LifeMD(US:LFMD)2025-03-11 00:17Financial 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]