LifeMD(US:LFMD)2021-05-14 02:44Financial Data and Key Metrics Changes - In Q1 2021, LifeMD reported a record revenue of $18.2 million, representing a 323% increase compared to the same period last year and a 41% increase sequentially from Q4 2020 [19] - Gross profit for Q1 2021 increased by 403% to $14.9 million, with gross profit margin rising to 82% from 69% in the same year-ago quarter [22] - The GAAP net loss attributable to common stockholders for Q1 2021 was $11.6 million, or $0.47 per share, compared to a net loss of $2.4 million, or $0.23 per share, in Q1 2020 [25] Business Line Data and Key Metrics Changes - Telehealth net revenues grew by 349% to $13.3 million in Q1 2021, while the LegalSimpli subsidiary contributed $4.9 million, up 264% from the year-ago quarter [20] - Telehealth order volume increased by 373% year-over-year to 164,452 orders, driven by a 252% increase in new patients and strong retention of existing patients [21] Market Data and Key Metrics Changes - LifeMD anticipates raising its full-year 2021 revenue guidance to $90 million to $100 million, reflecting annual growth of 141% to 168% compared to 2020 [22] - The company operates in a total addressable market of nearly a trillion dollars, indicating significant growth potential in the telehealth sector [14] Company Strategy and Development Direction - LifeMD aims to support patient-centric care through telehealth, leveraging the pandemic's acceleration of telehealth adoption to entrench its customer base [12] - The company has launched Nava MD, a direct-to-patient clinical teledermatology service, and plans to launch its primary care platform later in 2021 [15][16] - LifeMD is focused on building innovative telemedicine brands that improve access to medical treatment, with a strong emphasis on customer acquisition and healthcare delivery [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, noting that demand continues to build to record levels and that the company is well-positioned for future growth [7][30] - The management team highlighted the importance of their digital health platform and the ability to scale efficiently towards long-term profitability [18] Other Important Information - As of March 31, 2021, LifeMD had cash totaling $13.4 million, an increase from $9.2 million at the end of 2020, primarily due to a private placement [27] - The company has reduced its cash burn by approximately 30% at current revenue levels, providing ample liquidity for growth [28] Q&A Session Summary Question: What is the demand outlook in the market given recent activity from competitors like Walmart and Amazon? - Management noted that Amazon's entrance into telehealth has not impacted their business and may actually raise awareness for telemedicine, while Walmart's acquisition of MeMD does not compete directly with LifeMD [36][39] Question: Can you provide more details on sales and marketing spend and customer acquisition costs? - Management indicated a 15% to 20% reduction in customer acquisition costs in Q1, with expectations for further reductions as the company scales [43][45] Question: How is the newly launched Nava MD tracking? - Management reported positive early signs from the soft launch of Nava MD, with expectations for meaningful revenue in the upcoming quarter [50] Question: What is the current retention rate for customers? - Management did not disclose specific retention rates but indicated a substantial retention of patients within the first year, with minimal fall-off after the fourth or fifth billing period [52] Question: Can you elaborate on the expenses related to LegalSimpli and telehealth? - Approximately $13.5 million to $14 million of the marketing expense was associated with the telehealth business, with expectations for continued significant growth [57]