NEW YORK, June 09, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, reported record net revenues of $3.2 million for the month of May, up 274% versus May 2019. Combined net revenues for April and May totaled $6.3 million, up 249% over the same year ago period.
The May results indicate an annualized net revenue run-rate of more than $38 million in 2020 versus total net revenues of $12.5 million in 2019.
“We continue to see rapid revenue growth across our core telemedicine brands thanks to the hard work of our marketing team and the investments we’ve made in human capital and technology over the last year,” commented Justin Schreiber, CEO of Conversion Labs. “Given our continued revenue acceleration in May, our second quarter of 2020 is well on track to more than double from our first quarter, with annualized revenues now set to more than triple.”
“It’s also important to note that we are seeing significant margin growth,” continued Schreiber. “Our gross margins with Shapiro MD, Rex MD and PDF Simpli are the strongest they’ve ever been. We have more customers on subscription plans than we’ve ever had, and our renewed focus on improving customer service and the experience of our customers is beginning to pay big dividends.”
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 analysts at Forrester Research. Another recent report projects the global telemedicine market will expand at a rapid 19.3% compounded annual growth rate to reach $175 billion by 2026.
Conversion Labs’ new cloud-based, end-to-end telemedicine platform, Veritas MD, addresses this fast growing market, and supports the continued market expansion of the company’s telehealth brands.
“While our growth in May was tremendous, I believe we have only begun to scratch the surface of what we can accomplish in telemedicine,” stated Conversion Labs’ CTO and COO, Stefan Galluppi. “Telemedicine is still in the early stages, not unlike where eCommerce was a decade ago. So, today we are focused 100 percent on investing in our human and technology infrastructure to support and grow our long-term market position in this rapidly growing sector of the U.S. healthcare market.”
A few weeks ago, the company raised its revenue outlook for 2020 from $30 million to more than $36 million. In light of the revenue growth in May, the company expects to raise its outlook again when it reports second quarter results.
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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