LifeMD (LFMD) 17 Aug 202020 Q2 Earnings call transcript

Company Profile

Participants

Justin Schreiber	Chief Executive Officer
Juan Piñeiro	Chief Financial Officer
Stefan Galluppi	Chief Operating and Technology Officer
John Formicola	Performance Capital

Call transcript

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Operator

Good afternoon. Thank you for joining us today to discuss Conversion Labs second quarter and first half of 2020 results ended June 30, 2020.

Joining us today is the Chief Executive Officer of Conversion Labs, Justin Schreiber and Company’s, Chief Financial Officer Juan Piñeiro. They are joined today by the company’s Chief Operating and Technology Officer, Stefan Galluppi.

Following their remarks, we will open the call to your question.

call statements provide the made today’s regarding important call. conclude forward-looking the by we I some will cautions Before management during being investor instructions in I today’s press release, made remind to available today’s of for recorded in the is is website. the available via would be section and replay everyone telecom which will relations like call that company’s

Justin turn would call over CEO, like Labs’, ahead. go to the Schreiber. I please Now Conversion Sir, to

Justin Schreiber

change joining extremely and us good transformational U.S. and afternoon internet, currently massive work. a why growth is for our the individuals transform a didn’t telemedicine, it been technology XXXX Labs across spend But everyone. Orlando late of last shift we occurring represents XXXX you, pandemic customer brands. a products [indiscernible] of way global all today. experienced Smartphone, how Thanks anticipate our would dramatically. think year and Thank has nationwide year it disruptive nothing in Conversion incredible and and for most about Telehealth we This opportunities healthcare. live short in reflects Healthcare. platform. this the Since shifts approach acquisition launching so and Telehealth how platform our building out we accelerated

in excited I’m the contributor which near-term detail record of will saw Since margin company. later. XXX% the year. revenue it growth higher the seeing release quarter you the subscription most over to about million talk it we are last important more the morning revenue another in for recurring is we this profitability particularly increase an in is As quarter for we X.X QX was issued in us reaching about second of revenue, and

the this believe infrastructure, not through to quarter, two and that beyond. served investment will emerge to as our brand, and rest our also first our in we we The a people national ability our And in the of to thanks continue strategic and made leader only mission, XXXX growth validate Telehealth. but we have

we best in combined over outlook what Telemedicine before go us There like to Our capabilities to Juan of I for the truly will what further platforms more marketing quarter. talk in us and the team in lot holds to future and about details a will talk to help to remainder the Labs. the year. believe we CTO be Conversion our take Galluppi our the turn more some then and for return is call the I CFO U.S excited would operational the our make the through CLO who about along Stefan discuss Juan. our for with from then activity financial digital

Juan Piñeiro

have Justin this was and good had a release chance Hopefully all morning. afternoon Thanks earnings issued our that everyone. read to you

financial QX quarter was mentioned, Justin a As from for perspective. an us results excellent

Our a $X.X the of quarter of operating was XXXX from sales XXXX XXXX expenses of the the development our from from the and $X.X up quarter million, million subsidiary to second Simpli Operating customer revenue expenses. the quarter. ago of selling in up expenses was increased quarter. increase gross $X.X $XX.X ago quarter. million expenses ago ago same revenue amounted quarter million in X.X the of same a XXXX year profit $XX,XXX costs. due second same and in in compared X.X the well XX.X% by expenses marketing quarter. contributed administrative The of two increase offset Gross in in XXX,XXX in to The XXX% to percentage year as a net a record of brands second increased to ago XXX,XXX PDF in year same decrease XXX% in to year as of quarter. profit The primarily million increased as quarter X.X in million million year from the to XXX% same service in of general partially increase and XX,XXX second from other XX.X% million

based expense stock X.X share common as net to million year of compensation included XXX,XXX, XXXX second related non-cash XXX,XXX stockholders per and for quarter. second in the XXXX attributable XXX,XXX $X.XX interest loss of compared second The negative net of to XXXX the per of million $XXX,XXX. to quarter turn quarter negatives such the was as or EBITDA for or million quarter X.X compared expenses a attributable totaled Adjusted same the ago in of of non-GAAP loss net negative share expense negative XXXX. X.X refinancing $X.XX loss charges Our certain common of in the second to amortization stock quarter

our financial half to XXXX turning summary. Now first

same Our PDF revenue in in XXX% period. XXX% contributed half first a XXXX same X.X ago $XX.X period. Simpli of increase year sales from year ago the the record to the of up X.X million from million net

XXXX offset time. a ago primarily customer service to development in increases as from the and that due in was fluctuate XXXX to a of The good first The compared sales in of period. selling $X.X XX.X% year a in of XXX,XXX was as processing in XX,XXX increased due increase XX.X% expenses to merchant Operating the million X.X is to up to gross profit cost. half increase percentage first million $X.X and expenses XX,XXX million ago in [indiscernible] in period. in as gross and revenue half the million profit margin in in the by -. operating same sales year to products the million as in from [indiscernible] due X.X first supplement volatility marketing other The Our to the million same period. general amounted $XX.X The revenue to decrease partially same well year $XXX,XXX XXXX of of lower half software mix can well shift expenses, $X.X decreased as in and expenses administrative of

amortization year financing charges, quarter. investments $X.X of of and XXX,XXX EBITDA which non-GAAP of per of of share, acceleration the $XXX,XXX $X.X transaction in half expense of net XXXX valuation of million the of stockholders also term $X.XX negative XXXX is or in negative based of loss common of certain financing expenses to or million, interest The compared attributable for $XXX,XXX, first of first compensation to included net on the to holders XXXX. to XXXX non-cash as Our net first of stock for $XX,XXX ago totaled Inventory loss attributable loss half $X.XX half the same XXX,XXX expenses share compared expenses X.X XXX,XXX. half in related million the Adjusted discount a per common loss first $X.X of of is million. loss stock

in our to March meet XXXX. it at was current Justin. position, sheet, balance needs. to We to liquidity fund our now compared with and our turn This XXX,XXX I Turning available as financial sufficient our and XXXX back cash company subscription to wraps response to XX, XX, up cash currency projections the June believe like provide XXX,XXX would

Justin Schreiber

Thanks, Juan.

discussed momentum quarter. QX to and even continue that Juan third into QX has gathered in we this continued As current grow acceleration the stronger in

revenue which we revenues annualize on-track XX.X means earlier of last indicate than hit subscription was announced The July higher revenue more As July an exciting increased most meet rebuilt the growth in month our more our are million, July more recurring we of year. guidance this sales aspect well $XX to of revenue XXX% from to also X.X than than million, growth rate than year. million X.X this July our which run million. XXX% of in

why margin in our from our of have abilities continue revenue percentage direct-to-consumer efficient profit the numbers these show a is the Labs grow quickly this They in subscription manner. capital the is that also to company, to very a expand matter. verticals dramatically. Conversion As grows new we Telemedicine

be have anyone ensure with that are to mind Telehealth. this about front of with advisors virtual the patients one in setting. we healthcare our to we closely a to brand and Labs It care. built Our been of quality whenever mind and continue quality providing To work Conversion in physicians, make ultimate thinks leading end focus provider the singular should

health portfolio. brand ED Rex Telehealth have out market. prove in dysfunction acquire our strategy to erectile currently Shapiro to growing in ability respectively SOS rapidly MD, We launched launch the men’s three and or we immerge Further Rx, customers Turning our wealth, brands, and simply and perspective, to which target initially hair this current large MD medication. very

quickly in we in this ED the opportunity exist. team our are incredible market a of opportunity what And lasting. is space Labs. we you store it far believe and success validates Conversion is is at build so telemedicine beginning the to little new is in wherever skill platform Our very offers we the for What what is bit launch showing enormous set of will The platform. us the our enable Labs technology technology that Conversion and

internet forces in internet. for be economies by the graph way adoption the taking Due a from be have the our to just to There the captures disruptive personal are not and man the it rapidly market the why healthcare much for other and place will Telehealth, we ways be is COVID-XX ultimately will untapped XXXX the in market. ultimately are the This scale, opportunities rethink where to by many pandemic. it to dominant virtually remembered Telehealth is continuing addressable Telehealth. year telemedicine Americans for offering. the become stage to a COVID-XX there multibillion secondary the the dollar than in readily challenging of in be segments, been has to was that hyper or in leader serviced The globe direct-to-consumers personal XXXX so an of around growing press really apparent the waiting in and players lion’s order gap accelerate unprecedented a different eventually of for everyone Telehealth, massive computer, served The massive, computer share roadmap largest has can are accessed. and unprecedented technologies.

launch expand other Telehealth, XXXX the the the MD at the opportunities We quarters, within brands, markets. next breakout We treatments is our and here. looking under are over for also year telemedicine. expanding looking Rex new to we to few largely to exciting a the are sky Telehealth that serve believe plan truly untapped health is several women’s Given limit

We player our and acquisition Jeremy incredible board. Fine infrastructure. XX-years the have customer those advisory are technology our joined top [Indiscernible] delivery experience, in ranked of innovation Dr. of wellness among internal recently Conversion and an in which Los is attorney doctor, Reflecting in both portfolio Cedars-Sinai with can driving like medical Fine and who Angeles, Toll team includes growth more hospitals This is through Toll guide help Dr. people becoming high medical our to expand Toll the at experts Fine medical, and winning and and the Dr. leading joined of physician the help this initiative leading Telehealth. continued adding of and Medical quality advance Lab, brands award Dr. and Jeff health XX Medical mission accomplishment. Center like Dr. Dr. than telemedicine our country. a the our of

Now an Stefan to would Galluppi, are Chief of to provide we the turn Officer. support doing today our over to Operations overview like Stefan. to and growth. I call our Technology continued what

Stefan Galluppi

to Justin. as we expansion into the took last everyone quickly than possible. this Thank Telehealth started you we have call. Tough year. would significant objective market. Otherwise, as important sooner in is making dial to that to well needed time to our by target of Thanks was note in specialty to the much launch our support is not launched XXXX to end What investments and decided that as

our the Our organizational the but radically Internally, and structure. development Conversion and this not was meant would strengthening Labs’ that brand XXXX investment five continued support compliance just ensure growth for made next we technology, years. expansion objective and our to infrastructure,

larger keen especially grow timed, are us brands made While it we to Telehealth our the and because than launch gladly envisioned. to our and originally far than faster commitment, more ever, we enabled now aggressively

Our driven engineers, supported of brands. designers, digital marketing by analysts, a experts, and capital focus is and and data on branding team enduring building

we allow needs. efficiently whenever determined is Telehealth us platform to launch been Our a offerings designed has market there to

our different proven customer are to and into quickly Internally Telehealth where technology expected On categories our support team online well allows been rock It of team integral a acquisition as the to to build that out and platform infrastructure IP XXX% proprietary connects allows well star marketing as enables our we in-house our us expand out part build developers, physicians. technology funnels our - as also side brands marketing, to field transition as a our an has pharmacies business. our into continuing of teams. finance easily

significantly Last leading for have Telehealth fortunate out We goal also the best our delivering to compliant the way attracted been into and nature least, infrastructure telemedicine aspect that of compliance company. ensure invested having of mind of we have front we the and incredible are compliance. the is Due especially but most the to talent care not every to there.

our direct-to-consumer brand of technology network filled in licensed expanding will Telehealth growth, ever perpetual over patients and make physicians licensed to before really continues view all chain. proprietary this take of networks the enhancing state grow. along May servicing synergistic functionality, Labs to excited Strip up Veritas transition technology Telehealth towards to integration greater consult approve the year. of are quality this the America efficiency health vertically operational applications, is expect we Justin. a complete with next and and with technology prescriptions care In over for further several provider rest an booking. with to you out we deliver been in This we functionality to efficient it now working connect which us to team license Labs patients weeks, it last our receive bespoke online expanding key to Back year, innovative while and this process. its that value This virtually exclusive infrastructure, of for which this way, later Conversion Most and all of the day, implemented of it integrated for way need. is platform. out platform portfolio, products North Sure best-in-class with allowing to and non-exclusive we roll Conversion affairs, why scalability XXX Telehealth of a platform and secured developed now the in physician writing At rights core powers to platforms that combined our This and experts gaining The is features and our customers the a to in importantly, Telehealth. Veritas is designed are we for work of acquired, the than to quality the friction been years I has easier the wellness Our Telehealth, end-to-end all will MD. number regulatory MD physicians and now about Veritas of stage there supports in have e-prescription provide us platform for MD theme, Telehealth develop with that is globally and creating care this of our healthcare by Veritas simple and just acquisition vision core existing the awaiting we our they highly Based XX-days. features new Telehealth

Justin Schreiber

Stephen. you, Thank

Next streamline on enable launch Veritas Telehealth products We provide particularly one new details of of very for Nava that plan more market brands it in opportunities step several to one about a MD, say large excited and the health. the call release. we women’s brands, exciting But scene future Telehealth the rollout now, to I of will the I’m press for we been Nava. can developing behind Nava have target is and

allowing enables strategy, ocean untapped space. opportunities telemedicine target blue a to us Our the quickly in market

So our what it means its and MD, presence just for solidifying as expanding beyond brand. Telehealth a does leading Health dysfunction erectile mean Men’s current this brand. Rex medications

We primary health developing proprietary are over products introducing sexual we offerings by the additional planning care. and to prescription been like accomplish have and this counter additional

order our customer in customer our to health and sexual growing immediately expand base on focus will value. introductions product Additional best leverage lifetime

Rx, earlier which year. launched SOS for Now this we

related illness and in adopt the one With illnesses, and disaster includes addition our and This process advisors, others. that consultation of to their addresses we shifting medical the the the are messaging preparedness, nature prophylaxis. travel concerns brand and of of to in help physician guidance model,

coincided Rx outbreak on which market offerings, go Our refocus SOS launch and with preparedness made it of disaster a difficult the to COVID-XX, of unfortunately the to with brand. our hence

MD, leading Shapiro loss. are brand success our for with growing hair Finally to we continuing Telehealth for

Telehealth and in filing for these currently that loss. quarter, Following proprietary hair will of be three the the market products products the to formulation by counter new process the IP for formulated postpartum new our products physician one three specifically Through we second over in prescription and loss hair offerings launch of the products for is segment. are announced address the

our on record of of brands profits. what which recurring simply are a we long-term strategy has Our always can business XX-months? seeing generating customers reliable stream. number the than growth building Today profitability. been a Now, have sales we most Since of expect important the provide that been component our to can shareholders more a on about six and robust over without portfolio and is a next increasing inception, our doubt focused revenue subscription, with

As down and percentage costs as long-term. customers continues bottom to our weekly our our over to line margin revenue, a customer of driving drives the by will contribution generated scale. revenue the This strong acquisition

ahead men’s Looking we what will as believe the to fairly like. Rex six Telehealth its up additional everything presence have next related transition Men’s a of the will Rx over health Conversion we travel products more. solidify look brand to MD by XX-months, from core offers. Labs clear beyond SOS telemedicine view prescription launching and prophylactic six space from allergy, to disasters will

options MD industry’s next to expect So emerge the the loss. as product female that accomplishments portfolio. XX-months, launch hair the leading nationwide callout for the With both Shapiro patented an over over and male we brand complement counter personalized to our treatment

telemedicine female have MD treatments We a equivalent of and lifestyle which launched will women. products offer the Rex also of for portfolio

being Positive remote online by increase Simpli and owned majority new are PDF tremendously. the subsidiary recent in is working. behavior growing Finally, consumer our user driven registrations

alone. to XX% $XX.X to industry so billion sales e-commerce just are than direct-to-consumer to wide And year this expected now decline more

over incredible of run has have growth the a the While surface the trajectory Labs we the months recent core scratch its this million the on unit believe to it begun and growth base greater. can Simpli’s aggressively massive XX-months to business or year. not next since has All-in-all only of PDF rate $XX Conversion scale can start while the business Telehealth growth least Based across experienced are our what tremendous, we we been the reach board at economics part of in we believe annual being acceleration accomplish.

we telemedicine Given shareholder are greater and than especially and both industry, across see and and the to full-year our drive factors our opportunities XXXX growth Conversion trends of positive million. Labs’ value we all meet over outlook more internally revenue to still to Meanwhile, come. on-track and new the platform, years continuing $XX months

that, would your with I Orlando. Now open like questions, call to to the

Operator

Thank you. with take [Operator [indiscernible]. question We Galantino] will Instructions] our from first [Michael (Ph)

Unidentified Analyst

back it the main number to Quick Could of hi expectations. Great company makes other a market spent and you trying You quarter, different? others? bit developing. you was and makes bit Yes, little there your is turn what the you the Justin. the technology platform keep drive into tell our a the a exceeded about us than your drive referring lane. half company Can [indiscernible] to you what said question, certainly little year a it different talk about

Justin Schreiber

incredible the this business is we launched invested to do is And capital time, Michael. a focus, acquisition I building perspective energy company that platform, of and right. in well human but to XXXX. that chime acquired capital is area as since technology, telemedicine happy the of since Sure, we and that that significant combination may Stefan prior his in into let customer it my

our might the the customer and and to company not believe builders it that I direct-to-consumer of have manage the have the say perspective. customer key, business the of winners that, telemedicine rapidly, land think well, that acquisition platforms - right, to kind which like It the platform us we as is acquisition built really defines that acquisition, the costs technology telemedicine focus quickly specially in think pharmacy where this space to are like we think to pivot we enables is centric. the very other Conversion the I to very and patient patient Labs. into overtime it Stefan, in is acquisitions kind is we so - areas industry have you are more acquisition Which all on other there similar customer, else. that I so customer scale And and anything our that would about patient I way add space, really would is technology we very with technology that? same everybody But

Stefan Galluppi

able targeting. really heavily front, various right. Yes, the I falls just certainly. really the core medications core really using able SMS, patients. sales are focused Really for email, retention testing is centers to or ultimately call then customer such through line on sell is in to is. remarket that personalizing that them really be bringing And things I it funnels scale then mean, of on customers other and being at the in And side across data other to mean, the the the with cross focus two as acquisition process, TC-products to that RX users to who is

Unidentified Analyst

it. Got you. Thank

Operator

next from we John will Performance our with Formicola Capital. And question take

John Formicola

Board Well, Justin done the In and what doing for have they have actually just communicated. whole want there my as been long and a time and to-date. question we was team to I answered congratulate

Congratulations. apologies So up I and with on, Justin time. will another passed catch congratulations

Justin Schreiber

John, thank Appreciate very you your support. much.

John Formicola

very are going. welcome. Keep it You

Operator

[Ben Authority. we Toronto [Operator hear (Ph) you. will Investment next Thank And Patten] from with Instructions]

Unidentified Analyst

reoccurring quarter great the about is yes, question more guys. Hi, revenue. My

think in the total I of customers to as of X.X What amount this million far I July. the you guys said about as - percentage you guess represent hit customers.

or it XX% of guess So reacting for X.X to is customers, those as I’m as is quarter as month retention customers what million is a as million into to X.X that XX% back far from month. trying previous second a far the I that

Justin Schreiber

Yes. Thank you.

to a move point a to for that comment made primarily response are that level just to are sated would spoken provide good second customers - to a than initial economics specifically the on able and We like was competitive reasons. on cycle. from very unit other Stefan, haven’t you and Number lot high they we that? you of

Stefan Galluppi

significantly anything publicly one been. models out mean haven’t where the provide, we have would our could above had I mean be projected was I comment to-date. mean forecasts put I certainly that I that we Well

ahead data January, So what data would looking projected. really are we the and at launch, first of certainly vintages from be we from

Justin Schreiber

Yes, on comfortable I economics a competitive of the are economics, the what disclosed we is kind what are unit great. say apologies we unit really saying would think of We lot but reasons think to and feel very we we like are for these haven’t customer things details these treatment you are This providing a exceptional uses low and as is of on customers them. telemedicine XXX% business everybody know and satisfaction that service the of rate on and subscription. generally work I for

So are possible will that that information. economics and the as are on future detail strong when provide unit the comfortable much very disclosing as we in we

Unidentified Analyst

you guys. Okay. Thank

Justin Schreiber

are You welcome.

Operator

will (Ph) [Steven next And we from question a take [indiscernible]. Gart]

Unidentified Analyst

concern primarily kind or uplifting this in my year, I’m as North are Thank talk the top is it do you have provide so if any gain you to degree this question the some anything could, be, early wonder guidance QX plans too considering the beginning growth the apologize I if into kind of to anything. line top any company, cadence of may maybe asks you then growing like of I I QX would just you subscription to of exchange, for XXX% sense of can and line? foreign And momentum about and that you new you. to maybe over XXXX. for

Justin Schreiber

also U.S. to need revenue. we clearly market cap securities, definitely company it to uplift the over of a where years think we priorities a York the many market especially Sure. buy on and for New counter is I a Exchange near-term the can have and is predict the investors to strong be these Well days and of it so standpoint difficult the from couple very to

would requirement so for price the share done the companies would that up It company like going they we many very be is lift, for as to a are as priority to lower. soon get big is possible. So us for that

range assuming the guidance year, given there, rate we for our possibly right are really go we that something fully doesn’t haven’t $XX - $XXX guidance let current that be year. given next at which unlikely where current to to we us not million wrong can trends run least to be revenue As put continue next now at could say million but out formal far - as in and

in subscription don’t because like which is look every world health right, say The a very forecast quickly. business, things at how has to grown my kind but acquire right quickly, quickly you day, I there will Just be lot large development I would to is for number continue it grown $XXX year, And next a subscription we of of million of customers grow mean sub how run-rate information [indiscernible] a from million. right $XX know there. just has

Why type I the say model, of if And change. things for of subscription got I really Dollar models. Shave like like would they similar a business great which mean, look wants mean, subscription, and growth model. business you about have might real think otherwise, these to that any have But you very So any incredible selling, their don’t people product. Club some I a switch. where we everybody shift guess are home, that lower you at would you and I need think if are great rates works. you that product a have customers kind like almost there offering people price we we cancel healthcare about in and which to cancel. is you no doctor reason always to

So And rapidly. going writing. we there scale to projections out think get this we will definitely thing some in very is

Unidentified Analyst

current [Indiscernible] doctor. finances my attain to

comfortable for Are monthly growing from million up question it you to rest in my the range per Are into this original see is - you question. do quick QX is more the one sequential seeing million month. seeing revenue of and you or sequentially year QX. growth Just guys. this And four three so if

Justin Schreiber

for I we out numbers what have hit estimate year. think we our to it our trust is the the put to some that one

on can So just the over of this subscriptions. But average every growing because reality month are fluctuate an people adding right, customers is more is day a or just weeks online a and couple we subscription period. of just acquisition more like time overall,

and right. we do overtime They here week quite can significantly yes, up growing. or So numbers two for see go certainly down

continue we component acquire single of we Telemedicine So right, I business, we is growth. the subscription be we on don’t see nature I every - certainly and of this are in the this business time, have are products are to to over-the-counter we high certainly both are we month, margin quarter-over-quarter mean comfortable over it But just new that customers, to massive going going the side launching - going that down. way all and it know is side. to

I think see definitely continue growth quarter-over-quarter. we so are And to to going

Unidentified Analyst

Alright. to see XXXX up Do a And that again the then listing. to just redirect event? as you

Justin Schreiber

hope I and extremely get bring positioned I to we tell capital. mean, you very I quality some so. in long-term well high done that can are that

we reason is markets and to a commitment great are of in in to happy do this we when You of right. doing and And made to are are shareholders. of to quorum, the value you highest that. we of with And, is quick right have That capital talk just the - stay And like company can I - the of the the some capital because going I gone open my equity, which to market. And find. I people know done the thing capital really lot talking that sources think one our obviously, main for quality to made increase that very not might we continue to this decisions. out could have scheme I a deal smart a people

done right months, long-term me have an biggest world way perfect I get or biggest priorities. incredible right a to I and it possibility the one just of a quickly. we takes one this investor my up in investor, but is So list it of very is the couple the best extra mean our find It very because of find -

Unidentified Analyst

then out there up? kind And you it medium just you XX% do for grow, long-term, Okay. how and as customer that gross of more or range XX% this staying product in you and in of terms [indiscernible] make see acquisitions follow roll shaping margin to additional do looks like target that see near and are you

Justin Schreiber

that. you want Stefan do Juan on comment or to

Juan Piñeiro

see on cost really merchant to that, product we going focus is in fluctuation we on of when of comes some and on XX%, between comment in There to definitely to to a and both the is a any happy fluctuation those - processing the closure we the cost margin of shipping may higher if be costs products strong regarding there, we actually be the for the products. depending can we XX% to are and at on costs, of I we but it is fluctuation the but for not keeping product products that so product regards could premium that sell, we the so margins. selling like expect do room would sort vary therefore be Yes, we obviously effecting XX% The XX% positive would the the that it fronts. have are are

Unidentified Analyst

Alright. Thank much. you so

Justin Schreiber

get there your the Let me we once answer the as as our onboard [indiscernible] gross own that certainly question, internalize network physician cost will well there cost well margin. our positions as platform

Unidentified Analyst

congratulations the on Thank And again good so year. much.

Justin Schreiber

Yes. you. Thank

Juan Piñeiro

Thank you.

Operator

take question will from we private investor. [Jonathan next, Alvarado] (Ph) And a

Unidentified Analyst

MD Hi, that to require pretty that does down? much lot so or launch more that Veritas investment is a product

Justin Schreiber

We are development stages in final of there. the

tools is to-date, XX to we be really we development. of All a product initial be built the the system that robust more console consoles the anywhere out from - all - of reporting in just so is the live plan can acquired, making scalability on in it we XXXX that more plus focused support asynchronous efficient, so of states to final need that of from features are stages [indiscernible]. that the we heavily that The really took the

Unidentified Analyst

is there then And [indiscernible].

Justin Schreiber

currently look at unit We economics.

bit overtime with cost, the into business the subscription the have we as contribution business acquired consult because and customers initially front we the increases the builds you little dramatically telemedicine So right. we the know margin

So - aggressively, stay we to expect can acquire will trajectory, to question, burn current company continue answer on actual the we acquisition significantly. of whether your rate will we the decline

or unit incredible And economics, access we we one and expensive choose right. knowing we in Now if have profitable just to thing capital can we varying that being the can say that to the choose fourth know quarter growth let’s that have makes capital shareholders, If that for over to economics right acquire access [indiscernible] whatever we are customers. so and you take profitability. XX,XXX the can many choose we inexpensive to sense XX,XXX have going are or another unit between it

acquire patients this to many is possible. we Our just as as perspective want on

economics business proven we There a is have have profitable for no and know We business model. the out unit We already. that. solid about doubt

new So the continuing the in you just that to how actually is save when profitability, just create shareholder kind through is Telehealth launch tough are I mean, we we maximize reach company and them. share, no but market is of value. will for That to gain it - will products we is other how really

Unidentified Analyst

express did How in they [Indiscernible]?

Justin Schreiber

that. kind an it of is don’t on extension, believe is But, it share to exact I I - with you numbers right. have

mean cap on to hair ongoing I sell basis as you an to products. we well. allows cost loss buy They labor choose labor Shapiro our the MD So we purchase

based opportunity the that on peers are with is product. know pretty also We doing Amazon significant, on what

taking of been and launching product with say, with portfolio. it as having the its So profitable of be we longer are would we with process are Amazon’s in the part is that. proud okay I to

Unidentified Analyst

Thanks. Great.

Justin Schreiber

You are welcome.

Operator

next have will a we private from up, and question investor. [Indiscernible] And a

Unidentified Analyst

Hey, so far. on great a Justin, year congratulations

Justin Schreiber

it. Really call. (Ph). [Robert] Thanks, appreciate into dialing for Thanks

Unidentified Analyst

you. Thank Sure.

But it So the liquidity an quickly I estimate was appeared that needs. of million kind this of about went through weekend. $X of there

free on to flow. you plan flow cash end I warrant the positive? comment $X are now like to cash the possible Can But you are And would know of I year. And also reluctant be think, be that being looked forecast we proceeds. bridge exercise might about it from by million there where to be positive that?

Justin Schreiber

over weeks helpful structure would Actually exercise, to cash. last the of We capital about some and answer is to couple as love did exercised shareholders I an those. bring up warrant. it Happy company warrant There some the had we warrants. clean that both Yes. have to talk the the

think So there number in. I I sort bring million. all probably ballpark around of probably $X an that was will a think in No,

I’m answer all want said that as could unit on a the for again figuring you great we what quickly bigger economics. of is it of special capital like know this here current company is that that I we can we is run And in we company just to much business. focuses We need very though know mean, the I sort money, more something it sense much so makes amount and by small about exactly get than our all And but grow out aggressively. communicate the to we scale prior about my have up it. back capital - sure the we how and amount more spend It probably street. to way on rate even was to think have here the we of we

loss valuable We hair numbers have we are very or this products makes just have have offering control stations primary skin is or tests, mean we sense I doing care and right and to unit there and right. per another these some because going care offering, or birth our you valuable health braked right, women’s incredibly be of economics very, have and telemedicine diagnostic because the business very, they continue know are them to they family

[indiscernible]. the and are do to want with the economics patient continue just whatever just had to great we So level to acquire

said, call, indication we in is so mean just the your players, with forget the I I with of is the healthcare your the many So, big times most enormous I life this within that to we the company, basically as indications, going opportunistically for are bringing familiar big There and we team is opportunity to opportunity, sense. the change that space this there business. just the capital health so [indiscernible] makes now some people all answer the the in that our incredible, question different and mean, we no dollar is shareholder right and - approved to multimillion I even that style many even men’s management know about about out going a cares opportunity salaries this we in us. equity. work for have are mean but really in is we as equity liked And the reinforcement

we when is next know mean liquid, very just out so how of patient is you good for we are million, because it garb the If in that and we decisions, what you not cost us do got a can, make we shareholders what let hey, then decision stock I we I one of our biggest. and going guess is equity years. And because and $XX are this [indiscernible] five the for get deploy business sell our to capital as turn capital much we worth

but is prospective So it. I’m that of on window kind just long sorry the about my

Unidentified Analyst

for answer. Thanks it. appreciate the I

eyebrows. of to consolidators run Are natural revenue new out one rate Just there Telemedicine. going question, obviously sector some this raising any other is in quick growth be there

Justin Schreiber

inner are I’m natural -life like are mean expensive is changing right. thousands doctors. I even sure mean even that are the think the very about if business and are its I you are There are, right, on think there people models consolidators field most large company and - changing pharma the how house or I

this? would one can you I how Our revenue $X executives tell these disrupt very do of this, that to streams. do are looking we were now billion meet the you Where lot companies start of big stream. can at the if revenue Telemedicine a you respond all you

and year in time we take a You risk. would there couldn’t what time, build real real be have it

As a buy here. best Labs be and a Conversion in this and right sub is could when you could up proven you take to out know, you people a go or the with a as company acquired few team, platform mock class. to or can the for has years with the just But these agents why answers work go you the do proven risk

that $XXX like think there once right rate. interesting, products run more right? we I out about are think people think as or couple were [Indiscernible] we that there I would pretty And there. buy to million way are platform Especially I out at the have fair ton So, now we to is closer building. that of establishing a And

And not We then are running. heard this doing are and that, this Veritas but but another also doing wants we get platform have [Indiscernible], we that to we indications. up the

that one. once I a a is Which lot company. the valueto think job happened of that the really we prove it corner. this And right lot is adds great things been around of company an have that of A [Indiscernible] incredible out. to amount

to give like Just an Veritas. you

that And and is dollars millions minimum anybody projects valuable. company. buy I this in above that you million, it options a very, knows complicated built their $XX everybody it just solution the is I sub-$XXX,XXX was company a it large was And this like of developers, was tell And And, that working thing. very $X one we minds large some that as the doctors was cash this. just expects my payment. convert that it one was can we Telehealth spent to were $X and were not of development Telehealth you providing years or basically - told I in buy that for knows. of they million were this platform on to company thing is of a think is and peers to years can great manage founders and very would say So thing. a practice this by And almost and thing for and if business. platform, experts guess this be their regulatory able the And years but put into of another And, million hire our

these We have overnight. and out work done to the get things fogs

when platform, offer So, integrated and telemedicine a needs we it. can vertically is earlier, to through again, as this Stefan somebody mentioned launch nationwide we everything it that do but have during

it real value. is think I

Unidentified Analyst

a congratulations great good to and you Justin. the Thanks, on work. year. the team Again, Keep up

Justin Schreiber

Thank you, Robert.

Operator

from The private next hear a we [Indiscernible] investor. will

Unidentified Analyst

you, results bravo Thank XXXX. for

two question. not the time existing considered of Have certainly patients their making - the corporations out breaking partnership employee in the And future near wma.com. question household my employees for with a patients. network. with part you second lower but part same your use Just to Consider and to benefits for cost talking [Indiscernible] future, [indiscernible] of

Justin Schreiber

Yes thanks.

after us just are will want They self-ensured. direct an probably right a [indiscernible] we share mean, now complete employers, going there employers big there in sense focused for response the So the to is doesn’t response Telemedicine how large question. I which just your and just market that business to and you make the about space. to space think We to believe and tell have that opportunity model. opportunity first we I it try enormous stay really in look at

base. lot Your work, far this regulatory a space. very space go, research is I of actually touch I know done and a lot in personally as of want really tech don’t humans as different the with to it second landscape question, we done

to One person the large direct with And that of very, a in investors space the large problem actually generate veterinarians a has physically healthcare order actually write to the very - pet script. from our is response type company have in of is and you income veterinarian examine medication. their most big - in portion prescription cases to a

kind is to space what that of it pretty a understand it where tough from So political it I tough is in to issue right so. now work - is pretty

been is now concerned already that Great great were longer our term don’t right part space already as have company space. but a [indiscernible] [indiscernible] though. are of we business, that investor a as We

Unidentified Analyst

sector. because Thank don’t health question I - of thinking businesses, offer sized and to the around more first medium you and benefit small first the approximately sort was and have they the any part

you different medium small providing your approximately annually they But and and of anything you. lots they sized from appreciate businesses. provide, hearing be employees are could things offer So, and answers. that not their the for would to the I Thank

Justin Schreiber

the appreciate we Thanks mind. in it keep will we Yes Thanks. thoughts.

Operator

Antonio from investor. Next we will [indiscernible], private hear

Unidentified Analyst

couple the looking them I hear when into addressed, horizon. one speaking A but didn’t time is that my time guys something Hopefully you question that horizon. of of that are already you of I see from end,

Justin Schreiber

to time the to is like exchange our horizon, get we’d the through responsible. answer like but don’t I

Unidentified Analyst

or year. year This next

Justin Schreiber

hope this would year. for I

Unidentified Analyst

Thank you. Very good.

Justin Schreiber

putting make requirement The for the the most capital in and we company right just important meet sure it the NASDAQ. shareholders is equity

Unidentified Analyst

sense. Makes

[indiscernible] capital The raising foresee question do would shares? be, other you to coming

Justin Schreiber

think we [indiscernible] I Well would exchange. have to

make bank bring I the a is XX% been down just or in and do of and blue thing think that strategy the incredible like, right We ideal it is available stock would which of This debt have strategy. sell chip an right. investor isn’t this to an money this blue goes be, and equity But chip XX-days investor. equity we lot to an in has expense a is to deal. long-term The actually to company

perfect something and have I really intend term shareholders. a incredibly results in that we pressure for scenario to not high the value to the the And to investor the company the So, on going lot the to on mean find scenario term do appreciating price. listing listed a capital depreciating going took that deal general diluted available have of if us would that in to our long right do while right for to then want money shares mean, the not on near is we is NASDAQ. we again, think term ideal didn’t something right the and it bringing maybe to and its quality here dumb We same time. share long are I

Unidentified Analyst

questions. commend up where I welcome world everybody for which talks work and Thanks. the business statements, the and two Those you just are of meet bombastic your good only you much anytime. a thank Keep are to ourselves. too the want guys are way answer the the just lack for in you monitors to

Justin Schreiber

you very appreciate much. being you We Thank shareholder.

Operator

investor. [Indiscernible], next, question private take up from will And a we a

Unidentified Analyst

imagine a lot Recently, But nice. the we of a that stock are as wealthier has some some even I that. obviously part I count there you than on But portfolio. [Indiscernible]. didn’t answered. for And as all everybody. least our which of have because which stock been with of got might time, predecessor these have us questions even talking hopefully company of afternoon, long look at people been in my have didn’t at called attention I you call price, affiliating I with Good could the are kind at remember increase the you price, this it is that all be we make point.

So I’m read very question give that. clear into But I general it fine my later. answer. with sustainable? can And revenue the stone this you me can is, myself is

Justin Schreiber

is answer The yes. XXX%.

Unidentified Analyst

were asking so - answered high? costs those have Is Why I so your model? in you marketing have high. model costs apologize And answered this Now, that. already the you something financial in structural might if very business I’m are you

Justin Schreiber

are costs high response have every to spend again Well, marketing because word we right. company direct

to So we lifetime customer. much have acquire than pay to customer the to a a greater have value significant expense we acquire what this upfront

we acquisition that customer we by are think we time always upfront. get We over lower advertisements. are could to the those acquisition actually that costs. call costs. will they expanding think going -- actually we that will be we We we our now think prices what So right But running high

We also consultation have to pay for the physician upfront.

costs, our acquisition is high detail data I we Once thing doctors and use whole the reasons, months competitive are see businesses into the right. this. what’s that is continue we nine purchased So right be this with enough over good. now, one is eight may product. are months, counter product? retention with do prescription How that long guess, prescribed the the fine to as we in it they six, medication is but And, like. almost of And there seeing seven really or But haven’t that now are for we shared money

down know as we that the a than customers making pay lot what money road. the what are As doing long - we we are acquire to more we

Unidentified Analyst

per revenues? not earnings They said direct company speculating, relation to of there revenue -. your need of way, you but I do an is Is this the type What revenue So model PS? you point, to those acquisition there cost present what would had have to share. between type actually have achieve? and does any have I’m a under maybe a this it

Justin Schreiber

we the easiest And the range to and when reason don’t aggressively that, and metric and haven’t shareholders most need you the new going it support and which we because that just the we important to out that customers is stop on it’s the think of the acquire ourselves how achieve I [indiscernible] the grow put depends profitability to do company when have to we is don’t we so growth actually If we I only way tomorrow, rate because this think going upfront we question. right. guidance the continue what on we to company that profitability. business really for could answer to your business would the determine we customers. the down tell acquire acquiring rest

back significant technology to teams It customers to and gather products have scalable are business is we We many provide behind little those paying catching really cost core revenue maybe have has, are are patented of mean, business, growth fixed we have [indiscernible] what with great cost bit have grows overhead consumers. it and kind And them overhead medical right, up. to literally question, customers. and our first a do proprietary to we economics used scale than as as more and also customers never like growth variable we fixed subscription we a your turning concerned this acquisition the but treatment other ways. in will just acquire servicing seeing not unit and in we like things, And platform we this was to I

nether of and side kind is So net decision the with your of we it the see year this our at cost question, opportunity the possible look even right to growth we what there. on we make answer I see think profitability near-term capital profitability it is the

Unidentified Analyst

Sure.

capital mentioned, to to more out you I As have need already or offering far a raise stock. when as to put raising see what the you apologize you if public

Justin Schreiber

will I said I go Look to previously. what back

but company. common offering holders this build is to of We are equity an exchange, need do a of to because be that’s it get bad to shareholders done equity order it in for the already. want going foremost deal first we and We to

whole XXXX, job and of a an all brings know we shareholders. as very, you also Juan we the what I are have to done to And us of I And could whole we And our Stefan shareholders. team, the the all continue on that tell And shareholders. and and to are protect seen to you a mean, exceptional this have really proposed you to of deal protecting But which of senior I of the every - way you mean, do just structure, a new brought here. going we a opportunities, tried And and, mean we for tried kind I get the capital clean we the would doing best do long-term are of growth one right add the of and with really little what shareholders it and we mean, shareholders. biggest build board dilution capital in with assets the appreciate people, the not if long-term appropriately. bit a words, incentivize no are and everything structure I given think, we value I I exchange, we by mean, we a team especially is of execute the long-term not big value really will do that mean just very So company investors going our possible all and continue greatly a we believe business maximize interest. shares? we we sold your in started them really legacy in to that here, for feel the value enhance slate we investor. legacy for these we focused is I to to can the legacy, in brainer. know, thing always and

So we are that what is on. focused

Unidentified Analyst

big. Great. participated time. Thank in And Well, the questions people I monopolize glad thank you. promising. you. I know to think I’m things I I’m sorry other have are and

Justin Schreiber

support. Thank the Appreciate you.

Operator

Mr. answer turn At call go Sir, over to like question our would ahead. this concludes session. back this now to I time, and please Schreiber. the

Justin Schreiber

please stay today. most go well time our call. and Orlando, history. exciting be to company’s Thanks, healthy. call us have up and joined the our especially who the attending wrap for everyone our during ahead of Thanks, And shareholders,

Operator

gentlemen. and ladies you Thank

things, provide today’s forward-looking Act and financial. in Now call, statements for important made provided of forward-looking meaning that Section regarding harbor of strategies XXE the Securities cautions this of during and And within other Act includes the the like prospects the Exchange that call. we safe business company’s company Securities conclude has plans, the XXXX of to regarding among information I section amended statements before call the include would statements as XXA XXXX. The of today’s conference company’s

Although the company these you believes that or in by plans, cannot the statements suggested and reasonable, forward-looking intentions company its expectations. intentions realize assure that or plans, are expectations these reflected it or achieve will

time inherently others. forward-looking conference risks call the Many such and are made estimated uncertainties. to could as may, and believe, from of among differ by call cause anticipate, Securities conference includes factors made the statements forward-looking results those Inc., potential, a the All to Important this entirely subject should, or Forward-looking States conditions Labs files the Commission. qualified forth by cautionary person during to words statements behalf expressly documents statements identified are on this maybe United will, time actual or plan, company from materially during statements forward-looking language. use attributable intend, forward-looking in the this of its expect, market Conversion that that set with and reports acting Exchange and

you earnings like call, and this via available call call. later replay today. concludes for to Please this dial company’s joining August for will conference end release we that everyone the This running XXst. be conference starting evening for the remind www.conversionlabs.com. available I replay us would Before at today’s to through Thank refer website instructions today’s

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