NEW YORK, Sept. 11, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, has reported record revenues of $3.7 million for the month of August, up more than 267% versus August 2019.
August results indicate an overall annualized revenue run-rate at $44.0 million versus $12.5 million for all of 2019—a more than three-fold increase.
Annual recurring revenue (ARR) from subscriptions increased by $2.4 million or 16% to $17.2 million in August 2020 compared to the previous month of July, and increased by $14.0 million or 437% versus August 2019 (see description of ARR, below).
The growth in ARR has been largely driven by the company’s increasingly popular proprietary brands which include Rex MD and Shapiro MD.
“August was another record month for us with strong growth across our telehealth brands,” commented Justin Schreiber, CEO of Conversion Labs. “The most exciting aspect has been the accelerating growth in our high-margin subscription revenue. As the percentage of our revenue from subscriptions continues to expand, we expect to see contribution margins grow accordingly.”
“This performance continues to reaffirm the strength of the business and our aggressive strategy for growth,” continued Schreiber. “As we launch additional telemedicine offerings and products, we expect our growth will continue to accelerate.”
In addition to delivering highly-effective products and services, the company has been benefiting from the growing adoption of telemedicine across the healthcare industry. According to Forrester Research, telehealth has “shifted into hyper-drive,” with virtual health care visits on pace to top 1 billion by year end. The telemedicine market is expected to grow at 19.3% CAGR, reaching $175 billion by 2026.
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.
Annual Recurring Revenue (ARR)
Conversion Labs calculates annual recurring revenue (ARR) by multiplying by 12 the monthly sum of revenue attributed exclusively to automatic subscription sales from customers that are engaged in the company’s rebill structure for the brands of Shapiro MD, Rex MD and PDFSimpli. In the company’s calculation of ARR, it does not consider sales from customers that repurchase its products themselves in the company’s checkout pages, Amazon Marketplace or through assistance of the company’s customer service representatives, since those sales have a marginal advertising/marketing expense associated with the respective sale. The company also does not consider the revenue attributed to the initial purchase upon acquisition of the respective customer.
Important Cautions Regarding Forward-Looking Statements
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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