Q3 2024 LifeMD Inc Earnings Call
Speaker Change: Good afternoon. Thank you for joining us today to discuss LIFE MD's results for the third quarter ended September 30, 2024. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Mark Benathen, Chief Financial Officer.
Speaker Change: Following management's prepared remarks, we will open the call for a question and answer session.
Speaker Change: Before we begin, I would like to remind everyone that during this call, the company will make a forward-looking statement.
Speaker Change: which are subject to numerous risks and uncertainties that may cause actual results to differ materially from those projected.
Speaker Change: These risks and uncertainties are described in the company's 10-K and 10-Q filings within the other filings that Life MD may make with the SEC from time to time.
Speaker Change: Forward-looking statements made during this call are based on current information available to the company as of today, November 7, 2024.
Speaker Change: The company assumes no obligation to update or revise any forward-looking statements after today's call, except as required by law.
Speaker Change: Also, please note that the management will be discussing certain NANGAP financial measures that the company believes are important in evaluating LIFE MD's performance.
Speaker Change: Details on the relationship between this gap, non-gap measures to the most comparable gap measures and the conciliations thereof can be found in the press release issued earlier today.
Speaker Change: 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 LifeMD CEO Justin Schreiber. Please go ahead.
Justin Schreiber: I am very pleased to report that Life MD's Cortel Health Business continues to have tremendous momentum.
Justin Schreiber: delivering strong top and bottom line results across all of our key telehealth offerings.
Justin Schreiber: For the quarter, telehealth revenue grew by 65% versus the prior quarter, and our telehealth standalone profitability continued to make significant gains, with adjusted EBITDA increasing by 200% sequentially to $2.5 million.
Justin Schreiber: This result was well ahead of our guidance for telehealth-adjusted EBITDA of $500,000 to $1.5 million.
Justin Schreiber: Life MD's holistic virtual care platform performs strongly with growth in all of our key treatment areas including weight management and men's health as well as smaller categories such as insomnia.
As I stated before, LifeMD is not a category-specific business.
Justin Schreiber: But rather, it's a comprehensive virtual care platform trusted by nearly 270,000 patient subscribers nationwide across a range of clinical areas.
Justin Schreiber: As we continue to evolve our differentiated virtual care platform and offerings, we remain very focused on three key areas.
One, expanding our clinical offerings
Justin Schreiber: 3. Accelerating growth of our RxMD men's health business through complimentary new offerings
Justin Schreiber: Regarding the first area, I am very pleased to report that we officially opened Life MD's Affiliated National Pharmacy, which we announced yesterday.
Justin Schreiber: This 22,500-square-foot facility in Pennsylvania, which includes our OTC Fulfillment Center,
Justin Schreiber: is led by a tremendous team of pharmacy and logistics professionals and features state-of-the-art automation technology capable of servicing our rapidly increasing prescription volumes.
Justin Schreiber: Owning and operating a 50-state mail-order pharmacy also enables us to efficiently introduce and scale new offerings that can be personalized to the needs of individual patients.
Speaker Change: As of today our pharmacy is licensed in 33 states and we expect to expand our licensure to all 50 states in the coming months.
Speaker Change: Another important enabler of our growth in 2025 and beyond is contracting with private and government payer programs, which improves the affordability of our virtual care and pharmacy services for patients.
Speaker Change: We're pleased with the progress we've made in this area over the past quarter, especially with the compliance and revenue cycle management infrastructure we continue to build and optimize to support these programs at scale.
Speaker Change: Our affiliated medical group is currently enrolled to service patients across multiple commercial payers in seven states. While we have been rolling out this program methodically, we are beginning to see encouraging acquisition costs for patients choosing to use private health insurance.
and strong reimbursement rates from payers.
Speaker Change: By the end of 2025, our goal is to be contracted with one or several dominant private payers across at least 25 states.
Speaker Change: More importantly, we remain on track to launch Medicare in the first half of 2025.
Speaker Change: We do not currently treat Medicare eligible patients within our primary care and weight management offerings And we think this opportunity is an enormous and underappreciated one for Life MD in the years to come
Speaker Change: Turning to the second key area, as we discussed last quarter, one of our top priorities is enhancing the quality and depth of our rapidly growing weight management offering.
Speaker Change: LifeMD has built a leading weight management program that provides patients access to branded and compounded GLP-1 therapies and alternative non-GLP-1 options for those who may not be able to afford or tolerate GLP-1 treatments.
Speaker Change: If a patient's insurance denies coverage for branded GLP-1 therapies, we provide options by working with trusted third-party compounding pharmacies.
Speaker Change: While we're disappointed with the current lack of coverage from payers and employers for branded GLP-1 therapies,
Speaker Change: We remain optimistic that in 2025, GLP-1 manufacturers will reach agreements with private and government payers, including Medicare, that will improve the accessibility of branded GLP-1 medications and reduce the need for patients to use compounded GLP-1 medications.
Speaker Change: In addition to being patient first, the LifeMD platform is branded therapy first.
Speaker Change: If patients have private insurance coverage and come to LifeMD seeking care related to weight management, we make every effort to help patients use their insurance coverage to access a branded GLP-1 therapy.
Speaker Change: We will begin to do the same thing in 2025 if Medicare coverage expands, as we anticipate that it will for these medications.
Speaker Change: We understand there is some recent uncertainty for investors around the future of compounding GLP-1 medications.
Speaker Change: While we do not anticipate any immediate changes, we continue to believe that LifeMD is uniquely positioned as a leading 50-state provider of virtual metabolic care that is focused first and foremost on raising the bar for virtual care and doing what it takes to help patients access health-changing medications.
Speaker Change: We will continue to follow the lead of the US Food and Drug Administration and look forward to collaborating with all patients, partners, and payers to do what it takes to drive affordable access to medications and care across our platform.
Speaker Change: That said, the vast majority of Life MD's revenue and profits are derived from our comprehensive virtual care services that go beyond prescribing appropriate medications.
Speaker Change: We are deeply committed to supporting patients through every step of their health journey, offering not just access to essential medications, but also personalized guidance to make sustainable, long-term diet and lifestyle changes.
Speaker Change: Our offerings are designed to ensure that patients receive safe, effective care tailored to their unique needs, both during and after their treatment.
Speaker Change: During the third quarter, LIFE MD made several key enhancements to our weight management model including the rollout of in-home lab capabilities
Speaker Change: The launch of a non-GLP-1 treatment option combining metformin, bupropion, and topiramate, which we estimate could expand our addressable market by 15%,
Speaker Change: and the implementation of additional AI-driven technology and optimized workflows to improve electronic benefits and prior authorization infrastructure.
Speaker Change: While we are still in the early stages of these enhancements, they are essential to our long-term success and resilience in a market that we believe will dominate U.S. healthcare spending throughout the next decade.
Speaker Change: Lastly, and regarding the third key area I mentioned earlier, we continue to make progress in accelerating the growth of our RxMD men's telehealth business.
Speaker Change: which remains one of the largest and most respected men's telehealth brands in the U.S.
Speaker Change: Up until recently, RECS had scaled to over $70 million in annual revenue, primarily through generic ED and other sexual health offerings, without the benefit of complementary therapies that would dramatically expand its addressable market.
Speaker Change: We've begun to capitalize on these opportunities with the launch of a weight management offering under RexMD.
Speaker Change: We added almost 2,000 net new patients through this approach during the third quarter with day one return on ad spend exceeding 1x.
Speaker Change: Following extensive compliance protocol development, we also recently launched a hormone replacement therapy offering, which is our first comprehensive men's hormonal offering.
Speaker Change: Though it's too early for us to begin discussing performance data, we are very optimistic about this complementary offering and believe long-term retention will be very strong for both patients on prescription testosterone as well as those who do not qualify and may receive other appropriate therapies.
Speaker Change: In addition, we expect to offer personalized, compounded ED therapies in the first quarter of next year. We believe this offering alone has the potential to drive incremental, double-digit growth for REX MD's core sexual health business.
Speaker Change: We also are working hard on building and launching a robust concierge men's health program, which will be marketed under the RexMD brand, but will leverage the LifeMD technology and care platform.
Speaker Change: Given the difficulty that exists across the country to access high quality health care, we think that there will be strong demands for this offering from existing and new patients that know and trust the RexMD brand.
Speaker Change: As for WorkSimply, its performance leveled out in the third quarter on a run rate basis and now has returned to growth.
Speaker Change: It remains on track to achieve the previously guided peak EBITDA run rate in the range of $1 to $1.3 million per month by the end of 2024.
Speaker Change: Importantly, with the execution of our strategic initiatives, a rapidly growing portion of our consolidated revenue and profitability is coming from our core tell-all business.
Speaker Change: which represented more than 75% of Q3 total revenue as compared with just 63% a year ago.
Speaker Change: In summary, LifeMD's core telehealth business continues to fire on all cylinders and is poised to continue delivering robust performance and growth.
Speaker Change: And with that, I'll turn the call over to Mark Benathen to provide a summary of our financial results. Mark?
Mark Benathen: Thank you, Justin, and good afternoon, everyone. LifeMD achieved a very strong third-quarter performance with total revenues growing 38% versus the year-ago period to $53.4 million.
Mark Benathen: Poor telehealth revenue grew by 65% versus the prior year, with stand-alone adjusted even the profitability at $2.5 million, which was up 200% sequentially versus the second quarter.
Mark Benathen: The number of WorkSimply active subscribers contracted 6% to 161,000 but returned to sequential growth reflecting what we believe is a sustained turning point in WorkSimply's performance.
Mark Benathen: Consolidated gross margin for the third quarter was a record 90.6%, up 300 basis points versus the prior year. Gross profit was $48.4 million, an increase of 43% from the year-ago period.
Mark Benathen: On a stand-alone basis, gross margin for our telehealth business increased by 770 basis points year-over-year to a record 89.3%.
Mark Benathen: This compares with a gap net loss attributed both to common stockholders for the third quarter of 2023 of $6.9 million or $0.20 per share.
Mark Benathen: Adjusted EBITDA is a non-GAAP measure we define as income or loss attributable to common shareholders before various items as outlined in today's earnings news release published prior to this call.
Mark Benathen: Adjusted EBITDA totaled $3.7 million for the third quarter, as compared with $2.8 million in the year-ago period.
Mark Benathen: Telehealth only adjusted EBITDA is a non-GAAP measure defined as adjusted EBITDA for only our telehealth business excluding work simply.
Mark Benathen: Life & D generated over $6.2 million of cash flow from operations during the third quarter of 2024.
Mark Benathen: and generated positive net cash flow after CapEx, debt service, and preferred stock dividends for the fourth consecutive quarter.
We exited the third quarter with $37.6 million in cash.
Mark Benathen: Turning to financial guidance, today we are reiterating our guidance for 2024 total revenues of at least $205 million while raising telehealth revenue guidance to between $151 and $152 million up from $150 million previously.
Mark Benathen: Also, we are raising stand-alone telehealth-adjusted EBITDA guidance for 2024 to be in the range of $6 to $7 million.
Mark Benathen: up from 3 to 4 million previously. We expect total adjusted EBITDA, however, including the impact of WorkSimply consolidation to be in the narrowed range of 13 to 14 million from the previous range of 13 to 15 million.
Speaker Change: This wraps up our financial results. I'd now like to turn the call back over to Justin.
Justin Schreiber: Thanks, Mark. As we conclude our prepared remarks, I want to reflect on the incredible progress LifeMD has made this year. 2024 has been a year of truly transformational progress, a year in which our vision for a best-in-class, fully integrated telehealth platform has become a reality.
Justin Schreiber: The third quarter performance of our core telehealth business exceeded expectations across the board, especially in profitability, which I think shows that our model is not only scalable, but also resilient and positioned for success in an evolving healthcare landscape.
Our achievements this year mark a major milestone for LifeMD.
Justin Schreiber: The recent launch of our pharmacy further enhances our comprehensive healthcare ecosystem.
Justin Schreiber: We have taken full control over the quality, timing, and personalization of patients' healthcare journeys.
Justin Schreiber: From prescription services to OTC products, to compounded therapies by us and from others, and more, we can now bundle and tailor treatments to create a deeply curated and seamless patient experience.
Justin Schreiber: Our platform now includes a vertically state medical group, an in-house pharmacy, and a dedicated U.S.-based patient care center.
Justin Schreiber: The completion of our ecosystem demonstrates our commitment to accessible, high quality and affordable health care for every American, enabling us to deliver patient care with a level of coordination, control and compassion that was simply not possible before.
Justin Schreiber: Looking ahead, the Life MD platform is primed to redefine what virtual care can achieve.
Justin Schreiber: As we continue to expand with our new AI-driven tools, expanded insurance capabilities, and thoughtful offerings, we are well positioned to accelerate our growth and drive significant value for patients and shareholders.
Justin Schreiber: We look forward to sharing our continued progress in 2025 and beyond.
And with that, I'll open the call to Q&A. Operator?
Speaker Change: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the number 1 on your touchtone phone.
Speaker Change: You will hear a prompt that your hand has been raised.
Speaker Change: Should you wish to decline from the polling process, please press star followed by the number 2. If you are using a speakerphone, please lift the handset before pressing any keys.
Speaker Change: Your first question comes from the line of David Larson from BTIG. Your line is now open.
Speaker Change: Hi, congratulations on all the progress, especially the EBITDA and the healthcare division. It's fantastic.
Speaker Change: Can you talk a little bit about the FDA's comments on, you know, semaglutide and also terazepatide, whether or not they're going to be on the shortage list, and for how long, and how long do you think this process will take to basically come to resolution, and just sort of any thoughts that would be very helpful. Thank you.
short
Justin Schreiber: Thanks David, this is Justin. As we thought around the call, LifeMD is a platform for comprehensive virtual care.
Justin Schreiber: and we're agnostic to the treatment modality we provide to our patients, be it branded or compounded, and always try to put patients on branded therapy where possible.
Justin Schreiber: The current challenge is that the mostly bottom 50-60% of America doesn't have affordable coverage for GLP-1 medications and importantly, this is the population where the greatest need exists for GLP-1 medications.
while currently, you know,
Justin Schreiber: Currently, there are currently no changes to the compounding market. It kind of remains to be seen how things play out. In our opinion, it's highly unlikely that compounded GLP-1 medications will be prohibited by FDA.
Justin Schreiber: variances in a compound formulation of the drug produced a significant benefit for the specific patient.
Justin Schreiber: as soon as payers, employers, and drug manufacturers agree on an acceptable cost structure that enables broad access to their therapies.
Justin Schreiber: and we always like to point out like more access to branded therapies or any therapies in this space, however that happens, is a big win for Life MD and we think this is inevitable which is why we're so excited about the long-term potential of this business.
Speaker Change: Okay, so I think what I just heard you say was that if more branded GLP-1 products launch or if generic versions of GLP-1s launch,
Speaker Change: due to perhaps, you know, increased sort of, you know, possible coverage areas of GLP months, for example, fatty liver disease or Alzheimer's. As these lower cost brands or generic versions launch, that's a good thing for you is what I just heard you say. Is that right?
Yes, that's absolutely correct, David. More coverage.
Whether it be from government payers, private payers, self-insured employers
Speaker Change: More coverage, which every single person on this call knows is inevitable.
Speaker Change: Simply a matter of when and you know, I think most people would agree. It's not years down the road I think it's likely something that over the next six twelve months, you know, we're gonna we're gonna really start to figure out
Speaker Change: Any of that is is a great thing for Life MD. We work with you know every pharmacy benefit manager, we work with
Speaker Change: Just one more quick follow-up from me. Can you talk a little bit about sort of the precautions or safety measures that you've put in place with your own pharmacy? What that could overall do to your overall cost of goods?
Speaker Change: And there's some fear, I think, amongst some investors around, you know, whether or not compound therapies are safe.
Speaker Change: Can you just talk about your partners, the QA processes that they go through, the regulatory requirements that they all have to sort of meet, just any color there would be very helpful and then I'll hop back in the queue. Thank you.
Justin Schreiber: Sure, David, this is Justin again. So, importantly, our life and deeds...
Life and Beast Pharmacy doesn't make compounded GLP-1 therapies.
We don't distribute life and de-therapies, that's all.
Justin Schreiber: you know, all something that we do for patients, you know, and we connect our patients to trusted third-party pharmacies, you know, that we've diligence, that we believe are, you know, that we feel very good about, you know, that are producing, you know, high quality, the highest quality versions of these compounded medications.
Justin Schreiber: I think that as far as the quality processes go of these pharmacies...
Justin Schreiber: I can't go into them in depth, but everything that you can imagine in a heavily, heavily regulated
Justin Schreiber: pharmacy or drug manufacturing operation. The pharmacies we work with are typically doing that and then more.
Justin Schreiber: They connect, they have labs inside of their pharmacies, they're testing every single batch of medication. They're sending...
regularly, you know, samples out to third-party labs.
LifeMD conducts its own
Justin Schreiber: testing on, you know, randomly, you know, on these medications as well, you know, just to make sure, just to, again, provide a third check, you know, on the quality and to make sure that these drugs are exactly what our affiliated providers are prescribing.
Justin Schreiber: Yeah, and it's important to point out like some of the pharmacies that we actually refer patients to that are manufacturing these drugs are, you know, are licensed, they're outsourcing facilities, they're licensed drug manufacturers that are manufacturing a range of other drugs.
Justin Schreiber: that are FDA approved, so they're not just pharmacies that have popped up that are manufacturing GLP-1 medications.
Speaker Change: I mean, we feel very, very good. The other thing I'll mention, Dave, is we do a lot of backgrounds.
Speaker Change: And, you know, the compounding pharmacy space is heavily regulated by FDA.
Speaker Change: and it's all of the kind of inspections are out there in the public domain and so it's very easy to go see you know kind of the background and any regulatory issues that these compounding pharmacies have had in the past you know and to do diligence on who's a good actor and who's the bad actor
Great, thanks very much. I'll hop back in the queue.
Sarah James: Your next question comes from the line of Sarah James from Cantor. Your line is now open.
Thank you.
Sarah James: and congrats on a phenomenal quarter. Telehealth margins were really strong.
Speaker Change: in 3Q. Can you help us understand what were the moving pieces there and how that's going to trend going forward as you think about payer and products mix changes as well as your strategy on growth?
Yeah, so this is Mark.
Speaker Change: longer subscription lengths, the product revenue being recognized when the product ships, so that carries with it.
Speaker Change: our gross margins, and then three, continuing to have a bigger percentage of our revenue, and this is the biggest component of it, and this is really what drives a lot of the gross margin.
Speaker Change: a bigger percentage of the company's business in a meaningful way, particularly if it's growth and weight management.
Speaker Change: coming from the service care-based model. As you know, most of our...
is next.
Speaker Change: Look, I mean, I'd assume our gross margins are going to be fairly stable and we'll probably have some improvements. We are expecting some improvements.
Speaker Change: in 2025 and beyond with the pharmacy coming on the line, although that's gonna take some time to make its way through the P&L as we roll out. We do expect peak annualized savings of about five million a year, which will obviously, that's at today's volume, so that'll grow over time as volumes get bigger. And then obviously our telehealth adjusted EBITDA margins
Speaker Change: We would expect next year to continue to see expansion from the factors that I mentioned before.
Speaker Change: Great. Thank you. And one more. Could you update us on your clinical staff recruitment strategy with you guys moving into the payer realm and launching new products?
Speaker Change: How do you think about the need to front-end load your recruiting and to what level?
Yeah, that's a good question.
Speaker Change: Sarah, this is Justin. We feel really good about, you know, our current staffing level. I think that, you know, we're always looking to, we're always looking to hire the right
Speaker Change: 30 or 50 state licensed providers, you know, finding great providers that have that are licensed across the country is not easy
Speaker Change: It's in flattish line is on hold.
Speaker Change: Once again, Craig Ferman from Craig Hallum Capital Group. Your line is now open.
Speaker Change: Okay.
Speaker Change: He must have wanted to share some of his music with US let's go to the next person maybe ill come back to them.
Speaker Change: Your next question comes from the line of Kyle Boser from B Riley <unk> Securities. Your line is now open.
Speaker Change: Yeah.
Speaker Change: Hi, Thank you and great progress, particularly with that turning the corner profitability in the telehealth isn't it.
Speaker Change: Maybe maybe I missed this but how many weight management subscribers were added in the quarter and kind of what's the new level of active subscribers in this bucket.
Speaker Change: Yeah.
Speaker Change: You actually you didn't miss it.
Speaker Change: I'm cognizant that we wanted to disclose the total number now that we're a more of a mature.
Loveland weight management 15000 on a net basis were added during the quarter. We wanted to essentially from 60, it's about 75.
Speaker Change: Weight management.
Speaker Change: Subscribers.
Speaker Change: Got you still very healthy and a slight tick down from the 20000 last quarter.
Speaker Change: Any any color here as to what Youre seeing I mean, obviously, there's been quite a bit of noise out there regarding <unk>.
Speaker Change: Yeah, one presumably.
Speaker Change: That's impacted slightly but just kind of curious if you had.
Speaker Change: More color around that number you add yeah I'm in it's also becoming a you know the business off a ton of growth going forward.
Speaker Change: Naturally the net growth quarter to quarter can sometimes very well there wasn't a lot of variation we haven't seen much change on the business I mean costs have gone up a little bit, but we've continued to be able to do some increases in the way. They they O V. As more people have looked at for longer term subscriptions.
Speaker Change: We've done some stuff.
Speaker Change: As of November that's out there publicly were revised our pricing a little bit because we're actually we're a little bit too low in the market. So we should see some benefits from that.
Speaker Change: Going forward also and that's just on the carrier side.
Speaker Change: As we get bigger we've also seen you know some are more efficiency in our Cogs as well in the business, which obviously, we're starting to see it flow through to the bottomline, but outside of that really goes.
Speaker Change: A lot of what's been going on in the market has been noise, there really hasn't been major changes in the dynamics of the market. The last couple of months versus what existed you know four or five months ago.
Speaker Change: Sure got.
Speaker Change: Got it. Thank you and then maybe on the on the work simply business nice that it kind of returned to growth.
Speaker Change: And here <unk>.
Speaker Change: We're casting.
Speaker Change: Hit peak later this year, which is great.
I guess what are your thoughts around divesting this business.
Speaker Change: Has there been interest.
Speaker Change: Is there a benefit in and waiting.
Speaker Change: I think the valuation and it seems like it's.
Speaker Change: Presumably that was divested and you're now a pure play Telehealth company, that's just turned the corner with profitability.
Speaker Change: There could be upside that look more than outweighed.
Speaker Change: Any sort of different evaluation, so just kind of curious what your thought there.
Mark Benathen: Yeah. This is mark Yeah look the plan is still to divest the business as you know the business Uh huh.
Mark Benathen: Soft year and yes. It has turned the corner with out of the 2000 subscribers in Q4 has been off to a strong start thus far.
Mark Benathen: Frankly, some of that softness delayed you know a potential transaction, there's still a lot of interest from multiple parties in the business I think that business will need to demonstrate at least several months or a few months ago.
Mark Benathen: Sustained trajectory forward to get back to that peak monthly EBITDA, which they've committed to and frankly are well on their way to given the results over the last 60 days or so.
Mark Benathen: So again the plan is still the business are still a lot of interest in the business. It's a matter of the business continuing to execute what we've put out there and frankly, what they are on track for to get somebody on video, which is our peak EBITDA in continuing to grow from there.
Mark Benathen: Okay.
Speaker Change: Well, thank you lots of great updates here and I'll jump back in queue.
Speaker Change: Your next question comes from the last Steve Nature from Keybanc. Your line is now open.
Speaker Change: Hey, guys. Thanks for the question with there being a number of competing weight management solutions out there that offered guilty when medications what do you see as the key differentiators for life and <unk> offering.
Yes.
Justin Schreiber: This is Justin.
Justin Schreiber: I think there are.
Two big things that are key differentiators. The biggest is the quality of care, we're providing and the fact that we're actually.
Justin Schreiber: Giving patients a real like stink consult with the provider.
Justin Schreiber: That's just <unk>.
Justin Schreiber: Another find another direct to consumer direct to patient telehealth platform, that's doing that at the scale that we are.
Speaker Change: I haven't found one yet.
Speaker Change: I think there are some other.
Other companies that are great companies that are doing this in a manner, but I really think that's the big differentiator I think.
Speaker Change: Following up on that.
Speaker Change: Remember life M D as a platform for providing virtual primary care and not just weight management, not just treatment for hormone therapy or whatever whatever else. It is so when these patients.
Speaker Change: Sign up for even the light weight management offering.
Speaker Change: Providers are able to help them with more than weight management, which you know I think is really unique I think the last thing I would say is.
Speaker Change: The comprehensiveness of our platform is different than most other providers out there at good example for that.
Speaker Change: I don't think we spoke about it in the call actually but we're now offering nutrition consults to all of our weight management patients. They can it's free of charge as part of the program.
Speaker Change: It is led by.
Speaker Change: Our several of our empty at several of our M. P's that are full time providers that are certified in nutrition, and just really knowledgeable in the space and we've built an entire program around this we're building programs around.
Speaker Change: Sleep and other.
Speaker Change: Key components of wellness that can help people lose weight and live a healthier life and I think this is like is this is very very unique.
Justin Schreiber: You know most other platforms out there again are using third party medical groups third providing a sink consoles.
Justin Schreiber: They may say that these things are comprehensive but typically they are not life and D. Really has a unique a unique platform and in that way.
Speaker Change: Steve are you next question.
Speaker Change: Oh, sorry.
Speaker Change: Your next question comes from the line of E. Chen from H C. Wainwright. Your line is now open.
Speaker Change: Yeah.
Speaker Change: Hi, This is eduardo on for <unk>. Congrats on the great quarter I had a few questions. I was just kind of curious if you could add a little more color on if you still think particularly its one therapies are going to be the main driver for growth and if not kind of what other.
Speaker Change: Kind of products or offerings you guys are excited about moving forward in 2025.
Speaker Change: That's great, Yes, I think we certainly we certainly think that.
Speaker Change: G. L. P. One therapies will be a very big growth driver next year. We also expect our men's health business Rexam D to be a big driver of growth for us very optimistic about the hormone therapy program that we launched under the <unk> brand.
Speaker Change: We're also working on similar hormone and wellness programs for women.
Speaker Change: Which are or will be built on the life M. D platform and so that's something that we're excited about next year.
Speaker Change: Our insomnia business as it's growing is seeing very strong growth, we're excited about making that an even more robust offering.
Speaker Change: And then look we're we're very excited over the next year or two about other no. Other clinical areas. One of them is behavioral health, we're thinking about the right strategy and behavioral health.
Speaker Change: That I think investors can look forward to we're also looking at <unk>.
Speaker Change: Type two diabetes and cardiovascular health there are a lot of different I think prevention oriented programs that we think are really appropriate for the license platform, both for new patients and like Super Super appropriate for the hundreds of thousands of patients that we already have on our platform many of which.
Speaker Change: Have one or many of which have two or more chronic conditions.
Speaker Change: So very excited I mean, we're very optimistic about next year I think the yes.
The weight management program.
Speaker Change: Driven by accessing GOP patients patients, having an interest in accessing GOP, one medications will be a big growth driver, but importantly, like the underlying business is going to see great growth, even with even without the <unk> business.
Speaker Change: So I think that's a really important point for investors.
Speaker Change: Got it got it that's really helpful and when you position these new offerings do you envision.
Speaker Change: Them being add ons to existing subscription programs.
Speaker Change: Will you offer kind of just or would they be like individual product line I'm kind of curious how you're outpacing growth in prime almost all of them.
Speaker Change: Sure I mean look that's a great question, but almost all of them, even the more complex chronic disease management programs.
Speaker Change: Wellness programs, we're launching under Rex Indeed.
Speaker Change: All be driven by the life, Indeed technology and care and care platform.
Speaker Change: We've invested and continue to invest so much so much time and capital.
Speaker Change: In the building that technology platform I mean, it's it's incredible most investors don't understand how incredible the technology that we have that we've built actually is.
Speaker Change: And that is going to be the driver of all of these future offerings. It will be under the license brand.
Speaker Change: Put a lot of money over the years of course into.
Speaker Change: And the building Rexam D and creating like almost really turning away from D into a household name and so we're not going to stop marketing through life M. D and there are going to be certain they're going to be certain like lifestyle async offerings that are always going to be appropriate for.
Speaker Change: For the life for the Rexam D platform. However.
Speaker Change: Everything that you know everything even through like <unk> and D that is more complex in nature.
Speaker Change: We'll be moving on moving those patients over to license deal will be a co branded Rex and life M D experience.