Medifast, Inc. (MED) reported second-quarter 2024 results, with the bottom and top lines declining year over year. However, both earnings and net revenues beat the Zacks Consensus Estimate. Medifast is strategically adjusting its operations to meet the changing demands of the weight loss industry. This involves expanding its customer outreach through enhanced marketing efforts and entering the medically supported weight loss domain in partnership with LifeMD. These steps are designed to increase its market ...

Medifast, Inc. (NYSE:MED) Q2 2024 Earnings Conference Call August 5, 2024 4:30 PM ET Company Participants Steven Zenker - Vice President, Investor Relations Dan Chard - Chairman and Chief Executive Officer Jim Maloney - Chief Financial Officer Conference Call Participants James Salera - Stephens Linda Bolton-Weiser - D.A. Davidson David Larsen - BTIG Operator And welcome to the Medifast Second Quarter 2024 Earnings Conference Call. At this time, all participants are on a listen-only mode. A brief question-a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________ to ________. Commission File Number: 001-31573 Medifast, Inc. (Exact name of registrant as specified in its charter) Delaware 13-3714405 | --- | ...

Medifast Announces Second Quarter 2024 Financial Results August 5, 2024 BALTIMORE – (BUSINESS WIRE)--Medifast (NYSE: MED), the health and wellness company known for its habit-based and Coach-guided lifestyle solution, OPTAVIA®, today reported results for the second quarter ended June 30, 2024. Second Quarter 2024 • Revenue of $168.6 million, with revenue per active earning Coach of $4,972 • Independent active earning OPTAVIA Coaches of 33,900 • Net loss of $8.2 million (non-GAAP adjusted net income of $10.1 ...

Medifast, Inc. (MED) is likely to register a top and bottom-line decline when it reports second-quarter 2024 earnings on Aug 5. The Zacks Consensus Estimate for revenues is pegged at $160.4 million, which indicates a 45.8% slump from the year-ago period. The consensus mark for earnings has remained unchanged in the past 30 days at 36 cents per share, which suggests a substantial decline of 87% from the year-ago quarter's figure. MED has a trailing four-quarter earnings surprise of 48.7%, on average. Factors ...

The Zacks Consensus Estimate for 2024 earnings per share has declined from $2.80 to 94 cents in the past 30 days. Additionally, this Zacks Rank #5 (Strong Sell) stock has slumped 44.1% in the past three months compared with the industry's decline of 4.3%. Medifast has been encountering difficulties in attracting customers, primarily because of a range of macroeconomic elements, such as the increasing popularity of GLP-1 medications, the rapidly changing economy and shifts in social media algorithms. Undoubt ...

Medifast, Inc. (MED) delivered first-quarter 2024 results, with the top and bottom lines declining year over year. While the bottom line missed the Zacks Consensus Estimate, the top line exceeded the same.Medifast is strategically adjusting its operations to meet the changing demands of the weight-loss industry. This involves expanding its customer outreach through enhanced marketing efforts and entering the medically-supported weight-loss domain in partnership with LifeMD.These steps are designed to increa ...

Medifast (NYSE:MED) stock is falling on Tuesday after the weight loss company released its earnings report for the first quarter of 2024.The bad news for MED stock comes from its adjusted earnings per share of 66 cents. That’s well below Wall Street’s estimate of 80 cents for the quarter. It’s also much worse than the $3.67 per share reported in the same period of the year prior.Medifast also reported revenue of $174.74 million during Q1. That’s better than the $173.45 million analysts were expecting. Howev ...

Financial Data and Key Metrics Changes - Revenue for the first quarter was $175 million, a 49.9% decrease compared to the same period last year, primarily due to challenges in customer acquisition amid the rise of weight loss medications [23][45] - Net income for the first quarter was $8.3 million or $0.76 per diluted share, down from $40 million or $3.67 per diluted share in the prior year [81] - SG&A expenses decreased by 38.1% to $119.4 million, but as a percentage of revenue, it increased by 1,300 basis points to 68.3% due to lower sales volumes [8][24] Business Line Data and Key Metrics Changes - The number of active earning OPTAVIA coaches decreased by 35.6% to approximately 37,800, with average revenue per active coach declining by 22.2% to $4,623 [80] - Gross profit decreased by 48.3% to $127.3 million, although gross profit margin improved by 220 basis points to 72.8% due to efficiencies in inventory management [80] Market Data and Key Metrics Changes - The GLP-1 support market is currently valued at approximately $13 billion and is projected to grow to $50 billion or more by 2030, indicating a significant opportunity for the company [50][85] - Independent research shows that about 50% of prospective customers would consider using GLP-1 medications for weight loss, highlighting a growing market segment [43] Company Strategy and Development Direction - The company is focusing on building differentiated capabilities to lead in the health and wellness space, particularly in medically supported weight loss [18][22] - A new integrated offering in collaboration with LifeMD is being rolled out, which includes a holistic program combining nutrition support and access to medical providers [77][78] - The company plans to invest $30 million in marketing initiatives throughout 2024 to enhance brand visibility and customer engagement [52][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged continued headwinds in customer acquisition due to the popularity of GLP-1 medications but expressed optimism about future improvements as new marketing initiatives take effect [45][56] - The company expects elevated spending on customer acquisition to continue into 2025, which may pressure profitability in the short term [26][56] Other Important Information - The effective tax rate for the first quarter was 28.2%, higher than the previous year's rate of 25.1% due to various factors including stock compensation [24] - The company ended the quarter with $156.4 million in cash and no interest-bearing debt, an increase from $150 million at the end of the previous year [25] Q&A Session Summary Question: Insights on Q2 revenue guidance - Management indicated that the guidance reflects ongoing challenges in customer acquisition and that the impact of new marketing efforts will be more pronounced in Q3 [57][60] Question: Details on the new integrated program pricing - The new program priced at $282 includes services from both OPTAVIA and LifeMD, but does not cover medication costs [61][62] Question: Availability of compounded products and strategy - The company is confident in offering both branded and compounded solutions to meet customer needs, despite potential future constraints [66][67] Question: Capacity of LifeMD clinicians to handle demand - LifeMD is actively hiring and has the capacity to scale its number of clinicians to meet growing demand [69] Question: Clarification on revenue recognition changes - The revenue recognition change discussed pertains to 2023 and does not impact 2024 results [70] Question: Anticipated capital spending for 2024 - Capital spending is expected to be at least the same level as 2023, driven by investments in technology and seamless offers [72] Question: Outlook on gross margin stability - Management expects gross margins to remain steady in the near term, influenced by commodity inflation trends [94]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________ to ________. Commission File Number: 001-31573 Medifast, Inc. (Exact name of registrant as specified in its charter) | Delaware | 13-3714405 | ...