial acceptance of commercial insurance and three expansion of our Rex M D brand.

Speaker Change: Yeah.

Speaker Change: Our weight management offerings continued to perform above expectations with revenue up 82% sequentially versus the first quarter of 'twenty 'twenty four.

Justin Schreiber: During Q2, we added nearly 20,000 new weight management patients, finishing the quarter at just over 60,000 patient subscribers. We continue to average over 400 new signups per day with robust unit economics that largely broke even on a day one cash-based.

Speaker Change: During Q2, we added nearly 20000, new weight management patients, finishing the quarter at just over 60000 patients subscribers.

Speaker Change: We continue to average over 400, new sign ups per day with robust unit economics to largely broke even on a day one cash basis.

Justin Schreiber: Retention continued to improve, with our most recent cohort showing a 400 to 500 basis point improvement in six months retention rates for patients going on therapy. We continue to see growing success in getting patients approved for granted therapies, with approximately 50% approval rates for that bound and would go be prior authorizations. This figure is up nearly 700 basis points over the last month. We expect this metric, as well as overall prior author approval rates, to continue to improve over time and are actively implementing work streams and investing in third party resources to drive this. Importantly, the bulk of our weight management revenue continues to come from clinical services, and we continue to offer our patients access to both branded therapies, and if branded therapies are not accessible, high quality trusted compounded options.

Justin Schreiber: Retention continued to improve, with our most recent cohort showing a 400 to 500 basis point improvement in six-month retention rates for patients going on therapy. We continue to see growing success in getting patients approved for branded therapies with approximately 50% approval rates for Zepound and Wigovi prior authorization. This figure is up nearly 700 basis points over the last month.

Speaker Change: Retention continued to improve with our most recent cohort showing a 400 to 500 based.

Speaker Change: Basis point improvement in six months retention rates for patients going on therapy.

Speaker Change: We continue to see growing success in getting patients approved for branded therapies with approximately 50% approval rates or does that bound and would go V. Prior authorizations.

Speaker Change: This figure is up nearly 700 basis points over the last month.

Justin Schreiber: We expect this metric, as well as overall prior auth approval rates, to continue to improve over time and are actively implementing workstreams and investing in third-party resources to drive it. Importantly, the bulk of our weight management revenue continues to come from clinical services, and we continue to offer our patients access to both branded therapies. And if branded therapies are not accessible, high quality, trusted, compounded options. I continue to believe that this business model and the holistic care services we provide with it not only provides a differentiated patient experience but also ensures a model that is durable and adaptable to the evolving needs of the GLP-1 and medically supported weight loss market.

Speaker Change: We expect this metric as well as overall prior off approval rates to continue to improve overtime and are actively implementing work streams and investing in third party resources to drive this.

Justin Schreiber: Importantly, the bulk of our weight management revenue continues to come from clinical services, and we continue to offer our patients access to both branded therapies, further supporting our affiliate medical group in providing patients with the highest level of fully integrated virtual care. In the case of our weight management program, this means teaching our patients what it means to be metabolically healthy, how to eat nutritiously, the dangers of refined sugar and ultra-processed foods, and the importance of exercise, sleep, and mental health.

Speaker Change: Importantly, the bulk of our weight management revenue continues to come from clinical services and we continue to offer our patients access to both branded therapies.

Speaker Change: And if branded therapies are not accessible high quality trusted compounded options.

Justin Schreiber: I continue to believe that this business model and the holistic care services we provide with it not only provides a differentiated patient experience but also ensures a model that is durable and adaptable to the evolving needs of the GLP-1 and medically supported weight loss markets.

Speaker Change: I continue to believe that this business model and the holistic care services, we provide with it not only provides a differentiated patient experience, but also ensures a model that is durable and adaptable to the evolving needs of the G. L. P. One and medically supported weight loss markets.

Justin Schreiber: During the second quarter, we rolled out a collaboration with Withings to integrate their smart devices, including scales and blood pressure monitors, into our weight management offering, further supporting our affiliate medical group in providing patients with the highest level of fully integrated virtual care. This quarter, we expect to provide additional updates on new offerings and capabilities we are rolling out as part of our weight management program. We are also committing significant resources to improving the comprehensiveness of our weight management offering. We don't want to be a platform that patients use solely to access prescription medications. We want to be a platform that helps people access transformational and long-term healthcare services.

Justin Schreiber: During the second quarter, we rolled out a collaboration with Withings to integrate their smart devices, including scales and blood pressure monitors, into our weight management office, further supporting our affiliate medical group in providing patients with the highest level of fully integrated virtual care. This quarter, we expect to provide additional updates on new offerings and capabilities we are rolling out as part of our weight management program. We are also committing significant resources to improving the comprehensiveness of our weight management office. We don't want to be a platform that patients use solely to access prescription medication.

Speaker Change: During the second quarter, we rolled out a collaboration with weddings to integrate their smart devices, including scales and blood pressure monitors into our weight management offering.

Speaker Change: Further supporting our affiliated medical group in providing patients with the highest level of fully integrated virtual care.

Speaker Change: This quarter, we expect to provide additional updates on new offerings and capabilities. We are rolling out as part of our weight management program.

Speaker Change: We are also committing significant resources to improving the comprehensiveness of our weight management offering we don't want to be a platform that patients use solely to access prescription medications.

Justin Schreiber: We want to be a platform that helps people access transformational and long-term healthcare services. In the case of our weight management program, this means teaching our patients what it means to be metabolically healthy, how to eat nutritiously, the dangers of refined sugar and ultra-processed foods, and the importance of exercise, sleep, and mental health. We are using our personalized treatment plans, AI capabilities, in-home tools, and mobile applications to intelligently educate and provide timely reminders and support to our patient population on all of these lifestyle and diet components of a metabolically healthy person.

Speaker Change: We want to be a platform that helps people access transformational and long term health care services in.

Justin Schreiber: In the case of our weight management program, this means teaching our patients what it means to be metabolically healthy, how to eat nutritiously, the dangers of refined sugar and ultra-processed foods, and the importance of exercise, sleep, and mental health. We are using our personalized treatment plans, AI capabilities, in-home tools, and our mobile applications to intelligently educate and provide timely reminders and support to our patient population on all of these lifestyle and diet components of a metabolically healthy person. We also have a strong partnership with Optivia, one of the leading coaching and diet companies in the country, that we believe will be appropriate for a segment of our population.

Speaker Change: In the case of our weight management program. This means teaching our patients what it means to be metabolically healthy how do you eat nutritious Lee the dangers of refined sugar and ultra processed foods.

Speaker Change: And the importance of exercise sleep and mental health.

Justin Schreiber: We are using our personalized treatment plans, AI capabilities, in-home tools, and our mobile applications to intelligently educate and provide timely reminders and support to our patient population on all of these lifestyle and diet components of a metabolically healthy person. We also have a strong partnership with Optivia, one of the leading coaching and diet companies in the country, that we believe will be appropriate for a segment of our population. In the month of July alone, we utilized over 1 billion tokens in our AI systems to assist providers and support staff with service messages ranging from care, coverage, order fulfillment, and more.

Speaker Change: We are using our personalized treatment plans AI capabilities in home tools, and our mobile applications to intelligently educate and provide timely reminders and support to our patient population on all of these lifestyle and diet components I think metabolically healthy person.

Justin Schreiber: We also have a strong partnership with Optivia, one of the leading coaching and diet companies in the country that we believe will be appropriate for a segment of our population. While much of what I just mentioned is still in development, we are committed to having the most comprehensive platform in America for weight management by the end of this calendar year. I'm personally very passionate about this, and I'm excited to keep you updated on our progress in the coming quarters in this area.

Speaker Change: We also have a strong partnership with okta via one of the leading coaching and diet companies in the country that we believe will be appropriate for a segment of our population.

Justin Schreiber: While much of what I just mentioned is still in development, we are committed to having the most comprehensive platform in America for weight management by the end of this calendar year. I'm personally very passionate about this, and I'm excited to keep you updated on our progress in the coming quarters in this area.

Speaker Change: While much of what I just mentioned is still in development. We are committed to having the most comprehensive platform in America for weight management by the end of this calendar year.

Speaker Change: I am personally very passionate about this and I'm excited to keep you updated on our progress in the coming quarters in this area.

Justin Schreiber: During the second quarter, we also made significant progress in expanding our capabilities, notably launching the first steps of our commercial insurance program and integrating AI within our patient support and clinical operations. In June, we began accepting commercial insurance following an extensive build-out of technology, compliance, and revenue cycle management capabilities to support this offering effectively and compliantly. While patient volumes are still small, we plan to continue our phased expansion in additional states with the goal of having broad nationwide coverage.

Speaker Change: During the second quarter, we also made significant progress in expanding our capabilities, notably launching the first steps of our commercial insurance program and integrating AI within our patient support and clinical operations.

Speaker Change: In June we began accepting commercial insurance following an extensive buildout of technology compliance and revenue cycle management capabilities to support this offering effectively uncomplainingly wow.

Speaker Change: While patient volumes are still small we plan to continue our phased expansion in additional states with the goal of having broad nationwide coverage.

Justin Schreiber: Additionally, we are enrolled in Medicare and expect to launch this offering after gaining more scale with private. As discussed on prior calls, AI is a large initiative for us. We've already begun to leverage this technology across our data and most recently rolled it out to support our care and provider communications for routine tasks. I'm excited to share some significant progress in this area. In the month of July alone, we utilized over 1 billion tokens in our AI systems to assist providers and support staff with service messages ranging from care, coverage, order fulfillment, and more. We implemented an advanced AI-powered system for message classification and routing.

Justin Schreiber: Additionally, we are enrolled in Medicare and expect to launch this offering after gaining more scale with private payers.

Speaker Change: Additionally, we were enrolled in Medicare and expect to launch this offering after gaining more scale with private payors.

Justin Schreiber: As discussed on prior calls, AI is a large initiative for us. We've already begun to leverage this technology across our data, and most recently rolled it out to support our care and provider communications for routine tasks. I'm excited to share some significant progress in this area. In the month of July alone, we utilized over 1 billion tokens in our AI systems, the assist providers and support staff, service messages ranging from care, coverage, order fulfillment, and more. We've implemented an advanced AI-powered system for message classification and routing. This system efficiently categorizes incoming communications and directs them to the appropriate departments or individuals, which has significantly improved our response efficiency.

Speaker Change: As discussed on prior calls a I have a large initiative for us we've already begun to leverage this technology across all of our data and most recently rolled it out to support our care and provider communications for routine test.

Speaker Change: I'm excited to share some significant progress in this area.

Speaker Change: In the month of July alone, we utilized over 1 billion tokens in our AI systems to assist providers and support staff.

Speaker Change: This message is ranging from care coverage order fulfillment and more.

Speaker Change: We've implemented an advanced AI powered system for message classification in routing the system efficiently categorizes incoming communications and direct them to the appropriate departments or individuals', which has significantly improved our response efficiency.

Justin Schreiber: This system efficiently categorizes incoming communications and directs them to the appropriate departments or individuals, which has significantly improved our response efficiency. We've also developed specialized AI assistance for our providers, medical assistants, and support staff. Thanks to these initiatives, we've seen a dramatic improvement in our average response time. In fact, we've achieved a 200% improvement, which means we're now able to address patient inquiries and concerns three times faster than before. These AI-driven improvements are not just about efficiency.

Justin Schreiber: We've also developed specialized AI assistance for our providers, medical assistance, and support staff. Thanks to these initiatives, we've seen a dramatic improvement in our average response time. In fact, we've achieved a 200% improvement, which means we're now able to address patient inquiries and concerns three times faster than before. Mark. These AI-driven improvements are not just about efficiency; they're also about enhancing the quality of care we provide. By freeing up our medical professionals from routine tasks, we're allowing them to focus more on the number one priority of delivering incredible care and creating an amazing experience for patients that choose to use their platform for their healthcare.

Speaker Change: We've also developed specialized AI assistance for our providers medical assistance and support staff.

Justin Schreiber: Thanks to these initiatives, we've seen a dramatic improvement in our average response time. Additionally, I am pleased to announce that we are making significant progress in the build-out of our in-house 50-state pharmacy. We expect our pharmacy to be licensed this month and to be fully operational in the fourth quarter of this year.

Speaker Change: Thanks to these initiatives, we've seen a dramatic improvement in our average response time in fact, we've achieved a 200% improvement which means we're now able to address patient inquiries and concerns three times faster than before.

Justin Schreiber: They're also about enhancing the quality of care we provide. By freeing up our medical professionals from routine tasks, we're allowing them to focus more on their number one priority of delivering incredible care and creating an amazing experience for patients that choose to use our platform for their health. Additionally, I am pleased to announce that we are making significant progress in the build-out of our in-house 50-state pharmacy. This past quarter, we recruited an exceptional team of pharmacists and support personnel that have deep experience managing large, commercial, and compounding pharmacies.

Speaker Change: These AI driven improvements are not just about efficiency. There also about enhancing the quality of care we provide.

Speaker Change: By freeing up our medical professionals from routine tasks, we're allowing them to focus more on their number one priority of delivering incredible care and creating an amazing experience for patients that choose to use our platform for their health care.

Justin Schreiber: Additionally, I am pleased to announce we are making significant progress in the build-out of our in-house 50-state pharmacy. This past quarter, we recruited an exceptional team of pharmacists and support personnel that have deep experience managing large, commercial, and compounding pharmacies. We expect our pharmacy to be licensed this month and to be fully operational in the fourth quarter of this year. Once online, we will have the capabilities to handle both mail order and non-sterole compounding, as well as integrating our existing distributions to our operations within the pharmacy. We expect to realize some gross margin benefit from this initiative in 2025, as well as more efficient distribution, shorter fulfillment times, and enhance nimbleness as we expand into new product and service areas.

Speaker Change: Additionally, I am pleased to announce that we are making significant progress in the buildout of our in house 50 State pharmacy.

Speaker Change: This past quarter, we recruited an exceptional team of pharmacists and support personnel. So that's deep experience managing large commercial in compounding pharmacies.

Justin Schreiber: We expect our pharmacy to be licensed this month and to be fully operational in the fourth quarter of this year. Once online, we will have the capabilities to handle both mail order and non-sterile compounding as well as integrating our existing distribution center operations within the pharma. We expect to realize some gross margin benefit from this initiative in 2025, as well as more efficient distribution, shorter fulfillment times, and enhanced nimbleness as we expand into new product and service areas.

Speaker Change: We expect our pharmacy to be licensed this month and to be fully operational in the fourth quarter of this year.

Speaker Change: Once online we will have the capabilities to handle both mail order a non sterile compounding as well as integrating our existing distribution center operations within the pharmacy.

Speaker Change: We expect to realize some gross margin benefit from this initiative in 2025 as well as more efficient distribution shorter fulfillment times and enhanced nimble nimbleness as we expand into new product and service areas.

Justin Schreiber: Lastly, RecMD continues to be a source of study growth and high-margin revenue for LifeMD. For the first time in several years, we launched new indications under the RecMD umbrella. These include weight management and hormone replacement therapy or HRT treatments. I am pleased to say that we expect to soft launch our HRT program later this month.

Justin Schreiber: Lastly, RexMD continues to be a source of steady growth and high margin revenue for LifeMD. For the first time in several years, we launched new indications under the REX-MD umbrella. These include weight management and hormone replacement therapy, or HRT treatment. I'm pleased to say that we expect to soft launch our HRT program later this month. In summary, despite WorkSimply's temporary challenges, we remain very bullish about the potential of our business, anchored by the strong performance from our core telehealth business and a very optimistic outlook. And with that, I'll turn the call over to our CFO, Marc Benathen, who will provide a summary of our financial results.

Speaker Change: Lastly, Rex India continues to be a source of steady growth and high margin revenue for life in D. C.

Speaker Change: For the first time in several years, we launched new indications under the Rexam D umbrella.

Speaker Change: [noise] include weight management, and hormone replacement therapy, or HR T treatments I'm pleased to say that we expect a soft launch our HR T program later this month.

Justin Schreiber: In summary, the site works simply temporary challenges. We remain very bullish about the potential of our business, anchored by the strong performance from our core telehealth business and a very optimistic outlook.

Speaker Change: In summary, despite work simply temporary challenges, we remain very bullish about the potential of our business anchored by the strong performance from our core telehealth business and a very optimistic outlook.

Marc Benathen: With that, I will turn the call over to our CFO, Mark Benethin, who will provide a summary of our financial results. Thank you, Justin, and good afternoon, everyone. LifeMD had a very strong second quarter performance from our telehealth business, with revenue growing 67% versus the prior year and stand the low on telehealth adjusted even with their profitability one quarter ahead of guidance. The tremendous strength of our telehealth business supported not only outside's growth, but also strong cash flow, with LifeMG generating positive net cash flow for a third consecutive quarter on a consolidated basis. Based on current and recent trends in sign-up rates, following strategic actions by the leadership that works simply, we expect this business to return to peak profitability on a monthly run rate basis by the end of 2024.

Mark Burnett: And with that I'll turn the call over to our CFO Mark Burnett, then who will provide a summary of our financial results Mark.

Marc Benathen: Thank you, Justin, and good afternoon, everyone. LifeMD had a very strong second quarter performance from its telehealth business, with revenue growing 67% versus the prior year and stand-alone telehealth adjusted EBITDA profitability one quarter ahead of guidance. The tremendous strength of our telehealth business supported not only outsized growth but also strong cash flow, with LifeMD generating positive net cash flow for a third consecutive quarter on a consolidated basis. Based on current and recent trends in sign-up rates following strategic actions by the leadership at WorkSimply, we expect this business to return to peak profitability on a monthly run rate basis by the end of 2024. Telehealth subscriber growth remains strong, with the number of active subscribers increasing 32% year-over-year to approximately 254,000. The number of works simply active subscribers contracted 8% to more than 159,000.

Mark Burnett: Thank you Justin and good afternoon, everyone.

Mark Burnett: Life and they had a very strong second quarter performance from our telehealth business with revenue growing 67% versus the prior year and Standalone telehealth adjusted EBITDA profitability, one quarter ahead of guidance.

Speaker Change: Tremendous strength of our telehealth business supported not only outsized growth, but also strong cash flow with life M. G generating positive net cash flow for a third consecutive quarter on a consolidated basis.

Speaker Change: Based on current and recent trends in sign up rates following strategic actions by the leadership that works simply we expect this business to return to peak profitability on a monthly run rate basis by the end of 2024.

Marc Benathen: Telehealth subscriber growth remained strong, with the number of active subscribers increasing 32% year-over-year to approximately 254,000. The number of work simply active subscribers contracted 8% to more than 159,000. Consolidated growth margin for the second quarter was a record 90.1%, up 273 basis points versus the prior year period. Gross profit for the quarter total 45.6 million, an increase of 45% from the year-ago period. Our gap net loss attributable to common stockholders for the second quarter was 7.7 million, or a loss of 19 cents per share. This compares with the gap net loss attributable to common stockholders for the second quarter of 2023 of 7.5 million, or a loss of 23 cents per share.

Justin Schreiber: Telehealth subscriber growth remains strong, with the number of active subscribers increasing 32% year-over-year to approximately 254,000. Gross profit for the quarter totaled $45.6 million, an increase of 45% from the year-ago period. Our GAAP net loss attributable to common stockholders for the second quarter was $7.7 million, or a loss of $0.19 per share. This compares with the GAAP net loss attributable to common stockholders for the second quarter of 2023 of $7.5 million, or a loss of $0.23 per share.

Speaker Change: Townhouse subscriber growth remained strong with the number of active subscribers, increasing 32% year over year to approximately 254000.

Speaker Change: The number of work simply active subscribers contracted 8% to more than 159000.

Marc Benathen: Consolidated gross margin for the second quarter was a record 90.1%, up 273 basis points versus the prior year period. Gross profit for the quarter totaled $45.6 million, an increase of 45% from the year-ago period. Our GAAP net loss attributable to common stockholders for the second quarter was $7.7 million, or a loss of $0.19 per share. This compares with the GAAP net loss attributable to common stockholders for the second quarter of 2023 of $7.5 million, or a loss of $0.23 per share.

Speaker Change: Consolidated gross margin for the second quarter was a record 91% up 273 basis points versus the prior year period.

Speaker Change: Profit for the quarter totaled $45 6 million, an increase of 45% from the year ago period.

Speaker Change: Our GAAP net loss attributable to common stockholders for the second quarter was $7 7 million or a loss of 19 <unk> per share. This compares with a GAAP net loss attributable to common stockholders for the second quarter of 2023 of $7 5 million or a loss of 23 cents per share.

Marc Benathen: Adjusted EPS is a non-GAAP financial measure that excludes interest, taxes, non-cash expenses, dividends, stocks, and insurance acceptance readiness, severance, litigation expense, non-controlling interest, transaction costs, and foreign currency translation. Reflecting those adjustments, adjusted the loot of the EPS for the second quarter of 2024 was 6 cents compared with 5 cents in the year-ago period. Adjusted EBITDA, which is a non-GAAP financial measure that excludes the same items I noted for adjusted EPS, total 2.5 million in the second quarter of 2024. This compares with the adjusted EBITDA of 1.7 million in the year-ago period. Beginning this quarter, we will also be reporting standalone telehealth adjusted EBITDA for our core telehealth business, which is a non-GAAP measure defined as adjusted EBITDA excluding our Work Simply business.

Speaker Change: Adjusted EPS is a non-GAAP financial measure that excludes interest taxes noncash expenses dividends soft centre assurance acceptance readiness severance litigation expense noncontrolling interests.

Speaker Change: Transaction costs and foreign currency translation, reflecting those adjustments adjusted diluted EPS for the second quarter of 2024 was six <unk> compared with five in the year ago period.

Marc Benathen: Adjusted EBITDA, which is a non-GAAP financial measure that excludes the same items I noted for adjusted EPS, totaled $2.5 million in the second quarter of 2024. This compares with adjusted EBITDA of $1.7 million in the year-ago period. Beginning this quarter, we will also be reporting standalone telehealth-adjusted EBITDA for our core telehealth business, which is a non-GAAP measure defined as adjusted EBITDA excluding our work simply business. This is an important measure for investors to understand the profitability of our core telehealth business, which represents the long-term driver of the company's growth and profitability.

Speaker Change: Adjusted EBITDA, which is a non-GAAP financial measure that excludes the same items I noted for adjusted EPS totaled $2 5 million in the second quarter of 2024. This compares with adjusted EBITDA of 1.7 million in the year ago period.

Speaker Change: Beginning this quarter, we will also be reporting Standalone telehealth adjusted EBITDA for our core telehealth business, which is a non-GAAP measure defined as adjusted EBITDA. Excluding got work simply business. This is an important measure for investors to understand the profitability of our core telehealth business, which represents.

Marc Benathen: This is an important measure for investors to understand the profitability of our core telehealth business, which represents the long-term driver of the company's growth and profitability. This measure totaled the gain of 820,000 for the quarter as compared to a loss of 2.8 million in the year-ago quarter. LifeMG generated 4.5 million of cash flow from operations during the second quarter of 2024, of which approximately 3 million came from our core telehealth business. And generated positive net cash flow after CAPEX, debt service, and preferred stock dividends for the third consecutive quarter. Cash balances totaled 35.7 million as of June 30, 2024, an increase of $600,000 over the end of the first quarter, driven by the strong performance of our telehealth business.

Speaker Change: The long term driver of the company's growth and profitability.

Marc Benathen: This measure totaled a gain of $820,000 for the quarter as compared to a loss of $2.8 million in the year-ago quarter. LifeMD generated $4.5 million of cash flow from operations during the second quarter of 2024, of which approximately $3 million came from our core telehealth business, and generated positive net cash flow after CapEx, debt service, and preferred stock dividends for the third consecutive quarter. Cash balances totaled $35.7 million as of June 30, 2024, an increase of $600,000 over the end of the first quarter driven by the strong performance of our telehealth business.

Speaker Change: This measure was totaled the gain of 820000 for the quarter as compared to a loss of $2 8 million in the year ago quarter.

Justin Schreiber: LifeMD generated $4.5 million of cash flow from operations during the second quarter of 2024, of which approximately $3 million came from our core telehealth business. Today, we are reiterating our guidance for full-year consolidated revenue of at least $205 million while raising our LifeMD telehealth revenue guidance from $140 to $150 million and WorkSimply revenue guidance decreasing to $55 million from $65 million previously. We not only continue to rapidly grow our core business, but we continue to do so with immense gains in profitability on a consistent and sustainable basis.

Speaker Change: <unk> generated $4 5 million of cash flow from operations during the second quarter of 2024 of which approximately 3 million came from our core telehealth business and generated positive net cash flow after capex debt service and preferred stock dividends for the third consecutive.

Speaker Change: Quarter.

Speaker Change: Cash balances totaled $35 7 million as of June 30th 2024, an increase of $600000 over the end of the first quarter driven by the strong performance of our telehealth business.

Marc Benathen: Today we are reiterating our guidance for full year consolidated revenue of at least 205 million, while raising our life and deed telehealth revenue guidance from 140 to 150 million, and work simply revenue guidance decreasing to 55 million from 65 million previously. We are also introducing standalone telehealth adjusted EBITDA guidance in the range of 3 to 4 million for the full year of 2024, a level which is above prior expectations. For historical context on a standalone basis, telehealth adjusted EBITDA on the full year of 2021 was a loss of over 35 million. We not only continue to rapidly grow our core business, but we continue to do so with immense gains and profitability on a consistent and sustainable basis.

Marc Benathen: Today we are reiterating our guidance for full-year consolidated revenue of at least $205 million while raising our LifeMD telehealth revenue guidance from $140 to $150 million and WorkSimply revenue guidance decreasing to $55 million from $65 million previously. We are also introducing stand-alone telehealth-adjusted EBITDA guidance in the range of $3 to $4 million for the full year of 2024, a level which is above For historical context, on a stand-alone basis, Telehealth's adjusted EBITDA for the full year of 2021 was a loss of over $35 million.

Speaker Change: Today, we are reiterating our guidance for full year consolidated revenue of at least $205 million, while raising our life M. D. Telehealth revenue guidance from $140 million to $150 million and works simply revenue guidance decreasing to 55 million from 65 million.

Speaker Change: Yesterday.

Speaker Change: We are also introducing standalone telehealth adjusted EBITDA guidance in the range of $3 million to $4 million for the full year of 2024.

Speaker Change: Level, which is above prior expectations.

Speaker Change: For historical context on a standalone basis telehealth adjusted EBITA in the full year of 2021 was a loss of over $35 million, we not only continued to rapidly grow our core business. While we continue to do so with immense gains in profitability on a consistent and sustainable basis.

Marc Benathen: We not only continue to rapidly grow our core business, but we continue to do so with immense gains in profitability on a consistent and sustainable basis. Despite the increases in our actual and implied guidance for our telehealth business versus prior expectations, we are revising full-year 2024 Consolidated Adjusted EBITDA guidance to $13 to $15 million from $18 to $22 million, solely driven by the first-half softness in our non-core subsidiary As indicated earlier, we expect the softness to be behind us, and we believe that WorkSimply is on a path to achieving peak monthly run rate EBITDA by the end of the year. This wraps up our financial results. I'd now like to turn the call back over to Justin.

Speaker Change: Yes.

Marc Benathen: Despite the increases in our actual and implied guidance for our telehealth business versus prior expectations, we are revising full year of 2024 consolidated adjusted EBITDA guidance to 13 to 15 million from 18 to 22 million. It is solely driven by the first half-sourceness, and our non-core subsidiary works simply. As indicated earlier, we expect this softness to be behind us and believe that work simply is on a path to achieving peak monthly run rate EBITDA by the end of the year.

Speaker Change: Despite the increases in our actual and implied guidance for telehealth bedfast versus prior expectations. We're revising full year of 2024 consolidated adjusted EBITDA guidance to $13 million to $15 million from $18 million to $22 million solely driven by the first half softness in our noncore.

Speaker Change: Our subsidiary works simply as indicated earlier, we expect this softness to be behind US and believed that works simply is on a path to achieving peak monthly run rate EBITDA by the end of the year.

Marc Benathen: This wraps up our financial results.

Speaker Change: This wraps up our financial results I'd now like to turn the call back over to Justin.

Justin Schreiber: I'd now like to turn the call back over to Justin. Thank you, Mark.

Justin Schrieber: Thanks Mark.

Justin Schreiber: As we conclude our prepared remarks, I am truly excited about the momentum LifeMD is experiencing. Our performance this quarter shows the robust growth and potential of our core telehealth operation. The imminent launch of our in-house pharmacy will further enhance our operational efficiency, aligning with our mission to build the most robust and technology-advanced telehealth platform in America. We are crafting a future where LifeMD not only leads in market performance but also sets benchmarks for comprehensive tech-enabled healthcare solutions. With that, I'd like to thank everyone for joining us today, and we'll now open the call to Q&A.

Justin Schreiber: As we conclude our prepared remarks, I am truly excited about the momentum LifeMD is experiencing. Our performance this quarter shows the robust growth and potential of our core telehealth operation, particularly our weight management offerings, which have not only exceeded expectations but also set a new benchmark in patient acquisition, retention, and satisfaction. Looking ahead, we are strategically positioned to redefine the telehealth landscape. We are actively integrating cutting-edge AI capabilities and expanding our commercial insurance coverage, setting a new standard for patient interaction and care delivery.

Justin Schreiber: As we conclude our prepared remarks, I am truly excited about the momentum life and the as-experiencing. Our performance this quarter shows the robust growth and potential of our core telehealth operations, particularly our weight management offerings, which have not only exceeded expectations, but also setting new benchmark in patient acquisition, retention and satisfaction. Looking ahead, we are strategically positioned to redefine the telehouse landscape. We are actively integrating cutting-edge AI capabilities and expanding our commercial insurance coverage, setting a new standard for patient interaction and care delivery. The imminent launch of our in-house pharmacy will further enhance our operational efficiency, aligning with our mission to build the most robust and technology advanced telehealth platform in America.

Justin Schrieber: Conclude our prepared remarks I'm truly excited about the momentum license D is experiencing.

Speaker Change: Our performance this quarter shows the robust growth and potential of our core telehealth operations, particularly our weight management offerings, which have not only exceeded expectations, but also set a new benchmark in patient acquisition retention and satisfaction.

Speaker Change: Looking ahead, we are strategically positioned to redefine the <unk> landscape.

Speaker Change: We are actively integrating cutting edge AI capabilities, and expanding our commercial insurance coverage setting a new standard for patient interaction and care delivery.

Justin Schreiber: The imminent launch of our in-house pharmacy will further enhance our operational efficiency, aligning with our mission to build the most robust and technology-advanced telehealth platform in America. These initiatives, alongside the expansion of our XMD brand and the rollout of new and innovative treatments. We are crafting a future where LifeMD not only leads in market performance but also sets benchmarks for comprehensive tech-enabled healthcare solutions. With that, I'd like to thank everyone for joining us today, and we'll now open the call to Q&A.

Speaker Change: The imminent launch of our in house pharmacy will further enhance our operational efficiency aligning with our mission to build the most robust and technology advanced <unk> platform in America.

Justin Schreiber: With these initiatives, alongside the expansion of our XMD brand and the roll-out of new and innovative treatments, we are crafting a future where LifeMD not only leads in market performance, but also in setting benchmarks for comprehensive tech-enabled healthcare solutions.

Speaker Change: With these initiatives alongside the expansion of our X M D brand and the rollout of new and innovative treatments, we're crafting a future where life. Indeed, not only leads in market performance, but also in setting benchmarks for comprehensive Tech enabled health care solutions.

Justin Schreiber: With that, I would like to thank everyone for joining us today, and we will now open the call to Q&A.

Speaker Change: With that I'd like to turn I'd like to thank everyone for joining us today, and we'll now open the call to Q&A.

Operator: Operator. Thank you, sir. At this time, if you would like to ask a question, please press the star key one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, that is star one to ask a question, and we'll pause for just a moment.

Speaker Change: Operator thank.

Operator: Thank you, sir. At this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2. Once again, that is star 1 to ask a question, and we'll pause for just a moment. We will take our first question from David Larsen from BT IG.

Speaker Change: Thank you Sir at this time, if you would like to ask a question. Please press the star one on your telephone keypad, you remove yourself from the queue at any time by pressing star to once again that is star one to ask a question and we'll pause for just a moment.

David Larsen: We will take our first question from David Larson from BTIG. Hi, congratulations on the good quarter and the profitability, and healthcare is fantastic. Can you talk a bit about the work-simply business?

Speaker Change: We will take our first question from David Larsen from B T I G.

David Larsen: Hi, congratulations on a good quarter and profitability in healthcare. It's fantastic.

Unidentified Analyst: Hi, congratulations on a good quarter and profitability in healthcare. It's fantastic.

Speaker Change: Hi, congratulations on the good quarter and the profitability in health care that's fantastic.

Marc Benathen: Can you talk a bit about the WorkSimply business? I guess the increase in ad costs is what caused the decline in earnings? And what gives you confidence that you'll get back up to peak profitability by the end of 2024? Thank you.

Unidentified Analyst: Can you talk a bit about the WorkSimply business? I guess the increase in ad costs is what caused the decline in earnings? And what gives you confidence that you'll get back up to peak profitability by the end of 2024? Thank you.

Speaker Change: Can you talk a bit about the works simply business.

David Larsen: I guess the increase in ad costs, what caused the decline in earnings, and what gives you confidence that you get back up to peak profitability by the end of 2024. Thank you.

Speaker Change:

Speaker Change: I guess the increase in AD costs, what caused the decline in earnings and what gives you confidence that you'll get back up to peak profitability.

Speaker Change: By the end of 2024, thank you.

Mark Benathen: Yeah, this is Mark. So, the major cause was one that was certainly a more competitive advertising environment at first after the year, and then two, you know, work-simply definitely made a couple of strategic and institutional missteps. They've since made a couple of key personnel changes that have largely cost-corrected the issue. We've actually seen significantly improved cacks as well as sign-up rates over the last day weeks, which is what gives us a lot of confidence to be able to get back to peak monthly EBITDA by the end of the year. Obviously, there's a little bit of a building process because they did take a step backwards. But the fact is that following some of the personnel changes they made and a couple of strategic shifts, which I don't really want to get into details on for competitive reasons.

Marc Benathen: Yeah, this is Marc. So the major cause was, one, there was certainly a more competitive advertising environment in the first half of the year. And then, two, you know, WorkSimply definitely made a couple of strategic and executional missteps. But they've since made a couple of key personnel changes that have largely cost-corrected the issue. We've actually seen significantly improved CACs, as well as sign-up rates, over the last eight weeks, which is what gives us a lot of confidence to be able to get back to peak monthly EBITDA by the end of the year.

Marc: Yeah. This is Marc.

Speaker Change: So the major cause was one that was certainly a more competitive advertising environment in the first half of the air and then to work simply definitely made a couple of our strategic and execution. All missteps. There since made a couple of key personnel changes that have largely cost correct.

Speaker Change: Ted.

Speaker Change: The issue, we've actually seen significantly improved tax as well as sign up rates over the last eight weeks, which is what gives us a lot of confidence to be able to get back to peak monthly EBITDA by the end of the year, obviously, there's a little bit of a building process because they did take a step backwards, but the.

Marc Benathen: Obviously, there's a little bit of a building process because they did take a step backwards. But the fact is that following some of the personnel changes they made and a couple of strategic shifts, which I don't really want to get into the details on for competitive reasons, they've seen nothing but sustained improved performance over the last about eight weeks of performance, which we expect to carry forward for the balance of the year, which will take them back to the peak EBITDA that they achieved about a year ago.

Speaker Change: Is that following some of the personnel changes they made them a couple of strategic shifts, which I don't really want to get into the details on for competitive reasons, they still nothing but a sustained improved performance over the last about eight weeks of performance, which we expect to carry forward for.

Mark Benathen: They've seen nothing but sustained improved performance over the last about eight weeks of performance, which we expect to carry forward for the balance of the year, which will take them back to the peak EBITDA that they had achieved about a year ago.

Speaker Change: For the balance of the year, which will take them back to the peak EBITDA.

Speaker Change: EBITA that they had achieved about a year ago.

David Larsen: That's great.

David Larsen: That's great. Thanks very much.

Speaker Change: That's great. Thanks, very much and then can you talk a little bit more about the profitability within the health care business like what in your mind has enabled you to cheat get it off the profitability head of expectations. For example is there a new bundled solution and if so how does that work like for example.

David Larsen: Thanks very much.

David Larsen: And then can you talk a little bit more about the profitability within the healthcare business? Like what in your mind has enabled you to get it up to profitability ahead of expectations? For example, is there a new bundled solution? And if so, how does that work? Like for example, what is the pricing per month? What are your costs per month? Does it include part of Meta-fast? And then how is that sort of partnership progressing in terms of patient flow back and forth?

Speaker Change: What is the pricing per month.

Speaker Change: What are your cost per month.

Speaker Change: Does it include part of met a fast and then.

Speaker Change: Or like how is that sort of partnership are progressing in terms of patient flow back and forth. Thank you.

Mark Benathen: Thank you.

Mark Benathen: Yeah, so this is Mark. Oh, the biggest driver of getting to profitability quicker than we had originally expected has been that we've obviously been outperforming in the weight management revenue. That was driven by twofold. One strong retention of existing patients. We think we have a really good differentiated weight management model. Yes, we offer the bundle compounds that are offering like others offer. Obviously, there's a percentage of the population that that makes sense for. But a more traditional care-based model has shown really strong retention, and the rate of new acquisitions that we had in the first half of the year also was ahead of where we had originally expected to be for the year.

Marc Benathen: And then can you talk a little bit more about the profitability within the health care business? Like, what in your mind has enabled you to get it up to profitability ahead of expectations? For example, is there a new bundled solution? And if so, how does that work? Like, for example, what is the price per month? What are your costs per month? Does it include part of Medifast? And then they are like, how is that sort of partnership progressing in terms of patient flow back and forth? Thank you.

Mark Burnett: Yeah. So this is mark.

Mark Burnett: Well, it's the biggest driver of getting to profitability quicker than we had originally expected has been that we've obviously been outperforming in the weight management revenue that was driven by two fold one our strong retention of existing patients. We think we have a really good differentiated weight management model, yes, we offer the Ah <unk>.

Marc Benathen: Yeah, so this is Marc. Look, the biggest driver of getting to profitability quicker than we had originally expected has been that we've obviously been outperforming in weight management revenue. That was driven by twofold. One, strong retention of existing patients. We think we have a really good differentiated weight management model. Yes, we offer the bundled compounded offering like others offer. Obviously, there's a percentage of the population that that makes sense for, but our more traditional care-based model has shown really strong retention, and the rate of new acquisitions that we had in the first half of the year was also ahead of where we had originally expected to be for the year.

Mark Burnett: And all compounded offering like others offer obviously it as a percentage of the population that that makes sense for us, but I'm more traditional carrier based model has shown very strong retention and the rate of new acquisitions that we had in the first half of the year also was ahead of where we had originally expected.

Marc Benathen: So, you put the retention together with the slightly higher acquisition rate, and it's basically translated to us being able to have more rebuild dollars from existing patients than we originally had anticipated in our original guidance, which has, in turn, led us to be able to get profitability one quarter quicker than we thought. It also is a leading indicator for our ability to sustain the growth rate in that business going forward through the balance of the year and into next year.

Speaker Change: To be for the year. So you put the retention together with the slightly higher acquisition rate.

Mark Benathen: So you put the retention together with the slightly higher acquisition rate. It's basically translated to us being able to have more rebuild dollars of existing patients than we originally had anticipated in our original guidance, which has in turn led us to be able to get the profitability one quarter quicker than we thought. It also is a leading indicator for our ability to be able to sustain trajectory in that business going forward to the balance of the year and into next year.

Mark Burnett: It's basically translated to us being able to have more rebuild dollars of existing patients than we originally had anticipated in our original guidance, which has in turn led us to be able to get the profitability one quarter quicker than we thought. It also is a leading indicator for our ability to be able to.

Mark Burnett: Sustain a trajectory in that business going forward for the balance of the air and into next year.

Justin Schreiber: Yes, David, this is just another. I'll just add for clarity, and I think Mark did answer this fairly directly.

Justin Schreiber: David, this is Justin. I'll just add for clarity, and I think Marc did answer this fairly directly, but yeah, the bundle of compounding business is a very small percentage of our business still. The core model is, you know, providing an amazing healthcare service to patients, helping them use their insurance to get coverage for these therapies. And, and quite frankly, like, look, we've done a great job at acquiring new patients in a very competitive environment. And as we mentioned in the script, the retention numbers are good, and we think they're going to be a lot better.

Mark Burnett: Yes, Dave This is Justin I'll, just I'll, just add for clarity and I think Mark did answer this fairly directly but yeah.

Justin Schreiber: But yeah, the bundle compounding business is a very small percentage of our business. And still the core model is providing, providing an amazing healthcare service to patients, helping them use their insurance to get coverage for these therapies. And quite frankly, like look, we've done a great job at, you know, at acquiring new patients in a very competitive environment.

Mark Burnett: Yes.

Dave: The bundled comp.

Dave: Compounding business is a very small percentage of our business still the core model as you know, providing providing an amazing health care service to patients helping them use their insurance to get coverage for these therapies in and quite frankly like look we've done a great job at.

Mark Burnett: At acquiring new patients in a very competitive environment.

David Larsen: And, as we mentioned in the script, the retention numbers are good. And we think they're going to be a lot better. Great.

Mark Burnett: And as we mentioned in the script the retention numbers are good and we think theyre going to be a lot better.

David Larsen: Great, and one last quick one for me. Justin, you sort of mentioned a holistic approach to weight management. You don't want to simply be an access point for, you know, compounded medications. Can you maybe talk a little bit more about that, including your relationship with Withings and just sort of your longer-term vision for the mission of the organization?

Speaker Change: Great and one last quick one for me just can you sort of mentioned a holistic approach to weight management, you don't want to simply be a.

David Larsen: And one last quick one for me, Justin. You sort of mentioned a holistic approach to weight management. You don't want to simply be an access point for, you know, compounded medications.

Speaker Change: An access point for.

Speaker Change: Compounded medications can you maybe talk a little bit more about that including your relationship with wings and just sort of your longer term vision of the mission of the organization. Thank you.

Justin Schreiber: Can you be talk a little bit more about that, including your relationship with Withings and just sort of your longer term vision of the mission of the organization. Thank you. Sure, Dave.

Justin Schreiber: Sure, Dave. I love that question.

Speaker Change: Sure, Dave I Love that question and for the record I wrote that section of the earnings script, and myself and I and when I say I'm proud of it I am really really proud of not only what we're doing in this area, but one I think we will be doing by the end of the year and I wanted to be on record that.

Justin Schreiber: I love that question.

Justin Schreiber: And for the record, I wrote that section of the earnings script myself. And when I say I'm proud of it, I am really, really proud of not only what we're doing in this area, but what I think we will be doing by the end of the year. And I want to be on record that I think life of the will have the best and most comprehensive platform for, you know, weight management. I'm offering that encompasses not only prescription products, but also the educational and the diet and the lifestyle components that are essential to helping patients keep the weight off.

Justin Schreiber: And for the record, I wrote that section of the earnings script myself. And when I say I'm proud of it, I am really, really proud of not only what we're doing in this area but what I think we will be doing by the end of the year. And I want to be on record that I think LifeMD will have the best and most comprehensive platform for a weight management offering that encompasses not only prescription products but also the educational, diet, and lifestyle components that are essential to helping patients keep the weight off.

Mark Burnett: I think life M. D will have the best and most comprehensive platform for.

Mark Burnett: Weight management offering that encompasses not only prescription products.

Mark Burnett: But also the educational and the diet and lifestyle components that are essential to helping patients keep the weight off.

Justin Schreiber: And look, the vision is really simple, incredible doctors, in-home tools, make sure that whatever we do is delivered at the right time and it's kind of something that we can get them engaged with and you know enjoying using and like create this like really awesome and intelligent and thoughtful program right that and it's not going to work for everybody but it can You know, my thinking is always like, if we could, if we could even really, really make a big difference for 10 to 20% of our patients and teach them what it means to be truly metabolically healthy, we're going to really change a lot of lives. And that's my vision.

Justin Schreiber: And look, the vision is really simple, incredible doctors, an incredible coaching component, an incredible educational component, in-home tools, like we've shown we're committed to with our Withings partnership; wearables will be a big part of this. And then all of it is connected and enabled by technology and artificial intelligence.

Justin Schreiber: And look, the vision is really simple. Chris, incredible doctors, an incredible coaching component, an incredible educational component, in-home tools, like we've shown we're committed to with our Withings partnership, wearables will be a big part of this, and then all of it is connected and enabled also by technology and artificial intelligence. My viewpoint, Dave, is that everybody in this business, both on the D to C side and the enterprise side, everybody, everybody like claims to have an incredible offering, and everybody claims to offer everything I just said, but I don't, I think that most people don't. Most, most market participants don't do a very good job at it, and this is what I've challenged our team with, to do a good job at it.

Mark Burnett: And look the vision is really simple.

Mark Burnett: Incredible doctors.

Mark Burnett: An incredible coaching component and incredible educational component.

Mark Burnett: In home tools.

Mark Burnett: We've shown we're committed to with our weddings partnership Wearables will be a big part of this.

Mark Burnett: And then all of it is connected and enabled also by technology and artificial intelligence my viewpoint Davis that everybody.

Justin Schreiber: My viewpoint, Dave, is that everybody in his business, both on the D2C side and the enterprise side, everybody claims to have an incredible offering. And everybody claims to offer everything I just said.

Mark Burnett: In this business.

Mark Burnett: Both from the D to C side and the enterprise side.

Speaker Change: Everybody everybody like claims to have an incredible offering and.

Mark Burnett: And everybody claims to offer everything I, just said, but.

Justin Schreiber: But I don't I think that most people don't most market participants don't do a very good job at it. And this is what I've challenged our team to do a good job at it. Don't just upload a bunch of nutritional recipes and make them available to patients when you know that nobody is going to actually use those recipes, right? Don't just throw content into a mobile app that isn't intelligently delivered to patients. Make sure that whatever we do is delivered at the right time and is kind of something that we can get them engaged with and enjoy using and create this really awesome and intelligent and thoughtful program, right?

Mark Burnett: But I don't I think that most people don't most most market participants don't do a very good job at it.

Mark Burnett: And this is what I've challenged our team with to do a good job of it don't just upload a bunch of shouldn't a bunch of nutrition nutritional recipes right and make them available to patients. When you know that nobody's going to actually use those recipes right don't just throw content and.

Justin Schreiber: Don't just upload a bunch of nutritional recipes, right, and make them available to patients when you know that nobody is going to actually use those recipes, right? Don't just throw content into a mobile app that isn't intelligently delivered to patients.

Mark Burnett: Do you know.

Mark Burnett: A mobile app that isn't intelligently delivered to patients make.

Justin Schreiber: Make sure that whatever we do is delivered at the right time, and it's kind of something that we can get them engaged with, and you know, and enjoying using, and like create this like really awesome and intelligent and thoughtful program, right, and it's not going to work for everybody, but it might, my thinking is always like, if we could, if we could even really, really make a big difference for 10 to 20% of our patients and teach them what it means to be truly metabolically healthy, we're going to really change a lot of lives, and that's my vision.

Mark Burnett: Make sure that whatever we do has delivered at the right time, and it's kind of something that we can get them engaged with and you know enjoying using and they create this like really awesome and intelligent and thoughtful program write that and it's not going to work for everybody.

Justin Schreiber: And it's not going to work for everybody, but it can. You know, my thinking is always like, if we could even really, really make a big difference for 10 to 20% of our patients and teach them what it means to be truly metabolically healthy, we're going to really change a lot of lives. And that's my vision.

Speaker Change: Yeah. My my thinking is always like if we could if we could even really really make a big difference for 10% to 20% of our patients and teach them what it means to be truly metabolically healthy we're going to really change a lot of lives and that's my vision.

David Larsen: Great, I'll hop back in the queue. Thanks a lot.

Unidentified Analyst: Great, I'll hop back in the queue. Thanks a lot.

David Larsen: Great, I'll hop back in the queue. Thanks a lot. Thank you, and next, we're going to go to Steve Dechert with Qubank. Hey guys, thanks for the questions. Another quarter here of solid weight management.

Speaker Change: Great I'll hop back into queue. Thanks, a lot.

Steve Dechert: Thank you, and next we're going to go to Steve DeShirt with KeyBank. Hey guys, thanks for the questions.

Operator: Thank you. And next, we're going to go to Steve Dishart with KeyBank.

Operator: Thank you, and next, we're going to go to Steve Dechert with Qubing.

Steve <unk>: Thank you and next we're going to go to Steve <unk> with Keybanc.

Steve: Hey, guys. Thanks for the questions.

Mark Benathen: Another quarter here of Solid Weight Management subscriber growth, just want to get your thoughts on how you see the trajectory of subscribers for the rest of the year and then to 2025, and then also if you continue to roll out your commercial insurance and also Medicare, how do you see that impacting subscriber growth in 2025 as well. Thank you. Yeah, so Steve, this is Mark. Yeah, look, I think you can expect to see very consistent subscriber growth heading throughout the balance of the year. Obviously, there's the potential for upside. The upside comes from a few potential places: one of the meta-fast partnership; two is continuing to expand upon some of the offerings that Justin spoke about earlier in the script today.

Steve: Another quarter here of a solid way management subscriber growth just.

Steve: I just wanted to get your thoughts on how you see the trajectory of subscribers for the rest of the year and then into 2025.

Speaker Change: And then also as you continue to roll out your commercial insurance and.

Speaker Change: Also Medicare how do you how do you see that impacting subscriber growth in 2025 as well. Thank you.

Marc Benathen: Yeah, so, Steve, this is Marc. Yeah, look, I think you can expect to see very consistent subscriber growth throughout the balance of the year. Obviously, there's the potential for upside. The upside comes from a few potential places. One is the MetaFast partnership. Two is continuing to expand upon some of the offerings that Justin spoke about earlier in the script today.

Marc Benathen: Yeah, so Steve, this is Marc. Yeah, look, I think you can expect to see very consistent subscriber growth throughout the balance of the year. Obviously, there's the potential for upside. The upside comes from a few potential places. One is the MetaFast partnership. Two is continuing to expand upon some of the offerings that Justin spoke about earlier in the script today.

Mark Burnett: Yeah. So Steve this is mark.

Mark Burnett: Yeah look I think you can expect to see very consistent subscriber growth heading throughout the balance of the year, obviously, there's the potential for upside the upside come from a few potential places one is the matter of fast partnership two is continuing to expand upon some of the offerings that Justin.

Speaker Change: Spoke about earlier in the script today as far as the second part of your question I do think it's 125, it will accelerate our subscriber growth, but how much I can't say exactly now we're in the infancy of obviously growing out our insurance program, but there's definitely a large market there.

Mark Benathen: As far as the second part of your question, I do think in 2025 it will accelerate our subscriber growth; by how much, I can't say exactly now. We're in the infancy of obviously growing up our insurance program, but there's definitely a large market there, and there's a large market for the level of care and services that we're providing. And then once we do get into Medicare, that's an entirely losing market for us; we can't treat those patients today, and we know that we're turning away several patients within that market segment today. So it could have a potentially meaningful impact on subscriber growth in 2025. I think it's a little bit too early for me to say, here's an exact number by which you would see that increase by, but it's definitely going to accelerate.

Marc Benathen: As far as the second part of your question, I do think in 2025 it will accelerate our subscriber growth by how much I can't say exactly now. We're in the infancy of, obviously, rolling out our insurance program, but there's definitely a large market there, and there's a large market for the level of care and services that we're providing. And then once we do get into Medicare, that's an entirely new market for us.

Mark Burnett: And there's a large market for the level of care and services that we're providing and then once we do get into Medicare.

Mark Burnett: That's an entirely new market for us we don't we can't treat those patients today, and we know that we're turning away several patients within that market segment. Today. So it could have a potentially meaningful impact on subscriber growth in 2025, I think it's a little bit too early for me to say, here's an exact number by which you would see that.

Marc Benathen: We can't treat those patients today, and we know that we're turning away several patients within that market segment today. So it could potentially have a potentially meaningful impact on subscriber growth in 2025. I think it's a little bit too early for me to say here's an exact number by which you would see that increase, but it's definitely going to accelerate.

Mark Burnett: <unk> five, but it's definitely going to accelerate it.

Justin Schreiber: I'll just add a couple of points to that as well, because I think it's probably one of the most important questions right now for people listening to this call. One, as we mentioned in the script, we're doing a great job with getting prior authorizations approved by our patients' insurance companies. I think if you fast forward six to 12 months, you could easily see 40, 50% of our population on a branded therapy or new patients accessing a branded therapy.

Justin Schreiber: I'll just add a couple of points to that as well, because I think it's probably one of the most important questions right now for people listening to this call. One, as we mentioned in the script, we're doing a great job with getting prior authorizations approved by our patients' insurance companies. I think if you fast forward six to 12 months, with other large providers they're working with, so we're excited to get that implemented. I think that's a really important point.

Justin Schreiber: Hi, this is Justin. I'll add a couple of points to that as well because I think it's probably one of the most important questions right now for people listening to this call. One, as we mentioned in the script, we're doing a great job with getting prior off approved by our patient's insurance companies. I think if you fast forward six to 12 months, you could easily see 40-50% of our population on a branded therapy, of new patients accessing a branded therapy. That's something I'm really excited about. We have a new partnership right now that we're working with.

Mark Burnett: Yeah, Hi, this is Justin I'll, just add a lot of just out of a couple of points to that as well because I think it is.

Justin Schrieber: Probably one of the most important questions right now for people listening to this call.

Speaker Change: One like as we mentioned in the script, we're doing a great job with.

Justin Schrieber: Getting prior offs approved by our patients' insurance companies I think if you fast forward six to 12 months.

Mark Burnett: You could easily see 40, 50% of our population on a branded therapy of new patients accessing a branded therapy. So that's something I'm really excited about and we haven't new new partnership right now that we're we're you know it's a it's a new technology company that we're working with that.

Justin Schreiber: So that's something I'm really excited about. And we have a new partnership right now that we're, you know, it's a new technology company that we're working with that is seeing 40 to 50% approval rates for branded therapies with other large providers they're working with. So we're excited to get that implemented. We think that's, I think that's a really important point.

Justin Schreiber: It's seeing 40-50% approval rates for branded therapies with other large providers that are working with. We're excited to get that implemented. I think that's a really important point. As Marc said, Medicare, we're already enrolled. We're going to be ready, whether it's late this year or early next year, but Medicare and Medicaid are going to be big opportunities for GLP-1 therapies. We're going to be a leader when it comes to helping patients with Medicare, especially access to therapies and our comprehensive program. There's also a lot of innovation in this GLP-1 space. There's a lot of new candidates in the development process right now.

Mark Burnett: Seeing 40% to 50% approval rates.

Mark Burnett: For branded therapies with other large providers, they're working with so we're excited to get that implemented. We think that's I think that's a really important point as Mark said Medicare were already enrolled we're going to be ready whether it's late this year or early next year, but Medicare and Medicaid are gonna be.

Justin Schreiber: As Marc said, Medicare, we're already enrolled. We're going to be ready, whether it's late this year or early next year, but Medicare and Medicaid are gonna be big opportunities for GLP-1 therapies. And we're going to be a leader when it comes to helping patients with Medicare, especially accessing these therapies and our comprehensive program. There's also a lot of innovation in this GLP-1 space. There are a lot of new candidates in the development process right now.

Marc Benathen: As Marc said, Medicare, we're already enrolled. We're going to be ready, whether it's late this year or early next year, but Medicare and Medicaid are gonna be big opportunities for GLP-1 therapies, and we're going to be a leader when it comes to helping patients with Medicare, especially to access these therapies and our comprehensive program. There's also a lot of innovation in the GLP-1 space. There are a lot of new candidates in the development process right now, and I think people focus too much on the handful of therapies right now that are branded and that are being used by most patients.

Mark Burnett: Big opportunities.

Mark Burnett: For G O P. One therapies, and where we're going to be a leader when it comes to helping patients with Medicare, especially access these therapies and our comprehensive program.

Speaker Change: There's also a lot of innovation in this G. L. P. One space there are a lot of new candidates in the development <unk>.

Speaker Change: <unk> right now and I think there's I think often times people focus too much on the handful of therapies right now their branded that are you know that are being used by most patients I think that there's you know there is always going to be like unique therapies that can probably be compounded for people whose insurer.

Justin Schreiber: And I think there's, I think people focus too much on the handful of therapies right now that are branded and that are being used by most patients. I think that there are, there are always going to be unique therapies that can probably be combined and used for people whose insurance doesn't cover branded therapies. So that's a really important point. And lastly, we're launching in the coming weeks another compounded prescription weight loss program that is not a GLP-1 that has a great safety and efficacy profile. And we're really excited about this. We think it will be appropriate for a lot of patients that either don't have coverage or can't tolerate GLP-1.

Justin Schreiber: I think oftentimes people focus too much on the handful of therapies right now that are branded, that are being used by most patients. I think that there is always going to be unique therapies that can probably be compounded for people whose insurance doesn't cover branded therapies. That's at a really important point. Lastly, we're launching in the coming weeks another compounded prescription weight loss program that is not a GLP-1 that has a great safety and efficacy profile. We're really excited about this. We think it will be appropriate for a lot of patients. Neither don't have coverage for a GLP-1 or can't tolerate a GLP-1.

Speaker Change: It doesn't cover branded therapies. So that's that's a really important point and last lastly, we're launching in the coming weeks. Another compounded prescription weight loss program that is not a G. L. P. One that has a great safety and efficacy profile and we're really excited.

Marc Benathen: I think that there are always going to be unique therapies that can probably be combined for people whose insurance doesn't cover branded therapies. So that's a really important point. And lastly, we're launching in the coming weeks another compounded prescription weight loss program that is not a GLP-1, that has a great safety and efficacy profile, and we're really excited about this. We think it will be appropriate for a lot of patients that either don't have coverage for GLP-1 or can't tolerate GLP-1.

Speaker Change: Cited about this we think it will we think it will be appropriate for a lot of patients that either don't have coverage for a G. L P, one or or can't tolerate a G. L. P. One.

Steve Dechert: Great. Thank you.

Speaker Change: Great. Thank you.

William Wood: Perfect. Next, we're going to go to William Wood with B. Riley Securities.

Operator: Perfect. And next, we're going to go to William Wood with B. Reilly Securities.

William would: Perfect and next we're going to go to William would with B Riley Securities.

William Wood: Yeah.

Unidentified Analyst: Thanks for taking my questions and congratulations on a very nice quarter. So I was actually just curious if you could maybe talk about your recently launched RexMD GLP-1 offering. I know it's sort of early, but how have you seen that sort of launch building, and has that been any appreciable comparison to what you've been seeing with your more LifeMD offering? I mean, essentially, are people more going towards the LifeMD, or is the RexMD having an appreciable uptake?

William Wood: Thanks for taking my questions and congratulations on a very nice quarter. So I was actually just curious if you could maybe talk about your recently launched RexMD GLP-1 offering. I know it's sort of early, but how have you seen that sort of launch building, and has that been any appreciable comparison to what you've been seeing with your more LifeMD offering? I mean, essentially, are people more going towards the LifeMD, or is the RexMD having an appreciable uptake?

William Wood: Yeah. Thanks for taking my questions and congratulations on very nice quarter.

William Wood: Thanks for taking my questions, and congratulations on a very nice quarter. So I was actually just curious if you could maybe talk about your recently launched RECS MDGLP-1 offering. I know it's early, but how have you seen that launch building, and has that been any appreciable comparison to what you've been seeing with your more Life MD offering? I mean, essentially, are people more going towards the Life MD or the RECS MD having an appreciable intake?

William would: So I was actually just curious if you could maybe talk about your recently launched.

Speaker Change: Launched Rexam D. G L P one offering.

Speaker Change: That's a I know, it's sort of early but how have you seen that sort of launch a building and has that been any appreciable a comparison to what you've been seeing with your with your more life M D offering I mean essentially.

Speaker Change: Our people more going towards the life M. D. R. Horton is the rexam be having a appreciable uptake.

Justin Schreiber: William, I'll take that one. This is Justin. So the Rex-MD launch has been a little slower than the Rex-MD GLP-1 launch has been. We've seen such great growth on the LifeMD side, and we're in the process of.

Justin Schreiber: William, I'll take that one. This is Justin.

Justin Schreiber: Well, I'll take that one.

William would: Well.

Speaker Change: I'll I'll take that one this is justin.

Justin Schreiber: This is Justin. So the RECS MD launch has been a little slower than the RECS MDGLP-1 launch. has been a little slower than we expected, and I think a lot of that is just because we've been so we've seen such great growth on the LifeMD side. And you know, it's we were in the process of you know of just continuing to like improve not not really improve the RexMD business, but we're just continuing to invest some resources there into scaling that up. But right now, the direct answer to your question is it's a very, very small percentage of the overall weight loss business, definitely sub five percent.

Justin Schreiber: So the REX-MD launch has been a little slower than the REX-MD GLP-1 launch has been, a little slower than we expected. And I think a lot of that is just because we've seen such great growth on the LifeMD side, and we're in the process of, you know, just continuing to like, improve, not really improve their XMD business, but we're just continuing to invest some resources there into scaling that But right now, the direct answer to your question is it's a very, very small percentage of the overall weight loss, definitely sub five.

Justin Schrieber: So the Rec Sunday lunch has been a little slower than the Brexit D. G. L. P. One launch has been a little slower than we expected and I think a lot of that is just because we've been so we've seen such great growth.

William would: On the license side and you know we were in the process of you know of.

Speaker Change: Just continuing to like improve not really improved the rexam business, but we're just continuing to invest some resources, there and the scaling that up but right now the direct answer to your question is it's a very very small percentage of the overall weight loss business definitely sub 5%.

Justin Schreiber: Yeah, that's helpful. And then additionally on the LifeMD side, or actually just more on the Telehealth side in general, in the past you've specifically highlighted sort of giving us some color on how the present quarter has been going overall, maybe quarter to date, as well as mentioning the deferred revenue, you know, just to give us an idea of how the new prescribers are coming on, if they're taking that six-month program.

Unidentified Analyst: I got it. That's helpful. And then, additionally, on the LifeMD side, or actually just more on the telehealth side, in general, in the past, you've specifically highlighted, sort of giving us some color on how the present quarter has been going overall, maybe, you know, quarter to date, as well as mentioning the deferred revenue, you know, just to give us an idea of how the new prescribers are coming along if they're taking that six-month I was wondering if you could just give us any additional color on what you've been seeing on the LifeMD side, or the telehealth side, for weight management, specifically, post-secondary

William Wood: I got it. That's helpful. And then, additionally, on the LifeMD side, or actually just more on the telehealth side, in general, in the past, you've specifically highlighted, sort of giving us some color on how the present quarter has been going overall, maybe, you know, quarter to date, as well as mentioning the deferred revenue, you know, just to give us an idea of how the new prescribers are coming along if they're taking that six-month I was wondering if you could just give us any additional color on what you've been seeing on the LifeMD side, or the telehealth side, for weight management, specifically, post-secondary

Speaker Change: Got it that's helpful and.

Speaker Change: And then additionally on the life M D side.

Speaker Change: Or actually just more on the telehealth side in general in the past you you'd specifically highlighted.

Speaker Change: So there you can give me some color on how the present quarter has been going overall.

Speaker Change: Maybe quarter to date as well as mentioning the deferred revenue.

Speaker Change: Just to give us an idea of how the new prescribers are coming on if theyre taking out six months.

Speaker Change: The six month program I was wondering if you could just give us any additional color on what you've been seeing on the life M D side or the <unk> side weight management specifically.

Justin Schreiber: I was wondering if you could just give us any additional color on what you've been seeing on the LifeMD side or the telehealth side weight management specifically post second quarter. Yeah, look, post second quarter, as our business has gotten more mature, obviously we're going to start sticking mostly to reporting the end of the quarter for consistency purposes. There's been some confusion in the past around people quoting different subscriber amounts made quarter, so we want to find that confusion. But look at the business that's continued to perform very strongly. We've actually seen improvements in retention, as we highlighted in the script. Acquisitions tend to be very consistent with what they've been before. You'll have some weeks where it might be a little lower, you'll have some weeks where it might be a little higher, but, you know, in general, growth signups have been very consistently around that 400 or so a day, but with improving levels of retention. So we expect that to create momentum. The ferdrav news continued to grow, as you'll see, or get see, it grew just under two million in the quarter. Obviously, the rate of growth in the ferdrav news we get bigger will be slightly smaller just because you have more revenue being recognized. We're continuing to see more than half of people take to six month offerings. It's really not a reason not to; you get a bigger initial discount. And, you know, when you think about retention, on the retention side, people are typically not getting discounts on the rebuilds and the retention. So the fact that we're seeing, you know, improvements in that area, I think, close speaks to the quality of the offering.

Speaker Change: Second quarter.

Marc Benathen: Yeah, look, post-second quarter, as our business has gotten more mature, obviously, we're going to start sticking mostly to reporting at the end of the quarter for consistency purposes. There's been some confusion in the past around people quoting different subscriber amounts mid-quarter, so we wanted to end that confusion. But look, the business has continued to perform very strongly. We've actually seen improvements in retention, as we highlighted in the script. Acquisitions tend to be very consistent with what they were before.

Speaker Change: Yeah look post second quarter as our business has gotten more mature, obviously, where we're gonna start.

Speaker Change: And most of it to reporting to you end of the quarter for consistency purposes, there's been some confusion in the past around people quoting different subscriber amounts mid quarter. So we wanted to end that confusion, but look at the business is continuing to perform very strongly we've actually seen improvements in retention as we highlighted.

Speaker Change: And the scrap acquisitions tend to be very consistent.

Speaker Change: With what they've been before you'll have some weeks, where it might be a little already awesome weekend might be a little higher but in general gross sign ups have been very consistently we're around that 400, or so a day bump with improving levels of retention. So we expect that to create momentum deferred revenues continued to grow as you'll see our.

Marc Benathen: You'll have some weeks where it might be a little lower. You'll have some weeks where it might be a little higher. But, you know, in general, growth signups have been very consistently around 400 or so a day, but with improving levels of retention, so we expect that to create momentum. Deferred revenues continue to grow, as you'll see or did see. They grew just under $2 million in the quarter.

Marc Benathen: You'll have some weeks where it might be a little lower. You'll have some weeks where it might be a little higher. But in general, growth sign-ups have been very consistently around 400 or so a day, but with improving levels of retention, so we expect that to create momentum. Deferred revenues continue to grow, as you'll see or did see. They grew just under $2 million in the quarter.

Speaker Change: It did see it grew just under $2 million in the quarter, obviously the rate of growth in deferred revenue as we get bigger.

Marc Benathen: Obviously, the rate of growth in deferred revenue as we get bigger will be slightly smaller just because you have more revenue being recognized. We're continuing to see more than half of people take the six-month offering. There's really not a reason not to, because you get a bigger initial discount. When you think about retention, on the retention side, people are typically not getting discounts on the rebills and retention. So the fact that we're seeing improvements in that area, I think, really speaks to the quality of the offer.

Marc Benathen: Obviously, the rate of growth in deferred revenue as we get bigger will be slightly smaller just because you have more revenue being recognized. We're continuing to see more than half of people take the six-month offering. There's really not a reason not to, because you get a bigger initial discount. And, you know, when you think about retention, on the retention side, people are typically not getting discounts on the rebills and retention. So the fact that we're seeing improvements in that area, I think, really speaks to the quality of the offer.

Speaker Change: Be slightly smaller just because you have more revenue being recognized we're continuing to see more than half of people take the six month offerings is really not a reason not to you get a bigger initial discount.

Speaker Change: And you know when you think about retention on the retention side people are are typically not getting discounts on the rebuilds and the retention. So the fact that we are seeing improved.

Speaker Change: Improvements in that area I think really speaks to the quality of the offering.

Speaker Change: Yes.

William Wood: Got it, and then one last quick one. I know in the past you've discussed, and I believe you actually mentioned it on the call earlier about divesting Work Simply and just really focusing on the health, the telehealth, and the products that you offer through that. With sort of the slide and Work Simply and some of the bumps you've been seeing, have those potentially divestment and partner or, you know, outsourcing Work Simply? Have those discussions picked up any, or is that still more just something on the back burner that you may or may not pursue? Yeah, I think that would work.

William Wood: I got it. And then there was one last quick one. I know in the past you discussed, and I believe you actually mentioned it on the call earlier, about divesting WorkSimply and just really focusing on telehealth and the products that you offer through that. With sort of the slide in WorkSimply and some of the bumps you've been seeing, have those potentially divestment and partner or outsourcing discussions picked up any, or is that still more just something on the back burner that you may or may not be seeing?

Speaker Change: Got it and then one last quick one I know in the past you you've discussed.

Speaker Change: And I believe you actually mentioned it on the call earlier about divesting works simply and just really focusing on the telehealth and end.

Speaker Change: And the products that you offer through that.

Speaker Change: With sort of the slide and work Assembly and some of the bumps you've been seeing have those.

Speaker Change: Initially divestment and partner.

Speaker Change: Outsourcing where assembly of those discussions picked up any or is that still more just something in on the back burner that you may or may not pursue.

Justin Schreiber: Yeah, I would say, yeah, go ahead. Yeah, I'll take that one.

Speaker Change: Yeah, I would say.

Speaker Change: Yeah go ahead go.

Operator: Go ahead.

Speaker Change: Yeah, I'll take that one I mean look work.

Marc Benathen: As we've said... regular interest from potential acquirers of work simply. We're committed to doing what's right for that business and for our shareholders. When we, when we, you know, make our investor presentation, at some point in the future, it could be in the back half of this year, and it could be next year, but we think that that's something that will likely happen. What we're really focused on is working with Sean right now, where there's a lot less competition. And so we think very highly of this business. We think it's a very valuable asset. And, you know, well, we are, but we are working to sell it, you know, at the appropriate time.

Justin Schreiber: As we said on prior calls, William, we have regular interest from potential acquires of Work Simply. We're committed to doing what's right for that business and for our shareholders. I can tell you that presently we have some very strong interests in work simply, but we'd like to be conservative with shareholders.

Speaker Change: As we've said.

Justin Schreiber: On prior calls, William, like we have regular interest from potential acquirers of WorkSimply. We're committed to doing what's right for that business and for our shareholders. I can tell you that, Presently, we have some very strong interests in WorkSimply, but we'd like to be conservative with shareholders. When we, when we, you know, make, when we forecast you know, what we're what's what's going to happen and when right but I think you know, we we do think we'll sell that business at the price point that we've guided Ilya Zubkov, LifeMD, What we're really focused on is working with Sean right now, just being supportive shareholders and seeing the business get back to peak EBITDA, which we're really confident about.

Speaker Change: On prior calls we have like we have regular interest.

Unidentified Analyst: Got it. Very helpful. Thank you for taking my questions. I'll jump back in queue, and congratulations on a nice kilter. I appreciate it.

Speaker Change: From potential acquirers of work simply.

Speaker Change: We're committed to doing what's right for that business and for our shareholders.

Speaker Change: I can tell you that.

Speaker Change: Presently.

Speaker Change: We have some very strong interest and work simply but we'd like to be conservative with shareholders. Yes.

Justin Schreiber: When we fork out, what's going to happen and when, but I think we do think we'll sell that business at the price point that we've guided in our investor presentation. At some point in the future, it could be in the back half of this year and it could be next year, but we think that that's something that will likely happen.

Speaker Change: When we when we make one.

Speaker Change: We forecast what we're what's what's going to happen and when right, but I think we we do think we'll sell that business at the price point that we've guided.

Speaker Change: In our investor presentation in the that at some point in the future.

Speaker Change: Could it could be in the back half of this year and it could be next year, but we think that that's something that will likely happen.

Justin Schreiber: What we're really focused on is working with Sean right now and just being supportive shareholders and seeing the business get back to peak EBITDA, which we're really confident about. We have a lot of clarity now on just kind of that business recovering to where it was at its peak. Sean's actually working on a few new products that will further diversify the business that are very exciting and are pretty large markets where there's a lot less competition, and so we think very highly of this business. We think it's a very valuable asset, and we are working to sell it at the appropriate time.

Shawn: But we're really focused on is working with Shawn right now and they're just being being supportive shareholders and seen the business get back to peak EBITDA, which we're really confident about.

Justin Schreiber: We have a lot of clarity now on just kind of that, the business recovering to where it was at its peak. Sean's actually working on a few new products that will further diversify the business that are very exciting and are in pretty large markets where there's a lot less competition. And so we think very highly of this business. We think it's a very valuable asset. And, you know, well, we are, but we are working to sell it, you know, at the appropriate time.

Speaker Change: We have a lot of clarity now.

Speaker Change: And just kind of the.

Shawn: That business recovering to where it was at its peak Sean's actually working on a few new products that will further diversify the business that are very exciting.

Shawn: <unk> are pretty large markets, where theres a lot less competition and so we're we think very highly of of this business. We think it's a very valuable asset and.

Speaker Change: We believe we are and we are working to to sell it at the appropriate time.

William Wood: Thank you for taking my questions.

William Wood: Got it. Very helpful. Thank you for taking my questions. I'll jump back in queue, and congratulations on a nice kilter. I appreciate it.

Speaker Change: Got it very helpful. Thank you for taking my questions I'll jump back in queue and congratulations on a nice quarter I appreciate it.

William Wood: I'll jump back and thank you, and congratulations on our nice cuter. Appreciate it.

Sarah James: Thank you, and next we're going to go to Sarah James with Cantor. Thank you. I want to go back to telehealth, reaching profitability a quarter ahead of your expectations, which is a huge accomplishment.

Operator: Thank you, and next, we're going to go to Sarah James with Cantor.

Speaker Change: Thank you our next week on the go to Sarah James with Cantor.

Sarah James: Thank you. I want to go back to telehealth reaching profitability a quarter ahead of your expectations, which is a huge accomplishment. Can you talk in a little bit more detail about where retention is now versus where you thought it would be when you thought breakeven would be a quarter later? And can you remind us what the margin or contribution ramp looks like when you initially bring a customer on board versus when they've been retained for either the six-month period or whatever time frame you feel is most relevant?

Sarah James: Thank you I wanted to go back to telehealth, reaching profitability a quarter ahead of your expectations, which is a huge accomplishment.

Mark Benathen: Can you talk in a little bit more detail about where retention is now versus where you thought it would be when you thought break even would be a quarter later, and can you remind us what the margin or contribution ramp looks like when you initially bring a customer on there versus when they've been retained for either the six month period or whatever timeframe you feel is most relevant. Yeah, Sarah, this is Mark.

Sarah James: Can you talk in a little bit more detail about where our retention is now versus where you thought it would be when he got breakeven would be a quarter leader and can you remind us what the.

Unidentified Analyst: Margin or contribution ramp looks like when you initially bring a customer on board versus when they've been retained for either the six-month period or whatever time frame you feel is most relevant.

Speaker Change: Margin or contribution ramp looks like when you initially bring a customer on their freshness when they've been retained for you to have a six month period or whatever timeframe you P. L is ms relevant.

Marc Benathen: Yeah, Sarah, this is Marc. So essentially, as we mentioned earlier, we are seeing patients at the six-month mark for them to go on therapy. As we talked about before, there's that initial 20 to 25 percent fall-off within the first 30 days related to patients who can't access therapy, which is heavily driven by denials from insurance companies and then not wanting to access compounded therapy or not wanting to cash pay. Those rates are very consistent.

Mark Burnett: Yeah, Oh, sorry, this is mark.

Mark Benathen: So essentially, as you mentioned earlier, we are seeing at the six-month mark for patients to go on therapy. As we talked about before, there's that initial 20 to 25% fall off within the first 30 days related to patients who can't access therapy, which is heavily driven by denial from insurance companies and then not wanting to access the compounded therapy or not wanting to cash pay. Those rates are very consistent; where we're seeing improvement is as you get out to about six months, and we would expect us to flow through to 12 months as well.

Mark Burnett: So essentially yes, we mentioned earlier, we are seeing at the six month Mark for patients to go on therapy as as we talked about before there was that initial 20% to 25% fall off within the first 30 days of a label for patients who can access therapy, which was heavily driven by.

Mark Burnett: Denials from insurance companies, and then not wanting to access a compounded therapy or not wanting to cash pay.

Mark Burnett: Those rates are very consistent where were seeing improvement as you get out to about six months and we would expect us to flow through the 12 months as well, we just have a limited number of people and the 12 month Mark since we launched in April 'twenty three we're.

Marc Benathen: Where we're seeing improvement is, as you get out to about six months, and we would expect this to flow through the 12 months as well, we just have a limited number of people at the 12-month mark since we launched on April 23, we're seeing about a four to five hundred basis point improvement in those people. So previously, we had expected that we would be somewhere around 40 percent at the six-month mark.

Mark Benathen: We just have a limited number of people, and the 12-month marks in through launch in April 23. We're seeing about a four to 500 basis point improvement in those people. So previously, we had expected that we would be somewhere around 40% at the six-month mark. We're starting to see more like 45%, 46%. And then when you get to the 12-month mark, seeing somewhere typically in that 30 to 35% range, and that includes the 25% of folks that fell off in the initial 30 days and did not go on therapy.

Mark Burnett: We're seeing about a four to 500 basis point improvement in those people. So previously we had expected that we would be somewhere around 40% at the six month Mark.

Marc Benathen: We're starting to see more like 45, 46 percent, and then when you get to the 12-month mark, we see somewhere typically in that 30 to 35 percent range, and that includes the 25 percent of folks that fell off in the initial 30 days and did not go on therapy.

Mark Burnett: We're going to see them more like 45, 46% and then when you get to the 12 month, Mark, saying somewhere typically in that 30% to 35% range and that includes the 25% of folks that fall off in the initial 30 days and the knock on therapy, so the bit.

Mark Benathen: So what we would expect to see, though, is because the majority of what has driven our business has been getting people on therapy, we would expect to see that four to 500 basis point improvement, at least a good portion of that flow through to the 12 month mark and obviously remains to be seen how that flows through after the first year. That, in turn, is creating a fair amount of upside on the top line. It's creating upside for the quarter of about a couple million dollars, of which we saw roughly about 40% of that, 50% of that flow through to the bottom line, which obviously contributed to us getting to profitability one quarter, the quicker that we had expected.

Mark Burnett: While we would expect to see though is because the majority of what.

Marc Benathen: So what we would expect to see, though, because the majority of what has driven our business has been getting people on therapy, we would expect to see that four to five hundred basis point improvement, at least a good portion of that flow through to the 12-month mark, and obviously, it remains to be seen how that flows through after the first year. That, in turn, is creating a fair amount of upside on the top line.

Mark Burnett: Has driven our business has been getting people on therapy, we were.

Mark Burnett: Expect to see that four to 500 basis point improvement at least a good portion of that flow through to the 12 month, Mark and obviously it remains to be seen how that flows through after the first year that in turn is creating a fair amount of upside on the topline is.

Marc Benathen: It's creating upside, you know, for the quarter of about a couple million dollars, of which we saw roughly 40 percent of that, 50 percent of that flow through to the bottom line, which obviously contributed to us getting to profitability one quarter quicker than we had expected. As far as on a go-forward basis, you know, as we've said before, new patients obviously have the acquisition advertising costs with them. Typically, you're spending the first, call it two to three months, to break even on a new patient where you layer in all returns and add costs, and then about a two to one return on investment on a net basis after 12 months.

Mark Burnett: It's creating upside for the quarter.

Mark Burnett: Order of about a couple of million dollars of which we saw a roughly about 40% of that 50% of that flow through.

Mark Burnett: So the bottom line, which obviously contributed to us getting to profitability one quarter of the quicker than we had expected as far as on the Gulfport base as soon as we've said before new patients. Obviously, you have the acquisition advertising cost with typically you're spending the first call. It two to three months to break even on a.

Mark Benathen: As far as on a go forward basis, you know, as we said before, new patients, obviously have the acquisition advertising costs with, typically you're spending the first call of two to three months to break even on a new patient, where your layer in all returns and add costs, and then about a two to one return on investment on an that basis after 12 months. Rebuild patients and the rebuilds are obviously growing faster than we had originally modeled in the guidance because of increasing retention rates and slightly better acquisitions. That's where the vast majority of those dollars do flow to the bottom line.

Mark Burnett: Patient when you layer in all returns.

Mark Burnett: And add cost and.

Mark Burnett: And then about a two to one return on investment on that basis. After 12 months rebuild patients on the rebuilds are obviously growing faster than we had originally modeled in the guidance because it's increasing retention rates and slightly better acquisitions, that's where the vast majority of those dollars do Florida. The Bottomline I mean, you have some.

Marc Benathen: Rebuild patients, and the rebuilds are obviously growing faster than we had originally modeled in the guidance because of increasing retention rates and slightly better acquisitions. That's where the vast majority of those dollars do flow to the bottom line. I mean, you have some COGS, you have merchant fees, but typically, you're looking at some additional clinical costs to support that. But, by and large, you're looking at about 60% of those incremental rebuild dollars flowing through to the bottom line. That's very helpful.

Marc Benathen: Slightly better acquisitions. That's where the vast majority of those dollars do flow to the bottom line. I mean, you have some COGS, you have merchant fees, but typically, you're looking at some additional clinical costs to support that. But by and large, you're looking at about 60% of those incremental rebuild dollars flowing through to the bottom line.

Mark Benathen: I mean, you have some cogs, you have merchant fees, but typically you're looking at some additional clinical costs to support that. By and large, you're looking at about 60% of those incremental rebuild hours flowing through to the bottom line.

Mark Burnett: Cogs you have merchant fees, but typically you're looking in some additional clinical cost to support that but by and large I'm looking at about 60% of those incremental rebuild dollars flowing through to the bottom line.

Unidentified Analyst: That's very helpful. And then, on a bigger picture basis, is there any way you can help us frame up what the demographic mix is of your telehealth customers and how it might be impacted by the consumer and job market headlines that we see going on now?

Justin Schreiber: That's very helpful. And then, on a bigger picture basis, is there any way you can help us frame up what the demographic mix is of your telehealth customers and how it might be impacted by the consumer and job market headlines that we see going on now?

Sarah James: That's very helpful.

Speaker Change: That's very helpful.

Sarah James: And then on a bigger picture basis, is there any way you can help us frame up what the demographic mix is of your telehealth customers and how it might be impacted by the consumer and job market headlines that we see going on now? Hi Sarah, this is Jeff, and I can try to take a stab at that. So if we have two very large businesses inside of LifeMD, on the RexMD side, it's a mental health business. Average age of RexMD patient is in their low fifties; the AOVs there are still significant. We have a lot of patients that spend $500 to $1,000 upfront on treatment for RexMD, for instance.

Speaker Change: Then on a bigger picture basis.

Speaker Change: Is there any.

Speaker Change: The way you can help us frame up what the demographic mix is of your telehealth customers and how it might be impacted by the consumer.

Mark Burnett: Consumer and job market.

Mark Burnett: The lines that we see going on now.

Justin Schreiber: Hi Sarah, this is Justin. I can try to take a stab at that. So we have two very large businesses inside of LifeMD for the RexMD side. On the RexMD side, you know, it's a men's health business. The average age of a Rex MD patient is in their kind of low 50s. The AOVs there are still significant, and we have a lot of patients that spend $500 to $1,000 up front on treatment for erectile dysfunction, for instance. So, you know, in the past, as we've seen some swings, you know, since we launched that business, you know, we really haven't. We really haven't seen any softness there.

Mark Burnett: Hi, Sara this is Jessica and I can I can try to take a stab at that.

Speaker Change: So with if we're we have.

Speaker Change: Two very large businesses inside of life and D for the <unk>.

Mark Burnett: <unk> on the Rexam decide it's the men's health business average age of.

Marc Benathen: of Rex MD patients is in their kind of low 50s. The AOVs there are still significant, and we have a lot of patients that spend $500 to $1,000 up front on treatment for erectile dysfunction, for instance, healthcare, and even weight loss is something that. If you look back historically, it's not an area where you're going to see a big effect from a more difficult economic environment.

Speaker Change: Of Orexin D patient is in there kind of low fifty's.

Mark Burnett: The <unk> there are still significant and we have a lot of patients that spend 500 to $1000 upfront.

Mark Burnett: And do you know.

Mark Burnett: Treatment for erectile dysfunction for instance.

Jeff: So, in the past, as we've seen some swings since we've launched that business, we really haven't seen softness there.

Mark Burnett: So you know in the you know in the past as we've seen some some swings you know since we've launched that business, we really haven't.

Mark Burnett: We really haven't seen softness there.

Justin Schreiber: And then, if you look at the LifeMD side of the business, you know, I think that healthcare and even weight loss is something that, if you look back historically, it's not an area where you're going to see a big effect from a more difficult economic environment. The average age of that patient population skews a little bit more female; it's about 70% women. You know, it's a slightly younger demographic than on the Rec MD side. The average age is around 40.

Jeff: And then if you look at the life on the side of the business, I think that healthcare and even weight loss is something that if you look back historically, it's not an area that's going where you're going to see a big effect from a more difficult economic environment, the average age. That patient population skews a little bit more female. It's about 70 percent women. It's a slightly younger demographic than on the RexMD side. It's the average age is around 40. And we really are not concerned about the pressure on the consumer. We think that these are priorities in people's lives; the types of conditions that we treat healthcare is clearly a big priority for patients.

Mark Burnett: And then if you look at the license side of the business you know.

Mark Burnett: I think that you know I think that.

Mark Burnett: Health care and and even weight loss is something that if you look back historically no not not an area, that's going where youre going to see a you know.

Mark Burnett: We're going to see a big effect from you know.

Mark Burnett: A more difficult economic environment.

Mark Burnett: The average age you know that that patient that that patient population skews, a little bit more female it's about 70% women.

Speaker Change: It's slightly younger demographic than on the Rexam decide it's the average age is around 40.

Justin Schreiber: And, you know, we really are not concerned about, you know, about, you know, pressure on the consumer. We think that these are priorities in people's lives, the types of conditions that we treat. Healthcare is, you know, clearly a big priority for patients. We're also, you know; we're not the most expensive offering out there. You know, we take a lot of pride that our services are affordable for almost every American. And so, you know, we're pretty confident that even if we see a slowdown in the economy, there will be strong demand for our products.

Speaker Change: And yeah we.

Speaker Change: We really are not concerned about.

Speaker Change: About pressure on the consumer we think that these are priorities in People's lives.

Speaker Change: The conditions that we treat health care is clearly a big priority for for patients. We're also you know were not the most expensive offering out there and we take a lot of pride that our services are affordable.

Jeff: We're also, we're not the most expensive offering out there. We take a lot of pride that our services are affordable to almost every American. And so we're pretty confident that even if we see a slowdown in the economy, that there will be strong demand for our product services.

Speaker Change: Do you know almost every American.

Speaker Change: And so yeah, we were pretty confident that by.

Speaker Change: Even if we see a slowdown in the economy that there will be strong demand for our products and services.

Sarah James: Great, thank you.

Operator: Great, thank you. Thank you, and next, we'll go to...

Sarah James: Great. Thank you. Thank you, and next, we'll go to.

Speaker Change: Great. Thank you.

E. Shen: Thank you, and next we'll go to E. Shen with H.E. Winwright. Thank you for taking my questions. Do you have a rough time frame within which to achieve the goal of divesting work simply?

Operator: Thank you, and next, we'll go to Yi Chen with H.E. Wainwright. Thank you for taking my questions. Do you have a rough time frame within which to achieve the goal of that?

Speaker Change: Thank you and next we'll go to E Chen with H C Wainwright.

E Chen: Thank you for taking my questions.

E Chen: Do you have a rough timeframe within which to achieve the goal of divesting work safely.

Mark Benathen: Yeah, you, this is Mark. As we said, I mean, we're not going to commit to an exact timeline for that. We've actually received a fair amount of interest this year. I'm continuing to obviously pursue appropriate deals. And when we get to that point, we can update people. Obviously, our goal is to do a divestiture. There is always the potential of a divestiture this year and next year. But we're not going to obviously pinpoint some exact bonds or quarter until we have a definitive agreement. on.

Marc Benathen: Yeah, Yi, this is Marc. You know, as we've said, I mean, we're not going to commit to an exact timeline for that. We've actually received a fair amount of interest this year, and we have continued to obviously pursue appropriate deals. And, you know, when we get to that point, we can update people. Obviously, our goal is to do a divestiture. There is always the potential for a divestiture this year or next year. But, you know, I can obviously pinpoint an exact month or quarter until we have a definitive agreement signed.

Yi Chen: Yeah, Yi, this is Marc. You know, as we've said, I mean, we're not going to commit to an exact timeline for that. We've actually received a fair amount of interest this year, and we have continued to obviously pursue appropriate deals. And, you know, when we get to that point, we can update people. Obviously, our goal is to do a divestiture. There is always the potential for a divestiture this year or next year. But, you know, I can obviously pinpoint an exact month or quarter until we have a definitive agreement signed.

Speaker Change: Yeah, Yeah. This is Marc.

Speaker Change: That's a sad I mean, we're not getting.

Speaker Change: Commit to an exact timeline for the Abu fascia received a fair amount of entrust. This year continues to obviously pursue appropriate deals and you know when we got to that point. We can we can update people. Obviously our goal is to do a divestiture.

Speaker Change: There is always the potential of a divestiture of this year and next year.

Speaker Change: But what.

Speaker Change: And I can honestly pinpoint an exact month or quarter until we have definitive agreements on.

Mark Benathen: Okay.

Speaker Change: Okay got it.

Justin Schreiber: In this effect, that direct shortage of to zip type is over effect to a business in weight management in any way. This is Justin. I'll take that one. First of all, zip type is, according to the FDA's website, still on the shortage list today. But you know, even if, if, if terzepatide or, you know, other GLP ones were to come off the shortage list in the near future. I mean, we feel really good for the, you know, but we feel really good about, you know, our weight management business being able, again, being able to, you know, help patients access brand and medications, you know, through the prior off process.

Speaker Change: This defense good drug shortage.

Speaker Change: The shortage of cause that put us over affect your business in weight management in any way.

Justin Schreiber: This is Justin. I'll take that one.

Marc Benathen: This is Justin. I'll take that one. First of all, Zepatitis, according to the FDA's website, is still on the shortage list today, both for men and women. But, you know, even if, if True's Appetite or, you know, other GLP ones were to come off the shortage list in the near future, we feel really good about the, you know, about our weight management business, being able to, again, help patients access branded medications through the prior auth process. We're really optimistic about coverage continuing to improve there.

Speaker Change: So this is Jeff and I'll take I'll take that one.

Speaker Change: First of all Repititis quarterly Fda's website is still on the shortage list today.

Speaker Change: So, but you know even if if if there's appetite or.

Speaker Change: Other G. L. P ones were to come off the shortage list in the near future I mean, we feel really good for the you know about we feel really good about.

Speaker Change: Weight management business being able to again being able to you know.

Speaker Change: Help patients.

Speaker Change: Access branded medications.

Speaker Change: For the prior off process, we're really optimistic about coverage continue to improve their work site where we.

Justin Schreiber: You know, we're really optimistic about coverage continuing to improve there. We're excited where, you know, we expected at some point in the future, Medicare, you know, will cover these drugs. We're prepared for that. Again, we do think there will always be a compounding avenue for patients that don't have coverage for, you know, for branded therapies to access them, you know, through a compounding pharmacy where, you know, we do believe that, yeah, that's not going away anytime soon. And then, like I said, we also have alternative therapies that are prescription strengths and are very efficacious. So, we, we, we, we, we believe this is a very durable and long term business.

Marc Benathen: We're excited, we're, you know, we expect that at some point in the future, Medicare will cover these drugs. We're prepared for that. Again, we do think there will always be a compounding avenue for patients that don't have coverage for branded therapies to access them through a compounding pharmacy where, you know, we do believe that that's not going away anytime soon. And then, like I said, we also have alternative therapies that are prescription strength and are very efficacious. So we, we, we believe this is a very durable and long-term business.

Speaker Change: We expect that at some point in the future Medicare will cover these drugs. We're prepared for that again, we do think there will always be a compounding Avenue.

Speaker Change: For patients that don't have coverage for for branded therapies.

Speaker Change: To access them through a compounding pharmacy, where we do believe that that's not going away anytime soon.

Speaker Change: And then like I said, we also have alternative therapies that are prescription strength and are very efficacious. So we were very we believe this is a very durable and long term business and you know theres not going to be anybody in the country that has a more comprehensive program for helping.

Justin Schreiber: And, you know, there's not going to be anybody in the country that has a more comprehensive program for helping people lose weight with a GLP-1 medication. And there's not going to be anybody that's better than Life and Diet helping patients, you know, use their insurance, get a prior off the approved, you know, an access to therapies. But let's all be clear, there's, there's still, even even with, even if we do those two things, which we will, and we are, there's going to be a percentage of the population that doesn't have insurance coverage for these, for these therapies.

Speaker Change: People lose weight with a G. L. P. One medication and there's not going to be anybody that's better than life from D. At helping patients use their insurance get a prior off the proved.

Speaker Change: And accuracy therapies, but let's all be clear there's.

Justin Schreiber: First of all, Presepotite, according to the FDA's website, is still on the shortage list today. And, still, even if we do those two things, which we will, and we are, there's going to be a percentage of the population that doesn't qualify for these therapies, and right now until the price points. Until there are more patient assistance programs put in place by pharma manufacturers to help Americans that don't have blue chip insurance or don't have insurance at all, we as a country and as healthcare providers are going to need to have another avenue for those people to access.

Justin Schreiber: Steven Dechert, David Larsen, William Wood, Yi Chen, Justin Schreiber, Marc Benathen, Brandon, doesn't have insurance for these therapies. And right now, until the price points, Until there are more patient assistance programs put in place by pharmaceutical manufacturers to help Americans that don't have blue chip insurance or don't have insurance period, we as a country and as healthcare providers are going to need to have another avenue for those people to access these medications.

Speaker Change: There's still even at even with even if we do those two things, which we will and we are just going to be a percentage of the population.

Speaker Change: It doesn't have insurance coverage for these for these therapies and right now until the until the price points.

Justin Schreiber: And right now, until the price points, until there are more patient assistance programs put in place by farmer manufacturers to help, you know, Americans that don't have blue chip insurance or don't have insurance period, we as a country and as healthcare providers are going to need to have another avenue for those people to access these medications. And so, you know, because we always do what's right for patients, that's our first priority as a company. You know, we're going to continue to help patients access compound therapies, you know, until there are enough patient assistance programs, you know, to help Americans that don't have insurance or don't have insurance to cover these medications access them.

Until there are more patient assistance programs put in place by pharma manufacturers to help.

Speaker Change: Americans that don't have blue chip insurance or don't have insurance period, we as a country and as health care providers are going to need to have another avenue for those people to access.

Speaker Change: These medications and so you know because we always do what's right for patients. That's our first priority as a company we're going to continue to help patients access compounded therapies. You know until there are enough patient assistance programs to help Americans that don't have insurance or.

Justin Schreiber: And so, you know, because we always do what's right for patients, that's our first priority as a company. We're going to continue to help patients access compounded therapies until there are enough patient assistance programs to help Americans that don't have insurance or don't have insurance that covers these medications get access. And that's the right thing to do. It's the ethical thing to do. And it's what we're going to continue to do again until the environment changes. Thank you. A quick follow-up. Do the majority of our patients on your platform today have access to...

Speaker Change: Have insurance that covers these medications access them and that's the right thing to do it's the ethical thing to do and it's what we're gonna before we're going to continue to do again until until the environment changes.

Justin Schreiber: And that's the right thing to do; it's the ethical thing to do. And it's what we're going to, it's what we're going to continue to do again, until, until the environment changes.

Justin Schreiber: And thank you. Quick follow up. Do, do majority of our patients on your platform today have access to branded drugs? No, we've talked about this number before. It's in the, you know, it's in the 20% range of our patients; they're on a brand therapy.

Speaker Change: Thank you a quick follow up to do the majority of our patients on your platform today have access to branded drugs.

Justin Schreiber: Thank you. A quick follow-up. Do the majority of our patients on your platform today have access to... No, we've talked about this number before. It's in the 20% range of our patients that are on a branded platform.

Speaker Change: No we've talked about this number before it's in the it's in the 20% range of our patients that are on a a branded therapy.

Alex Fuhrman: Thank you. Thank you, and next we're going to go to Alex Fuhrman with Greg Halem Capital Group. Hey guys, thanks for taking my question. Justin, I mean, a great result on the weight management business. You know, really impressive that you are inflecting the profitability sooner than expected there, and it sounds like you're seeing some really positive signs in terms of prior authorization for the branded therapies. You know, it's certainly an area where there has been a lot of new entrants. Everyone has, you know, a little bit of a different offering. It seems like some are really pushing compounded medications only, and certainly some other companies that offer branded medications, you know, seem to be talking about, you know, insurance coverage continuing to be very challenging, maybe even getting a little bit more challenging.

Speaker Change: Thank you.

Operator: Thank you, and next, we're going to go to Alex Fuhrman with Gregg Hallam Capital.

Justin Schreiber: Thank you and next we're going to go to Alex Furman with Greg Hallum Capital Group.

Operator: Yeah.

Unidentified Analyst: Hey, guys, thanks for taking my question. Justin, I mean, great results in the weight management business, really impressive that you are infusing profitability sooner than expected there. And it sounds like you're seeing some really positive signs in terms of prior authorization for branded therapies. You know, it's certainly an area where there have been a lot of new entrants. Everyone has, you know, a little bit of a different offering.

Alex Fuhrman: Hey, guys, thanks for taking my question. Justin, I mean, great results in the weight management business, really impressive that you are infusing profitability sooner than expected there. And it sounds like you're seeing some really positive signs in terms of prior authorization for branded therapies. You know, it's certainly an area where there have been a lot of new entrants. Everyone has, you know, a little bit of a different offering.

Hey, guys. Thanks for taking my question.

Unidentified Analyst: Justin it'd be a great result on the weight management business really impressive that you are reflecting the profitability sooner than expected there and it sounds like you're seeing some really positive signs in terms of prior authorization for the branded therapies.

Unidentified Analyst: It's certainly an area, where there has been a lot of new entrants to everyone has a little bit of a different offering it seems like some are really pushing.

Speaker Change: Compounded medications only.

Speaker Change: And certainly some other companies that offer branded medications seem to be talking about insurance coverage continuing to be very challenging maybe even getting a little bit more challenging.

Unidentified Analyst: It seems like some are really pushing compounded medications only, and certainly some other companies that offer branded medications, you know, seem to be talking about, you know, insurance coverage continuing to be very challenging, maybe even getting a little bit more challenging. What is it about your program that, you know, you're starting to see big wins in terms of prior authorizations, and in terms of, you know, profitably growing your business, not just in terms of gross ads?

Alex Fuhrman: It seems like some are really pushing compounded medications only, and certainly some other companies that offer branded medications, you know, seem to be talking about, you know, insurance coverage continuing to be very challenging, maybe even getting a little bit more challenging. You know, what is it about your program that, you know, you're starting to see these big wins in terms of prior authorizations, in terms of, you know, profitably growing your business, not just in terms of growth as, because it's not like, you know, LifeMD is a household brand name, and you certainly don't have the cheapest offering out there, you know, can you talk about what it is that you're doing differently than the competition that's, you know, really enabling you to profitably scale the business?

Alex Fuhrman: You know, what is it about your program that, you know, you're starting to see these big wins in terms of prior authorizations in terms of, you know, profitably growing your business, not just in terms of growth that, because it's not like, you know, LifeMD is a household brand name, and you certainly don't have the cheapest offering out there.

Speaker Change: What is it about your program that Youre starting to see these big wins.

Unidentified Analyst: In terms of prior authorization in terms of profitably growing your business not just in terms of.

Speaker Change: Gross adds because it's not like life. Indeed, a household brand name and you certainly don't have the cheapest offering.

Justin Schreiber: You know, can you talk about what it is that you're doing differently than the competition that, you know, really enables you to profitably scale the business? Thanks, Alex. You gave me a lot of questions there, and let me do my best to answer them. I mean, look, look, first of all, we're not surprised about, you know, the profitability and us getting the business to profitability a little bit ahead of schedule. We expected to do that. You know, the retention numbers are good. They're really right where we expected them to be.

Unidentified Analyst: Out there can you talk about what what it is that you're doing differently than the competition, that's really enabling you to profitably scale the business.

Unidentified Analyst: Because it's not like, you know, LifeMD is a household brand name, and you certainly don't have the cheapest offering out there. Can you talk about what it is that you're doing differently than the competition that's, you know, really enabling you to profitably scale the business?

Justin Schreiber: Thanks, Alex. You gave me a lot of questions there, and I will try to do my best to answer them.

Speaker Change: Thanks, Alex you gave me a lot of questions there and let me do my best to answer them I mean look first of all we're not.

Unidentified Analyst: Price.

Justin Schreiber: Thanks, Alex. You gave me a lot of questions there, and I will try to do my best to answer them.

Justin Schreiber: I mean, look, look, first of all, we're not praising ourselves about, you know, the profitability and us getting the business to profitability a little bit ahead of schedule. We expected to do that, you know, the retention numbers are good. They're really right where we expected them to be.

Speaker Change: About the profitability in us getting the business to profitability a little bit ahead of schedule, we expect it to do that.

Justin Schreiber: I mean, look, look, first of all, we're not too thrilled about the profitability and us getting the business to profitability a little bit ahead of schedule. We expected to do that. You know, the retention numbers are good. They're really right where we expected them to be.

Justin Schreiber: The retention numbers.

Justin Schreiber: Are good they are really right, where we expected them to be.

Justin Schreiber: I think an important thing to point out is that we can do a lot better. I think there are just so many other opportunities when you think about the long-term wellness programs that, you know, we're launching inside of LifeMD. When you think about, like, all of the other, like, optimization programs that we're launching that help, you know, kind of really help patients long-term and not just to get to, like, whatever their weight loss goal is. And I mean, look, do we have a household, you know, is LifeMD a brand that everybody knows? No, but I think, like, I think the key, I think what we're doing right is we're providing incredible healthcare.

Justin Schreiber: I think an important thing to point out is that we can do a lot better there just there's so many other opportunities when you think about the long term wellness programs that we're launching inside of life M D.

Justin Schreiber: I think an important thing to point out is that we can do a lot better. There are just so many other opportunities when you think about the long-term wellness programs that we're launching inside of LifeMD. When you think about all of the other optimization programs that we're launching that kind of really help patients long term and not just to get to, like, whatever their weight loss goal is, that are also really bought into this mission and providing, I think, really unique and great care for a virtual model, I think that's really special.

Justin Schreiber: I think an important thing to point out is that we can do a lot better. There are just so many other opportunities when you think about the long-term wellness programs that, you know, we're launching inside of LifeMD. When you think about all of the other, like, optimization, you know, programs that we're launching that help, you know, kind of really help patients long-term and not just to get to, like, whatever their weight loss goal is. And I mean, look, do we have a household? You know, is LifeMD a brand that everybody knows? No.

Justin Schreiber: Do you think about like all of the other like optimization programs that we're launching that helped kind of really help patients long term and not just to get to like whatever their weight loss goals.

Justin Schreiber: But I think the key, I think what we're doing right, is we're providing incredible health care. I think that our strategy around making almost every one of our patients talk to one of our providers, who are also really bought into this mission and providing, I think, really unique and great care for a virtual model. I think that's really special.

Speaker Change: And I mean, do we have a household.

Speaker Change: License deal you know brand that everybody knows no, but I think look I think the key is I think what we're doing right is we're providing incredible health care.

Justin Schreiber: I think that our strategy around making almost every one of our patients talk to one of our providers that are also really bought into this mission and providing, I think, really unique and great care for a virtual model. I think that's really special.

Justin Schreiber: I think that our strategy around making almost every one of our patients talk to one of our.

Justin Schreiber: Providers.

Justin Schreiber: That are also really bought into this mission and providing I think really unique and great care for a virtual model I think that's really special and very few are almost there there are one or two other companies out there that I signed up recently are doing this but most are not.

Justin Schreiber: There are one or two other companies out there that I found out recently are doing this, but most are not. And so that's something that we're super proud of. And look, we are seeing a lot of patients that are on therapy and are referring friends of theirs. And I think that we are really starting to build an incredible brand and a lot of equity in the LifeMD brand. So as far as your first question on the prior auth process, yeah, there are a lot of these companies out there.

Justin Schreiber: There are one or two other companies out there that I, you know, found out recently you're doing this, but most are not. And so that's something that we're super proud of. And look, we are seeing a lot of patients that, you know, are on therapy and are referring friends of theirs. And, you know, I think that we are really starting to build an incredible brand and a lot of equity in the LifeMD brand.

Justin Schreiber: And so that's something that we're super proud of and look we are seeing a lot of patience that.

Justin Schreiber: Or are on therapy and are referring friends of theirs and you know I think that we are really starting to build an incredible brand and <unk>.

Justin Schreiber: A lot of equity in the life M D brand so.

Justin Schreiber: So, as far as your first question on the prior on the process, there are a lot of these companies out there. We diligence at least 10 of them. We found one that we think is really exceptional. The numbers that they've shared with us on prior off the approval rates would more than double. Number of patients that we have on a brand of therapy. So, as you can imagine, like I'm really, really, really happy about that and excited for that. It's going to be a lot. We're going to have this live in the next couple of weeks.

Justin Schreiber: As far as your first question on the prior off process.

Justin Schreiber: We diligenced at least 10 of them, and we found one that we think is really exceptional, the numbers that they've shared with us on prior auth approval rates, with more than double the number of patients that we have on a brand of therapy. So as you can imagine, like, I'm really, really, really happy about that and excited for that. It's going to be a lot. We're going to have this live in the next couple of weeks.

Justin Schreiber: Yeah. There are a lot of these companies out there we diligence at least 10 of them.

Justin Schreiber: We found one that we think is really exceptional.

Justin Schreiber: The numbers that they've shared with us on prior off approval rates.

Justin Schreiber: With more than double the number of patients that we have on a branded therapy. So as you can imagine like I'm really really really happy about that and excited for that it's gonna be a lot. We're going to have this live in the next couple of weeks.

Justin Schreiber: And I'm generally really optimistic as well about coverage improving, and I think that as these drugs Once these things are able to be made and supplied to the U.S. population, concurrently with that, we need pharma companies to start talking about patient assistance programs. And let's start talking about what we're going to do, as a society, to help patients that don't have coverage for these drugs access them. And by the way, as those patient assistance programs come online,

Justin Schreiber: And I'm generally really optimistic as well about coverage improving, and I think that as these drugs come off the shortage list, that's great. It's really great that we can now make these incredible drugs that are helping so many people. But the other part of the conversation that no one's talking about is.

Justin Schreiber: And I'm generally really optimistic as well about coverage improving. And I think that, as these drugs, everybody likes to talk about these drugs coming off the shortage list. That's great. It's really great that we can now make these incredible drugs that are helping so many people.

Speaker Change: And I'm I'm generally really optimistic as well about coverage improving and I think that as these drugs everybody likes to talk about these drugs coming off the shortage list. That's great. It's really great that we can now make these incredible drugs that are helping so many people.

Justin Schreiber: But the other part of the conversation that no one's talking about is once these things are able to be made and supplied to the US population, concurrent with that we need farmer companies to start talking about patient assistance programs. And let's start talking about what we're going to do as a society to help patients that don't have coverage for these drugs access them. And by the way, as those patient assistance programs come online, guess who's going to be really, really well positioned to help these, you know, to help people, you know, access drugs through those assistance programs. It's going to be Life and Deep.

Speaker Change: But the other part of the conversation that no one is talking about it.

Justin Schreiber: Once these things are able to be made and supplied to the U.S. population, concurrently with that, we need pharma companies to start talking about patient assistance programs. And let's start talking about what we're going to do, as a society, to help patients that don't have coverage for these drugs access them. And by the way, as those patient assistance programs come online, guess who's going to be really, really well-positioned to help people access drugs through those assistance programs?

Justin Schreiber: Once these things are able to be made in supply to the U S population.

Justin Schreiber: Current wood that we need pharma companies to start talking about patient assistance programs.

Justin Schreiber: And let's start talking about what we're gonna do.

Justin Schreiber: As a society to help patients that don't have coverage for these drugs access them and by the way as those patient assistance programs come online guests.

Justin Schreiber: Guess who's going to be really, really well-positioned to help people access drugs through those assistance programs? It's going to be LifeMD. And so look, I really think that no matter what happens here, what we know is that these drugs are likely a major, major breakthrough and are doing so many incredible things for people. This is a very long-term thing; it's not going away. Most people are going to access these drugs through a virtual environment, essential, we all agree on that. Even if there's long-term use, you still want a comprehensive program that helps people make other diet and lifestyle changes to maximize, you know, the outcomes of these therapies.

Justin Schreiber: Guess who's going to be really really well positioned to help these.

Justin Schreiber: To help people access drugs through those assistance programs, it's gonna be life M D.

Justin Schreiber: It's going to be LifeMD. And so look, I really think that no matter what happens here, what we know is that these drugs are, you know, likely a major, major breakthrough and are doing so many incredible things for people. This is a very long-term thing; it's not going away. Most people are going to access these drugs through a virtual environment. A comprehensive offering is essential, we all agree on that.

Justin Schreiber: And so look, I really think that no matter what happens here, what we know is that these drugs are, you know, likely a major, major breakthrough and are doing so many incredible things for people. This is a very long-term thing. It's not going away. Most people are going to access these drugs through a virtual environment.

Justin Schreiber: And so look I'm I I really think that no matter what happens here.

Justin Schreiber: What we know is that these drugs are.

Justin Schreiber: Likely a major a major breakthrough and are doing so many incredible things for people.

Justin Schreiber: This is a very long term.

Justin Schreiber: Thing, it's not going away.

Justin Schreiber: People most people are going to access these drugs through a virtual environment.

Justin Schreiber: A comprehensive offering is essential. We all agree on that. Even if there's long-term use, you still want a comprehensive program that helps people make other diet and lifestyle changes to maximize, you know, the outcomes of these therapies. Everything I just said, like, we're perfectly positioned for. So that's why I feel really confident about, you know, just being a very, very long-term business for us and certainly for a lot of other, you know, virtual care companies out there.

Justin Schreiber: A comprehensive offering is that.

Justin Schreiber: Essential we all agree on that even if theres long term you use you still want a comprehensive program that helps people make other diet and lifestyle style changes to maximize.

Justin Schreiber: The outcomes of these therapies.

Justin Schreiber: Even if there's long-term use, you still want a comprehensive program that helps people make other diet and lifestyle changes to maximize, you know, the outcomes of these therapies. Everything I just said as we're perfectly positioned for. So that's why I feel really confident about this being a very, very long-term business for us, and certainly for a lot of other virtual care companies.

Justin Schreiber: Everything I, just said like we're perfectly positioned for so that's why I feel really that's why I feel really confident about you know just being a very very long term business.

Speaker Change: For us and certainly for a lot of other you know virtual care companies out there.

Alex Fuhrman: That's really helpful.

Unidentified Analyst: That's really helpful, Justin. I really appreciate that thorough answer.

Alex Fuhrman: That's really helpful, Justin. I really appreciate that thorough answer.

Speaker Change: That's really helpful really appreciate that thorough answer thank you.

Alex Fuhrman: Just really appreciate that thorough answer.

ILA Soup Cob: Thank you. And we'll next go to ILA soup cob from Freedom Broker. Thank you for taking me the question, and congrats with another record quarter. I have a question on new members' retention in healthcare business. So the share of weight management members in the total, like, the users' count is growing and curious to get your perspective on how you plan to retain these users once they reach their weight loss goal. Probably you already have some users who have met their desired weight level, taking real peace. And could you give us a color on the office?

Operator: Thank you, and we'll next go to Ilya Zubkov from Freedom Broker.

Speaker Change: Thank you and we'll next go to <unk> com from freedom broker.

Unidentified Analyst: Yeah.

Ilya Zubkov: Good afternoon. Thank you for taking the question and congratulations on another record quarter. I have a question on new members' retention in the healthcare business. So the share of weight management members in the total active users count is growing, and I'm curious to get your perspective on how you plan to retain these users once they reach their weight loss goal. Probably, you already have some users who have met their desired weight level and are taking GLPs, and could you give us some color on the options these users have to stay with LifeMD's products for longer?

Justin Schreiber: Hey, good afternoon. Thank you for taking my question and congrats with another record quarter.

Unidentified Analyst: I have a question on new members' retention in the healthcare business.

Speaker Change: I have a question on new members retention and healthcare business.

Justin Schreiber: So the share of weight management members in the total active users count is growing and I'm curious to get your perspective on how you plan to retain these users.

Speaker Change: As they reach their weight loss and go over to Europe, you already have some users who have met their desired weight level taking <unk>.

Justin Schreiber: And could you give us some color on the auctions. This users have to stay with a life in these products for longer.

ILA Soup Cob: questions these users have to stay with LifeMD's products for longer. Yeah, I actually, I think I understand your question. Let me take a stab at it. You know, we have two programs for patients that reach their goal weight with LifeMD. You know, one is our 6S wellness program, which is really just like a complete program that helps people focus on their lifestyle, their mental health, lots of things like sleep and other aspects of wellness. And this program is really delivered by people inside of LifeMD and supported by a LifeMD provider. And alongside that program, you know, patients have access to, you know, urgent primary care and using their in-home tools in their app and everything else that our platform offers.

Justin Schreiber: Yeah, I actually think I understand your question. Let me take a stab at it.

Unidentified Analyst: Yes.

Justin Schreiber: I actually I think I understood. Your question, let me take a stab at it.

Justin Schreiber: You know, we have two programs for patients that reach their goal weight with LifeMD. One is our 6S Wellness Program, which is really just like a complete program that helps people focus on, you know, their lifestyle, their mental health, lots of things like sleep and other aspects of wellness. And we, you know, this is, this program is really delivered by people inside of LifeMD and supported by a LifeMD provider.

Speaker Change: We have two programs.

Justin Schreiber: for patients that reach their goal weight with LifeMD. You know, one is our 6S Wellness Program, which is really just like a complete program that helps people focus on, you know, their lifestyle, their mental health, lots of things like sleep and, you know, other aspects of wellness. And we, you know, this program is really delivered by people inside of LifeMD and supported by a LifeMD provider. And alongside of that program, you know, patients have access.

Speaker Change: For patients that reached their goal weight with life M. D. One is our six S. Wellness program, which is really just like a complete them.

Justin Schreiber: Program that helps people focus on.

Justin Schreiber: Their lifestyle and their mental health lots of things like sleep in.

Justin Schreiber: Other aspects of wellness and we you know this is this this this program has really delivered by people inside of life M D and supported by.

Justin Schreiber: Our life <unk> provider and alongside of that program you know patients have access to urgent primary care and using their in home tools in their app and everything else that are our platform offers we also have a second program, which is designed for patients that want to use.

Justin Schreiber: And alongside of that program, patients have access to urgent primary care and use their in-home tools in their app and everything else that our platform offers. We also have a second program designed for patients that want to use GLP-1 longer-term, which is designed for patients to reach their goal weight and maybe don't want to use a full dose or want to use GLP-1 less regularly than they have in the past.

Justin Schreiber: We also have a second program, which is designed for patients that want to use a GOP1 longer term, which is, you know, designed for patients to reach their goal weight and maybe don't want to use a full dose or want to use a GOP1 less regularly than they have in the past. And so, we've built some other, you know, unique, what we call GLP-1 maintenance programs to, you know, to help, you know, patients that are in that situation as well. And then I'll also mention that there are a number of other, you know, more or less like, you know, health optimization programs, you know, that we're building, you know, that I think are really appropriate.

Justin Schreiber: A G L P one longer term.

Speaker Change: As you know, which is designed for patients to reach their goal there go away and maybe don't want to use.

Speaker Change: A full dose or wanted wanted to want to use the G. L. P. One less regularly than they than they have in the past and so we've built some other unique what we call G. L. P. One maintenance programs.

Justin Schreiber: And so we've built some other unique, what we call GLP-1 maintenance programs to help patients that are in that situation as well. And then I'll also mention that there are a number of other, you know, more or less like health optimization programs that we're building that I think are really appropriate next steps for some patients that, you know, have this transformational weight loss experience with LifeMD. And some of those, I mean, I think hormone therapy is a really interesting program that, you know, if you haven't seen, women on the platform who lose weight, and we have a lot of those patients that just naturally ask us to do hormone testing for them and wanna talk to their doctor about that. I think that there are a number of more lifestyle-like telehealth offerings that would be of interest to a large number of patients that successfully use our platform to improve their metabolic health and lose weight.

Justin Schreiber: You know to help patients that are in that situation as well.

Ilya Zubkov: Okay, thank you. That is very helpful.

Justin Schreiber: And then I'll also mention that there are a number of other.

Speaker Change: More or less like you're optimistic health optimization programs that were building that I think are really appropriate.

Justin Schreiber: Next step for some patients that, you know, have this transformational weight loss experience with LifeMD. And some of those, I mean, I think hormone therapy is a, you know, really interesting, you know, program that, you know, if you have women on the platform to lose weight and, you know, we have a lot of those patients that just naturally ask us to do hormone testing for them and want to talk to their doctor about that. I think that there are a number of, you know, more lifestyle like telehealth offerings that, you know, would be of interest to a large number of patients that successfully use our platform to improve their metabolic health and lose weight.

Justin Schreiber: Next step for some patients that.

Justin Schreiber: Have this transformational weight loss experience with life M D.

Justin Schreiber: And some of those I mean, I think hormone therapy as a you know.

Speaker Change: It really interesting.

Justin Schreiber: Program that if you if you have a.

Justin Schreiber: Women on the Platform to Lose Weight, and we have a lot of those patients that just naturally ask us to do hormone testing for them and wanna talk to their doctor about that. I think that there are a number of more lifestyle-like telehealth offerings.

Speaker Change: Women on the platform to lose weight and we have a lot of those patients that just naturally ask us to do hormone testing for them and wanted to talk to their doctor about that I think that there are a number of you know more lifestyle like <unk>.

Justin Schreiber: Telehealth offerings.

Justin Schreiber: That would be it would be of interest to a large number of patients that successfully use our platform to improve their metabolic health and lose weight.

ILA Soup Cob: Okay, thank you. That's very helpful.

Unidentified Analyst: Okay, thank you. That is very helpful.

Ilya Zubkov: And one brief on the Medifast partnership. I'm wondering what the current progress is on the launch of the bundle of products? And how much this partnership is anticipated to contribute to subscriber growth this year?

Speaker Change: Okay. Thank you that's very helpful and one brief on the Medisoft partnership.

ILA Soup Cob: And one brief on the Medifast partnership, I'm wondering, what is the current progress in the launch of the bundle products and how much this partnership is anticipated to contribute to the subscriber growth this year?

Unidentified Analyst: And one brief on the Medifast partnership. I'm wondering what the current progress is on the launch of the bundle of products? And how much this partnership is anticipated to contribute to subscriber growth this year?

Speaker Change: I'm wondering what is the current progress in the launch of bundled products and.

Speaker Change: How much of this partnership is anticipated to contribute to the subscriber growth this year.

Justin Schreiber: That's a question for Medifast. I think we've, we've, we've, we're not going to discuss any of Medifast results or patient numbers, especially given that they're also a public company. And I would, I would suggest if you look at their recent guidance or their recent earnings report, they folks fairly extensively about where they're at with the launch of their bundled offering. Okay.

Justin Schreiber: That's a question for Medifast. We've, I think we've, we're not going to discuss any of Medifast's results or patient numbers, especially given that they're also a public company. And I would, I would suggest if you look at their recent guidance or their recent earnings report, they spoke fairly extensively about where they are with the launch of their bundled office.

Unidentified Analyst: That's a question for Medifast. We've, I think we've, talked fairly extensively about where they are with the launch of their bundled office.

Speaker Change: That's a question for Medifast.

Unidentified Analyst: We've I think we've.

Speaker Change: We're not going to discuss any.

Speaker Change: Any of Medifast resolved or patient numbers, especially given that there are also a public company and I would.

Speaker Change: I would suggest if you look at their recent guidance or the recent earnings report.

Unidentified Analyst: Hey.

Unidentified Analyst: Both fairly extensively about where they're at with the launch of their bundled offering.

Unidentified Analyst: Okay, okay, thank you.

Justin Schreiber: Okay, okay, thank you.

Speaker Change: Okay. Okay. Thank you.

ILA Soup Cob: Okay, thank you. Thank you.

Operator: Thank you, and I'd now like to turn the call back over to Justin Schreiber for any closing remarks.

Justin <unk>: Thank you and I'd now like to turn the call back over to Justin <unk> for any closing remarks.

Justin Schreiber: And I now like to turn the call back over to Justin Schreiber for any closing remarks. Thanks, everybody, for your questions and for your continued interest in LifeMD. We look forward to speaking with you once again when we report our third quarter results in November.

Unidentified Analyst: Yeah.

Justin Schreiber: Thanks, everybody, for your questions and for your continued interest in LifeMD. We look forward to speaking with you once again when we report our third quarter results in November. Have a great evening.

Speaker Change: Thanks, everybody for your questions and for your continued interest in life and deep we look forward to speaking with you once again when we report our third quarter results in November have a great evening.

Justin Schreiber: Have a great evening.

Operator: Thank you. And this does conclude today's program. Thank you for your participation. You may disconnect at any time.

Operator: Thank you, and this concludes today's program. Thank you for your participation, and you may disconnect at any time.

Operator: Thank you. And this does conclude today's program. Thank you for your participation. You may disconnect at any time.

Speaker Change: Thank you and this does conclude today's program. Thank you for your participation you may disconnect at any time.

Operator: [music] Thanks for watching!

Operator: Hmm.

Operator: [music].

Operator: Hum.

Operator:

David Larson: Thank you for watching. I'm David Larson. We'll see you next time. Members of Political South California North Carolina & Washington DC Members of Political South

David Larson: [noise].

David Larson: Hum.

David Larson: Yeah.

David Larson: Okay.

David Larson: Yeah.

David Larson: Hum.

David Larson: Okay.

Speaker Change: [music] mhm.

David Larson: Yeah.

David Larson: Uh-huh.

David Larson: Okay.

David Larson: [music].

David Larson: Hum.

David Larson: Uh-huh.

David Larson: Okay.

David Larson: [music].

David Larson: Okay.

David Larson: [music].

Operator: Ilya Zubkov, Sarah James, Steven Dechert, David Larsen, Steven Dechert.

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