Good afternoon. Thank you for joining us today to discuss the results for LifeMD's Fourth Quarter and Year Ended December 31, 2021. During the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Marc Benathen, Chief Financial Officer of LifeMD. Following management's prepared remarks, we will open the call for a question-and-answer session. I'd like to remind everyone that today's call is being hosted via webcast, and the recording will be made 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 would 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 within other filings that LifeMD makes 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 today, March 7, 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 LifeMD’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 LifeMD’s CEO Justin Schreiber. Please go ahead.

Thank you, operator, and good afternoon everyone. Thank you for joining us today to discuss our fourth quarter and year-end 2021 results. 2021 was another year of outstanding achievement for LifeMD, with numerous accomplishments throughout the company characterizing 2021 for us, including triple-digit growth in revenues across both our Telehealth and WorkSimpli segments. Record growth in new patient subscribers, the launch of our tele-dermatology brand for women, Nava, the beta launch of our Virtual Primary Care platform, and the successful completion of a financing transaction that we believe will capitalize LifeMD permanently to achieve profitability and fulfill our mission to change healthcare. Our revenues, which we pre-announced in January, were up 149% over the previous year to a record $93 million for the full year. All of our performance metrics underlying our record-breaking year were strong as well: gross margins, average daily rate of new subscriber acquisitions, customer acquisition costs, revenue from rebuilds of existing patient subscribers, and subscription revenue as a percent of total revenue all achieved record levels of performance in 2021. Of note, during a year when media rates rose exponentially versus 2020, our team was able to successfully drive a 23% reduction in customer acquisition costs while also achieving the aforementioned record performance in top-line growth metrics and new patient sign-ups. I believe these record achievements encapsulate the LifeMD difference: our superior ability to efficiently and effectively attract and retain patient subscribers in a variety of consumer and advertising market conditions. As we recently outlined in our first Annual Investor and Analyst Day in February, we remain focused on our pursuit of aggressive long-term growth in revenue and rapid expansion of our operating margins with a goal of obtaining $250 million to $300 million in net revenues by 2025 with at least 25% adjusted EBITDA margins. In addition to the continued strong growth and performance of our core lifestyle-oriented healthcare brands, Rex, Shapiro, and Nava, we are equally excited about the newest additions to the LifeMD Telehealth Platform, Cleared, and our Virtual Primary Care Service LifeMD. Primary Care and Cleared, along with our lifestyle-oriented brands, will synergistically help us empower patients to live healthier lives by giving them access to affordable and comprehensive personalized healthcare. In January of this year, LifeMD announced the first acquisition in the company's history when we closed on the acquisition of Cleared Technologies, a leading Allergy, Asthma, and Immunology Telehealth clinic. Not only does this business represent a tremendous jumping-off point into a very large and pervasive market, as one in three American adults suffer from allergies or asthma, but it is also highly synergistic with the existing LifeMD platform. In addition to the tremendous opportunity to scale Cleared’s direct-to-patient offering by leveraging LifeMD’s proven capabilities, following the acquisition of Cleared, we've begun to expand the LifeMD business model even further through direct partnerships with pharmaceutical companies. Under these initial agreements, we will use our tremendous healthcare advertising and patient retention capabilities to partner directly with pharmaceutical companies and manage these activities in a highly efficient, effective, and compliant manner. We believe this is an important stepping stone in the continued evolution of our business, exploiting the strength of our core competencies. We followed up the announcement of the Cleared acquisition with a nationwide launch of LifeMD’s Virtual Primary Care Platform following a successful beta launch. Our Primary Care Platform, anchored by our comprehensive 50-state affiliated medical group and seamless proprietary technology platform, aims to disrupt the market with a convenient patient-first and frictionless experience in primary care at a highly affordable price point, leading to better outcomes for patients. As we've demonstrated at our recent Investor Day, our platform not only features a seamless one-stop shop technology platform, but it also integrates with leading nationwide partners, including Quest Diagnostics, Axel Health, and Prescriptive to provide our members with best-in-class lab work, diagnostics, in-home services, and prescription drug discounts. As we begin to scale this business, we see not only a tremendous opportunity to cross-sell this offering to the more than 500,000 patients LifeMD’s affiliated medical group has treated to date and the 1,000-plus new patients onboarded each day, but also to the millions of Americans who are either uninsured, underinsured, have high-deductible health plans, or simply lack access to quality medical care. The LifeMD platform provides comprehensive one-on-one relationships with high-quality doctors and primary care medicine across an ever-growing range of specialties. We provide direct contact with doctors when and where patients need it, quick responses to their questions, and access to their medical histories. All our pricing is affordable and transparent. With that, I will now turn the call over to our CFO, Marc Benathen, who will provide a summary of our financial results.

Thank you, Justin, and good afternoon, everyone. As Justin mentioned, we continued to execute and deliver strong top-line growth and continuously improving operational performance. This quarter marks 12 consecutive quarters of sequential revenue growth and the achievement of record gross margin percentages in 2021. Our team remains laser-focused on not only growing our top line through patient acquisition and retention, but also achieving our stated goal of adjusted EBITDA profitability by the fourth quarter of 2022. We are not only on track to achieve this goal, but have also successfully capitalized the business to achieve this goal without the need for additional capital. In addition to our strong current liquidity position, finishing the year 2021 with over $41 million of cash and no debt, we have also outlined the additional liquidity we expect to realize later this year from the sale of our non-core subsidiary, WorkSimpli. We will provide a further update on the status of this process in our next quarterly earnings call. Now turning to results for the fourth quarter of 2021, revenue in the fourth quarter totaled a record $27.4 million, up 113%, as compared to the same quarter a year ago. 93% of the total revenues in the fourth quarter were generated by recurring subscriptions, compared to 82% in the same year-ago period. Telehealth net revenues grew by 100% to $20.6 million, while WorkSimpli net revenues grew by 164% to $6.8 million. Gross profit totaled $21.8 million, an increase of 144% from the same year-ago period, while gross profit as a percentage of revenue was 80%, as compared to 69% in the same year-ago period. Operating expenses for the fourth quarter totaled $35.5 million, a decrease of $5.8 million versus the year-ago period. This decrease was predominantly driven by an $11.7 million decrease in general and administrative expenses related to a decline in non-cash stock-based compensation expense of $16 million versus the year-ago period. Our GAAP net loss attributable to common stockholders for the fourth quarter totaled $19 million or a loss of $0.62 per share. This compares to a net loss attributable to common stockholders of $32.3 million or a loss of $2.56 per share in the fourth quarter of 2021. Adjusted EPS is a non-GAAP measure that excludes $4.1 million in non-cash stock-based compensation expense; $543,000 in financing transactions expense; $348,000 in depreciation and amortization expense; $4.2 million in non-cash loss on debt extinguishment; $871,000 in preferred stock dividends; and $8,000 in non-cash income tax provision. This figure totaled a loss of $0.29 per share for the fourth quarter, as compared to a loss of $0.94 per share in the same year-ago period. Adjusted EPS improved 19% sequentially versus the prior quarter. Adjusted EBITDA, a non-GAAP financial measure, which factors out non-cash stock-based compensation, depreciation and amortization expenses, non-cash loss on debt extinguishment, financing transaction expenses, inventory adjustments, preferred stock dividends, interest expenses, and income taxes totaled a loss of $8.2 million in the fourth quarter of 2021. This compares to an adjusted EBITDA loss of $9.2 million in the same year-ago quarter. Adjusted EBITDA improved 9% sequentially versus the prior quarter. Now turning to the results for the full-year 2021, revenue in 2021 totaled a record $92.9 million, up 149% as compared to the same year-ago period. Telehealth net revenues grew by 123% to $68.2 million, while WorkSimpli net revenues grew by 267% to $24.7 million. Gross profit totaled $74.9 million, an increase of 163% from the same year-ago period. Gross profit as a percentage of revenue was 81%, as compared to 76% in the same year-ago period. Operating expenses for the full year totaled $129.2 million, an increase of $42.9 million versus the year-ago period. This increase was primarily driven by a $43.5 million increase in selling and marketing expense related to the continued aggressive scaling of our Telehealth and WorkSimpli businesses. Despite the growth in spend, selling and marketing spend as a percentage of net revenues decreased to 89% in 2021, as compared to 105% in the same year-ago period, reflecting significant leveraging of these expenses achieved in the back half of 2021. Our GAAP net loss attributable to common stockholders for the full year totaled $61.8 million or a loss of $2.29 per share. This compares to a net loss attributable to common stockholders of $63.4 million or a loss of $4.44 per share in 2020. Adjusted EPS is a non-GAAP measure that excludes $12.1 million in non-cash stock-based compensation expense; $1.8 million in financing transactions expense; $869,000 in depreciation and amortization; $4 million in non-cash loss on debt extinguishment; $2.1 million in amortization of debt discount; $871,000 in preferred stock dividends; and $8,000 in non-cash income tax provision. This figure totaled a loss of $1.48 per share for the full year, as compared to a loss of $1.74 per share in the same year-ago period. Adjusted EBITDA, a non-GAAP financial measure, which factors out non-cash stock-based compensation, depreciation and amortization expenses, non-cash loss on debt extinguishment, financing transaction expenses, litigation costs, inventory adjustments, preferred stock dividends, interest expenses, and non-cash income tax provisions totaled a loss of $38.3 million in 2021. This compares to an adjusted EBITDA loss of $15 million in 2020. Now turning to our balance sheet, cash totaled $41 million as of December 31st, 2021 following the successful completion of the Company's October 2021 preferred and common stock offering. In addition, during the fourth quarter of 2021, we successfully reduced our operating cash flow burn to under $6 million, representing a 21% sequential improvement versus the prior quarter. We believe our balance sheet is sufficient to support our strategic goals in growth as we continue to scale and invest in the rapid expansion of our business with strong unit economics without the need for additional capital to be raised. This wraps up our financial results. I'd now like to turn the call back over to Justin.

Thanks, Marc. We are very excited about the opportunity for us. We believe we're revolutionizing healthcare and that our platforms will fundamentally shift how patients think about and access healthcare in the US. We look forward to continuing to execute upon our commitment to be a leader in Telehealth while working towards delivering our fundamental performance goals, including adjusted EBITDA profitability by the fourth quarter of 2022; our 2022 revenue guidance of between $142 million and $148 million; and our long-term financial goal of achieving $250 million to $300 million in revenue by 2025, with adjusted EBITDA margins at or above 25%. In closing, I would like to thank our entire team for continuing to deliver a record performance at LifeMD, as well as our providers and their patients, and our shareholders for their continued support as we change the face of healthcare. With that, I would like to open the call for Q&A.

Thank you. We will now begin the question-and-answer session. Our first question comes from David Larsen with BTIG. Please go ahead with your question.

Hi, congratulations on the good quarter. Can you talk a little bit about the beta launch of the Virtual Primary Care Solution? How is that progressing? And any sense of demand that you're seeing on the uptake in subscribers? Thank you.

Sure, David, this is Justin. I can comment on that. We really just scaled the full launch of the VPC platform in the last couple of weeks. We're really happy with the progress that we've made in the technology. We've continued to onboard more and more patients; the numbers still are very small. One thing that we were waiting for was final approval from LegitScript to start really committing ad dollars to the platform, so that's something that we're going to be starting in the next week or two. And we've also been putting in place the right technology to also start moving patients over to the VPC platform, which is kind of the cross-sell that we've talked a lot about in the past from other brands in the 3,000 or 4,000 patients we've talked to every single day. That's also progressing really well. So we don't have any specific numbers right now at the site, but we feel really good about what we're going to see in the next couple of weeks. And I think certainly throughout this quarter, we expect to see some meaningful traction from the VPC platform that we can talk about next quarter.

Okay. So, it's my understanding that the pool of patients that Rex sees, I mean, you've treated over 500,000 patients so far. Is it pretty easy to convert or I guess up-sell or cross-sell the Virtual Primary Care solution to your Rex or Nava customers? Are the doctors talking to them or if the call center reps are talking to them, is there a way for them to easily sign up for that solution? Can they sort of automatically or easily see whether or not that member has a primary care provider in place already? Any thoughts on the operational aspect of an up-sell and in-sell?

The answer is yes. While I prefer not to delve too deeply into our strategy for competitive reasons, we do see 1,000 of our patients each day, with over 1,000 new patients joining the LifeMD family across our brands. Our representatives engage with these patients to determine if they have a primary care provider and discuss that with them. We feel confident that, although I wouldn’t characterize it as 'easy', our proficiency in paid media and advertising, both online and offline, will enable us to effectively cross-sell and attract a significant number of patients daily from our existing brands on the B2C platform. While I hesitate to use the word 'easy', I can say we are extremely confident that this initiative will be successful.

Okay. And then with the WorkSimpli asset, fantastic year-over-year revenue growth, but it seems like on a sequential basis, the revenue growth has not been as high as it had been, say, in the year-ago period or previous quarters? And I seem to recall there was something operational that WorkSimpli was working through last quarter or two quarters ago. Any thoughts on that, the sequential revenue growth rate of WorkSimpli?

Yes. This is Marc. So there was a free trial offer where they were working on extending the free trial from 14 days to 30 days, that was last quarter. We since terminated that since it hasn’t really borne fruit. But the biggest reason for why they're still seeing sequential revenue growth, albeit at a slower rate than it had been in the past, is we are very laser-focused on continuing to drive profitability in that business ahead of executing a sales transaction this year, likely in the second half of the year with that particular business. That's been the advice that we've received as we’re getting closer to hiring an advisor. We expect them to continue to have sequential growth going forward, but it will be at least in the short-term at a slower rate. They recently added a second product, a digital resume product with a small acquisition that they did. We expect that to start to jumpstart a lot of their sequential growth in the second quarter of this year and to carry forward pretty quickly. But at the same time, we are laser-focused on making sure that, that business particularly ahead of a sale maintains strong profitability.

Okay, great. And then can you talk a little bit about the sales and marketing costs and customer acquisition costs? I'm hearing different things from different entities in the market. In some cases, I'm hearing that sales and marketing costs are increasing significantly, and it seems like you have it under pretty good control. Just what are you seeing, like, let's say, from December of 2021 through January and February and now we're heading into the spring? What kind of trends are you seeing in advertising costs?

Yes. In general, from a market rate standpoint, the advertising market has been challenging. With that being said, we think this is a time where it really shows how LifeMD is differentiated in this area. If we were just talking about what the trends were, you would see that our cash flow has improved by significant double digits during the half, while the industry has been flat on a sequential basis. And as we mentioned in the call year-on-year, they were down 23% versus the prior year, and a lot of that improvement really started in the back half of the second quarter this year through the back half of the year. So the market remains challenging, but we continue to be able to produce record results in the acquisition of new patients and be able to do that with relatively consistent cash because we're able to get smarter and more refined than a lot of our strategies. I guess I'm not going to go into those details for competitive reasons on the call, but we think that the tough market has really shown that we're able to succeed and excel, despite those types of market headwinds.

Okay. And then just the last one before I hop back in the queue, any thoughts on how Nava and Cleared are performing relative to your own internal expectations? Any thoughts or color there? And it’s also my understanding that there's a very large over-the-counter solutions set that Nava has in a large market opportunity there. Just any color or thoughts on the traction you’re gaining?

Well, clearly, it is very early to tell. We closed the acquisition on January 18th. But so far it is tracking in line with the expectations that we had for that business, and we think it's actually going to be a pretty significant opportunity, bringing not only significant additional growth on a direct-to-patient basis, but also directly partnering with some pharmaceutical companies in that space, of which we already have a couple of existing partnerships. On the Nava side, yes, I would say that that particular business is in line with our internal expectations. We expect most of the growth in that business to be in the second quarter through the end of the year as we start to complement the Rx business with the OTC, something that's happening this month. But in general, they are both performing in line with our expectations for the business.

Okay. Congrats on your progress here and for your 4Q ‘22 EBITDA breakeven objective. It sounds like you're on track. I'll hop back in the queue. Thank you.

Thanks.

Our next question comes from Marc Wiesenberger with B. Riley Securities. Please go ahead with your question.

Thank you. Good afternoon. I think you noted in the release and in your prepared remarks that 93% of revenue was generated by subscription. I'm wondering if you could parse out that subscription number with regards to WorkSimpli versus the Telehealth business?

Yes. So 90% of the revenue in the Telehealth business is recurring subscription, and 100% of WorkSimpli's revenue is through subscriptions.

Great, thank you. And then could you talk about kind of the percentage of encounters that are asynchronous? And how that's evolved over the last few quarters? And as VPC grows, how that shift in the mix could impact margins, if at all?

Yes, I can address that, Marc. Currently, it's estimated that around 80% of our condition-specific and dermatology businesses, which include Rex, Shapiro, and Nava, operate asynchronously. While we have the capacity for asynchronous consultations through the Virtual Primary Care platform, we initially opted for synchronous appointments. Synchronous appointments take significantly more time compared to asynchronous ones. However, we are optimistic about the projected margins for this business. It's a distinct model, functioning as a recurring telehealth service. For example, if someone pays us $15 a month, we anticipate having the highest number of patients initially. This $15 monthly fee has a 100% margin. We expect to enroll a substantial number of patients, with revenue also dependent on how frequently each patient utilizes the platform. They pay for every consultation as part of an a la carte offering. Even if we pay above market rates for doctors and focus on delivering exceptional healthcare, we still anticipate desirable net margins for this business. The key difference is that the recurring subscription fee, which is at a 100% margin, helps balance out the lower-margin consultations. Does that answer your question?

We apologize. It seems that he had disconnected. If he comes back, he may have a chance to go back in. We do have our next question from the line of David Larsen with BTIG again. Please proceed with your question.

Hi, just one more follow-up. Amazon announced that they're launching a nationwide Virtual Primary Care platform. Have you seen them in the market at all? Or just what are your general thoughts on the impact that Amazon may or may not have on your launch and your progress?

David, we are currently concentrating on the cash pay market, which serves the 60% of Americans who are uninsured, underinsured, or have high-deductible health plans. I've noticed that larger companies like Amazon, Google, and Apple are entering this space. These big tech firms are focusing on managing chronic conditions such as diabetes and hypertension and building relationships with key players in the US. However, I haven’t encountered anyone from those companies, nor have I seen any advertisements for Amazon's Primary Care Platform. The market is vast, and we anticipate that many well-funded competitors will emerge. We’ve established our business in some of the most competitive markets in the US, including healthcare, so we aren't concerned about competition. My primary focus is on identifying the highest-value revenue streams within the Virtual Primary Care sector, where we can provide exceptional healthcare and achieve strong unit economics. Our strength in acquisition is where we will excel. We don’t need a large share of this market to create a substantial business. Virtual Primary Care will become ubiquitous, and at LifeMD, our acquisition team excels in competitive markets and is very resourceful. We know how to develop offerings that fulfill people's needs, and we are proficient at acquiring and retaining patients. We are simply not worried about competition at this early stage.

Okay, great. Thanks very much. Have you been approached by any health plans that want to basically use you as a Virtual Primary Care Group? Any thoughts on whether or not that's something you'd be willing to do at some point in the future? Just any thoughts around the size of what those plans may have been would be helpful. Thank you. How many members?

We've been approached by one small health plan that has, I don’t know, about 10,000 or 20,000 lives. We've also been approached by some large employers that expressed interest in the platform. We've simply said, 'Hey, we want to follow up with you in another quarter or two, once we onboard more patients onto the platform.' Interestingly, we've also been approached by several healthcare product companies, such as diagnostic companies and pharma companies that need to partner with a telemedicine provider to drive patients to their products through their own marketing activities. These are substantial opportunities as these initiatives could drive tens of thousands of patients or more to LifeMD, and we would realize service income from these. There could also be a co-promotion structure involved. Also, these patients using the LifeMD app to access these healthcare products are all great candidates for our Virtual Primary Care offering. So, these discussions are in the early stage. I want to be conservative with the statements I make, but I think you're going to see us gain some traction in this area this calendar year.

Okay. If we assume, let's call it, $25 per member per month with 20,000 patients, that could be anywhere from $5 million to $10 million a year in revenue. It might be a small plan, but it could be a material revenue contributor, right?

That's correct. The numbers become material quickly. Any of these opportunities, whether it's a large employer, a small health plan, or a diagnostic company running 5,000 or 10,000 tests a year, can be very significant.

Our next question comes from Marc Wiesenberger with B. Riley Securities. Please proceed with your questions.

Yes, thanks. Sorry for the technical difficulty and dropping off the call there. How do you think about your customer acquisition channels evolving over time? It looks like some competitors are increasingly leveraging influencers or celebrities, and I'm wondering where you could look to increase the top of the funnel relative to where you are today?

Yes, this is Marc. Justin, do you want to take that?

Yes, we're constantly building new partnerships on the media side, and I think there's a lot of opportunity to continue to grow that. You know, we actually just launched a trial with one of the largest consumer healthcare websites in the US in the last couple of weeks. But there are many channels out there, many of which are online channels that we haven't really tapped into yet and we're constantly testing them out to see what the CPAs look like. There are also many offline opportunities that we haven't tested yet but are seeing strong traction internally. These are very competitive markets, but we still see a lot of opportunities to continue to expand our efforts at the top of the funnel.

Great. And then just the final one for me, as you look at the components of your LTV calculation, wondering which one of the inputs you feel that you can really turn the dials on the most? And throughout the year, what kind of gains do you think are achievable?

This is Marc. I would say two things. One, AOV, we've already seen some decent traction with that relative to new subscriber sign-ups, where particularly in our largest brand, Rex, in the fourth quarter we were able to increase what had been about the $95 to $100 AOV on new subscriptions, up to about $125 to $130 through some additional cross-sells and up-sells. So that's one. And then number two, as we continue to broaden our platform, our primary care rollout, I think this is probably the biggest one, will be in retention. As we become a bigger, broader business, we believe retention is going to continue to move up and continue to have a larger tail for those customers to stay with us for two, three, four years plus.

Great. Thank you very much.

And we have reached the end of the question-and-answer session. I will now turn the call back over to Justin Schreiber for closing remarks.

I just want to say thank you to everybody for joining another earnings call. We're extremely pleased with the performance from the past calendar year and looking forward to another terrific year in 2022. I appreciate everybody's support, and we'll talk to you next quarter. Have a great evening.

And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.