Investment Thesis - LifeMD, Inc. reported mixed Q2 2024 earnings and guidance, with management indicating that issues related to its non-core asset, WorkSimpli, are resolved, yet this narrative has been consistent over multiple quarters [2] - The author believes WorkSimpli has no value and suggests that selling this asset could provide upside potential for investors [2] - Focus remains on LifeMD's GLP1 offering and telehealth business, which is expected to grow despite management's overpromising [2] Company Overview - LifeMD is a telehealth company providing online medical consultations, prescriptions, and medication delivery, aiming to enhance healthcare accessibility [3] - The company has struggled with the sale of WorkSimpli, a non-core asset, despite management's repeated intentions to divest it since 2022 [3][5] - The core narrative centers on LifeMD's GLP1 prospects, which are still developing, leading to uncertainty regarding patient demand sustainability [3][5] Financial Performance - LifeMD's telehealth business is projected to deliver 3 million to 800K EBITDA profit in Q2 2024, ahead of schedule [6] - The company has about 15 per share by summer 2025, down from $20 [2][8] - Despite challenges, the company is considered compelling at 10x forward EBITDA, supported by a strong balance sheet [11][12] - The GLP1 business model allows for significant upfront cash flow, which is reflected in the deferred revenues on the cash flow statement [6] Market Sentiment - There is skepticism in the market regarding LifeMD's growth prospects, particularly due to the potential commoditization of GLP1 drugs and the shrinking value of WorkSimpli [5][10] - Investors remain cautious despite the rapid growth of the telehealth business, leading to uncertainty about future prospects [5][9]
LifeMD: Selling WorkSimpli Could Be A Catalyst