Conversion Labs July 2020 Revenues up 302% to Record $3.6 Million, Remains on Track to Exceed $40 Million in Revenue in 2020
Conversion Labs, Inc. (OTCQB:CVLB), a direct-to-consumer telemedicine and wellness company, reported record revenues of $3.6 million in the month of July, up more than 302% versus July 2019.
For July 2020, $1.2 million was attributed to recurring revenue from rebilled subscriptions to products and services, up 362% versus July 2019.
"Revenue, and particularly recurring subscription revenue, has grown across the board due to the strategic investments we've made in our brands, our people and our digital health platform," commented Justin Schreiber, CEO of Conversion Labs.
"When we connect with a customer seeking treatment, it usually represents the beginning of a long-term relationship between provider and patient," continued Schreiber. "Our goal is to do everything possible to deliver great ongoing medical care.
"As we do a good job with this, we expect our subscription revenue to increase because our patients will continue to turn to us for their medical needs. So, as our telemedicine business grows, we expect our subscription-based revenue to grow accordingly and become an increasingly greater portion of our overall sales."
Conversion Labs' July results indicate an annualized revenue run-rate of $42.7 million, compared to revenue of $12.5 million for all of 2019--a difference of 242%.
Conversion Labs' CFO, Juan Manuel Pineiro Dagnery, commented: "Our business strategy has been more than simply about increasing sales and generating profits. We have been primarily focused on building a portfolio of telemedicine brands that can provide a predictable and reliable recurring revenue stream. As the revenue generated by our repeat customers continues to scale and drive down customer acquisition cost as a percentage of revenue, we expect this to drive strong growth in our bottom line over the long term."
According to analysts at Forrester Research, the adoption of telemedicine across the healthcare industry has "shifted into hyper-drive," with virtual health care visits on pace to top 1 billion by year end. Another recent report projects the global telemedicine market to expand at a rapid 19.3% compounded annual growth rate to reach $175 billion by 2026.
Conversion Labs' new cloud-based, end-to-end telemedicine platform, Veritas MD, addresses this fast growing market, and supports the continued market expansion of the company's telemedicine brands.
"Conversion Labs and its brands have emerged on the forefront of the new telemedicine boom, thanks to our highly effective online marketing program and now our new Veritas MD telemedicine platform," noted Conversion Labs' CTO and COO, Stefan Galluppi.
"Veritas MD has been designed to connect state-licensed physicians with patients in a simple and efficient manner," said Galluppi. "This takes the friction out of the healthcare process, making it easier than ever before for physicians to consult with patients and provide the personal care they need. While our growth in rebilled subscriptions has been tremendous, we believe we have only begun to scratch the surface of what Conversion Labs can accomplish."
Conversion Labs recently reported preliminary unaudited results for the second quarter ended June 30, 2020, with revenue reaching a record $9.2 million, up 114% sequentially and up 241% from the same year-ago quarter. As a result, management increased its full-year 2020 revenue outlook from $36 million to more than $40 million. The company has announced it will host an investor call to discuss the second quarter 2020 results at 1 p.m. Eastern time on August 17, 2020.
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.
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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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Juan Manuel Pineiro Dagnery
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