LifeMD stock surges as GLP-1 trend drives revenue, earnings

Life MD Inc. NASDAQ: LFMD provides telemedicine services to consumers in the United States. The medical company operates many telemedicine brands, including men’s telemedicine brands RexMD and ShapiroMD, women’s dermatology telemedicine NavaMD, 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 and accessible channel for consumers seeking quick, virtual medical care and consultations.

GLP-1 Clinical Weight Management Program

Shortly thereafter, the company initiated the GLP-1 clinical weight management program in 2023 WW International Inc. NASDAQ: WW entered the clinical weight loss segment with the acquisition of Sequence Inc., which offers subscription plans that allow GLP-1 prescriptions from its providers.

LifeMD has partnered with the weight management company Medifast Inc. NYSE:MED, which has committed a $20 million investment to partner with its Optavia coaching program. Its GLP-1 business has grown to over 22,000 patient subscribers and 100% quarter-on-quarter (QoQ). LifeMD competes with peer-to-peer telemedicine platforms, including His and Hers Inc. NYSE: HIM, American Well Co. NYSE:AMWL AND Teladoc Inc. NYSE:TDOC,

Subscription plans

LifeMD does not offer necessary insurance plan options and a partnership with Laboratory Co. of America Holdings NYSE: LH AND Quest Diagnostics Inc. New York Stock Exchange: DGX provides access to discounted laboratory services. Its FlexCare plan requires no subscription, 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 comes with one free virtual visit every month, including free appointments and all the benefits of the FlexCare plan for a $117 quarterly subscription. The ConciergeCare plan comes with unlimited free visits, and everyone benefits from the TotalCare plan for $99 a month.

GLP-1 program

LifeMD’s GLP-1 program costs $129 per month. 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 medical treatment, metabolic testing, insurance assistance and clinical guidance. The cost of the drugs is not included, but only the prescriptions and medical advice. Obtain AI-powered insights on MarketBeat. Check the heat map of the sector on MarketBeat.

Impetuous growth

LifeMD reported fourth-quarter 2023 earnings per share of 15 cents, beating consensus analysts’ estimates for a loss of 14 cents by 29 cents. Consolidated adjusted EBITDA was $5.5 million compared to $1 million in the prior-year period. Weight management subscribers rose to 22,000 by the end of the year. GAAP net loss was $4.5 million compared to $12.7 million in the same period a year earlier. Telemedicine subscribers increased 27% year over year to a record 215,000. Revenue increased 60% year-over-year to $44.96 million, beating consensus analyst estimates of $40.48 million. Gross margin grew to a record 88.1%, compared to 85.5% in the year-ago period. Telemedicine revenue increased 90% year over year and 28% sequentially. Active telehealth subscribers increased 27% year over year to 215,000.

Raised guide

LifeMD raised its first-quarter 2024 revenue guidance to $42 million from consensus estimates of $42.5 million. It grew full-year 2024 revenue by at least $200 million versus consensus estimates of $191.5 million. This increased from previous forecasts of $195 million to $205 million.

CEO Insights

LifeMD CEO Justin Schreiber commented, “During the year, we launched our GLP-1 weight management program, which has quickly grown to become a leading provider of weight loss management services with medical support nationwide. In less than nine months, we have scaled this business to over 22,000 subscribers and growing. Year to date, into 2024, we continue to see record daily performance in selling new weight management subscriptions at a rate higher than our previous guidance for 2024.”

LifeMD analyst ratings and price targets I’m on MarketBeat. LifeMD peers and competitor stocks can be found with MarketBeat Stock Screener.

Daily mug and handle breakout

The daily candlestick chart for LFMD illustrates a daily cup and handle breakout pattern. The lip line formed at $8.44 on January 3, 2024. Shares fell to a low of $5.00 on January 4, 2024. LFMD formed a rounded bottom in the following months to mount a rally to retest of the lip line at $8.44 in February. 27, 2024. LFMD retreated to form a handle ahead of its fourth-quarter 2023 earnings. The earnings turned out to be very strong, along with raised guidance that helped lift shares through lip-line resistance of the cup, triggering the cup and handle breakout. The daily relative strength index (RSI) has risen to the overbought 80 band. The pullback support levels are at $9.11, $8.44, $7.68, and $6.97.

Before you consider LifeMD, you’ll want to hear this.

MarketBeat tracks daily Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and LifeMD wasn’t on the list.

While LifeMD currently has a “buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

View the five stocks here