Conversion Labs Expects Q3 2020 Record Revenue of $11.2 Million, up 254%; Subscription ARR Hits $19.3 million, up 458%
Conversion Labs, Inc. (OTCQB: CVLB) reported preliminary unaudited results for Q3 2020, revealing revenues of approximately $11.2 million, a remarkable 23% increase from the previous quarter and 254% year-over-year growth. ARR rose by 13% to $19.3 million, marking a 458% increase compared to September 2019. The results reflect strong performance from telehealth brands like Rex MD and Shapiro MD. The company anticipates a revenue run rate of $46.8 million for 2020, up from $12.5 million in 2019, fueled by strategic investments in its telemedicine offerings.
- Q3 revenues reached approximately $11.2 million, a 23% increase from the previous quarter.
- Year-over-year revenue growth of 254%.
- Annual recurring revenue (ARR) increased by 13% to $19.3 million in September 2020, a 458% rise compared to September 2019.
- Anticipated annualized revenue run rate of $46.8 million compared to $12.5 million in 2019.
- None.
NEW YORK, Oct. 12, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, reported preliminary unaudited results for its third quarter ended September 30, 2020.
Revenues for the third quarter are expected to total approximately
Annual recurring revenue (ARR) from subscriptions to products and services increased by
The growth in ARR has been largely driven by the company’s increasingly popular proprietary telehealth brands that include Rex MD and Shapiro MD.
“Q3 was another record quarter with tremendous growth across our portfolio,” commented Justin Schreiber, CEO of Conversion Labs. “As expected, we saw a considerable increase in recurring revenue, which now comprises more than half of all revenue. This mostly reflects the continued growth of our telemedicine business and a high level of satisfaction among our patients and customers.”
September results indicate an overall annualized revenue run rate of
“The strategic investments Conversion Labs made in its brands, people and infrastructure since launching its telehealth platform late last year has been the true driver of this growth,” noted Stefan Galluppi, the company’s chief technology and operations officer. “We expect sales to continue to accelerate as we launch additional telemedicine offerings and continue to optimize the business. Combined with our growing patient base and greater economies of scale, we see these new products helping to drive strong margin expansion.”
The company plans to report its full quarterly results and host an investor conference call in the second week of November.
In addition to offering increasingly popular products and services, the company has benefited from the rapidly growing adoption of telemedicine across the health care industry. According to Forrester Research, telehealth has “shifted into hyper-drive,” with virtual health care visits on pace to top 1 billion by year end. The telemedicine market is expected to grow at
About Conversion Labs
Conversion Labs, Inc. is a telemedicine company with a portfolio of online direct-to-consumer brands. The company’s brands combine virtual medical treatment with prescription medications and unique over-the-counter products. Its network of licensed physicians offers telemedicine services and direct-to-consumer pharmacy to consumers across the U.S. To learn more, visit Conversionlabs.com.
Annual Recurring Revenue (ARR)
Conversion Labs calculates annual recurring revenue (ARR) by multiplying by 12 the monthly sum of revenue attributed exclusively to automatic subscription sales from customers that are engaged in the company’s rebill structure for the brands of Shapiro MD, Rex MD and PDFSimpli. In the company’s calculation of ARR, it does not consider sales from customers that repurchase its products themselves in the company’s checkout pages, Amazon Marketplace or through assistance of the company’s customer service representatives, since those sales have a marginal advertising/marketing expense associated with the respective sale. The company also does not consider the revenue attributed to the initial purchase upon acquisition of the respective customer.
Important Cautions Regarding Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to Conversion Labs, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.
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Conversion Labs
Juan Manuel Piñeiro Dagnery
CFO
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