Q1 2025 LifeMD Inc Earnings Call
Our Justin Schreiber, Chairman and Chief Executive Officer, and Mark benefit <unk>, Chief Financial Officer.
Speaker Change: Following managements prepared remarks, we will open the call for a question and answer session.
Before we begin.
Speaker Change: I would like to remind everyone that during this call. The company will make a number of forward looking statements.
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 and within other filings that life M. D may make with the SEC from time to time.
Speaker Change: Forward looking.
Speaker Change: Statements made during this call are based on current information available to the company as of today May six 2025.
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 management will be discussing certain non-GAAP financial measures that the company believes are important in evaluating life Mt's performance.
Speaker Change: Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release issued earlier today.
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.
Justin Driver: Now I'd like to turn the call over to life M. Dias CEO Justin driver. Please go ahead.
Speaker Change: Thank you.
Speaker Change: And good afternoon, everyone. After the market closed we issued a press release announcing our first quarter financial results.
Speaker Change: <unk> posted an updated corporate presentation on our website at IR Dot life, Indeed dot com.
Speaker Change: I'm excited to share the significant progress license you have made in the first quarter of 2025.
Speaker Change: On our last earnings call, we outlined key strategic priorities designed to accelerate our position as a leader in virtual primary care.
Speaker Change: I am pleased to report that we're executing well across the board building on last year's momentum and delivering strong performance throughout our platform.
Speaker Change: Our core telehealth business had an exceptional quarter with revenue growing 70% year over year.
Speaker Change: Driven largely by continued strength in our weight management program.
Speaker Change: We also saw promising early contributions from our fee for service Medicare initiative and the recent launch of our men's hormone therapy offering.
Speaker Change: Notably telehealth adjusted EBITDA reached $5 3 million a day.
Speaker Change: Dramatic improvement from a loss of $1 3 million in the same period last year.
Speaker Change: These results are a powerful validation of the brand technology and operational excellence, we've built into our virtual care model.
Speaker Change: Our <unk> brand continues to perform exceptionally well with consistent growth in both revenue and active patient count further.
Other reinforcing its position as a category leader in men's health.
Speaker Change: As we previously guided we continue to expand <unk> beyond its original focus on sexual health into larger high demand verticals, including weight management behavioral health insomnia and hormone replacement therapy.
Speaker Change: Our newly launched HRT program is off to a strong start.
Speaker Change: With early adoption exceeding expectations and offering valuable insights into this fast growing category.
Speaker Change: Notably more than 40% of new <unk> patients are existing <unk> patients already engaged in another care subscription.
Speaker Change: Later this year, we plan to introduce life and D plus and other synchronous care offerings <unk> hundred 80000 active patients.
Speaker Change: Unlocking a significant cross care opportunity across our ecosystem.
Speaker Change: As a reminder, licensee pluses are affordable monthly memberships that includes $24 seven access to synchronous care.
<unk> prescription and retail services and access to our curated marketplace of prescription medications over the counter products and lab services.
Speaker Change: Now I'll turn to our virtual primary care platform.
Speaker Change: As recently announced we've established strategic collaborations with Lilly direct and Novo care to improve access to G. L. P. One medications for weight management patients without insurance coverage.
Speaker Change: These partnerships reflect the growing recognition of our patient first model and underscore our ability to streamline access to transformative therapies.
Speaker Change: Life MD is now the only virtual care provider offerings synchronous consorts integrated with both <unk> and Lilly direct enabling seamless access to adobe and that bound.
Speaker Change: Bind with our direct to patient pharmacy specialized nationwide provider network and pharmacy benefits infrastructure. We believe we've created a category defining competitive moat and virtual obesity care.
Speaker Change: It's worth noting that we expect to do exactly the same thing and many other verticals in the years to come.
Speaker Change: Another major milestone as our acceptance of fee for service Medicare opening a significant and largely untapped market.
Speaker Change: We've already expanded coverage to over 21 million Medicare part B beneficiaries across 26 states.
Speaker Change: And we're on track to reach 49 states.
Speaker Change: Over 60 million beneficiaries by the end of Q2.
Speaker Change: Approximately 75% of the Medicare population suffers from obesity or chronic cardio metabolic conditions, such as diabetes hypertension or high cholesterol, all areas, where life and D delivers or intends to deliver high quality and effective care.
Speaker Change: Given the lack of convenient timely access to primary care for many Medicare beneficiaries. We believe our virtual care model is uniquely positioned to serve this population, while diversifying revenue and improving outcomes.
We're also excited to be entering two high growth verticals womens health and behavioral health.
Speaker Change: Through our recent acquisition of optimal human health M. D. We've built a foundation for a differentiated women's health offering focused on areas long overlooked by traditional health care.
Speaker Change: Within the next 90 days, we will launch a cash pay subscription based women's health program that includes comprehensive lab testing synchronous virtual visits with specialized providers.
Speaker Change: <unk> advanced nutrition counseling and coaching.
A subsidized version supported by commercial and government payers will follow broadening access to this innovative care model.
Speaker Change: We will also offer onetime console.
Speaker Change: Available via self pay or covered insurance plans.
Speaker Change: Meanwhile, our imminent entry into behavioral health led by industry veteran Julian Cohen will round out our care platform with a full suite of Tele psychiatry services.
Speaker Change: This offering will eventually include both insurance covered <unk>.
Speaker Change: And cash pay models designed to meet the growing need for accessible high quality mental health care.
Speaker Change: With behavioral health integrated into our existing chronic primary and specialty care capabilities <unk> is well positioned to deliver a more holistic and impactful patient experience.
By leveraging our fully integrated platform, including a national provider network advanced diagnostics through partnerships with quest and Labcorp.
And our newly launched National Pharmacy.
Speaker Change: We're delivering a level of continuity and care that's life in D. Apart.
Speaker Change: These strategic expansions are fueling meaningful revenue diversification improved patient retention and long term profitability.
Speaker Change: Our mission remains unchanged to deliver the most comprehensive convenient and outcomes driven care experience in health care today.
Mark: With that I'll turn the call over to our CFO Martin Bengtsson to walk through our first quarter financial results Mark.
Martin Bengtsson: Thank you Justin and good afternoon, everyone lessened to achieve very strong first quarter financial results with total revenues, increasing 49% versus the year ago period to $65 7 million core telehealth revenue grew by 70% versus the prior year was.
Martin Bengtsson: Stand alone adjusted EBITDA of $5 3 million. This compares with a standalone powerhouse adjusted EBITDA loss of $1.3 million in the first quarter of 2024, representing a $6 $6 million increase year over year.
Martin Bengtsson: Powerhouse subscriber growth remains strong with the number of active subscribers, increasing 22% year over year to over 290000 at quarter end.
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 a question and answer session.
Speaker Change: The number of works simply active subscribers declined by 5% to 158000.
Operator: Before we begin, I would like to remind everyone that during this call, the company will make a number of forward-looking statements, which are subject to numerous risks and uncertainties that may cause 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 LifeMD 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, May 6, 2025. The company assumes no obligation to update or revise any forward-looking statements after today's call except as required by law.
Speaker Change: Works simply continued to perform well financially with quarterly adjusted EBITDA again exceeding $3 million.
Speaker Change: Gross margin for the first quarter was 86, 8%. This is a decline of 270 basis points versus the prior year due to changes in revenue mix and temporary changes in pharmacy mix, yet on a sequential basis gross margin increased by 150 basis points versus Q4 of 2024.
Speaker Change: Gross profit was $57 1 million, an increase of 44% from the year ago period.
Speaker Change: GAAP net income attributable to common stockholders for the first quarter was 608000 or <unk> <unk> per diluted share. This compares with a GAAP net loss attributable to common stockholders for the first quarter of 2024 of $7 5 million or a loss of <unk> 19 per share.
Operator: Also, please note that management will be discussing certain non-GAAP financial measures that the company believes are important in evaluating LifeMD's performance. Details on the relationship between these non-GAP measures to the most comparable GAP measures and reconciliations thereof can be found in the press release issued earlier today.
Justin Driver: As Justin mentioned Q1 was our first quarter with positive GAAP net income.
Justin Driver: Adjusted EBITDA is a non-GAAP measure, we define as income or loss attributable to common stockholders before various items as outlined in today's earnings news release, adjusted EBITDA totaled $8 7 million for the first quarter as compared with 0.1 million in the year ago period.
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.
Justin Schreiber: Now, I'd like to turn the call over to LifeMD's CEO, Justin Schreiber. Please go ahead. Thank you and good afternoon everyone. After the market closed, we issued a press release announcing our first quarter financial results and posted an updated corporate presentation on our website at ir.lifemd.com. I'm excited to share the significant progress LifeMD has made in the first quarter of 2025. On our last earnings call, we outlined key strategic priorities designed to accelerate our position as a leader in virtual primary care. I'm pleased to report that we're executing well across the board, building on last year's momentum and delivering strong performance throughout our platform.
Justin Driver: <unk> adjusted EBITDA is a non-GAAP measure defined as adjusted EBITDA for only our telehealth business excluding work simply.
Justin Driver: This measure was $5 3 million for the first quarter of 2025.
Justin Driver: <unk> to a loss of $1 3 million in the year ago period.
Justin Driver: We exited the first quarter was 34 $34 4 million in cash.
Justin Driver: Turning to guidance today, we are raising our financial guidance for 2025 due to the outperformance of our telehealth business to date.
Justin Driver: Our revised guidance for total revenues in the range of $268 million to $275 million with telehealth revenue in the range of $280 million to $213 million a revised guidance for consolidated adjusted EBITDA is in the range of $31 million to $33 million with telehealth.
Justin Schreiber: Our core telehealth business had an exceptional quarter, with revenue growing 70% year over year, driven largely by continued strength in our weight management program. We also saw promising early contributions from our Fee-for-Service Medicare Initiative and the recent launch of our Men's Hormone Therapy Office. Notably, telehealth-adjusted EBIDTA reached 5.3 million, a dramatic improvement from a loss of 1.3 million in the same period last year. These results are a powerful validation of the brand, technology, and operational excellence we've built into our virtual care model. Our RexMD brand continues to perform exceptionally well, with consistent growth in both revenue and active patient count, further reinforcing its position as a category leader in men's health.
Justin Driver: Adjusted EBITDA to be at least $21 million. This wraps up our financial results I would now like to turn the call back over to Justin.
Justin Driver: Thanks Mark.
Speaker Change: As we conclude our prepared remarks I want to underscore how energized we are by life from the strong start to 2025.
Speaker Change: Our first quarter performance reflects disciplined execution against our strategic priorities and the early traction we're seeing across key initiatives gives us strong confidence in our trajectory for the remainder of the year.
Speaker Change: The programs, we've launched including the expansion of our benefits infrastructure strategic collaborations with G. L. P. One manufacturers, new Rex and D offerings, and our entry into the womens and behavioral health space are all aligned with our near term vision to build a trusted vertically integrated marketplace.
Justin Schreiber: As we previously guided, we continue to expand RECS beyond its original focus on sexual health into larger, high-demand verticals, including weight management, behavioral health, insomnia, and hormone replacement therapy. Our newly launched HRT program is off to a strong start with early adoption, exceeding expectations, and offering valuable insights into this fast-growing category. Notably, more than 40% of new HRT patients are existing REX MD patients already engaged in another care subscription. Later this year, we plan to introduce LifeMD Plus and other synchronous care offerings for RexMD's 180,000 active patients. unlocking a significant cross-care opportunity across our ecosystem.
Speaker Change: For health care services prescription medications and over the counter health care products.
Speaker Change: We're continuing to scale, what has made life and be successful.
Speaker Change: Real providers, delivering synchronous high quality virtual care.
Speaker Change: A compelling value proposition across services and products.
Speaker Change: And a consistently exceptional patient experience enabled by our world class technology, and a passionate mission driven team.
Speaker Change: Looking ahead, we have several high impact initiatives on the horizon, including the upcoming launch of license plus continued investment in our platform and expansion into new high value clinical categories.
Speaker Change: These efforts are designed to support our fast growing direct to patient business. While also meeting the growing demand from employers. So you can do enhance their benefit offerings with solutions that drive stronger engagement and healthier employee populations.
Justin Schreiber: As a reminder, LifeMD Plus is our affordable monthly membership that includes 24-7 access to synchronous care, convenient prescription and refill services, and access to our curated marketplace of prescription medications, over-the-counter products, and lab services.
Speaker Change: With the infrastructure team and momentum now in place <unk> is uniquely positioned to lead the next chapter of virtual care innovation delivering lasting value to both patients and shareholders. We're proud of what we've accomplished and even more excited about what's ahead.
Justin Schreiber: Now I'll turn to our virtual primary care platform. As recently announced, we've established strategic collaborations with Lilly Direct and NovoCare to improve access to GLP-1 medications for weight management patients without insurance coverage. These partnerships reflect the growing recognition of our patient-first model, and underscore our ability to streamline access to transformative therapy. LifeMD is now the only virtual care provider offering synchronous consults integrated with both NovoCare and LillyDirect, enabling seamless access to Adobe and ZepBalance. Combined with our direct-to-patient pharmacy, specialized nationwide provider network, and pharmacy benefits infrastructure, we believe we've created a category-defining, competitive moat in virtual obesity care.
Speaker Change: With that I'll now turn the call over to the operator for Q&A.
Speaker Change: At this time, if you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: You may remove yourself from the queue at any time by pressing star to.
Real providers, delivering synchronous high quality virtual care.
Speaker Change: Once again that is star one to ask a question.
A compelling value proposition across services and products.
Speaker Change: We will take our first question from David Larsen with BTG.
And a consistently exceptional patient experience enabled by our world class technology, and a passionate mission driven team.
David Larsen: Hey, congratulations on another very good quarter.
David Larsen: Can you talk a little bit about your relationships with Lilly and Novo.
Looking ahead, we have several high impact initiatives on the horizon, including the upcoming launch of license fees plus continued investment in our platform and expansion into new high value clinical categories.
David Larsen: Specifically can you talk about like a company pricing for each of those products is it like a revenue share on a per month basis.
Justin Schreiber: It's worth noting that we expect to do exactly the same thing in many other verticals in the years to come.
David Larsen: And then maybe just if you can talk a bit about the conversion from commercial compounded script to personalized as we progress through through May and the rest of the year. Thank you.
These efforts are designed to support our fast growing direct to patient business.
Justin Schreiber: Another major milestone is our acceptance of Fee-for-Service Medicare, opening a significant and largely untapped market. We've already expanded coverage to over 21 million Medicare Part B beneficiaries across 26 states, and we're on track to reach 49 states and over 60 million beneficiaries by the end of Q2. Approximately 75% of the Medicare population suffers from obesity or chronic cardiometabolic conditions such as diabetes, hypertension, or high cholesterol, all areas where LifeMD delivers or intends to deliver high quality and effective care. Given the lack of convenient, timely access to primary care for many Medicare beneficiaries, we believe our virtual care model is uniquely positioned to serve this population while diversifying revenue and improving outcomes.
I'll also meeting the growing demand from employers seeking to enhance their benefit offerings with solutions that drive stronger engagement and healthier employee populations.
Dave: Hi, Dave. Thanks for your question. This is just the driver.
Dave: Our relationship with both Lilly and Novo and really it's with their partner pharmacies really enables us to integrate our care offerings.
With the infrastructure team and momentum now in place <unk> is uniquely positioned to lead the next chapter of virtual care innovation delivering lasting value to both patients and shareholders. We're proud of what we've accomplished and even more excited about what's ahead.
Dave: And streamline access to those medications for patients.
Speaker Change: The price that patients pay even if it's facilitated by life Indeed.
With that I'll now turn the call over to the operator for Q&A.
Speaker Change: Is the same price that they would pay elsewhere. There is there is no discount.
At this time, if you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: For patients coming from life from D and license doesn't receive any.
You may remove yourself from the queue at any time by pressing star team.
Speaker Change: Compensation or rebate or coupon program from the drug manufacturers.
Once again that is star one to ask a question.
Speaker Change: We will take our first question from David Larsen with BTG.
Speaker Change: As far as.
Justin Schreiber: We're also excited to be entering two high-growth verticals, Women's Health and Behavioral Health. Through our recent acquisition of Optimal Human Health MD, we've built a foundation for a differentiated women's health offering focused on areas long overlooked by traditional healthcare. Within the next 90 days, we will launch a cash-pay, subscription-based women's health program that includes comprehensive lab testing, synchronous virtual visits with specialized providers, and advanced nutrition counseling and coaching. A subsidized version, supported by commercial and government payers, will follow, broadening access to this innovative care model. We will also offer one-time consults available via self-pay or covered insurance.
Speaker Change: As far as what will will probably launch.
David Larsen: Hey, congratulations on another very good quarter.
Speaker Change: We'll have different pricing options.
For patients for the care they receive alongside of those therapies and some of that pricing will be determined based on the length of their care membership and other factors will likely just like we do with our other our weight loss programs will likely run kind of discounts and promotions things like.
David Larsen: Can you talk a little bit about your relationships with Lilly and Novo.
David Larsen: Specifically can you talk about like the company pricing for each of those products is it like a revenue share on a per month basis.
Pete: And then maybe just if you can talk a bit about the conversion from a commercial compounded script to personalized as we progress through through May and the rest of the year. Thank you.
Speaker Change: That.
Speaker Change: On the.
Personalized compounding question.
Speaker Change: I think we'll be in a position to talk more about this in future quarters, but we are.
Justin: Hi, Dave. Thanks for your question this is Justin <unk>.
Speaker Change: What I will say is we're I think we're doing a terrific job.
Justin: Our relationship with both Lilly and Novo and really it's with their partner pharmacies really enables us to integrate our care offerings.
Speaker Change: And helping patients that were on a compounded therapy.
Speaker Change: Access branded therapies I'm access other non <unk> therapies, which are generic sized medications.
Justin Schreiber: Meanwhile, our imminent entry into behavioral health, led by industry veteran Julian Cohen, will round out our care platform with a full suite of telepsychiatry services. This offering will eventually include both insurance-covered and cash pay models designed to meet the growing need for accessible, high-quality mental health care. With behavioral health integrated into our existing chronic, primary, and specialty care capabilities, LifeMD is well-positioned to deliver a more holistic and impactful patient experience. By leveraging our fully integrated platform, including a national provider network, advanced diagnostics through partnerships with Quest and LabCorp, and our newly launched national pharmacy, we're delivering a level of continuity in care that sets LifeMD apart.
Justin: And streamline access to those medications for patients.
Justin: The price that patients pay even if it's facilitated by life Indeed.
Speaker Change: And some patients that have the appropriate kind of clinical presentation.
Justin: Is the same price that they would pay elsewhere. There is there is no discount.
Speaker Change: Offered personalized compounded therapies.
Justin: For patients coming from life from D and license doesn't receive any.
Speaker Change: We'll share more of those.
Speaker Change: Or are those numbers in the quarters to come but we're expecting the the integrations with both Lilly really direct and Novo care to go live next week and we're really excited about that we think it'll be.
Justin: Compensation or rebate or coupon program from the drug manufacturers.
Justin: As far as.
Justin: As far as well will probably launch.
Justin: We will have different pricing options.
Speaker Change: Big growth driver.
Speaker Change: For the waste management business and just as a great thing for patients as well that want to access these branded therapies.
Justin: For patients for the care they receive alongside of those therapies and some of that pricing will be determined based on the length of their care membership and other factors will likely just like we do with our other our weight loss programs will likely run kind of discounts and promotions things.
Speaker Change: Great and then just one more quick follow up can you talk about the role of insurance in your view one of your peers or competitors.
Speaker Change: Seems to have a philosophy against taking insurance, it's entirely cash pay in my mind, if like if a member has insurance why not use it, especially if the insurance dollars can go to to help cover like the branded therapies that Lilly and Novo and other manufacturers might preserve.
Justin Schreiber: These strategic expansions are fueling meaningful revenue diversification, improved patient retention, and long-term profitability.
Justin: That.
Justin: On the.
Justin: Personalized compounding question.
Justin Schreiber: Our mission remains unchanged, to deliver the most comprehensive, convenient, and outcomes-driven care experience in healthcare today.
Justin: I think we'll be in a position to talk more about this in future quarters, but we are.
Justin: What I will say is we're I think we're doing a terrific job.
Marc Benathen: With that, I'll turn the call over to our CFO, Marc Benathen, to walk through our first quarter financial results. Thank you, Justin, and good afternoon, everyone. LifeMD achieved very strong first-quarter financial results with total revenues increasing 49% versus the year-ago period to $65.7 million. Core telehealth revenue grew by 70% versus the prior year with standalone adjusted EBITDA of $5.3 million. This compares with a standalone telehealth-adjusted EBITDA loss of $1.3 million in the first quarter of 2024, representing a $6.6 million increase year-over-year. Telehealth subscriber growth remains strong, with the number of active subscribers increasing 22% year-over-year to over 290,000 a quarter.
Speaker Change: <unk> through your platform, so just any color around <unk>.
Justin: And helping patients that were on a compounded therapy.
Speaker Change: Growth in the insurance side of things thanks very much.
Justin: On access branded therapies I'm access other non <unk> therapies, which are generic medications.
Speaker Change: Thanks, David that's a great question life and D. We feel the insurance component of these offerings is very important and as you know we've invested.
Justin: And some patients.
Speaker Change: An enormous amount of time and resources into building a platform for accepting commercial and government insurance programs.
Justin: Have the appropriate kind of clinical presentation.
Justin: Our offered personalized compounded therapies and we'll share more of those more of those numbers in the quarters to come but we're.
Speaker Change: And for making sure that we're doing that compliant Lee and training our providers and doing everything else thats required to scale that side of the business.
Justin: We're expecting the.
Justin: The integrations with Lilly really direct and Novo care to go live next week and we are.
Speaker Change:
Speaker Change: I think it's pretty simple right.
We think that by subsidizing the cost of care that we provide.
Justin: Really excited about that we think it'll be.
Big growth driver.
Justin: For the weight management business and just as a great thing for patients as well that want to access these branded therapies.
Speaker Change: And of course medications that patients access through our platform as well, we simply make them more accessible.
Speaker Change: Great and then just one more quick follow up can you talk about the role of insurance in your view one of your peers or competitors seems to have a philosophy against taking insurance, it's entirely cash pay in my mind. Its like if the member has insurance why not use it especially.
Speaker Change: It's a driver of retention.
Marc Benathen: The number of work simply active subscribers declined by 5% to 158,000. Work simply continued to perform well financially with quarterly adjusted EBITDA again exceeding $3 million. Growth margin for the first quarter was 86.8%. This is a decline of 270 basis points versus the prior year due to changes in revenue mix and temporary changes in pharmacy. Yet, on a sequential basis, gross margin increased by 150 basis points versus Q4 of 2024. Gross profit was $57.1 million, an increase of 44% from the year-ago period. Gap net income attributable to common stockholders for the first quarter was $608,000 or $0.01 per diluted share.
Speaker Change: And overall, we think it's a really really important part of the business as long term success that being said, we will still have a lot of cash pay offerings and it does it does really increase the complexity of our programs. If you think about it when we build stuff its theres, a product and technology component to it.
Pete: If the insurance dollars can go to to help cover.
Pete: The branded therapies that Lilly and Novo and other manufacturers might present through your platform. So just any color around growth in the insurance side of things thanks very much.
Speaker Change: Thinking through how cash pay offerings, and and insurance sponsored offerings kind of live in the same ecosystem and.
Speaker Change: Not going to say that it's you know, it's not always easy to do.
Speaker Change: Thanks, David that's a great question <unk>, we feel the insurance component of these offerings is very important and as you know we've invested.
Speaker Change: But we think it's a really really important part we know from our market research and from some of the programs. We've already started to scale that when you give patients the ability to use their insurance.
Speaker Change: An enormous amount of time and resources into building a platform for accepting commercial and government insurance programs.
Speaker Change: Youre going to lower CAC, hopefully drive retention, we haven't proven that out yet.
Speaker Change: But it just I think it is also just dramatically expands the total addressable market right. If you think about people that are willing to pay cash for stuff that kind of falls within the traditional health care world versus.
Marc Benathen: This compares with a gap net loss attributable to common stockholders for the first quarter of 2024 of $7.5 million or a loss of $0.19 per share. As Justin mentioned, Q1 was our first quarter with positive gap net income. Adjusted EBITDA is a non-GAAP measure we define as income or loss attributable to common stockholders before various items as outlined in today's earnings news. Adjusted EBITDA totaled $8.7 million for the first quarter, as compared with $0.1 million in the year-ago period. Telehealth adjusted EBITDA is a non-GAAP measure defined as adjusted EBITDA for only our telehealth business, excluding work simply.
Speaker Change: And for making sure that we're doing that compliant leaf and training our providers and doing everything else that's required to scale that side of the business.
Speaker Change: I think it's pretty simple right.
Speaker Change: Most Americans have an insurance card in their wallet and that's how they think they're supposed to pay.
Speaker Change: We think that by subsidizing the cost of care that we provide.
Speaker Change: We're going to continue to double down in this area the Medicare business as we mentioned on the call. We've seen a really strong initial traction.
Speaker Change: And of course medications that patients have access through our platform as well, we simply make them more accessible.
We've gotten some of our first reimbursements for Medicare and we're really excited about the growth of that side of the business.
We think it's a driver of retention.
Speaker Change: And overall, we think it's a really really important part of the business as long term success that being said, we will still have a lot of cash pay offerings.
Speaker Change: Okay. Congrats on a good quarter I'll hop back in the queue.
Speaker Change: Yeah.
Speaker Change: It does it does really increase the complexity of our programs. If you think about it when we build stuff its theres a product and technology components.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: We'll go next to Sarah James with Cantor Fitzgerald.
Marc Benathen: This measure was $5.3 million for the first quarter of 2025, as compared to a loss of $1.3 million in the ergo period. We exited the first quarter with $34.4 million in cash.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Thinking through how cash pay offerings, and and insurance sponsored offerings kind of live in the same ecosystem and.
Speaker Change: I was hoping you could walk us through a little bit what the main drivers.
Speaker Change: It was outside loss content.
Speaker Change: Patients and help us understand which ones of those might be once you specific or things that would.
Speaker Change: Not going to say that it's you know, it's not always easy to do.
Marc Benathen: Turning to guidance. Today we are raising our financial guidance for 2025 due to the outperformance of our telehealth business to date. Our revised guidance for total revenues is in the range of $268 to $275 million, with telehealth revenue in the range of $208 to $213 million. Our revised guidance for consolidated adjusted EBITDA is in the range of $31 to $33 million, with telehealth adjusted EBITDA to be at least $21 million.
Speaker Change: We think it's a really really important part we know from our market research and from some of the programs. We've already started to scale that when you give patients the ability to use their insurance.
Speaker Change: Continuing on for the rest of the year.
Mark: Yeah. This is mark but the main driver similar to what we've had in the past it's been retention revenues to the rebuilding of existing patients.
Speaker Change: Youre going to lower CAC, hopefully drive retention, we haven't proven that out yet.
Mark: Been stronger than what we had planned we have a small amount I'd say in the form of.
Speaker Change: But I think also just dramatically expands the total addressable market right. If you think about people that are willing to pay cash for stuff that kind of falls within the traditional health care World versus you know most Americans have an insurance card in their wallet and that's how they think they're supposed to pay.
Mark: Two to $300000 are associated with upside relative to higher acquisitions in the weight management space I would say, obviously that was more a Q1 specific although acquisitions are still very strong even as we transition that was just a little bit of pent up demand and remember a lot of that gets deferred as far as how we run.
Marc Benathen: This wraps up our financial results.
Justin Schreiber: I'd now like to turn the call back over to Justin. Thanks, Marc. As we conclude our prepared remarks, I want to underscore how energized we are by LifeMD's strong start to 2025. Our first-quarter performance reflects disciplined execution against our strategic priorities, and the early traction we're seeing across key initiatives gives us strong confidence in our trajectory for the remainder of the year. The programs we've launched, including the expansion of our benefits infrastructure, strategic collaborations with GLP-1 manufacturers, new RECs and D offerings, and our entry into the women's and behavioral health space, are all aligned with our near-term vision to build a trusted, vertically-integrated marketplace for healthcare services, prescription medications, and over-the-counter healthcare products.
Speaker Change: So we're going to continue to double down in this area the Medicare business as we mentioned on the call.
And I was the revenue, but the majority of the rest of it.
Speaker Change: We've seen really strong initial traction.
Speaker Change: <unk> gotten some of our first <unk>.
Mark: Was higher than expected.
Speaker Change: Reimbursement for Medicare and we're really excited about the growth of that side of the business.
Mark: Retention revenue, which would be the rebuilds of existing patients and most of that will continue obviously, we've typically Q1 also will have a higher rate of new acquisitions in several of our business lines. It's just you know historically that's been the case versus Q2 April will tend to be.
Speaker Change: Okay. Congrats on a good quarter I'll hop back in the queue.
Speaker Change: Yeah.
Sarah James: We'll go next to Sarah James with Cantor Fitzgerald.
Sarah James: Thank you.
Mark: A little bit lower than historically what.
Sarah James: Was hoping you could walk us through a little bit what the main drivers.
Mark: Q1 has been but all in all I mean, the only anomaly was a small one which was some pent up demand in the weight management space.
Sarah James: Compared to your expectations and help us understand which ones of those might be once you specific are things that lead.
Mark: Okay.
Mark: Great and then could you give us an update on your <unk>.
Sarah James: Continuing on for the rest of the year.
Mark: Launch of your compounding pharmacy, highlighting trending versus your expectations on a timeline basis.
Justin Schreiber: We're continuing to scale what has made LifeMD successful, real providers delivering synchronous, high quality virtual care. a compelling value proposition across services and products. and a consistently exceptional patient experience enabled by world-class technology and a passionate mission-driven team. Looking ahead, we have several high-impact initiatives on the horizon, including the upcoming launch of LifeMD+, continued investment in our platform, and expansion into new high-value clinical categories. These efforts are designed to support our fast-growing direct-to-patient business while also meeting the growing demand from employers seeking to enhance their benefit offerings with solutions that drive stronger engagement and healthier employee populations.
Sarah James: Yeah. This is Marc well the main driver similar to what we've had in the past it's been retention revenues sort of rebuilding of existing patients.
Mark: Yes.
Justin Driver: Hi, there this is Justin drivers are.
Justin Driver: We're confident pharmacy is on track, we expect to have it license sometime this summer.
Sarah James: Been stronger than what we had planned we have a small amount I'd say in the form of.
Justin Driver: And licensed and in most states across the country by the end of the year.
Sarah James: Two to $300000 are associated with upside relative to higher acquisitions in the weight management space I would say, obviously that was more Q1 specific although acquisitions are still very strong even as we transition that was just a little bit of pent up demand and remember a lot of that gets deferred as far as how we run.
Justin Driver: And as far as our mail order pharmacy continue we continue to scale.
Justin Driver: We continue to scale that and I think now we're averaging.
Justin Driver: Averaging close to a thousand prescriptions a day from that pharmacy ballpark.
Justin Driver: We expected to continue to scale that as well over the next year or two it's a.
Sarah James: None of the revenue, but the majority of the rest of it.
Sarah James: Was higher than expected.
Justin Driver: It's been obviously very positive already for not only reducing lead times to medication for patients but.
Sarah James: Retention revenue, which would be the rebuilds of existing patients and most of that will continue obviously, we've typically Q1 also will have a higher rate of new acquisitions in several of our business lines. It's just you know historically that's been the case versus Q2 April tend to be.
Justin Driver: Also has had a positive impact on our bottom line.
Justin Schreiber: With the infrastructure, team, and momentum now in place, LifeMD is uniquely positioned to lead the next chapter of virtual care innovation. delivering lasting value to both patients and shareholders.
Great. Thank you.
Speaker Change: We will go next to Steve Dechert with Keybanc.
Sarah James: A little bit lower than historically, what Q1 has been but all in all I mean, the only anomaly. It was a small one which was some pent up demand in the weight management space.
Speaker Change: Hey, Thanks for the question guys.
Justin Schreiber: We're proud of what we've accomplished and even more excited about what's ahead.
Speaker Change: Does your 2025 guidance include contributions from mental health and women's health.
Operator: With that, I'll now turn the call over to the operator for Q&A. 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 one to ask a question.
Speaker Change: A follow up can you talk about with rec can be offerings are mainly driving the success in that segment. It sounds like it's the hormone hormone replacement therapy, but just want to make sure that we have that right.
Speaker Change: Great and then could you give us an update on.
Sarah James: Your launch of your compounding pharmacy, how I think trending versus your expectations on a timeline basis.
Speaker Change: Yeah, So the female health a month off yes. It does nothing that large oil is pretty de minimis.
Sarah James: Yes.
Justin: Hi, there this is Justin <unk>.
Speaker Change: Our compounding pharmacy is on track, we expect to have it license sometime this summer.
Speaker Change: Combined the sub $5 million in the guidance.
David Larsen: We'll take our first question from David Larsen with BTIG. Hey, congratulations on another very good quarter. Can you talk a little bit about your relationships with Lilly and Novo? Specifically, can you talk about like the pricing for each of those products? Is it like a revenue share on a per month basis? And then maybe just, if you can, talk a bit about the conversion from commercial compounded scripts to personalized as we progress through May and the rest of the year. Thank you. Hi, Dave. Thanks for your question. This is Justin Schreiber. Our relationship with both Lilly and Novo, and really it's with their partner pharmacies, really enables us to integrate our care offerings and streamline access to those medications for patients.
Speaker Change: Across our female half already actively selling and you know realizing revenue from day, one, albeit on a smaller scale as we fully integrate those assets onto our platform, which is a 60 to 90 day endeavor the rate of growth. There will obviously go up quite a bit right now it's more of a VIP concierge based offering that's about $10000.
Speaker Change: And licensed and in most states across the country by the end of the year.
Speaker Change: And as far as our mail order pharmacy.
Speaker Change: We continue to scale.
Speaker Change: We continue to scale that and I think now we're.
Speaker Change: Averaging close to a thousand prescriptions a day from that pharmacy ballpark.
Speaker Change: A year, but you know it was driving a some decent initial revenue on the mental health side, Yeah, that's really a back half of the year thing, where we will see revenue contributions are small amounts baked into.
Pete: We expect to continue to scale that as well over the next year or two it's.
Pete: It's been obviously very positive already for not only reducing lead times to medication for patients but also.
The guidance.
Pete: Also has had a positive impact on our bottom line.
Speaker Change: As far as like the cross sell or racks HRT as separate from a female half. So obviously, there's a hormonal component that a female half I'm, you know, which as you know menopause and other hormonal treatments.
Pete: Great. Thank you.
Steve Dechert: We will go next to Steve Dechert with Keybanc.
Pete: Yeah.
Pete: Hey, thanks for the questions guys.
Speaker Change: Treatments, but on the mail side HRT as testosterone in the non testosterone treatments. That's what sits under racks, that's why we launched <unk>.
Speaker Change: Does your 2025 guidance include contributions from mental health and women's health.
Justin Schreiber: The price that patients pay, even if it's facilitated by LifeMD, is the same price that they would pay elsewhere. There's there's no discount for patients, you know, coming from LifeMD and LifeMD doesn't receive any, you know, compensation or rebate or, you know, coupon program from the drug manufacturers. As far as, you know, as far as what we'll, we'll probably launch, we'll have different pricing options for patients, you know, for the care they receive alongside of those therapies. And some of that pricing will be determined based on, you know, the length of their care membership and other factors.
Speaker Change: A follow up can you talk about with rec can be offerings are mainly driving the success in that segment. It sounds like it's the hormone replacement.
Speaker Change: Really in Q4 of last year and Thats, what is beginning to pick up traction.
Speaker Change: Great. Thank you.
Speaker Change: Replacement therapy, but just want to make sure that we have that right.
Speaker Change: Yeah, So the female health and menthol, so yes it does.
Speaker Change: We'll go next to Steven Valiquette with Mizuho Securities.
Speaker Change: Nothing that large oil is pretty de minimis.
Steven Valiquette: Hi, Thanks, Good afternoon, guys congrats on the results.
Speaker Change: Combined that sub $5 million in the guidance.
Speaker Change: Yeah, I guess I understand you don't want to get into too much specific numbers, yet on the Gobi Novacare pharmacy announcement from last week, but I guess I am curious how much of the positive guidance revision today.
Speaker Change: Across our female half already actively selling and you know realizing revenue from day, one, albeit on a smaller scale as we fully integrate those assets onto our platform, which is a 60 to 90 day endeavor are the rate of growth. There will obviously go up quite a bit right now it's more of a VIP concierge based offering that's about $10000.
Speaker Change: For 2025 is related to that announcement from last week and I'm trying to get a sense for how much of a game changer that really is for the company just any additional color would help thanks.
Justin Schreiber: We'll likely, just like we do with our other weight loss programs, we'll likely, you know, run kind of discounts and promotions, things like that.
Speaker Change: A year, but you know it was driving some decent initial revenue on the mental health side, Yeah, that's really a back half of the year thing, where we will see revenue contributions are small amounts baked into.
Speaker Change: None of it is related to that is all related to outperformance in Q1, which obviously predated are those.
Justin Schreiber: on the Personalized compounding question. I think we'll be in a position to talk more about this in future quarters. But, you know, we're What I will say is I think we're doing a terrific job at helping patients that were on a compounded therapy access branded therapies, access other non-GLP-1 therapies, which are, you know, genericized medications. And, you know, some patients that, you know, have the appropriate kind of clinical presentation are offered personalized compounded therapies, and we'll share more of those, you know, more of those numbers in the quarters to come. But we're, you know, we're expecting the integrations with both Lily Direct and NovoCare to go live next week, and we're really excited about that.
Speaker Change: Those partnerships look there could be some upside in relation to that it basically provides patients another avenue.
The guidance.
Speaker Change: For treatment and quite frankly, you know it says that you know were obviously alarmed aligned with the company's work collaborating with so no changes to the guidance, but all around this is obviously a positive for patients on the company.
Speaker Change: As far as like the cross sell or rack. Some HR T is separate from a female half. So obviously, there's a hormonal component that a female half I'm, you know, which as you know menopause and other hormonal.
Speaker Change: Treatments, but on the mail side HR cheese testosterone in the non testosterone treatments. That's what sits under racks, that's why we launched.
Steven Valiquette: Steve I'll just add to that.
Speaker Change: This is Jeff Glidden driver I mean.
I think we definitely think it likely will be a long term game changer for our weight loss offering.
Speaker Change: Really in Q4 of last year, and Thats whats beginning to pick up traction.
Speaker Change: Great. Thank you.
Speaker Change: I think one important point is that we view these as long term collaborations with both of these companies.
Speaker Change: We'll go next to Steven Valiquette with Mizuho Securities.
Speaker Change: And we think that we know that both of these companies are going to be launching new new drugs. Some of these companies may launch drugs, specifically for you know.
Speaker Change: Thanks, Good afternoon, guys and congrats on the results.
Speaker Change: Yeah, I guess I understand you don't want to get into too much specific numbers, yet on the Gobi Novacare pharmacy announcement from last week, but I guess I am curious how much of the positive guidance revision today for.
Justin Schreiber: We think it'll be a, you know, big growth driver. for the weight management business and just is a great thing for patients as well that want to access these branded therapies.
Speaker Change: These type of self pay programs, we think I think the best way to summarize it is that we think that there are a lot of ways that.
Speaker Change: For 2025 is related to that announcement from last week and I'm trying to get a sense for how much of a game changer that really is for the company just any additional color would help thanks.
David Larsen: Great, and then just one more quick follow-up. Can you talk about the role of insurance in your view? One of your peers or competitors seems to have a philosophy against taking insurance and it's entirely cash pay. In my mind, it's like if the member has insurance, why not use it, especially if the insurance dollars can go to help cover like the branded therapies that Lilly and Novo and other manufacturers might present through your platform. So just any color around growth in the insurance side of things. Thanks very much. Thanks, David.
Speaker Change: These this collaboration can flourish with both of these companies you know over the long term, but it was it wouldn't.
Speaker Change: Yeah, none of it is related to that is all related to outperformance in Q1, which obviously predated.
Speaker Change: It's just too early for us to incorporate that into our guidance or raise guidance because of because of that belief.
Speaker Change: Those partnerships look there could be some upside in relation to that it basically provides patients another avenue.
Speaker Change: Got it okay alright, thank you.
We'll go next to <unk> Chen with H C Wainwright.
Speaker Change: For treatment and quite frankly, you know it says that you know were obviously alarmed aligned with the company's work collaborating with.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Thank you for taking my questions I would like to ask the question is no.
Speaker Change: So no changes to the guidance, but all around this is obviously a positive for patients on the company.
Speaker Change: That you have both the go the ZIP your plants.
Justin Schreiber: That's a great question. At LifeMD, we feel the the insurance component of these offerings is very important. And as you know, we've invested An enormous amount of time and resources into building a platform for accepting commercial and government insurance programs and for making sure that we're doing that compliantly and training our providers and doing everything else that's required to scale that side of the business. I think it's pretty simple, right? I mean, we think that by subsidizing the cost of the care that we provide and, of course, medications that patients access through our platform as well, we simply make them more accessible.
Speaker Change: Platform can you tell us about.
Steve Dechert: Steve I'll just add to that.
Speaker Change: Ah patients seeking weight management, how do you see going to choose one of the two.
Speaker Change: This is just splitting driver I mean, I I think we definitely think it likely will be a long term game changer for our weight loss offering I mean, I think one important point is that we view these as long term collaborations with both of these companies.
Speaker Change: And whether the patient's choice effect.
Speaker Change: Potential benefits too.
Speaker Change: To your company going forward. Thank you.
Speaker Change: Sure.
Speaker Change: This is Justin driver and thank you for your question.
Steve Dechert: And.
Steve Dechert: We think that we know that both of these companies are going to be launching.
Speaker Change: I mean, the the patient's choice of either medication.
Steve Dechert: New new drugs. Some of these companies may launch drugs specifically for these.
Speaker Change: Would not affect you know life indeed, our platform our revenue in any way.
Steve Dechert: These type of self pay programs.
Speaker Change:
Steve Dechert: We think I think the best way to summarize it is that we think that there are a lot of ways that.
Speaker Change: I think as far as which therapy they end up on a lot of patients.
Justin Schreiber: We think it's a driver of retention, and overall, we think it's a really, really important part of the business' long-term success.
Speaker Change: I'm in a room.
Steve Dechert: This collaboration can flourish with both of these companies over the long term, but it wouldn't.
Speaker Change: Requesting a particular therapy.
Speaker Change: Some patients may choose a branded therapy based on price there are some price differences between the two therapies.
Justin Schreiber: That being said, we'll still have a lot of cash pay offerings, and it does really increase the complexity of our programs. If you think about it, when we build stuff, there's a product and technology component to thinking through how cash pay offerings and insurance-sponsored offerings kind of live in the same ecosystem, and I'm not going to say that it's not always easy to do, but we think it's a really, really important part. We know from our market research and from some of the programs we've already started to scale that when you give patients the ability to use their insurance, they're going to be able to use it for a long period of time.
Steve Dechert: Too early for us to incorporate that into our guidance or raise guidance because of because of that belief.
Speaker Change: There are different delivery mechanisms for the therapy for instance, really is cash pay products are.
Steve Dechert: Got it okay alright, thank you.
Speaker Change: We'll go next to <unk> Chen with H C Wainwright.
Speaker Change: I'll.
With a with a fringe and no novel carriers products are having or have an auto injector.
Steve Dechert: Okay.
Steve Dechert: Thank you.
Speaker Change: And then look the most are the most important.
Speaker Change: Thank you for taking my questions. My first question is now that you have both we go the Zip.
Speaker Change: The most important component is going to be you know that that Ah patients.
Platform can you tell us about.
Speaker Change: With one of our providers and the providers are going to make a recommendation based on their clinical presentation.
Speaker Change: Ah patients seeking weight management, how do you see going to choose one of the two.
Speaker Change: Yeah, and I would note that we've always offered patients both either of those micro type products or throws up with other products, obviously or the branded therapies are those outside of the new thing is just the cash pay discounted collaborations obviously the novo care one was signed subsequent to the law.
Speaker Change: And whether the patients choice effect.
Justin Schreiber: You know, you're going to lower CAC, hopefully drive retention. We haven't proven that out yet. But it just, I think it also just dramatically expands the total addressable market, right? If you think about people that are willing to pay cash for stuff that kind of falls within the traditional healthcare world versus, you know, most Americans have an insurance card in their wallet, and that's how they think they're supposed to pay. So we're gonna continue to double down this area. The Medicare business, as we mentioned on the call, you know, we've seen a really strong initial traction.
Speaker Change: Potential benefits too.
Speaker Change: To your company going forward. Thank you.
Speaker Change: Sure.
Speaker Change: This is Justin driver. Thanks for your question.
Speaker Change: I mean, the the patients' choice of either medication.
Speaker Change: Only one.
Speaker Change: Would not affect you know life, indeed, or our platform our revenue in any way.
Speaker Change: Got it I think one of your competitors, who also got there.
Speaker Change: What covey from mobile now.
Speaker Change:
Speaker Change: Also pricing point.
Speaker Change: I think as far as which therapy. They end up on a lot of patients come in.
Speaker Change: Moderately higher than your pricing point I mean, what what is the difference there did you offer any additional services that you do not offer.
Justin Schreiber: You know, we've gotten some of our first reimbursements for Medicare, and we're really excited about the growth of that side of the business.
Speaker Change: Requesting a particular therapy.
Speaker Change: Yeah.
Speaker Change: Some patients may choose a branded therapy based on <unk>.
Speaker Change: Don't really want to get into.
Speaker Change: There are some price differences between the two therapies there.
David Larsen: Okay, congrats on a good quarter. I'll hop back on the queue.
Speaker Change: And to how our competitors have chosen to price its products.
Speaker Change: There are different delivery mechanisms for the therapy for instance, really is cash pay products are.
Speaker Change: Life and D hasn't.
Sarah James: We'll go next to Sarah James with Cancer Fitzgerald. Thank you.
Speaker Change: Finalized.
Speaker Change: The pricing structure for the care that.
Speaker Change: That will provide alongside of these products, but we have said that it will be very similar to what were currently charging for our weight management program.
Speaker Change: Kyle.
Marc Benathen: I was hoping you could walk us through a little bit what the main drivers of Earnings Outside was compared to your expectations and help us understand which ones of those might be ones you specific or things that would continue on for the rest of the year.
Speaker Change: With a friends and no novo carriers products or Havent have an auto injector.
Speaker Change: And then look the most are the most important.
Speaker Change: Okay last question does lessen do you plan to continue to offer a compounded <unk>.
Speaker Change: The most important component is going to be.
Speaker Change: Ah patients.
Visit with one of our providers and the providers are going to make a recommendation based on their clinical presentation.
Speaker Change: And the coming years.
Marc Benathen: Yeah, this is Marc. Look, the main driver is similar to what we've had in the past has been retention revenues for the rebuilding of existing has been stronger than what we had planned. We have a small amount, I'd say, in the form of... $200,000 to $300,000 associated with upside relative to higher acquisitions in the weight management space. I would say, obviously, that was more Q1 specific, although acquisitions are still very strong even as we transitioned. There was just a little bit of pent-up demand. Remember, a lot of that gets deferred as far as how we recognize the revenue, but the majority of the rest of it was higher than expected retention revenue, which would be the rebuild of existing patients, and most of that will continue, obviously.
Speaker Change: Yeah.
Speaker Change: Sure. This is Justin I'll I'll answer that.
Speaker Change: So.
Speaker Change: And I would note that we've always offered patients both either of those micro type products or throws up with other products I would say or the branded therapies of those that's not a new thing is just the cash pay discounted collaborations obviously the novo care. One was signed subsequent to the low end.
Speaker Change: To be clear.
Speaker Change: From D doesn't com.
Speaker Change: Compound.
Speaker Change: Any <unk> medications.
Licensed is virtual care provider in the event that patience.
Speaker Change: Don't have insurance coverage for our branded therapy and can afford.
Speaker Change: One.
Speaker Change: One of the self pay programs from one of our one of the collaborations that we have in place.
Speaker Change: Got it I think one of your competitors, who also got.
Speaker Change: Don you know don't arent appropriate clinically speaking for our non <unk> one therapy.
Speaker Change: Like <unk> from Novo analysis.
Speaker Change: Announcer pricing point.
Speaker Change: Moderately higher than your pricing point I mean, what what is the difference there do they offer any additional services that you do not offer.
License he is willing.
Speaker Change: Again, assuming the patient has.
Speaker Change: The appropriate clinical presentation.
Speaker Change: Yes.
Speaker Change: Send a prescription.
Speaker Change:
Speaker Change: Don't really want to get into.
Speaker Change: Two a compounded pharmacy are compounding pharmacy.
Speaker Change: And to how our competitors have chosen to price these products.
Marc Benathen: Typically, Q1 also will have a higher rate of new acquisitions in several of our business lines. It's just, historically, that's been the case versus Q2. April will tend to be a little bit lower than historically what Q1 has been, but all in all, the only anomaly was a small one, which was some pent-up demand in the weight management space. Great.
Speaker Change: However.
Speaker Change: Late life and D hasn't.
Speaker Change: Our focus.
Speaker Change: Finalized.
Speaker Change: Our focus is helping patients access branded therapies in every possible way.
Speaker Change: The pricing structure for the care that.
Speaker Change: And that will provide alongside of these products, but we have said that it will be very similar to what were currently charging for our weight management program.
Speaker Change: Got it thank you very much.
Speaker Change: We'll go next to Anderson shock with B Riley Securities.
Speaker Change: Okay last question does lifetime do you plan to continue to offer a compounded <unk> one.
Justin Schreiber: And then, could you give us an update on your launch of your compounding pharmacy? How are things trending versus your expectations on a timeline basis?
Anderson shock: Hi, Congrats on the great quarter and thank you for taking the questions.
Speaker Change: In the coming years.
Speaker Change: So first just looking at your guidance for telehealth like raising the lower end for revenues following a strong quarter.
Speaker Change: Yeah.
Speaker Change: Sure. This is Justin I'll I'll answer that.
Speaker Change: So to be clear.
Justin Schreiber: Hi Sarah, this is Justin Schreiber. Our compounding pharmacy is on track, we expect to have it licensed sometime this summer and licensed in most states across the country by the end of the year. And as far as our mail-order pharmacy, we continue to scale. We continue to scale that, and I think now we're, you know, averaging close to 1,000 prescriptions a day from that pharmacy ballpark. And, you know, we expect to continue to scale that as well over the next year or two. It's, you know, it's been obviously very positive already for not only, you know, reducing lead times to medication for patients, but, you know, also has had a positive impact on our bottom line.
Speaker Change: It looks like Youre studying telehealth to be roughly flat sequentially is this just being conservative or are there some headwinds that you're anticipating that will limit your ability to grow sequentially.
Speaker Change: <unk> doesn't comp.
Speaker Change: Compound.
Speaker Change: Any <unk> medications.
Speaker Change: Licensed is virtual care provider in the event that patience.
Speaker Change: Yeah, no. It's not that there is a bad ones I mean, theres some timing in our revenue that we have I mean, we tend to take a relatively conservative view of the revenue you know, we do normally expect and see that aspects of the Rx business and sexual health tend to be a little bit softer seasonally in Q2 than they are in.
Speaker Change: Don't have insurance coverage for our branded therapy and can afford.
Speaker Change: One of the self pay programs from one of our one of the collaborations that we have in place.
Speaker Change: Don don't arent appropriate.
Speaker Change: Speaking for a non G L P. One therapy.
Speaker Change: Q1, which is what historically, we've seen particularly from new acquisition standpoint, So we've baked that into our model also but all of that's pretty consistent with what we've seen in the past, obviously theres tremendous growth.
Speaker Change: License is willing.
Speaker Change: Again, assuming the patient has the appropriate clinical presentation.
Speaker Change: Send a prescription.
Speaker Change: Two a compounded pharmacy are compounding pharmacy.
Speaker Change: Year on year, and that's essentially how we're managing the business.
Speaker Change: However.
Operator: Great, thank you.
Speaker Change: Versus you know, it's just managing for sequential growth every single quarter.
Speaker Change: Our focus.
Speaker Change: Our focus is helping patients access branded therapies in every possible way.
Steve Dechert: We'll go next to Steve Dechert with KeyBank. Hey, thanks for the question, guys. Does your 2025 guidance include contributions from mental health and women's health? And then as a follow-up, can you talk about which RECs and the offerings are mainly driving the success in that segment? It sounds like it's a hormone replacement therapy, but just want to make sure that we have that right. Thanks. Yeah, so the female health and mental health, yes, it does. Nothing that large, though. It's pretty de minimis. Combined, it's up $5 million in the guidance across those.
Speaker Change: Okay got it and then on work simply you had a cyber set decline in subscribers. This quarter. Following your return to growth in the fourth quarter could you just talk about the challenges. This business faced this quarter and how we should think about that business for the rest of the year.
Speaker Change: Got it thank you very much.
Speaker Change: We'll go next to Anderson shock with B Riley Securities.
Speaker Change: No challenges the noncore asset at some point.
Speaker Change: Hi, Congrats on a great quarter and thank you for taking the questions.
Speaker Change: The hope is to divest it in the interim as to harvest the cash flow that business could grow a lot faster than it has but albeit a it'll be a little more little less profitable because we would be.
Speaker Change: So first just looking at your guidance for telehealth like raising the lower end for revenues following a strong quarter.
Speaker Change: It looks like Youre studying telehealth to be roughly flat sequentially is this just being conservative or are there some headwinds that you're anticipating that will limit your ability to grow sequentially.
Speaker Change: Slowing incremental marketing dollars that we saw on the peg them to a level, where they can modestly grow their EBITDA quarter on quarter, and you'll see a bigger amount of growth in the back half of the year as they've started to build up subscribers.
Marc Benathen: Female health, we're already actively stowing and realizing revenue from day one, albeit on a smaller scale, as we fully integrate those assets onto our platform, which is a 60- to 90-day endeavor. The rate of growth there will obviously go up quite a bit. Right now, it's more of a VIP concierge based offering that's about $10,000 a year, but it's driving some decent initial revenue.
Speaker Change: Yeah, no it's not that there's a bad ones I mean, there's some timing in the revenues that we have I mean, we tend to take a relatively conservative view of the revenue you know we do normally.
Speaker Change: But really for maximizing cash flow versus maximizing the topline. So what they've done is they've continued to shift to higher value customers that have longer ltvs, which is why even though the subscribers were down 5% year on year of the revenue is while up you know, we're starting to see improvements in the profitability even more so is up dramatically.
Speaker Change: Normally expect and see that aspects of the Rex business in sexual health tend to be a little bit softer seasonally in Q2 than they are in Q1, which is what historically, we've seen particularly from new acquisition standpoint, So we've baked that into our model also but all of that's pretty consistent with what we've seen in the past obviously theirs.
Marc Benathen: On the mental health side, yeah, that's really a back half of the year thing where we'll see revenue contributions or small amounts baked into the guidance. As far as the cross-cell or RACs, HRT is separate from female health, so obviously there's a hormonal component to the female health. Which is menopause and other hormonal treatments. But on the male side, HRT is testosterone and the non-testosterone treatments. That's what sits under RACs. That's what we launched really in Q4 of last year, and that's what's beginning to pick up track. Great, thank you.
Speaker Change: Obviously, we're just seeing better caps and better return on investment.
Speaker Change: Tremendous growth.
Speaker Change: Year on year, and that's essentially how we're managing the business.
Speaker Change: Okay got it thank you for taking our questions and congrats again on the great quarter.
Speaker Change: <unk> versus just managing for sequential growth every single quarter.
Speaker Change: Thank you.
Speaker Change: Okay got it and then on work simply you had a cyber set decline in subscribers. This quarter fall you returned to growth in the fourth quarter could you just talk about the challenges. This business faced this quarter and how we should think about that business for the rest of the year.
Justin Driver: It appears we have no further questions at this time I will now turn the program back over to Justin <unk> for any additional or closing remarks.
Speaker Change: Yes.
Speaker Change: Yeah.
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No challenges I mean look the noncore asset at some point you know the hope is to divest it in the interim as to harvest the cash flow that business could grow a lot faster than it has but albeit a it'll be a little more little less profitable because we would be slowing incremental marketing dollars that we saw on the peg them.
Speaker Change: Thank you for your questions and for your interest in life. Indeed, we look forward to speaking with you once again when we report our second quarter results in August have a great evening.
Steven Valiquette: We'll go next to Steven Valiquette with Mizuho Securities. Thanks. Good afternoon guys. Congrats on the results.
Speaker Change: This does conclude today's program.
Marc Benathen: I guess I understand you don't want to get into too much specific numbers yet on the Govee Novacare pharmacy announcement from last week, but I guess I'm curious how much of the positive guidance revision today for 2025 is related to that announcement from last week. I'm just trying to get a sense for how much of a game changer that really is for the company, just any additional color would help. Thanks. None of it's related to that. It's all related to our performance in Q1, which obviously predated those partnerships. Look, there could be some upside in relation to that.
Speaker Change: Thank you for your participation you may disconnect at anytime.
Speaker Change: To a level, where they can modestly grow their EBITDA quarter on quarter, and you'll see a bigger amount of growth in the back half of the years, they've started to build up subscribers, but really for maximizing cash flow versus maximizing the topline.
Speaker Change: So what they've done is they've continued to shift to higher value customers that have longer ltvs, which is why even though the subscribers were down 5% year on year of the revenue as well.
Speaker Change: We're starting to see improvements in the profitability even more so it was up dramatically where theyre just seeing better cap some better return on investment.
Justin Schreiber: It basically provides patients another avenue for treatment, and quite frankly, you know, it says that, you know, we're obviously aligned with the companies that we're collaborating with. So, you know, no changes to the guidance, but all around, it's obviously a positive for patients.
Okay got it thank you for taking our questions and congrats again on the great quarter.
Speaker Change: Thank you.
Speaker Change: It appears we have no further questions at this time I will now turn the program back over to Justin <unk> for any additional or closing remarks.
Justin Schreiber: Steve, I'll just add to that. This is Justin and Schreiber. I mean, I think we definitely think it likely will be a long term game changer for our weight loss offering. I mean, I think one important point is that we view these as long term collaborations with both of these companies. And, you know, we think that, you know, we know that both of these companies are going to be launching, you know, new drugs. Some of these companies may launch drugs specifically for, you know, these type of self-pay programs. We think, I think the best way to summarize it is that we think that there are a lot of ways that, you know, this collaboration can flourish with both of these companies, you know, over the long term.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Thank you for your questions and for your interest in life and D. We look forward to speaking with you once again when we report our second quarter results in August have a great evening.
Speaker Change: This does conclude today's program.
Speaker Change: Thank you for your participation you may disconnect at any time.
Speaker Change: Yeah.
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Steven Valiquette: But it wouldn't, you know, it's just too early for us to incorporate that into our guidance or raise guidance, you know, because of, you know, because of that. Got it. OK.
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Yeah.
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Yi Chen: We'll go next to Yi Chen with H.C. Wainwright. Thank you for taking my questions.
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Justin Schreiber: My first question is, now that you have both Wigovi and ZepBound on your platform, can you tell us about a patient seeking weight management? How is he going to choose one of the two? And whether the patient's choice affects potential benefits to your company going forward? Thank you.
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Justin Schreiber: This is Justin Schreiber. Thanks for your question. I mean, the patient's choice of either medication. would not affect, you know, LifeMD or our platform or, you know, revenue in any way. You know, I think as far as which therapy they end up on, a lot of patients come in, you know, requesting a particular therapy. Some patients may choose a branded therapy based on price. There are some price differences between the two therapies. There are different delivery mechanisms for the therapies. For instance, Lilly's Cash Pay products are a vial with a syringe, and NovoCare's products have an auto-injector.
Speaker Change: Yeah.
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Speaker Change: Okay.
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Justin Schreiber: And then, look, the most important... The most important component is going to be, you know, that patient. visit with one of our providers, and the provider's going to make a recommendation based on their clinical presentation. Yeah, and I would note that we've always offered patients both either the smago type products, or terzapati type products, obviously, or the branded therapies of those. That's not a new thing. It's just the cash paid, discounted collaborations. Obviously, the NovoCare one was signed subsequent to the Lilly. Got it.
Yi Chen: I think one of your competitors, who also got Wigovi from Novo, announced a pricing point moderately higher than your pricing point. I mean, what is the difference there? Do they offer any additional services that you do not offer?
Justin Schreiber: Don't really want to get into, you know, into how our competitors have chosen to price these products. LifeMD hasn't finalized the pricing structure for the care that we'll provide alongside these products, but we have said that it will be very similar to what we're currently charging for our weight management program.
Justin Schreiber: Okay, last question. Does LifeMD plan to continue to offer compounded GLP-1 in the coming years?
Justin Schreiber: Sure, this is Justin. I'll answer that. So, to be clear, you know, LifeMD doesn't... compounds any GLP-1 medications. You know, LifeMD is a virtual care provider. You know, in the event that patients... don't have insurance coverage for brain therapy and can't afford one of the self-paid programs from one of the collaborations that we have in place aren't appropriate, clinically speaking, for non-GLP1 therapy. LifeMD is willing, again, assuming the patient has the appropriate clinical presentation, to send a prescription to a compounded pharmacy or compounding pharmacy.
Justin Schreiber: However, you know, our focus Our focus is helping patients access, you know, branded therapies in every possible way. Got it.
Anderson Schock: We'll go next to Anderson Schock with B. Reilly Securities. Hi, congrats on a great quarter and thank you for taking the question. So first, just looking at your guidance for telehealth, like raising the lower end for revenues following a strong quarter, this looks like you're expecting telehealth to be roughly flat sequentially. Is this just being conservative or are there some headwinds that you're anticipating that will limit your ability to grow sequentially? Yeah, no, it's not that there is, Edwins, I mean, there's some timing in the revenue that we have. I mean, we tend to take a relatively conservative view to revenue.
Marc Benathen: You know, we do normally expect and see that aspects of the RECS business and sexual health tend to be a little bit softer seasonally in Q2 than they are in Q1, which is what historically we've seen, particularly from new acquisition standpoints. We bake that into our model also, but all that's pretty consistent with what we've seen in the past.
Marc Benathen: Obviously, there's tremendous growth year on year, and that's essentially how we're managing the business versus, you know, just managing for sequential growth every single quarter. Okay, got it. And then on WorkSimply, you had a 5% decline in subscribers this quarter following your return to growth in the fourth quarter. Could you just talk about the challenges this business faced this quarter and how we should think about that business for the rest of the year? No challenges. I mean, look, it's a non-core asset. At some point, you know, the hope is to divest it, and the interim is to harvest the cash flow.
Marc Benathen: So that business could grow a lot faster than it is, but it'll be a little less profitable because we would be, you know, throwing incremental marketing dollars at that. We've sort of pegged them to a level where they can modestly grow their EBITDA quarter on quarter, and they'll see a bigger amount of growth in the back half of the year as they've started to build up subscribers. But really for maximizing cash flow versus maximizing the top line. So what they've done is they've continued to shift to higher value customers that have longer LTVs, which is why even though the subscribers are down 5%, year-on-year, the revenue is well up.
Marc Benathen: You know, we're starting to see improvements in the profitability even more so is up dramatically where they're just seeing better caps and better return on investment. Okay, got it.
Operator: Thank you for taking our questions and congrats again on the great quarter. Thank you.
Operator: It appears we have no further questions at this time.
Justin Schreiber: I will now turn the program back over to Justin Schreiber for any additional or closing remarks. Thank you for your questions and for your interest in LifeMD. We look forward to speaking with you once again when we report our second quarter results in August. Have a great evening.
Operator: This does conclude today's program. Thank you for your participation. You may disconnect at any time.