Financial Data and Key Metrics Changes - Consolidated revenue grew 23% year over year to $62.2 million [17] - Telehealth revenue increased 30% to $48.6 million [17] - Adjusted EBITDA totaled $7.1 million, up from $2.2 million in the prior year [18] - GAAP net loss attributable to common stockholders was $2.9 million, compared to a loss of $7.7 million in the previous year [18] - Gross margin for the second quarter was 88%, a decline of 210 basis points year over year [17] Business Line Data and Key Metrics Changes - Telehealth business saw a 30% increase in revenue and adjusted EBITDA growth of 560% [4] - Weight management program continued to attract over 400 new patient sign-ups per day [6] - Work Simply generated nearly $3.7 million in adjusted EBITDA on a standalone basis, growing 119% [17] - Active telehealth subscribers increased 16% year over year to over 297,000 [17] - Active subscribers for Work Simply contracted by 6% to 149,000 [17] Market Data and Key Metrics Changes - The company is contracted with over 100 insurance plans across 40 states, covering just under 80 million lives [26] - The weight management segment has been impacted by a higher than anticipated refund rate due to patients lacking insurance coverage [7] Company Strategy and Development Direction - Focus on expanding the weight management program and enhancing patient experience [5] - Plans to return the RexMD brand to double-digit growth by scaling various treatment programs [5] - Expansion into behavioral health and women's health programs to address large underserved markets [5][11] - Investment in LifeMD plus membership service to drive deeper patient engagement and retention [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of RexMD despite recent challenges [21] - The company is optimistic about scaling its behavioral health offering and women's health program in the upcoming quarters [11][52] - Management highlighted the importance of integrating AI to improve operational efficiency and patient care [14] Other Important Information - The company fully repaid its senior venture debt, saving approximately $1.1 million in future interest payments [19] - Revised consolidated 2025 revenue guidance to $250 million to $255 million from $268 million to $275 million previously [19] Q&A Session Summary Question: Can you speak more about the insurance opportunity? - The company is contracted with over 100 insurance plans across 40 states, covering nearly 80 million lives, with expectations to double this by year-end [26] Question: Any comments on your relationships with Novo and Lilly? - Integrations with Lilly Direct and NovoCare are in place, with a growing number of patients accessing self-pay branded therapies [30] Question: Can you provide more color on REX customer acquisition costs? - Customer acquisition costs increased by 15% to 25% sequentially during the quarter, leading to a pullback in volume [34] Question: What drove the higher refund rates in the quarter? - Higher refund rates were primarily due to patients lacking insurance coverage for expensive branded therapies [58] Question: What percentage of patients with insurance for GLP-1s are being approved for coverage? - The company expects that by year-end, approximately 75% of new patients will be on an insurance-covered GLP-1 medication or a self-pay product [48] Question: How is the initial launch of your Medicare fee-for-service initiatives progressing? - The company is on track to expand to 49 states by year-end, with scaling expected in the back half of the year [52]

Privia Health Group (PRVA) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Company Participants Robert Borchert - SVP, Investor and Corporate CommunicationsParth Mehrotra - CEODavid Mountcastle - EVP & CFOJailendra Singh - Managing DirectorJoshua Raskin - Partner - Managed Care & ProvidersRichard Close - Managing DirectorAlberta Massey - Equity Research AssociateA.J. Rice - Managing DirectorThomas Walsh - Equity Research AssociateConstantine Davides - Managing DirectorJack Slevin - VP - Healthcare Services E ...