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Wednesday saw H.C. Wainwright analyst Yi Chen increase the price target for LifeMD Inc (NASDAQ: LFMD) to $14.00, up from the previous $12.00, while reiterating a Buy rating for the company’s shares. The $235 million market cap healthcare technology company has seen its stock surge nearly 12% over the past week, according to InvestingPro data. The revision follows LifeMD’s announcement of its fourth-quarter and full-year financial results for 2024 earlier this week.
LifeMD reported a total revenue of $64.3 million in the fourth quarter of 2024, a 43% year-over-year increase that surpassed the analyst’s expectations of $57.2 million. The company maintains impressive gross profit margins of 89%, as revealed by InvestingPro data. Telehealth services, a significant segment of the company’s business, brought in $49.9 million, marking a 60% increase from the previous year. Additionally, WorkSimpli, LifeMD’s software solution, contributed $14.4 million to the total revenue, a 6% year-over-year growth.
The company also managed to beat the projected net loss for the quarter, reporting a loss of just $0.9 million, or ($0.02) per share, compared to the anticipated $3.4 million. Adjusted earnings per share (EPS) stood at $0.21 for the quarter.
For the entire year of 2024, LifeMD’s total revenue reached $212.5 million, representing a 39% growth year-over-year. Telehealth revenue was a significant driver of this growth, with a 61% increase year-over-year to $158.4 million. However, WorkSimpli revenue saw a slight decline of 0.7% year-over-year, totaling $54.0 million. The company’s net loss for the year was $22.0 million, or ($0.53) per share, with an adjusted EPS of $0.35.
An important highlight from the report was the growth of LifeMD’s Telehealth active subscriber base, which expanded by 27% year-over-year to 275,267 by the end of 2024. This growth in subscribers, coupled with a 61% increase in Telehealth revenue, suggests that the average revenue per subscriber also saw significant growth throughout the year.
Looking forward to 2025, LifeMD’s management has set a total revenue target ranging between $265-275 million, which includes Telehealth revenue projections of $205-213 million. The company also anticipates an adjusted EBITDA of $30-32 million. For the first quarter of 2025, the guidance for total revenue is between $61-63 million, with Telehealth revenue expected to be $48-49 million and adjusted EBITDA forecasted to be $5-7 million. InvestingPro analysis suggests the stock is currently undervalued, with analysts maintaining a Strong Buy consensus and a high target of $16 per share.
In light of these results and projections, H.C. Wainwright has adjusted their own financial projections for LifeMD and based their new price objective on an EV/Revenue multiple, leading to the updated $14 price target. Chen’s outlook remains positive, as indicated by the maintained Buy rating and the increased price target for LifeMD’s stock. InvestingPro reveals additional insights through its comprehensive analysis, including 10+ investment tips and detailed financial metrics available in the Pro Research Report, helping investors make more informed decisions about this rapidly growing healthcare technology company.
In other recent news, LifeMD Inc. reported a strong financial performance for the fourth quarter of 2024, surpassing market expectations with an earnings per share (EPS) of $0.21, compared to a forecasted loss of $0.05. The company’s revenue reached $64.3 million, exceeding the anticipated $57.66 million. Analysts from Cantor Fitzgerald and KeyBanc Capital Markets have maintained their Overweight ratings on LifeMD, with price targets of $15.00 and $7.50, respectively. Cantor Fitzgerald highlighted LifeMD’s strategic expansion into high-growth markets and the potential for significant revenue generation. KeyBanc noted that LifeMD’s telehealth revenue and consolidated adjusted EBITDA surpassed expectations, with projections for continued growth. LifeMD’s expansion into commercial and Medicare networks is expected to be a major growth driver, potentially contributing 30-50% of revenue in the coming years. The anticipated launch of Medicare Fee-For-Service coverage is set to broaden LifeMD’s eligible customer base by nearly 25 million. Additionally, LifeMD has set ambitious targets for 2025, projecting consolidated revenue between $265 million and $275 million and telehealth revenue between $205 million and $213 million.
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