Core Viewpoint - LifeMD, Inc. is enhancing its weight management program by integrating access to Wegovy (semaglutide) through NovoCare Pharmacy, providing cash-pay patients with streamlined access to this FDA-approved medication [1][2][3] Group 1: Company Overview - LifeMD is a leading provider of virtual primary care services, offering telemedicine, lab testing, and pharmacy services across more than 200 conditions [5] - The company utilizes a vertically integrated digital care platform, a 50-state affiliated medical group, and a national diagnostic lab network to improve access to affordable healthcare [5] Group 2: Product Offering - The integration with NovoCare Pharmacy allows LifeMD to offer all FDA-approved dose strengths of Wegovy directly within its virtual care platform [1][4] - Wegovy is the first GLP-1 therapy approved in the U.S. for chronic weight management and cardiovascular risk reduction in adults with obesity [4] Group 3: Market Position and Strategy - LifeMD's weight management program is one of the fastest-growing cash-pay offerings in the U.S., providing virtual consultations, lab testing, and prescriptions for anti-obesity medications [2][3] - The company aims to reduce barriers for patients seeking access to life-changing medications like Wegovy, enhancing the overall patient experience [3]

Company Overview - LifeMD, Inc. is a leading provider of virtual primary care services, offering telemedicine, laboratory and pharmacy access, and specialized treatment for over 200 conditions [3] - The company utilizes a vertically integrated digital care platform, a 50-state affiliated medical group, and a 22,500-square-foot affiliated pharmacy to enhance access to high-quality and affordable care [3] Financial Reporting - LifeMD will report its financial results for the three months ended March 31, 2025, after the close of U.S. financial markets on May 6, 2025 [1] - A conference call will be held on the same day at 4:30 p.m. Eastern time to discuss the financial results [2] Contact Information - Investor inquiries can be directed to Marc Benathen, Chief Financial Officer, via email at marc@lifemd.com [4] - Media inquiries can be directed to Jessica Friedeman, Chief Marketing Officer, via email at press@lifemd.com [4]

Core Insights - LifeMD, Inc. has announced the acquisition of key assets from Optimal Human Health MD, marking its entry into the women's health market and establishing a scalable clinical foundation for a comprehensive virtual health program focused on hormone health, bone density, metabolism, and long-term wellness [1][2][3] Company Strategy - The expansion into women's health addresses significant unmet needs in areas such as perimenopause, menopause, and hormonal balance, which have historically been underserved [2][3] - LifeMD aims to leverage its national provider network, partnerships with Quest and Labcorp, in-house mail-order pharmacy, and behavioral health services to create a comprehensive virtual-first women's health offering [3][5] - The acquisition aligns with LifeMD's broader strategy of scaling high-demand specialty care verticals, following the success of its men's health initiative, Rex MD [5] Market Opportunity - The women's health market, particularly in menopause and osteoporosis, represents a projected opportunity of $60–70 billion by 2030, highlighting the urgency for solutions that cater to women's health needs at every life stage [2][4] Team and Expertise - The acquisition brings Optimal's trained team, including nurse practitioners and registered dietitians, as well as Dr. Doug Lucas, a respected leader in osteoporosis reversal and hormone optimization, to LifeMD [4][5] - Dr. Lucas will play a central role in shaping LifeMD's women's health strategy, leveraging his clinical experience and thought leadership [4][5]

Core Insights - LifeMD, Inc. has expanded its acceptance of Medicare insurance for qualifying virtual primary care services, initially available to over 21 million Medicare Part B beneficiaries in 26 states, with plans to reach over 60 million beneficiaries across 49 states by the end of Q2 2025 [1][2][5] Group 1: Company Developments - The expansion of Medicare acceptance is part of LifeMD's long-term strategy to diversify its payor mix and strengthen recurring revenue streams while addressing underserved populations [5] - LifeMD's platform will provide access to synchronous medical care, urgent prescriptions, and laboratory services through partnerships with Quest and Labcorp [4] - The company has invested two years in operational readiness and regulatory compliance to effectively serve the growing Medicare population [2] Group 2: Market Context - A significant portion of the Medicare population lacks convenient access to primary care, particularly in rural or underserved areas, complicating timely preventive care for older adults [3] - Approximately 75% of Medicare beneficiaries are overweight, obese, or managing at least one cardiometabolic condition, highlighting the need for accessible virtual care solutions [3] - Recent legislation has extended Medicare Telehealth Flexibilities through September 30, 2025, allowing beneficiaries to receive telehealth services from various locations, including their homes [3]

Group 1 - LifeMD (NASDAQ: LFMD) has faced challenges with its primary revenue source, WorkSimpli, experiencing stagnation, while its weight management segment has been overshadowed by more affordable alternatives, particularly from HIMS [2] - The company is part of a marketplace service called SHU Growth Portfolio, which focuses on small companies with high growth potential and offers a buy and hold investment strategy [3] - The service includes features such as a portfolio, buy alerts, market updates, and a chat room for community engagement [3] Group 2 - The analyst has a beneficial long position in LFMD shares, indicating confidence in the company's future performance [4] - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [5]

Company Overview - LifeMD, Inc. is a leading provider of virtual primary care services, offering telemedicine, laboratory and pharmacy access, and specialized treatment for over 200 conditions [2] - The company utilizes a vertically integrated digital care platform, a 50-state affiliated medical group, a 22,500-square-foot affiliated pharmacy, and a U.S.-based patient care center to enhance access to high-quality and affordable care [2] Upcoming Events - Management will participate in the 24th Annual Needham Virtual Healthcare Conference from April 7-10, 2025, presenting a corporate overview and conducting one-on-one meetings with investors [1]

Revenue and Growth - Total revenue for the year ended December 31, 2024, was approximately $212.4 million, a 39% increase compared to $152.5 million for the year ended December 31, 2023, driven by a 61% increase in telehealth revenue [220]. - Telehealth revenue accounted for 75% of total revenue, with an increase of approximately $65.7 million during the year ended December 31, 2024, primarily due to higher demand for LifeMD virtual primary care [220]. Profitability and Expenses - Gross profit increased by approximately 41% to $188.4 million for the year ended December 31, 2024, with a gross profit margin of 89% compared to 88% in the previous year [222]. - Total expenses for the year ended December 31, 2024, were approximately $204.5 million, representing a 38% increase from $148.1 million in 2023, primarily due to higher selling and marketing expenses [223]. - Selling and marketing expenses increased by approximately $26.6 million, or 35%, driven by initiatives to boost sales for LifeMD virtual primary care [225]. - Customer service expenses increased by approximately $2.6 million, or 34%, primarily due to higher infrastructure and compensation costs [230]. - Development costs rose by approximately $3.5 million, or 57%, mainly from technology platform improvements and amortization expenses [230]. Cash Flow and Capital Management - Net cash provided by operating activities was approximately $17.5 million for the year ended December 31, 2024, compared to $8.8 million in 2023 [229]. - Working capital decreased by approximately $19.3 million during the year ended December 31, 2024, primarily due to an increase in current liabilities [228]. - Net cash used in investing activities for the year ended December 31, 2024 was approximately $11.5 million, an increase of 32.2% compared to $8.7 million for the year ended December 31, 2023 [230]. - Net cash used in financing activities for the year ended December 31, 2024 was approximately $4.1 million, a significant decrease from net cash provided of approximately $29.1 million in 2023 [232]. - The Company has a current cash balance of approximately $27.2 million as of March 7, 2025, with expectations of sufficient cash flow over the next 12 months [240]. - The Company expects to improve its cash burn rate and achieve positive operating cash flows during the year ended December 31, 2024 [240]. Strategic Initiatives - The company launched the acceptance of private health insurance for virtual primary care services in June 2024, with plans to expand coverage across all 50 states [217]. - A new wholly-owned pharmacy facility was opened in November 2024, designed to fill up to 5,000 daily prescriptions, enhancing the integrated telehealth platform [216]. - The company expects to begin accepting Medicare as part of its early 2025 roadmap, further expanding access to services [217]. - The Company entered into a collaboration with Medifast, Inc., which includes a $10 million funding agreement to enhance the Company's platform and operations [234]. - The Company issued 1,224,425 shares of common stock in a private placement to Medifast at a purchase price of $8.1671 per share, raising approximately $10 million [235]. - As of December 31, 2024, there was $19.0 million outstanding under the Avenue Facility, which provides a total credit facility of up to $40 million [237]. - The Company has $53.3 million available under the ATM Sales Agreement, part of the $150.0 million available under the 2024 Shelf registration [239].

Financial Data and Key Metrics Changes - LifeMD achieved consolidated revenue growth of 43% year-over-year to $64.3 million in Q4 2024, with full-year revenue of $212.5 million, a 39% increase from 2023 [30][35] - Telehealth revenue grew by 60% year-over-year, with standalone adjusted EBITDA profitability at $5.9 million, an increase of 396% compared to the previous year [30][34] - Gross margin for Q4 was 85.3%, a decline of 280 basis points year-over-year, but expected to normalize to 88% to 90% in 2025 [32][35] Business Line Data and Key Metrics Changes - Telehealth subscriber growth remained strong, with active subscribers increasing by 27% year-over-year to over 275,000 [31] - WorkSimpli's active subscribers grew by 3% to 164,000, with average monthly adjusted EBITDA returning to over $1 million [31] - Rex MD generated over $80 million in annualized revenue, expecting 15% to 20% growth in 2025 driven by sexual health offerings and hormone replacement therapy [20] Market Data and Key Metrics Changes - The weight loss and metabolic health program had over 75,000 active patients as of year-end, positioned for long-term growth [9] - The approval rate for Zepbound prior authorizations increased by 18 percentage points between October and January, approaching 60% [12] - LifeMD expects to have approximately 150 million lives under coverage by the end of 2025 through government and private payer programs [24] Company Strategy and Development Direction - LifeMD's strategic priorities for 2025 include solidifying its market position in weight loss care, expanding hormone replacement therapy, launching the LifeMD plus membership program, and growing payer programs [8][9] - The company plans to enter the behavioral health space in Q2 2025, leveraging its existing telehealth capabilities [25] - LifeMD aims to enhance its pharmacy capabilities and expand its portfolio of personalized therapies [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term benefits of expanded coverage for branded GLP-1 therapies and the potential for Medicare to cover these medications [15][70] - The company is prepared to capitalize on the evolving landscape of telehealth and weight management, with a focus on patient access and affordability [10][70] - Management highlighted the importance of building a robust operational infrastructure to support future growth in telehealth and pharmacy services [39][70] Other Important Information - LifeMD's GAAP net loss for Q4 was $883,000, a significant improvement from a loss of $4.5 million in Q4 2023 [33] - The company introduced guidance for 2025 consolidated revenue of $265 million to $275 million, with telehealth revenue of $205 million to $213 million [37] - Adjusted EBITDA guidance for 2025 is between $30 million and $32 million, with telehealth adjusted EBITDA of approximately $20 million [37] Q&A Session Summary Question: Can you talk about your relationship with LillyDirect and how it works? - The relationship is with a third-party pharmacy that LillyDirect uses to ship medications directly to patients, enhancing patient experience for those without insurance coverage [44] Question: What is the outlook for WorkSimpli? - WorkSimpli has stabilized and is expected to continue producing around $1 million in monthly EBITDA, with significant growth potential [66] Question: What percentage of new patients are getting insurance approvals for therapies? - Approximately 10% of patients receive coverage without prior authorization, while about 60% require prior authorization, with a good approval rate for Zepbound [117] Question: What is the expected contribution from the new segments in 2025? - The new segments are expected to contribute modestly in 2025, with significant growth potential in the following years as the company scales its offerings [110][114] Question: Can you provide an update on Medicare reimbursement for telehealth services? - There is optimism for a permanent extension of Medicare coverage for telehealth, with bipartisan support in the legislature [73]

Financial Performance - LifeMD achieved a consolidated revenue growth of 43% year-over-year, reaching $64.3 million in Q4 2024, with telehealth revenue growing by 60% [30] - The company reported a standalone adjusted EBITDA profitability of $5.9 million for telehealth, an increase of 396% compared to the previous year [30] - For the full year 2024, consolidated revenue was $212.5 million, a 39% increase from 2023, with telehealth revenue growing by 61% [35] Business Line Performance - Telehealth revenue grew significantly, with active subscribers increasing by 27% year-over-year to over 275,000 [31] - WorkSimpli's active subscribers grew by 3% to 164,000, stabilizing with an average monthly adjusted EBITDA of over $1 million [31] - The male hormone replacement therapy business was successfully launched, contributing to the growth of the Rex MD platform, which currently produces over $80 million in annualized revenue [19][20] Market Data - LifeMD's weight loss and metabolic health program had over 75,000 active patients by year-end, positioning the company for long-term growth [9] - The approval rate for Zepbound, a GLP-1 medication, increased by 18 percentage points between October and January, reaching nearly 60% [12] - The company expects to have approximately 150 million lives under coverage by the end of 2025, expanding its addressable market significantly [24] Company Strategy and Industry Competition - LifeMD's strategic priorities for 2025 include solidifying its market position in weight loss and metabolic care, expanding hormone replacement therapy offerings, and launching the LifeMD plus membership program [8] - The company aims to enhance its pharmacy capabilities and expand its insurance offerings to drive more affordable access to virtual care [21][23] - LifeMD is well-positioned to benefit from the fragmentation in the GLP-1 supported weight loss market, as many smaller players may struggle to adapt [18] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the strong performance in telehealth and the addition of key capabilities like pharmacy and insurance offerings [39] - The company is preparing for potential Medicare coverage of GLP-1 medications, which could significantly impact its business [70] - Management emphasized the importance of providing affordable access to medications and comprehensive care for patients [123] Other Important Information - The gross margin for Q4 was 85.3%, a decline of 280 basis points due to changes in revenue mix and one-time impacts from onboarding a new pharmacy [32] - LifeMD expects gross margins to normalize to 88% to 90% in 2025 [32] - The company plans to launch several new service offerings in 2025, including behavioral health services and an enhanced virtual care membership program [25][28] Q&A Session Summary Question: Can you talk about your relationship with LillyDirect and how it works? - LifeMD has a relationship with a third-party pharmacy used by LillyDirect to ship medications directly to patients, enhancing patient experience for those without insurance coverage [44] Question: What is your outlook for the future of WorkSimpli? - WorkSimpli has stabilized and is expected to continue producing around $1 million in EBITDA monthly, with significant growth potential [66] Question: What percentage of new patients are getting insurance approvals for therapies? - Approximately 10% of patients receive coverage without prior authorization, while about 60% require prior authorization, with a favorable approval rate for Zepbound [117] Question: What are the assumptions in your 2025 revenue guidance? - The guidance includes conservative estimates for patient retention and assumes a significant portion of growth will come from new patients transitioning to branded therapies [87] Question: Can you provide an update on Medicare reimbursement for telehealth services? - There is optimism for a permanent extension of Medicare coverage for telehealth, with bipartisan support in the legislature [73] Question: What is the expected contribution from the new behavioral health program? - The behavioral health market is seen as a significant opportunity, with plans to offer comprehensive treatment options [76]

Core Insights - LifeMD, Inc. reported strong financial results for Q4 and the full year 2024, achieving record quarterly revenue and adjusted EBITDA, with significant growth in its telehealth services [2][3][5]. Financial Performance - Consolidated revenues increased by 43% year-over-year to $64.3 million, with telehealth revenue up 60% [5][6]. - Adjusted EBITDA rose by 78% to $9.0 million, while telehealth adjusted EBITDA surged by 396% to $5.9 million [5][6]. - The company exited 2024 with over $35 million in cash and positive full-year net cash flow [5][6]. Subscriber Growth - Telehealth active subscribers increased by 27% to approximately 275,000 at the end of Q4 2024 [6][8]. - WorkSimpli active subscribers grew by 3% to approximately 164,000 [6][8]. Future Guidance - For 2025, LifeMD expects consolidated revenue in the range of $265 million to $275 million and consolidated adjusted EBITDA of $30 million to $32 million [3][5][11]. Management Commentary - The CEO highlighted the growth of the weight management program and the upcoming Medicare launch as significant growth drivers [3][5]. - The company is focused on building a high-quality virtual care platform that is transparent, affordable, and accessible [3][5].