How did LifeMD's telehealth revenue surge in Q4 2024 impact overall profitability?

LifeMD's telehealth revenue surge in Q4 2024 had a significant impact on overall profitability, as evidenced by the following key points: 1. **Revenue Growth**: LifeMD's telehealth revenue experienced a substantial increase, with a 65% year-over-year growth in Q4 2024. This surge was driven by the successful uptake of its virtual 'GLP-1 Weight Management' program within its core Telehealth segment. 2. **Gross Margin Improvement**: The company reported a record gross margin of 90.6% in Q4 2024, up 300 basis points from the year-ago period. This indicates a strong profitability trend, as gross margin reflects the percentage of revenue retained after deducting the cost of goods sold. 3. **Adjusted EBITDA Increase**: LifeMD's adjusted EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) for Telehealth increased by 200% sequentially to $2.5 million. This substantial increase suggests that the company is generating more earnings from its core operations. 4. **Subscription Growth**: The company's telehealth subscriber base grew by 30% year-over-year to approximately 269,000. This expansion in the subscriber base is a positive indicator, as it contributes to recurring revenue and can lead to increased profitability over time. 5. **Pharmacy Expansion**: LifeMD's strategic move to open a national pharmacy is expected to be accretive in 2025. This expansion will likely enhance the company's service capabilities, improve patient experience, and potentially lead to increased profitability due to reduced costs associated with outsourced pharmacy services. In conclusion, LifeMD's telehealth revenue surge in Q4 2024, coupled with improvements in gross margin and adjusted EBITDA, has had a positive impact on overall profitability. The company's strategic expansions, such as the national pharmacy launch, are likely to further enhance its financial performance in the coming years.