Key Points
- LifeMD is a telehealth platform riding the GLP-1 trend to double-digit revenue growth, with its subscription weight management business driving projected EBITDA growth of 67% in 2024.
- LifeMD reported Q4 2023 EPS of 15 cents, doubling consensus analyst estimates for a loss of 14 cents, while revenues rose 60% YoY to $44.86 million, beating $40.48 million estimates.
- LifeMD telehealth subscribers rose 27% YoY to 215, 000 and weight management subscribers exceeded 22,000, up 100% sequentially.
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LifeMD Inc. NASDAQ: LFMD provides telehealth services to consumers in the United States. The medical sector company operates many telehealth brands, including men's telehealth brands RexMD and ShapiroMD, NavaMD female dermatology telehealth, Cleared Allergy Clinic, and LifeMD Primary Care. The company provides primary care, chronic care management, dermatology, and various specialties using a direct-to-consumer (DTC) model. It offers a convenient, accessible channel for consumers who seek medical treatments and consults quickly and virtually.
GLP-1 Clinical Weight Management Program
The company commenced its GLP-1 clinical weight management program in 2023, shortly after WW International Inc. NASDAQ: WW entered the clinical weight loss segment with its acquisition of Sequence Inc., which offers membership plans enabling GLP-1 prescriptions from its providers.
LifeMD teamed up with weight management company Medifast Inc. NYSE: MED, which committed a $20 million investment to collaborate with its Optavia coaching program. Its GLP-1 business has grown to over 22,000 patient subscribers and 100% quarter-over-quarter (QoQ). LifeMD competes with peer telehealth platforms, including Hims & Hers Inc. NYSE: HIMS, American Well Co. NYSE: AMWL and Teladoc Inc. NYSE: TDOC,
Subscription Plans
LifeMD offers no insurance needed plan options, and a partnership with Laboratory Co. of America Holdings NYSE: LH and Quest Diagnostics Inc. NYSE: DGX provides access to discounted lab services. Its FlexCare plan requires no membership, as patients can schedule virtual doctor visits for a flat $139 per visit and a free membership to LifeMD's prescription discount card. Its TotalCare plan provides a free virtual visit every month, including free appointments and all benefits from the FlexCare plan for a $117 quarterly membership. It’s ConciergeCare plan has unlimited free visits, and all benefit from the TotalCare plan for $99 a month.
GLP-1 Program
LifeMD's GLP-1 Program costs $129 per month. It includes access to GLP-1 medications, including Novo Nordisk A/S NYSE: NVO Ozempic and Wegovy or Eli Lilly and Co. NYSE: LLY Mounjaro and Zepbound along with physician care, metabolic testing, insurance assistance and clinical guidance. The cost for the medications is not included, just the prescriptions and medical advice. Get AI-powered insights on MarketBeat. Check out the sector heatmap on MarketBeat.
Surging Growth
LifeMD reported Q4 2023 EPS of 15 cents, beating consensus analyst estimates for a loss of 14 cents by 29 cents. Consolidated adjusted EBITDA was $5.5 million versus $1 million in the year-ago period. Weight management subscribers rose to 22,000 by the end of the year. GAAP net loss was $4.5 million versus $12.7 million in the year-ago period. Telehealth subscribers rose 27% YoY to a record 215,000. Revenues surged 60% YoY to $44.96 million, beating $40.48 million consensus analyst estimates. Gross margin expanded to a record 88.1%, up from 85.5% in the year-ago period. Telehealth revenues surged 90% YoY and 28% sequentially. Active telehealth subscribers rose 27% YoY to 215,000.
Raised Guidance
LifeMD raised its Q1 2024 revenue guidance to $42 million to $43 million versus $42.5 million consensus estimates. It raised full-year 2024 revenues of at least $200 million versus $191.5 million consensus estimates. That was up from its $195 million to $205 million prior guidance.
CEO Insights
LifeMD CEO Justin Schreiber commented, "During the year, we launched our GLP-1 weight management program, which has rapidly grown to become one of the leading providers of medically supported weight loss management services nationwide. In less than nine months, we scaled this business to over 22,000 subscribers and growing. Year to date, in 2024, we continue to see record daily performance in the sale of new weight management subscriptions at a rate in excess of our previous 2024 guidance."
LifeMD analyst ratings and price targets are at MarketBeat. LifeMD peers and competitor stocks can be found with the MarketBeat stock screener.
Daily Cup and Handle Breakout
The daily candlestick chart for LFMD illustrates a daily cup and handle breakout pattern. The cup lip lines formed at $8.44 on January 3, 2024. Shares fell to a low of $5.00 on January 4, 2024. LFMD formed a rounding bottom over the next several months to stage a rally back to retest the lip line at $8.44 on February 27, 2024. LFMD pulled back to form a handle heading to its Q4 2023 earnings. Earnings proved to be very strong, along with raised guidance helping lift shares through the cup lip line resistance, triggering the cup and handle breakout. The daily relative strength index (RSI) surged to the overbought 80-band. Pullback support levels are at $9.11, $8.44, $7.68 and $6.97.
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