On August 8, 2024, LifeStance Health Group Inc (LFST, Financial) released its 8-K filing for the second quarter ended June 30, 2024. LifeStance Health Group Inc is a mental healthcare company focused on providing evidence-based, medically driven treatment services for children, adolescents, and adults suffering from a variety of mental health issues in an outpatient care setting, both in-person and through its digital health telemedicine offering.
Performance Overview
LifeStance Health Group Inc (LFST, Financial) reported a revenue of $312.3 million for Q2 2024, surpassing the analyst estimate of $307.57 million and marking a 20% increase from the $259.6 million reported in Q2 2023. The company’s net loss narrowed to $23.3 million, a significant improvement from the $45.5 million loss in the same period last year. This reduction in net loss was primarily driven by stock-based compensation.
Key Financial Achievements
LifeStance Health Group Inc (LFST, Financial) achieved an Adjusted EBITDA of $28.6 million, more than doubling from $14.1 million in Q2 2023. The Adjusted EBITDA margin also improved to 9.2% of total revenue, up from 5.4% in the prior year. The company’s clinician base grew by 14% to 6,984 clinicians, contributing to a 15% increase in visit volumes to 2.0 million.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Y/Y Change |
|---|---|---|---|
| Total Revenue | $312.3 million | $259.6 million | 20% |
| Loss from Operations | $(15.9) million | $(48.4) million | (67%) |
| Center Margin | $97.8 million | $73.0 million | 34% |
| Net Loss | $(23.3) million | $(45.5) million | (49%) |
| Adjusted EBITDA | $28.6 million | $14.1 million | 103% |
Balance Sheet and Cash Flow
As of June 30, 2024, LifeStance Health Group Inc (LFST, Financial) reported cash and cash equivalents of $87.0 million and net long-term debt of $279.5 million. The company generated $22.2 million in cash flow from operations for the first half of 2024, including $44.1 million in Q2 2024.
2024 Guidance
LifeStance Health Group Inc (LFST, Financial) has raised its full-year 2024 revenue expectations to a range of $1.2 billion to $1.242 billion. The company also increased its Center Margin expectations to $363 million to $383 million and Adjusted EBITDA expectations to $90 million to $100 million. Additionally, LifeStance continues to anticipate generating positive Free Cash Flow for the full year.
“We continue to execute on our plan. In the first half of 2024, we achieved revenue growth of 20%, delivered operating leverage, and generated positive free cash flow,” said Ken Burdick, Chairman and CEO of LifeStance. “We are raising full year 2024 expectations and remain confident in our ability to deliver on our financial commitments while continuing to improve operational performance.”
For the third quarter of 2024, LifeStance Health Group Inc (LFST, Financial) expects total revenue between $290 million and $310 million, Center Margin between $83 million and $95 million, and Adjusted EBITDA between $15 million and $21 million.
LifeStance Health Group Inc (LFST, Financial) continues to demonstrate strong growth and operational improvements, positioning itself well within the Healthcare Providers & Services industry. Investors and potential investors are encouraged to review the full 8-K filing for more detailed information.
Explore the complete 8-K earnings release (here) from LifeStance Health Group Inc for further details.
