LifeMD, Inc. (NASDAQ:LFMD), a provider of telehealth services and direct-to-patient healthcare, announced the departure of Naveen Bhatia from its board of directors. Mr. Bhatia's resignation was effective as of Monday, October 25, 2024, and was not due to any disagreement with the company's operations, policies, or practices.
The company expressed its gratitude to Mr. Bhatia for his contributions during his tenure on the board. The announcement, made through a regulatory filing with the Securities and Exchange Commission (SEC), did not specify the reasons for Mr. Bhatia's departure beyond clarifying that it was voluntary.
This change in the board's composition comes as LifeMD continues to navigate the competitive telehealth market. The company, headquartered in New York, NY, operates within the healthcare sector, providing services through offices and clinics of doctors of medicine.
LifeMD has not announced any immediate plans for a replacement board member or detailed any changes to the board's structure following Mr. Bhatia's resignation.
The information regarding this corporate governance update is based on a press release statement.
In other recent news, LifeMD, Inc. has reported strong second-quarter earnings, particularly within its telehealth and weight management segments, which showed a 67% year-over-year revenue growth. Despite a GAAP net loss, the company recorded a record consolidated gross margin and an increase in active subscribers for its core telehealth services.
LifeMD reiterated its full-year revenue guidance of at least $205 million, expecting continued growth in the telehealth segment.
In addition, LifeMD announced plans to divest its subsidiary WorkSimpli, focusing on expanding its weight management services, developing new infrastructure, and growing its RexMD brand.
BTIG and B.Riley maintained their Buy ratings on LifeMD, following recent developments regarding the FDA's resolution of the tirzepatide shortage and other market demand factors.
The FDA's decision to allow compounding pharmacies to continue dispensing compounded tirzepatide under specific conditions while the FDA conducts its review is expected to be advantageous for LifeMD.
InvestingPro Insights
As LifeMD navigates this change in its board composition, InvestingPro data provides additional context to the company's current financial situation. Despite the recent board member departure, LifeMD has shown impressive revenue growth, with a 38.63% increase over the last twelve months as of Q2 2024, reaching $178.28 million. This growth is particularly noteworthy in the competitive telehealth market.
However, investors should be aware that the company is currently not profitable, with an operating income of -$19.22 million over the same period. This aligns with an InvestingPro Tip highlighting that LifeMD has not been profitable over the last twelve months.
On a positive note, another InvestingPro Tip points out that LifeMD boasts impressive gross profit margins, which is reflected in the data showing a gross profit margin of 88.92% for the last twelve months as of Q2 2024. This strong margin could provide the company with financial flexibility as it adapts to changes in its board and strategic direction.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for LifeMD, providing a deeper understanding of the company's financial health and market position.
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