Conversion Labs Annualized Revenue Run-Rate Hits $53.9 Million, up 332% vs. 2019, Driven by Subscriptions to an Expanding Suite of Telehealth Brands
NEW YORK, Dec. 15, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (NASDAQ: CVLB), a direct-to-consumer telemedicine and wellness company, reported its annualized revenue run-rate reached a record $53.9 million in November, up 332% versus $12.5 million for all of 2019. The run-rate is based on record revenues of $4.5 million for the month, which was up 233% versus November of last year.
Annual recurring revenue (ARR) generated by subscriptions reached $23.0 million, up by $19.2 million or 517% versus November 2019 (see description of ARR, below). The growth in ARR was driven by the company’s increasingly popular brands, particularly Rex MD for men’s health.
“November was so strong, it eclipsed our entire first quarter revenue by a significant margin,” stated Conversion Labs CEO, Justin Schreiber. “This performance reflects the tremendous acceleration we’ve experienced throughout the year, particularly with our subscription-based sales. In fact, it was the second consecutive month where the majority of our Rex MD and PDFSimpli net revenues were generated by subscriptions, and we see this trend increasing.”
“The growth of our telemedicine business over the past year, combined with the top tier institutional capital we’ve attracted and recent Nasdaq listing, has enabled us to recruit some of the top talent in the industry,” continued Schreiber. “The capabilities and skills of these individuals, some still to be announced, will ‘turbocharge’ our growth and further solidify our position as a leader in the direct-to-consumer telehealth space.”
“More importantly,” added Schreiber, “they will help us lead the charge in making essential healthcare and wellness more accessible, affordable and with better outcomes, all while enhancing the overall user experience and quality of care for both patients and doctors.”
Over the last few weeks, the company appointed Eric Yecies, an expert Life Sciences attorney and former partner at Holland & Knight, as chief compliance officer and general counsel. Brad Roberts, a seasoned operator with more than 16 years’ experience building and scaling direct-to-consumer businesses was appointed chief operations officer.
Corey Deutsch, the founder of the healthcare-focused hedge fund, Paradigm Opportunities, and lead investor in the company’s recently oversubscribed $16 million private placement, recently joined the team as its new head of corporate development.
Former White House medical director for three sitting presidents, U.S. Navy Rear Admiral, and founder of the Center for Executive Medicine, Dr. Connie Mariano joined the company’s board in October. She was soon followed by Roberto Simon, former Revlon CFO and current CFO of WEX, a $8 billion NYSE-traded fintech company. The board now has eight members, with six serving as independent directors.
“I’m often asked, ‘what makes Conversion Labs unique?’” said Schreiber. “I think the answer is simple: It’s our talented and hardworking team who comes to work every day ready to succeed. I have never worked before with such an incredible group of professionals. They have the drive and shared vision of making Conversion Labs a household name, and especially one that is synonymous with compassionate, responsive care.”
“While we are tremendously proud of our accomplishments, I believe we have just begun to scratch the surface of our potential. 2020 has been a year of transformation for the company, but I am confident the best is yet to come—and 2021 will be the biggest yet for Conversion Labs.”
About Conversion Labs
Conversion Labs, Inc. is a telemedicine company with a portfolio of online direct-to-consumer brands. The company’s brands combine virtual medical treatment with prescription medications and unique over-the-counter products. Its network of licensed physicians offers telemedicine services and direct-to-consumer pharmacy to consumers across the U.S. To learn more, visit Conversionlabs.com.
Annual Recurring Revenue
Conversion Labs calculates annual recurring revenue (ARR) by multiplying by 12 the monthly sum of revenue attributed exclusively to automatic subscription sales from customers that are engaged in the company’s rebill structure for the brands of Shapiro MD, Rex MD and PDFSimpli. In the company’s calculation of ARR, it does not consider sales from customers that repurchase its products themselves in the company’s checkout pages, Amazon Marketplace or through assistance of the company’s customer service representatives, since those sales have a marginal advertising/marketing expense associated with the respective sale. The company also does not consider the revenue attributed to the initial purchase upon acquisition of the respective customer.
Important Cautions Regarding Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to Conversion Labs, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.
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