Financial Data and Key Metrics Changes - LifeMD achieved total revenues of $65.7 million, a 49% increase year over year [12] - Core telehealth revenue grew by 70% compared to the prior year, with adjusted EBITDA of $5.3 million, a significant improvement from a loss of $1.3 million in the same period last year [12][14] - GAAP net income attributable to common stockholders was $608,000, or $0.01 per diluted share, compared to a net loss of $7.5 million, or a loss of $0.19 per share, in Q1 2024 [13][14] - Adjusted EBITDA totaled $8.7 million for the first quarter, compared to $100,000 in the year-ago period [14] Business Line Data and Key Metrics Changes - The telehealth business saw a 70% revenue growth, driven by the weight management program and new initiatives like men's hormone therapy [5][12] - Active telehealth subscribers increased by 22% year over year to over 290,000 [12] - WorkSimply active subscribers declined by 5% to 158,000, but the business continued to perform well financially with quarterly adjusted EBITDA exceeding $3 million [12] Market Data and Key Metrics Changes - LifeMD expanded its fee-for-service Medicare coverage to over 21 million beneficiaries across 26 states, with plans to reach 49 states and over 60 million beneficiaries by the end of Q2 [9] - The company is entering high-growth verticals such as women's health and behavioral health, with new offerings expected to launch soon [10][11] Company Strategy and Development Direction - LifeMD aims to build a trusted vertically integrated marketplace for healthcare services, prescription medications, and over-the-counter products [16] - The company is expanding its RExMD brand beyond sexual health into areas like weight management, behavioral health, insomnia, and hormone replacement therapy [6][10] - Strategic collaborations with Lilly Direct and NovoCare are designed to improve access to GLP-1 medications for weight management patients [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for the remainder of the year, citing strong early traction across key initiatives [16] - The company is focused on delivering a comprehensive, convenient, and outcomes-driven care experience [11][17] - Management highlighted the importance of insurance in their offerings, believing it enhances accessibility and retention [26] Other Important Information - LifeMD's gross margin for Q1 was 86.8%, a decline of 270 basis points year over year but an increase of 150 basis points sequentially [12][13] - The company raised its financial guidance for 2025, expecting total revenues in the range of $268 million to $275 million [15] Q&A Session Summary Question: Can you talk about your relationships with Lilly and Novo? - Management clarified that the pricing for medications is the same for all patients, regardless of whether they come through LifeMD, and that they do not receive compensation from drug manufacturers [21][22] Question: What is the role of insurance in your offerings? - Management emphasized the importance of insurance in making care more accessible and driving retention, while also acknowledging the complexity it adds to their programs [26] Question: What were the main drivers of earnings upside compared to expectations? - The main driver was stronger-than-expected retention revenue, with a small contribution from higher acquisitions in the weight management space [28][29] Question: Can you provide an update on your compounding pharmacy? - The compounding pharmacy is on track to be licensed by summer, with expectations to scale the mail order pharmacy significantly [30] Question: Does your 2025 guidance include contributions from mental health and women's health? - Yes, but the contributions are expected to be minimal initially, with growth anticipated as the offerings are fully integrated [34] Question: How much of the positive guidance revision is related to the recent pharmacy announcement? - None of the guidance revision is related to the pharmacy announcement; it is based on Q1 performance [40][41]

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]