LifeMD (LFMD) Q2 2024 earnings summary

Executive summary

• Revenue grew 41% year-over-year to $50.7M for Q2 2024, driven by a 67% increase in telehealth revenue and Medifast collaboration income, with telehealth achieving standalone profitability ahead of guidance.

• Telehealth accounted for 74% of total revenue, with strong growth in primary care and GLP-1 weight management programs; active telehealth subscribers rose 32% to 254,000.

• WorkSimpli revenue was 26% of total, down 3% year-over-year, but maintains high gross margins and recurring revenue; active subscribers declined 8%.

• Strategic focus remains on expanding weight management, infrastructure (including insurance acceptance), and the Rex MD brand, with continued partnerships and technology integration.

• LifeMD operates a compliance-first virtual healthcare platform with a 50-state medical group, serving 254,000 active patients and conducting nearly 1 million virtual consults as of June 2024.

Financial highlights

• Q2 2024 revenue: $50.7M (+41% YoY); six months ended June 30, 2024: $94.8M (+37% YoY); telehealth revenue grew 67% YoY to $37.4M.

• Gross margin expanded to 90% (up from 87% YoY); telehealth gross margin 88%, WorkSimpli gross margin 96%.

• GAAP net loss attributable to common stockholders was $7.7M ($0.19/share), compared to $7.5M ($0.23/share) last year.

• Adjusted EBITDA was $2.5M, up from $1.7M; standalone telehealth Adjusted EBITDA was $820,000, compared to a loss of $2.8M a year ago.

• Cash and cash equivalents were $35.7M at quarter-end; net cash from operations for six months was $9.7M.

Outlook and guidance

• Full-year 2024 consolidated revenue guidance reiterated at at least $205M; telehealth revenue guidance raised to $150M; WorkSimpli revenue guidance lowered to $55M.

• Q3 2024 revenue expected between $53M and $54M; telehealth revenue $39.5–$40.5M; WorkSimpli revenue ~$13.5M.

• Full-year adjusted EBITDA guidance revised to $13–$15M (from $18–$22M), reflecting WorkSimpli underperformance; telehealth Adjusted EBITDA guidance introduced at $3–$4M.

• Management targets 30%+ YoY revenue growth and ~25% adjusted EBITDA margins, with continued expansion of telehealth and SaaS offerings.