LifeMD Reports Fourth Quarter 2024 Results
LifeMD (NASDAQ: LFMD) reported strong Q4 2024 financial results with consolidated revenues increasing 43% year-over-year to $64.3 million, driven by a 60% growth in telehealth revenue. The company achieved record quarterly adjusted EBITDA of $9.0 million, up 78% year-over-year.
Key highlights include telehealth adjusted EBITDA increasing 396% to $5.9 million, telehealth active subscribers growing 27% to 275,000, and WorkSimpli subscribers rising 3% to 164,000. The company ended 2024 with over $35 million in cash and improved full-year cash flow from operations by 99% to $17.5 million.
For 2025, LifeMD provided guidance of $265-275 million in consolidated revenue and $30-32 million in consolidated adjusted EBITDA. The company plans to launch Medicare services on April 1 and is preparing to introduce virtual-first behavioral health and women's health specialty offerings later in the year.
LifeMD (NASDAQ: LFMD) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con ricavi consolidati in aumento del 43% rispetto all'anno precedente, raggiungendo i 64,3 milioni di dollari, grazie a una crescita del 60% nei ricavi della telemedicina. L'azienda ha raggiunto un EBITDA rettificato trimestrale record di 9,0 milioni di dollari, in aumento del 78% rispetto all'anno precedente.
I punti salienti includono un EBITDA rettificato della telemedicina aumentato del 396% a 5,9 milioni di dollari, il numero di abbonati attivi alla telemedicina cresciuto del 27% a 275.000, e gli abbonati a WorkSimpli aumentati del 3% a 164.000. L'azienda ha chiuso il 2024 con oltre 35 milioni di dollari in contante e ha migliorato il flusso di cassa operativo annuale del 99% a 17,5 milioni di dollari.
Per il 2025, LifeMD ha fornito una previsione di 265-275 milioni di dollari di ricavi consolidati e 30-32 milioni di dollari di EBITDA rettificato consolidato. L'azienda prevede di lanciare i servizi Medicare il 1° aprile e si sta preparando a introdurre offerte specialistiche di salute comportamentale e salute delle donne in modalità virtual-first entro la fine dell'anno.
LifeMD (NASDAQ: LFMD) reportó sólidos resultados financieros para el cuarto trimestre de 2024, con ingresos consolidados que aumentaron un 43% interanual, alcanzando los 64.3 millones de dólares, impulsados por un crecimiento del 60% en los ingresos de telemedicina. La compañía logró un EBITDA ajustado trimestral récord de 9.0 millones de dólares, un aumento del 78% en comparación con el año anterior.
Los aspectos destacados incluyen un EBITDA ajustado de telemedicina que aumentó un 396% a 5.9 millones de dólares, el número de suscriptores activos de telemedicina que creció un 27% hasta 275,000, y los suscriptores de WorkSimpli que aumentaron un 3% a 164,000. La compañía cerró 2024 con más de 35 millones de dólares en efectivo y mejoró el flujo de caja operativo anual en un 99% a 17.5 millones de dólares.
Para 2025, LifeMD proporcionó una guía de 265-275 millones de dólares en ingresos consolidados y 30-32 millones de dólares en EBITDA ajustado consolidado. La compañía planea lanzar servicios de Medicare el 1 de abril y se está preparando para introducir ofertas de salud conductual y salud de la mujer en modalidad virtual-first más adelante en el año.
LifeMD (NASDAQ: LFMD)는 2024년 4분기 재무 결과가 강력하다고 보고하며, 통합 수익이 전년 대비 43% 증가한 6430만 달러에 달했다고 밝혔습니다. 이는 원격 의료 수익이 60% 성장한 데 힘입은 것입니다. 회사는 900만 달러의 조정 EBITDA를 기록하며, 이는 전년 대비 78% 증가한 수치입니다.
주요 하이라이트로는 원격 의료 조정 EBITDA가 396% 증가하여 590만 달러에 달하고, 원격 의료 활성 구독자가 27% 증가하여 27만 5000명에 이르며, WorkSimpli 구독자가 3% 증가하여 16만 4000명에 도달했습니다. 회사는 2024년을 3500만 달러 이상의 현금으로 마감했으며, 연간 운영 현금 흐름을 99% 개선하여 1750만 달러에 달했습니다.
2025년을 위해 LifeMD는 2억6500만~2억7500만 달러의 통합 수익과 3000만~3200만 달러의 통합 조정 EBITDA를 전망했습니다. 회사는 4월 1일에 Medicare 서비스를 출시할 계획이며, 올해 후반에 가상 우선 행동 건강 및 여성 건강 전문 서비스를 도입할 준비를 하고 있습니다.
LifeMD (NASDAQ: LFMD) a annoncé de solides résultats financiers pour le quatrième trimestre de 2024, avec des revenus consolidés en hausse de 43 % par rapport à l'année précédente, atteignant 64,3 millions de dollars, soutenus par une croissance de 60 % des revenus de télémédecine. L'entreprise a atteint un EBITDA ajusté trimestriel record de 9,0 millions de dollars, en hausse de 78 % par rapport à l'année précédente.
Les points forts incluent un EBITDA ajusté de télémédecine en augmentation de 396 % à 5,9 millions de dollars, le nombre d'abonnés actifs à la télémédecine ayant augmenté de 27 % pour atteindre 275 000, et les abonnés de WorkSimpli ayant augmenté de 3 % pour atteindre 164 000. L'entreprise a terminé l'année 2024 avec plus de 35 millions de dollars en liquidités et a amélioré le flux de trésorerie opérationnel annuel de 99 % à 17,5 millions de dollars.
Pour 2025, LifeMD a donné des prévisions de 265-275 millions de dollars de revenus consolidés et 30-32 millions de dollars d'EBITDA ajusté consolidé. L'entreprise prévoit de lancer des services Medicare le 1er avril et se prépare à introduire des offres de santé comportementale et de santé des femmes en mode virtuel d'ici la fin de l'année.
LifeMD (NASDAQ: LFMD) hat starke Finanzzahlen für das vierte Quartal 2024 berichtet, mit konsolidierten Einnahmen, die im Jahresvergleich um 43% auf 64,3 Millionen Dollar gestiegen sind, was durch ein Wachstum von 60% bei den Telemedizin-Einnahmen angetrieben wurde. Das Unternehmen erzielte ein rekordverdächtiges bereinigtes EBITDA von 9,0 Millionen Dollar, was einem Anstieg von 78% im Vergleich zum Vorjahr entspricht.
Zu den wichtigsten Highlights gehören ein bereinigtes EBITDA für Telemedizin, das um 396% auf 5,9 Millionen Dollar gestiegen ist, aktive Telemedizin-Abonnenten, die um 27% auf 275.000 gewachsen sind, und WorkSimpli-Abonnenten, die um 3% auf 164.000 gestiegen sind. Das Unternehmen schloss das Jahr 2024 mit über 35 Millionen Dollar in bar ab und verbesserte den operativen Cashflow für das Gesamtjahr um 99% auf 17,5 Millionen Dollar.
Für 2025 gab LifeMD eine Prognose von 265-275 Millionen Dollar an konsolidierten Einnahmen und 30-32 Millionen Dollar an konsolidiertem bereinigtem EBITDA ab. Das Unternehmen plant, am 1. April Medicare-Dienste einzuführen und bereitet sich darauf vor, später im Jahr virtuelle Verhaltensgesundheits- und Frauengesundheitsangebote einzuführen.
- Revenue grew 43% YoY to $64.3M with telehealth revenue up 60%
- Adjusted EBITDA increased 78% to $9.0M
- Telehealth adjusted EBITDA surged 396% to $5.9M
- Cash position strong at $35M as of December 31, 2024
- Operating cash flow improved 99% to $17.5M
- Telehealth subscribers grew 27% to 275,000
- Positive 2025 guidance with revenue of $265-275M
- Gross margin declined to 85% from 88% due to pharmacy start-up costs
- GAAP net loss of $0.9M in Q4 2024
- Full-year GAAP net loss of $22.0M
Insights
LifeMD's Q4 results demonstrate exceptional momentum with
The subscriber metrics reinforce this growth trajectory, with telehealth active subscribers up
LifeMD's financial position is increasingly robust, ending 2024 with
The forward guidance is equally impressive, projecting 2025 consolidated revenue of
LifeMD's performance reflects the accelerating adoption of virtual healthcare models, particularly in specialty areas like weight management. Their approach to the GLP-1 market is strategically sound, combining synchronous care with pharmacy benefits infrastructure to address medication access challenges. With semaglutide shortages easing, LifeMD is well-positioned to capitalize on increased availability while maintaining their differentiated care model.
The planned April 1st Medicare launch represents a significant opportunity, as Medicare coverage for GLP-1 medications would substantially expand the addressable market for their weight management program. Their integration with LillyDirect for Zepbound access demonstrates a multi-channel strategy to overcome affordability barriers.
The strong uptake of Rex MD's Hormone Replacement Therapy offering signals successful product diversification, while the roadmap for behavioral health and women's health offerings indicates a cohesive platform expansion strategy. This portfolio approach reduces dependency on any single treatment category while leveraging their existing telehealth infrastructure and patient base.
LifeMD's virtual-first approach aligns with broader healthcare trends toward accessibility and affordability. Their transparent pricing model addresses persistent consumer concerns about healthcare costs, while their comprehensive platform approach creates barriers to entry against point-solution competitors. The
- Consolidated revenues increased
43% year-over-year to$64.3 million with telehealth revenue up60% - Adjusted EBITDA increased
78% to$9.0 million - Telehealth adjusted EBITDA increased
396% to$5.9 million - Full-year cash flow from operations increased
99% to$17.5 million and generated positive full-year net cash flow - Exited 2024 with over
$35 million in cash - Introduces 2025 guidance for consolidated revenue of
$265 million to$275 million and consolidated adjusted EBITDA of$30 million to$32 million
Conference call begins at 4:30 p.m. Eastern time today
NEW YORK, March 10, 2025 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care services, today reported financial results for the three and 12 months ended December 31, 2024.
Management Commentary
“LifeMD had a great fourth quarter. We not only achieved record quarterly revenue and adjusted EBITDA but continued to accelerate growth across our core telehealth brands. We are especially pleased with the growth of our weight management program. While GLP-1 market dynamics continue to change with semaglutide coming off shortage, the quality of synchronous care we provide positions and differentiates LifeMD. We have a comprehensive care platform, which includes our pharmacy benefits infrastructure that helps patients access branded GLP-1 medications. In addition, our Medicare launch is slated for April 1 and could be a significant growth driver for our weight management program as we expect Medicare ultimately will cover GLP-1 medications for eligible beneficiaries. Further, we recently announced integration with LillyDirect to provide another more affordable route to Zepbound for patients who don’t have coverage through insurance,” said Justin Schreiber, Chairman and CEO of LifeMD. “We also are pleased with the uptake of Rex MD’s Hormone Replacement Therapy offering. We have begun laying the groundwork for the launch of our virtual-first behavioral health offering followed by a women’s health specialty offering later this year. We remain laser focused on building the highest quality virtual care platform in the United States that is transparent, affordable and accessible to everyone.”
“LifeMD had an exceptionally strong quarter with top- and bottom-line growth led by our core telehealth business. Telehealth achieved
Fourth Quarter Financial Highlights
All comparisons are with the fourth quarter of 2023.
- Consolidated revenue increased
43% to$64.3 million with telehealth revenue up60% . - Telehealth active subscribers increased
27% to approximately 275,000 at quarter-end. - WorkSimpli active subscribers increased
3% to approximately 164,000 at quarter-end and increased sequentially by approximately 3,000 subscribers. - Gross margin was
85% compared with88% due to one-time start-up costs with a new pharmacy and revenue mix changes. We expect gross margin to return to a range of88% to90% in 2025. - GAAP net loss was
$0.9 million or$0.02 per share, compared with$4.5 million or$0.12 per share. - Adjusted EBITDA was
$9.0 million compared with$5.0 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP). - The telehealth business achieved adjusted EBITDA profitability of
$5.9 million compared with$1.2 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP). - Adjusted diluted EPS was
$0.21 compared with$0.14 (see definition below of this non-GAAP financial measure and reconciliation to GAAP). - Cash was
$35.0 million as of December 31, 2024.
Full Year Financial Highlights
All comparisons are with the full year of 2023.
- Consolidated revenue increased
39% to$212.5 million with telehealth revenue up61% . - Gross margin was
89% compared with88% . - GAAP net loss was
$22.0 million or$0.53 per share, compared with$23.7 million or$0.70 per share. - Adjusted EBITDA was
$14.4 million compared with$11.2 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP). - The telehealth business achieved adjusted EBITDA of
$7.4 million compared with a loss of$5.2 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP). - Adjusted diluted EPS was
$0.35 compared with$0.32 (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
Fourth Quarter Key Performance Metrics
| ($ in 000s) | Three Months Ended Dec 31, | Y-o-Y | ||||
| Key Performance Metrics | 2024 | 2023 | % Growth | |||
| Revenue | ||||||
| Telehealth | $ | 49,889 | $ | 31,256 | ||
| WorkSimpli | $ | 14,365 | $ | 13,603 | ||
| Total Revenue | $ | 64,254 | $ | 44,859 | ||
| Active Subscribers | ||||||
| Telehealth Active Subscribers | 275,267 | 217,171 | ||||
| WorkSimpli Active Subscribers | 163,743 | 158,363 | ||||
| Total Active Subscribers | 439,010 | 375,534 | ||||
Financial Guidance
For the first quarter of 2025, the Company expects:
- Total revenue in the range of
$61 million to$63 million , with telehealth revenue in the range of$48 million to$49 million . - Adjusted EBITDA in the range of
$5 million to$7 million , with telehealth adjusted EBITDA in the range of$3 million to$4 million .
For the full year 2025, the Company expects:
- Total revenue in the range of
$265 million to$275 million , with telehealth revenue in the range of$205 million to$213 million . - Adjusted EBITDA in the range of
$30 million to$32 million , with telehealth adjusted EBITDA of approximately$20 million .
Conference Call
LifeMD’s management will host a conference call today at 4:30 p.m. Eastern time to discuss the Company’s financial results and outlook, and answer questions. Details for the call are as follows:
| Toll-free dial-in number: | 800-225-9448 |
| International dial-in number: | 203-518-9708 |
| Conference ID: | LIFEMD |
| Live & Archived Webcast: | Link |
A live and archived webcast will be available in the Investors section of the Company’s website at ir.lifemd.com.
About LifeMD
LifeMD® is a leading provider of virtual primary care. LifeMD offers telemedicine, access to laboratory and pharmacy services, and specialized treatment across more than 200 conditions, including primary care, men’s and women's health, weight management, and hormone therapy. The Company leverages a vertically integrated, proprietary digital care platform, a 50-state affiliated medical group, a 22,500-square-foot affiliated pharmacy, and a U.S.-based patient care center to increase access to high-quality and affordable care. For more information, please visit LifeMD.com.
Cautionary Note Regarding Forward Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition.
Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods.
Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation.
Investor Contact
LifeMD, Inc.
Marc Benathen, Chief Financial Officer
marc@lifemd.com
Media Contact
Jessica Friedeman, Chief Marketing Officer
press@lifemd.com
| LIFEMD, INC. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash | $ | 35,004,924 | $ | 33,146,725 | |||
| Accounts receivable, net | 8,217,813 | 5,277,250 | |||||
| Product deposit | 40,763 | 485,850 | |||||
| Inventory, net | 2,797,358 | 2,759,932 | |||||
| Other current assets | 2,672,231 | 934,510 | |||||
| Total Current Assets | 48,733,089 | 42,604,267 | |||||
| Non-current Assets | |||||||
| Equipment, net | 1,479,184 | 476,303 | |||||
| Right of use assets | 6,400,596 | 594,897 | |||||
| Capitalized software, net | 13,816,501 | 11,795,979 | |||||
| Intangible assets, net | 2,030,656 | 3,009,263 | |||||
| Total Non-current Assets | 23,726,937 | 15,876,442 | |||||
| Total Assets | $ | 72,460,026 | $ | 58,480,709 | |||
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 16,009,484 | $ | 11,084,855 | |||
| Accrued expenses | 20,811,763 | 13,937,494 | |||||
| Notes payable, net | — | 327,597 | |||||
| Current operating lease liabilities | 508,537 | 603,180 | |||||
| Current portion of long-term debt | 8,444,444 | — | |||||
| Deferred revenue | 14,480,917 | 8,828,598 | |||||
| Total Current Liabilities | 60,255,145 | 34,781,724 | |||||
| Long-term Liabilities | |||||||
| Long-term debt, net | 9,885,057 | 17,927,727 | |||||
| Noncurrent operating lease liabilities | 6,265,192 | 73,849 | |||||
| Contingent consideration | 100,000 | 131,250 | |||||
| Total Liabilities | 76,505,394 | 52,914,550 | |||||
| Commitments and Contingencies | |||||||
| Mezzanine Equity | |||||||
| Preferred Stock, | — | — | |||||
| Stockholders’ (Deficit) Equity | |||||||
| Series A Preferred Stock, | 140 | 140 | |||||
| Common Stock, | 422,939 | 383,586 | |||||
| Additional paid-in capital | 230,508,339 | 217,550,583 | |||||
| Accumulated deficit | (236253218 | ) | (214265236 | ) | |||
| Treasury stock, 103,040 shares, at cost, as of December 31, 2024 and 2023 | (163701 | ) | (163701 | ) | |||
| Total LifeMD, Inc. Stockholders’ (Deficit) Equity | (5485501 | ) | 3,505,372 | ||||
| Non-controlling interest | 1,440,133 | 2,060,787 | |||||
| Total Stockholders’ (Deficit) Equity | (4045368 | ) | 5,566,159 | ||||
| Total Liabilities, Mezzanine Equity and Stockholders’ (Deficit) Equity | $ | 72,460,026 | $ | 58,480,709 | |||
| LIFEMD, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Fourth Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Telehealth revenue, net | $ | 49,889,374 | $ | 31,256,199 | $ | 158,438,631 | $ | 98,152,919 | ||||||||
| WorkSimpli revenue, net | 14,365,198 | 13,603,648 | 54,015,207 | 54,394,087 | ||||||||||||
| Total revenues, net | 64,254,572 | 44,859,847 | 212,453,838 | 152,547,006 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Cost of telehealth revenue | 8,391,484 | 4,954,646 | 21,440,799 | 17,480,533 | ||||||||||||
| Cost of WorkSimpli revenue | 1,038,362 | 400,913 | 2,627,680 | 1,419,931 | ||||||||||||
| Total cost of revenues | 9,429,846 | 5,355,559 | 24,068,479 | 18,900,464 | ||||||||||||
| Gross profit | 54,824,726 | 3,504,288 | 188,385,359 | 133,646,542 | ||||||||||||
| Expenses | ||||||||||||||||
| Selling and marketing expenses | 25,855,545 | 20,389,121 | 103,020,025 | 76,451,466 | ||||||||||||
| General and administrative expenses | 19,909,060 | 15,573,509 | 72,662,021 | 51,694,232 | ||||||||||||
| Customer service expenses | 2,831,985 | 2,058,549 | 10,217,654 | 7,632,283 | ||||||||||||
| Development costs | 2,410,653 | 1,998,015 | 9,512,308 | 6,060,513 | ||||||||||||
| Other operating expenses | 2,799,241 | 1,656,631 | 9,118,032 | 6,297,321 | ||||||||||||
| Total expenses | 53,806,484 | 41,675,825 | 204,530,040 | 148,135,815 | ||||||||||||
| Operating income (loss) | 1,018,242 | (2,171,537 | ) | (16,144,681 | ) | (14,489,273 | ) | |||||||||
| Other expenses | ||||||||||||||||
| Interest expense, net | (614,074 | ) | (622,685 | ) | (2,181,817 | ) | (2,596,586 | ) | ||||||||
| Loss on debt extinguishment | — | — | — | (325,198 | ) | |||||||||||
| Net income (loss) before income taxes | 404,168 | (2,794,222 | ) | (18,326,498 | ) | (17,411,057 | ) | |||||||||
| Income tax expense | (169,477 | ) | (428,000 | ) | (402,000 | ) | (428,000 | ) | ||||||||
| Net income (loss) | 234,691 | (3,222,222 | ) | (18,728,498 | ) | (17,839,057 | ) | |||||||||
| Net income attributable to noncontrolling interests | 340,963 | 509,880 | 153,234 | 2,756,935 | ||||||||||||
| Net loss attributable to LifeMD, Inc. | (106,272 | ) | (3,732,102 | ) | (18,881,732 | ) | (20,595,992 | ) | ||||||||
| Preferred stock dividends | (776,562 | ) | (776,562 | ) | (3,106,250 | ) | (3,106,250 | ) | ||||||||
| Net loss attributable to LifeMD, Inc. common stockholders | $ | (882,834 | ) | $ | (4,508,664 | ) | $ | (21,987,982 | ) | $ | (23,702,242 | ) | ||||
| Basic loss per share attributable to LifeMD, Inc. common stockholders | $ | (0.02 | ) | $ | (0.12 | ) | $ | (0.53 | ) | $ | (0.70 | ) | ||||
| Diluted loss per share attributable to LifeMD, Inc. common stockholders | $ | (0.02 | ) | $ | (0.12 | ) | $ | (0.53 | ) | $ | (0.70 | ) | ||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 42,205,767 | 36,710,746 | 41,196,292 | 33,905,155 | ||||||||||||
| Diluted | 42,205,767 | 36,710,746 | 41,196,292 | 33,905,155 | ||||||||||||
| LIFEMD, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| Fourth Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
| Net income (loss) | $ | 234,691 | $ | (3,222,222 | ) | $ | (18,728,498 | ) | $ | (17,839,057 | ) | |||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
| Amortization of debt discount | 100,444 | 100,444 | 401,775 | 333,939 | ||||||||||||
| Amortization of capitalized software | 2,136,248 | 1,637,094 | 8,021,141 | 5,424,810 | ||||||||||||
| Amortization of intangibles | 244,569 | 245,968 | 982,405 | 971,464 | ||||||||||||
| Accretion of consideration payable | — | 18,740 | 13,644 | 167,221 | ||||||||||||
| Depreciation of fixed assets | 166,278 | 57,666 | 487,976 | 203,952 | ||||||||||||
| Write-down of inventory | 675,669 | 537,685 | 675,669 | 537,685 | ||||||||||||
| Loss on debt extinguishment | — | — | — | 325,198 | ||||||||||||
| Noncash operating lease expense | 247,042 | 204,207 | 776,080 | 766,280 | ||||||||||||
| Stock issued for legal settlement | — | — | — | 532,000 | ||||||||||||
| Stock compensation expense | 3,104,956 | 3,645,607 | 12,234,797 | 12,489,343 | ||||||||||||
| Changes in Assets and Liabilities | ||||||||||||||||
| Accounts receivable | (2,168,312 | ) | (858,668 | ) | (2,940,563 | ) | (2,442,500 | ) | ||||||||
| Product deposit | 95,992 | (401,082 | ) | 445,087 | (358,585 | ) | ||||||||||
| Inventory | (827,584 | ) | 493,029 | (713,095 | ) | 405,746 | ||||||||||
| Other current assets | (434,226 | ) | 369,450 | (1,737,721 | ) | (247,488 | ) | |||||||||
| Operating lease liabilities | (38,397 | ) | (218,624 | ) | (485,079 | ) | (808,368 | ) | ||||||||
| Deferred revenue | (1,909,624 | ) | 2,589,244 | 5,652,319 | 3,281,092 | |||||||||||
| Accounts payable | 142,015 | 1,447,465 | 4,924,629 | 978,062 | ||||||||||||
| Accrued expenses | (201,412 | ) | (932,373 | ) | 7,502,624 | 4,678,757 | ||||||||||
| Other operating activity | — | — | — | (579,319 | ) | |||||||||||
| Net cash provided by operating activities | 1,568,349 | 5,713,630 | 17,513,190 | 8,820,232 | ||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
| Cash paid for capitalized software costs | (2,495,317 | ) | (2,107,307 | ) | (10,041,663 | ) | (8,380,602 | ) | ||||||||
| Purchase of equipment | (225,410 | ) | (109,332 | ) | (1,490,857 | ) | (203,814 | ) | ||||||||
| Purchase of intangible assets | — | — | (3,798 | ) | (148,868 | ) | ||||||||||
| Net cash used in investing activities | (2,720,727 | ) | (2,216,639 | ) | (11,536,318 | ) | (8,733,284 | ) | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
| Proceeds from long-term debt, net | — | — | — | 19,466,887 | ||||||||||||
| Proceeds from common stock issued to Medifast | — | 10,000,000 | — | 10,000,000 | ||||||||||||
| Proceeds from notes payable | — | — | — | 2,347,691 | ||||||||||||
| Sale of common stock under ATM, net | — | 5,303,092 | — | 6,202,659 | ||||||||||||
| Repayment of notes payable, net of prepayment penalty | — | (98,626 | ) | (327,597 | ) | (5,142,542 | ) | |||||||||
| Cash proceeds from exercise of options | 12,499 | 94,500 | 120,312 | 94,500 | ||||||||||||
| Preferred stock dividends | (776,562 | ) | (776,562 | ) | (3,106,250 | ) | (3,106,250 | ) | ||||||||
| Contingent consideration payment for ResumeBuild | — | (125,000 | ) | (31,250 | ) | (312,500 | ) | |||||||||
| Net payments for membership interest of WorkSimpli | — | — | — | (305,625 | ) | |||||||||||
| Distributions to non-controlling interest | (665,888 | ) | (36,000 | ) | (773,888 | ) | (144,000 | ) | ||||||||
| Net cash (used in) provided by financing activities | (1,429,951 | ) | 14,361,404 | (4,118,673 | ) | 29,100,820 | ||||||||||
| Net (decrease) increase in cash | (2,582,329 | ) | 17,858,395 | 1,858,199 | 29,187,768 | |||||||||||
| Cash at beginning of period | 37,587,253 | 15,288,330 | 33,146,725 | 3,958,957 | ||||||||||||
| Cash at end of period | $ | 35,004,924 | $ | 33,146,725 | $ | 35,004,924 | $ | 33,146,725 | ||||||||
| Cash paid for interest | ||||||||||||||||
| Cash paid during the period for interest | $ | 614,993 | $ | 663,212 | $ | 2,528,042 | $ | 2,148,454 | ||||||||
| Non-cash investing and financing activities: | ||||||||||||||||
| Cashless exercise of options | $ | — | $ | — | $ | 5,127 | $ | 744 | ||||||||
| Cashless exercise of warrants | $ | — | $ | 793 | $ | 16,305 | $ | 793 | ||||||||
| Stock issued for noncontingent consideration payments | $ | — | $ | 642,000 | $ | 642,000 | $ | 2,568,000 | ||||||||
| Stock issued for debt conversion | $ | — | $ | 1,000,000 | $ | — | $ | 1,000,000 | ||||||||
| Series B Preferred Stock conversion | $ | — | $ | — | $ | — | $ | 5,072,814 | ||||||||
| Warrants issued for debt instruments | $ | — | $ | — | $ | — | $ | 873,100 | ||||||||
| Right of use assets | $ | (102,618 | ) | $ | — | $ | 6,581,779 | $ | 155,168 | |||||||
| Operating lease liabilities | $ | (102,618 | ) | $ | — | $ | 6,581,779 | $ | 155,168 | |||||||
About the Use of Non-GAAP Financial Measures:
To supplement our financial information presented in accordance with GAAP, we use adjusted EBITDA and adjusted EPS as non-GAAP financial measures to clarify and enhance an understanding of past performance. Additionally, we report telehealth adjusted EBITDA as a non-GAAP financial measure to clarify the financial performance of our core telehealth business excluding WorkSimpli. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance. We further believe that these financial measures are useful financial metrics to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors.
Adjusted EBITDA is defined as income (loss) attributable to common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, extraordinary litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness expenses, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EBITDA to net loss attributable to common shareholders, its most directly comparable GAAP financial measure.
Adjusted EPS is defined as the diluted net loss attributable to LifeMD, Inc common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, extraordinary litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness expenses, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EPS to Diluted loss per share attributable to LifeMD, Inc common shareholders, its most directly comparable GAAP financial measure.
Telehealth and WorkSimpli adjusted EBITDA is defined as segment operating income or loss before depreciation, amortization, accretion, financing transaction expense, extraordinary litigation costs, insurance acceptance and Sarbanes-Oxley readiness expenses, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of segment operating income or loss to segment Adjusted EBITDA.
We believe the above financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms adjusted EBITDA and adjusted EPS may vary from that of others in our industry. Telehealth adjusted EBITDA is specifically relevant to LifeMD to provide shareholders a comparable measure of profitability for our core telehealth business without the impact of our majority owned, but separately managed non-core subsidiary, WorkSimpli. Adjusted EBITDA, telehealth adjusted EBITDA and adjusted EPS should not be considered as an alternative to net loss before taxes, net loss per share, operating loss or any other performance measures derived in accordance with GAAP as measures of performance.
| Reconciliation of Consolidated GAAP Net Loss to Consolidated Adjusted EBITDA | |||||||||||||||
| (in whole numbers, unaudited) | |||||||||||||||
| Fourth Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss attributable to common shareholders | $ | (882,834 | ) | $ | (4,508,664 | ) | $ | (21,987,982 | ) | $ | (23,702,242 | ) | |||
| Interest expense (excluding amortization of debt discount) | 513,630 | 522,241 | 1,780,042 | 1,755,656 | |||||||||||
| Depreciation, amortization and accretion expense | 2,547,095 | 1,959,468 | 9,505,166 | 6,767,447 | |||||||||||
| Amortization of debt discount | 100,444 | 100,444 | 401,775 | 333,939 | |||||||||||
| Loss on debt extinguishment | — | — | — | 325,198 | |||||||||||
| Financing transactions expense | 13,125 | 38,431 | 336,497 | 773,932 | |||||||||||
| Litigation costs (a) | 376,030 | 168,600 | 1,698,531 | 1,594,930 | |||||||||||
| Severance costs | 56,403 | 17,400 | 1,198,471 | 25,092 | |||||||||||
| Acquisitions expenses | 537,662 | 30,909 | 537,662 | 158,047 | |||||||||||
| Insurance acceptance readiness | 92,661 | 252,250 | 1,454,298 | 318,884 | |||||||||||
| Sarbanes Oxley readiness | 134,891 | 151,248 | 521,361 | 199,824 | |||||||||||
| Accrued interest on Series B Convertible Preferred Stock | — | — | — | 506,991 | |||||||||||
| Foreign exchange loss | 246,538 | 368,793 | 1,154,954 | 1,165,412 | |||||||||||
| Taxes | 1,023,872 | 428,000 | 2,285,425 | 498,378 | |||||||||||
| Dividends | 776,562 | 1,363,560 | 3,106,250 | 5,227,450 | |||||||||||
| Stock-based compensation expense | 3,104,956 | 3,645,607 | 12,234,797 | 12,489,343 | |||||||||||
| Net income attributable to noncontrolling interests | 340,963 | 509,880 | 153,234 | 2,756,935 | |||||||||||
| Consolidated Adjusted EBITDA | $ | 8,981,997 | $ | 5,048,167 | $ | 14,380,480 | $ | 11,195,216 | |||||||
| (a) For the quarter and year ended December 31, 2024, the Company included litigation costs related to a class action complaint alleging, inter alia, unauthorized disclosure of certain information of class members to third parties (the Marden v. LifeMD, Inc. case), as disclosed in the Company’s Form 10-K for the year ended December 31, 2024 and a heavily negotiated executive separation agreement. For the quarter and year ended December 31, 2023, the Company included litigation costs related to a purported breach of an investment bank engagement concerning potential debt financing (the William Blair LLC v. LifeMD, Inc. case) and a purported breach of a consulting services agreement for strategic and corporate development services (the Harborside Advisors LLC v. LifeMD, Inc. case), as disclosed in the Company’s Form 10-K for the fiscal year ended December 31, 2023 and filed on March 11, 2024. | |||||||||||||||
| Reconciliation of GAAP Diluted Loss per Share Attributable to Common Shareholders to Adjusted EPS | ||||||||||||||||
| (unaudited) | Fourth Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Diluted loss per share attributable to LifeMD, Inc. common shareholders | $ | (0.02 | ) | $ | (0.12 | ) | $ | (0.53 | ) | $ | (0.70 | ) | ||||
| Adjustments to Reconcile GAAP Diluted Loss Per Share to Adjusted EPS | ||||||||||||||||
| Interest expense (excluding amortization of debt discount) | 0.01 | 0.01 | 0.04 | 0.05 | ||||||||||||
| Depreciation, amortization and accretion expense | 0.06 | 0.05 | 0.23 | 0.20 | ||||||||||||
| Amortization of debt discount | — | — | 0.01 | 0.01 | ||||||||||||
| Loss on debt extinguishment | — | — | — | 0.01 | ||||||||||||
| Financing transactions expense | — | — | — | 0.02 | ||||||||||||
| Litigation costs | 0.01 | 0.01 | 0.04 | 0.05 | ||||||||||||
| Severance costs | — | — | 0.03 | — | ||||||||||||
| Acquisitions expenses | 0.01 | — | 0.01 | 0.01 | ||||||||||||
| Insurance acceptance readiness | — | 0.01 | 0.04 | 0.01 | ||||||||||||
| Sarbanes Oxley readiness | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||||
| Accrued interest on Series B Convertible Preferred Stock | — | — | — | 0.01 | ||||||||||||
| Foreign exchange (gain) loss | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||
| Taxes | 0.02 | 0.01 | 0.06 | 0.01 | ||||||||||||
| Dividends | 0.02 | 0.04 | 0.08 | 0.15 | ||||||||||||
| Stock-based compensation expense | 0.07 | 0.10 | 0.30 | 0.37 | ||||||||||||
| Net loss attributable to noncontrolling interests | 0.01 | 0.01 | — | 0.08 | ||||||||||||
| Adjusted EPS | $ | 0.21 | $ | 0.14 | $ | 0.35 | $ | 0.32 | ||||||||
| Reconciliation of Telehealth GAAP Operating Loss to Telehealth Adjusted EBITDA | ||||||||||||||||
| (in whole numbers, unaudited) | ||||||||||||||||
| Fourth Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Telehealth operating loss | $ | (92,328 | ) | $ | (4,401,440 | ) | $ | (16,787,433 | ) | $ | (25,261,021 | ) | ||||
| Depreciation, amortization and accretion expense | 1,647,085 | 1,280,032 | 6,203,006 | 4,456,393 | ||||||||||||
| Financing transactions expense | 13,125 | 38,431 | 336,497 | 773,932 | ||||||||||||
| Litigation costs (a) | 376,030 | 168,600 | 1,698,531 | 1,594,930 | ||||||||||||
| Severance costs | 56,403 | 17,400 | 1,198,471 | 25,092 | ||||||||||||
| Acquisitions expenses | 537,662 | 30,909 | 537,662 | 158,047 | ||||||||||||
| Insurance acceptance readiness | 92,661 | 252,250 | 1,454,298 | 318,884 | ||||||||||||
| Sarbanes Oxley readiness | 134,891 | 151,248 | 521,361 | 199,824 | ||||||||||||
| Stock-based compensation expense | 3,104,956 | 3,645,607 | 12,234,797 | 12,489,343 | ||||||||||||
| Telehealth Adjusted EBITDA | $ | 5,870,484 | $ | 1,183,037 | $ | 7,397,189 | $ | (5,244,576 | ) | |||||||
| (a) For the quarter and year ended December 31, 2024, the Company included litigation costs related to a class action complaint alleging, inter alia, unauthorized disclosure of certain information of class members to third parties (the Marden v. LifeMD, Inc. case), as disclosed in the Company’s Form 10-K for the year ended December 31, 2024 and a heavily negotiated executive separation agreement. For the quarter and year ended December 31, 2023, the Company included litigation costs related to a purported breach of an investment bank engagement concerning potential debt financing (the William Blair LLC v. LifeMD, Inc. case) and a purported breach of a consulting services agreement for strategic and corporate development services (the Harborside Advisors LLC v. LifeMD, Inc. case), as disclosed in the Company’s Form 10-K for the fiscal year ended December 31, 2023 and filed on March 11, 2024. | ||||||||||||||||
| Reconciliation of WorkSimpli GAAP Operating Income to WorkSimpli Adjusted EBITDA | ||||||||||||||||
| (in whole numbers, unaudited) | ||||||||||||||||
| Fourth Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| WorkSimpli operating income | $ | 1,110,570 | $ | 2,229,903 | $ | 642,752 | $ | 10,771,748 | ||||||||
| Depreciation, amortization and accretion expense | 900,010 | 679,436 | 3,302,160 | 2,311,054 | ||||||||||||
| Foreign exchange loss | 246,538 | 368,793 | 1,154,954 | 1,165,412 | ||||||||||||
| Taxes | 854,395 | — | 1,883,425 | 70,378 | ||||||||||||
| Dividends | — | 586,998 | — | 2,121,200 | ||||||||||||
| WorkSimpli Adjusted EBITDA | $ | 3,111,513 | $ | 3,865,130 | $ | 6,983,291 | $ | 16,439,792 | ||||||||
FAQ
What was LifeMD's (LFMD) revenue growth in Q4 2024?
How many active subscribers does LifeMD (LFMD) have as of Q4 2024?
What is LifeMD's (LFMD) revenue guidance for 2025?
When will LifeMD (LFMD) launch its Medicare services?
What was LifeMD's (LFMD) adjusted EBITDA in Q4 2024?
