What drove LFMD's significant earnings beat in Q4?

LifeMD's significant earnings beat in Q4 2024 can be attributed to several key factors:

1. **Revenue Growth**: LifeMD reported a 43% increase in consolidated revenue for Q4, reaching $64.3 million. This growth was primarily driven by a 60% increase in telehealth revenue, which accounted for 75% of the total revenue. The company's weight management program, which offers GLP-1 drugs, has been a significant driver of revenue growth. As of mid-May, the program had nearly 50K subscribers, up from around 3K in Q2 2023. Additionally, the company's telehealth services exceeded consensus estimates by approximately 15%, contributing to the overall revenue surprise.
2. **Cost Management**: LifeMD's gross margin for the fourth quarter was 85.3%, indicating efficient cost management despite the revenue mix and one-time impacts related to onboarding a new pharmacy. The company's adjusted EBITDA increased nearly five-fold, reflecting improved profitability.
3. **New Product Launches**: LifeMD successfully launched several key products, including a male hormone replacement therapy business and a nationwide pharmacy licensed in 47 states. These new offerings have contributed to the company's revenue growth and market expansion.
4. **Strategic Expansions**: LifeMD plans to expand its virtual primary care offerings, including a new LifeMD Plus membership program and behavioral health services. The company is also optimistic about the potential growth of its Medicare offerings, which are set to launch soon. These strategic expansions are expected to drive future revenue growth.

In summary, LifeMD's significant earnings beat in Q4 2024 can be attributed to robust revenue growth, efficient cost management, successful product launches, and strategic expansions. These factors combined to exceed market expectations and contribute to the company's positive financial performance.