Q3 2024 Medifast Inc Earnings Call Transcript
Key Points
- Medifast Inc (MED) is actively adapting to the changing weight loss market by developing new programs tailored for individuals using GLP-1 medications.
- The company has expanded training for Optavia coaches, with over 95% of coach leaders completing specialized training to support clients on GLP-1 medications.
- Medifast Inc (MED) plans to launch new products under the Optavia Ascend brand, specifically designed for those on GLP-1 medications, in early 2025.
- The company maintains a strong balance sheet with $170 million in cash and no interest-bearing debt, providing financial flexibility for future investments.
- Medifast Inc (MED) is optimizing its marketing strategy, focusing on channels that yield the highest return on investment, and plans to continue this approach into 2025.
- Revenue for the third quarter of 2024 decreased by 40.6% year-over-year, primarily due to a decline in the number of active earning Optavia coaches and lower productivity per coach.
- The number of active earning Optavia coaches decreased by 36.3% from the third quarter of 2023, impacting customer acquisition.
- Medifast Inc (MED) faces significant competition from GLP-1 medications, affecting customer acquisition and spending patterns.
- The company expects a loss per share for the fourth quarter of 2024, ranging from 10¢ to 65¢, indicating continued financial pressure.
- SG&A expenses as a percentage of revenue increased by 950 basis points to 73.9%, reflecting a loss of leverage due to lower sales volumes.
Greetings and welcome to the Manifest third quarter, 2024 earnings conference call at this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steven Ser Vice President of Investor Relations. Thank you, sir. You may begin.
Good afternoon and welcome to Medifast's third quarter, 2024 earnings conference call on the call with me today are Dan Chard, Chairman and Chief Executive Officer and Jim Maloney, Chief Financial Officer.
By now, everyone should have access to the earnings release for the quarter ended September 30th 2024 that went out this afternoon at approximately 4:05 p.m. Eastern time.
If you have not received the release, it is available on the investor relations portion of Medifast website
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