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 first quarter ended March 31, 2024. First Quarter 2024 "Fast paced medical innovation is providing greater access to medical weight loss solutions than ever before. We are transforming our OPTAVIA offer to include comprehensive support for consumers who wish to use GLP-1 medical weight loss solutions on their individual jou ...

Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as "intend," "anticipate," "expect" or other similar words or the negative of such terminology. Similarly, descriptions of Medifast's ob ...

Medifast, Inc. (MED) is on track to transition into a diversified health and wellness company. The company continues to invest in customer acquisition and experience to sustain long-term growth. Management is progressing well with the 'Fuel for the Future' program. However, MED is not immune to the volatile macroeconomic environment with inflation.Let’s discuss this in detail.Growth Efforts in PlaceMedifast regularly adapts to shifting consumer behavior to maintain its relevance. To this end, management is ...

Medifast (MED) shares ended the last trading session 5.9% higher at $36.61. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 32.8% loss over the past four weeks.Medifast’s shares have been gaining on optimism surrounding efforts to broaden its presence in the expansive health and wellness market. The company is foraying into popular medically supported weight management and sports nutrition segments. Medifast’s inve ...

Medifast, Inc. (MED) is actively advancing various initiatives to broaden its presence in the expansive health and wellness market. The company is on track with several key initiatives, which include product and program innovation, refinement of coach and client experiences and streamlining operational efficiency, among others. However, management is encountering difficulties in attracting customers, mainly due to macroeconomic elements.Let’s discuss on details.What’s Working in Medifast’s Favor?The Zacks R ...

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Medifast, Inc. (MED) delivered fourth-quarter 2023 results, with the top and bottom 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 p ...

Financial Data and Key Metrics Changes - Revenue for the full year of 2023 was $1.07 billion, a decrease of 32.9% compared to 2022, primarily due to pressure on customer acquisition [22] - Fourth quarter revenue decreased 43.4% to $191 million from $337.2 million in the fourth quarter of 2022, driven by challenges in customer acquisition [36] - Non-GAAP adjusted income from operations decreased 69.5% to $16.2 million, with an operating margin of 8.5%, down 730 basis points year-over-year [38] Business Line Data and Key Metrics Changes - The number of active earning OPTAVIA coaches decreased by 32.5% year-over-year, ending the quarter with approximately 41,100 coaches [36] - Average revenue per active earning OPTAVIA Coach for the fourth quarter was $4,648, reflecting a year-over-year decline of 16.1% [36] - SG&A expenses decreased by 34% to $132.7 million for the fourth quarter, primarily due to reduced coach compensation and cost optimization initiatives [4] Market Data and Key Metrics Changes - The weight loss market is projected to grow significantly, with GLP-1 medications expected to reach up to $100 billion by 2030 [13] - Independent research indicated that 96% of individuals interested in medical weight loss solutions recognize the need for lifestyle changes [14] Company Strategy and Development Direction - The company is focusing on transforming into a diversified health and wellness company, expanding its addressable market to include medically supported weight management and sports nutrition [13][26] - A strategic collaboration with LifeMD aims to provide customers access to personalized coaching and medical expertise, enhancing the overall customer experience [27][29] - The company plans to discontinue its quarterly dividend to prioritize capital for growth initiatives [17][65] Management's Comments on Operating Environment and Future Outlook - Management acknowledged continued challenges in customer acquisition due to the popularity of weight loss medications and changing market dynamics [8][58] - The company expects to see improvements in customer acquisition trends beginning in the second half of 2024 as growth initiatives ramp up [40] - Management expressed confidence in the company's ability to navigate its transformation and execute its long-term growth strategy [60][100] Other Important Information - The company has a strong balance sheet with $150 million in cash and no debt, providing liquidity for customer acquisition initiatives [39] - The gross profit margin improved by 470 basis points to 74% in the fourth quarter, positively impacted by cost savings initiatives [62] Q&A Session Summary Question: What is the trend regarding the number of active earning coaches and revenue per coach? - Management indicated that the decline in active earning coaches and revenue per coach is a concern, but they expect marketing spend to help stabilize sales trends [69][70] Question: What is the expected impact of the LifeMD collaboration on sales? - Management noted that the full impact of the LifeMD collaboration will be seen once the integrated offer is launched mid-year, with expectations for incremental advertising spending [47][55] Question: How will the company manage increased SG&A spending in 2024? - Management confirmed that increased SG&A spending will be primarily related to marketing activities, with expectations for continued cost savings from the Fuel for the Future initiative [66][95]

© 2024 Medifast, Inc. All Rights Reserved. Medifast Q4 2023 Highlights • Q4 2023 revenue and EPS within guidance range Medifast® Q4 2023 Earnings Presentation © 2024 Medifast, Inc. All Rights Reserved. ▼ MEDIFAST. ▒《OPTAVIA。 Safe Harbor Statement 2 This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These fo ...

Medifast (MED) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $3.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.10%. A quarter ago, it was expected that this weight-loss company would post earnings of $1.02 per share when it actually produced earnings of $2.12, delivering a surprise of 107.84%.Over the last four quarters, the com ...