NEW YORK, July 07, 2020 (GLOBE NEWSWIRE) — Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, reported preliminary unaudited results for its second quarter ended June 30, 2020. Revenues totaled approximately $9.2 million, up 114% sequentially and up 241% from the same year-ago quarter.
“These record results were driven by strong customer acquisitions and growth in subscription revenue generated by our expanding portfolio of telemedicine, online pharmacy, and wellness brands,” said CEO of Conversion Labs, Justin Schreiber.
Conversion Labs CFO, Juan Manuel Piñeiro Dagnery, commented: “This acceleration in top line performance is supporting a significant expansion of our gross margins across our business segments, and demonstrates the strong leverage in our business model. In fact, gross margins for our brands are the strongest they have ever been.
“We continue to see a record number of customers on subscription plans, which is an important metric for our business and indicates a high level of customer satisfaction with our brands. We believe our growing customer retention and lifetime value validates the robustness of our brands and growth strategy.”
A major consumer shift to eCommerce and telemedicine during the COVID-19 pandemic has also been supporting the company’s rapid growth. The adoption of telemedicine across the healthcare industry has “shifted into hyper-drive” with virtual health care visits on pace to top 1 billion by year end, according to Forrester Research. Another recent report sees the global telemedicine market expanding at a 19.3% compounded annual growth rate, reaching $175 billion by 2026.
Conversion Labs’ new cloud-based, end-to-end telemedicine platform, Veritas MD, is supporting the company in addressing this fast growing market with its expanding lineup of telehealth brands. Veritas MD is designed to provide greater access and convenience to the growing number of customers seeking medical treatment and prescription medications from the comfort of their home.
As a result of the company’s growth in the first half of the year, management is increasing its full-year 2020 revenue outlook from $36 million to more than $40 million. This compares to revenues of $12.5 million in 2019 and represents growth of more than 220%.
The company expects to report full Q2 results in the second week of August.
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.
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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Juan Manuel Piñeiro Dagnery
Media and Investor Relations Contact
Ron Both or Grant Stude
CMA Investor Relations
Tel (949) 432-7566
Source: Conversion Labs, Inc.
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