Miami, FL – October 12, 2020 (EmergingGrowth.com NewsWire) — EmergingGrowth.com, a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth markets and companies, reports on Conversion Labs, Inc. (OTCQB: CVLB).
NEW YORK, Oct. 12, 2020 (GLOBE NEWSWIRE) — Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, reported preliminary unaudited results for its third quarter ended September 30, 2020.
Revenues for the third quarter are expected to total approximately $11.2 million, up 23% from the previous quarter and up 254% versus the same year-ago quarter. The results were driven by another strong month in September, with revenues totaling approximately $3.9 million, up 258% versus September 2019.
Annual recurring revenue (ARR) from subscriptions to products and services increased by $2.2 million or 13% to $19.3 million in September 2020 compared to the previous month of August (see company’s definition of ARR, below). ARR increased by $15.8 million or 458% compared to September 2019.
“Q3 was another record quarter with tremendous growth across our portfolio,” commented Justin Schreiber, CEO of Conversion Labs. “As expected, we saw a considerable increase in recurring revenue, which now comprises more than half of all revenue. This mostly reflects the continued growth of our telemedicine business and a high level of satisfaction among our patients and customers.”
September results indicate an overall annualized revenue run rate of $46.8 million versus $12.5 million for all of 2019—a more than three-fold increase. Compared to the end of the previous month, the company’s annualized revenue run rate has increased by $2.4 million.
“The strategic investments Conversion Labs made in its brands, people and infrastructure since launching its telehealth platform late last year has been the true driver of this growth,” noted Stefan Galluppi, the company’s chief technology and operations officer. “We expect sales to continue to accelerate as we launch additional telemedicine offerings and continue to optimize the business. Combined with our growing patient base and greater economies of scale, we see these new products helping to drive strong margin expansion.”
The company plans to report its full quarterly results and host an investor conference call in the second week of November.
In addition to offering increasingly popular products and services, the company has benefited from the rapidly growing adoption of telemedicine across the health care industry. According to Forrester Research, telehealth has “shifted into hyper-drive,” with virtual health care visits on pace to top 1 billion by year end. The telemedicine market is expected to grow at 19.3% CAGR, reaching $175 billion by 2026.
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 (ARR)
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.
Trademarks are the property of their respective owners.
Juan Manuel Piñeiro Dagnery
Media and Investor Relations Contact
Ron Both or Grant Stude
CMA Investor Relations
Tel (949) 432-7566
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