LifeMD, Inc.

Thank you for joining us today to discuss the results for LiveMD's first quarter-ended, March 31st, 2022. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Mark Benetton, Chief Financial Officer of LiveMD. Following management prepared remarks, we will open the call for questions and answer session. I'd like to remind everyone that today's call is being hosted via webcast and the recording will be available via the link in today's press release, which is available in the Investor Relations section of the company's website. Before we begin, I'd like to remind everyone that during this call, the company will make a number of forward-looking statements which are subject to numerous risks and uncertainties that may cause the company's actual results to differ materially from those projected. These risks and uncertainties are described in the company's 10-K and 10-Q filings and other filings that LiveMD may take with the SEC from time to time. Forward-looking statements made during this call are based on current information available to the company as of the date as of today, May 13, 2022. The company assumes no obligation to update or revise any forward-looking statements after today's call, except as required by law. Also, please note that management will be discussing certain non-GAAP financial measures that the company believes are important in evaluating LiveMD's performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release issued earlier today. Finally, I would like to remind everyone that today's call is being recorded and will be available for replay in the Investor Relations section of the company's website. Now, I'd like to turn the call over to LiveMD's CEO, Justin Schreiber. Sir, please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining us today to discuss our first quarter 2022 results. In the first quarter of 2022, LifeMD posted its 13th consecutive quarter of sequential revenue growth and a 14% sequential improvement in bottom line profitability. The first quarter was impacted due to a one-time deferral of approximately $1 million in rebilling revenue to the second quarter following a pharmacy-related technology upgrade and short-term headwinds in the advertising market we've since adapted to. That being said, we still remain on track to deliver on our full year adjusted EBITDA guidance and our previously guided adjusted EBITDA profitability by the fourth quarter. In the first quarter, we successfully closed two acquisitions, executed the launch of our virtual primary care platform, and continue to improve our telehealth, marketing, and technology infrastructure. Our improvement is reflected in the 13% sequential improvement in average order value versus the fourth quarter of 2021. LifeMD announced our first ever acquisition, Cleared Technologies, in January of this year. Cleared is a nationwide allergy, asthma, and immunology telehealth platform with both direct-to-consumer and business-to-business capabilities. We're now in the process of integrating Cleared into LifeMD's telehealth platform, which we expect to complete by Q3 of this year. We're extremely excited about this acquisition for two reasons. One, the tremendous white space opportunity we see in the allergy and asthma telehealth market. And two, we see Cleared as a vehicle for pharma and other healthcare product company partnerships that leverage LifeMD's present and growing telehealth, marketing, and patient adherence capabilities. In a short period of time since closing the acquisition, we have amassed two B2B partnerships and developed a sizable pipeline of additional companies that we believe we will contract with in the coming quarters. We followed up the clear deal with the acquisition of ResumeBuild by our subsidiary, WorkSimply, in February of 2022. ResumeBuild is a worldwide leader in the digital resume space, and like WorkSimply, the unit economics of the business are very strong. The WorkSimply team is already off to a great start with this new platform and expects to amass over 10,000 subscribers in this segment alone before the end of the second quarter. This acquisition further empowers WorkSimply's transformation into a multifaceted work and document services platform for consumers and small businesses. As stated before, LifeMD is in the early stages of seeking to divest WorkSimply, and we believe that WorkSimply's acquisition of ResumeBuild will be highly accretive to its valuation. Having launched our virtual primary care platform this quarter, moving forward, we believe that it will be an important cross-sell to our growing patient population and a big driver of overall lifetime value. Due to some technology-related delays, our cross-sell capability went live this month but still a bit too early to share patient count data. However, we are very excited to have just launched this critical capability. Also in the first quarter, LifeMD successfully drove improvements in our customer AOV and LTV. Among our many initiatives, we introduced new subscription and cross-sell opportunities across our brands, contributing to LifeMD's 13% sequential increases versus the prior quarter in AOV for prescription products. I believe that the combination of growing strength in our core business, coupled with strategic enhancements and new lines of business this quarter, positions LifeMD to achieve record results this year, including adjusted EBITDA profitability by year end. With that, I will now turn the call over to our CFO, Mark Benison, who will provide a summary of our financial results. Mark.

Thank you, Justin, and good morning, everyone. As Justin mentioned, the first quarter of 2022 was another record revenue quarter, marking our 13th consecutive quarter of revenue growth. In addition to this growth, we remain on track to achieve our previously provided full-year 2022 adjusted EBITDA guidance, including attaining adjusted EBITDA profitability by the fourth quarter of 2022. In conjunction with this, we are revising our full year revenue guidance to be between 132 and 138 million, but without any impact to our bottom line guidance in order to reflect short-term revenue impact from the first quarter, while we remain laser focused on margin expansion, unit economics, and growing profitability. We have begun the process to divest work simply, including hiring an M&A advisor, and remain very optimistic about this process. Furthermore, work simply remains a profitable, self-funded business, which recently returned back to growth and is accretive to our company. This is particularly important as it will enable LifesMD to ensure we are only doing the transaction that is in the best interest of our shareholders. Now turning to the results for the first quarter of 2022. Revenue in the first quarter totaled the record $29 million of 60% as compared to the same quarter a year ago. 91% of the total revenues in the first quarter were generated by recurring subscriptions compared to 88% in the same year ago period. Telehealth net revenues grew by 70% to $22.6 million, while work simply net revenues grew by 31% to $6.4 million. WorkSimply revenues did experience a one-time decline in sequential revenues following some initial challenges related to the integration of their resume build acquisition and some new product enhancements, but rebounded strongly in March 2022 with WorkSimply adding a monthly record 13,000 plus net new subscribers in the month alone. WorkSimply is expected to return back to sequential growth in the second quarter and on a go-forward basis. Gross profit totaled $23.8 million, an increase of 59% from the same year-ago period. Gross profit as a percentage of revenue was 82% for both the quarter ended March 31st, 2022 and 2021. Operating expenses for the first quarter totaled $36.9 million, an increase of $10 million versus the year-ago period. This increase was predominantly driven by a $5.3 million increase in general administrative expenses, a $3.3 million increase in selling and marketing expenses versus the year-ago period. Operating expenses as a percentage of revenue improved by 2,400 basis points, driven by a 2,700 basis point improvement in selling and marketing expenses as a percentage of revenue versus the year-ago period. Our GAAP net loss attributable to common stockholders for the first quarter totaled 14.1 million or 46 cents per share. This compares to a net loss attributable to common stockholders of 11.6 million or 47 cents per share in the first quarter of 2021. Adjusted EPS is a non-GAAP measure that excludes 4.5 million in non-cash stock-based compensation expense $52,000 in financing transactions expense, $531,000 in depreciation and amortization expense, $168,000 in interest expense, $393,000 in non-recurring charges, and $776,000 in preferred stock dividends. This figure totaled the loss of $0.25 per share for the first quarter as compared to a loss of $0.37 per share in the same year-ago period. Adjusted EPS also improved 14% sequentially versus the prior quarter. Adjusted E was a non-GAAP measure which excludes non-cash stock-based compensation, depreciation and amortization expenses, financing transaction expenses, inventory adjustments, preferred stock dividends, non-recurring charges, and interest expenses, totaled the loss of $7.6 million in the first quarter of 2022. This compares to an adjusted EBITDA loss of $9 million in the same year-ago quarter. Now turning to the balance sheet. Cash sold $25.1 million as of March 31, 2022, and included the impact of $7 million of one-time cash outflows related to the two acquisitions we completed in the first quarter, plus related working capital. We continue to believe our balance sheet is sufficient to support LifeMD, Inc. as we scale without the need for additional capital. This wraps up our financial results. I'd now like to turn the call back over to Justin.