NEW YORK - LifeMD, Inc. (NASDAQ:LFMD), a healthcare company specializing in telemedicine and wellness products with a market capitalization of $222 million, announced a significant update to the compensation of its leadership. Effective January 1, 2025, Chairman and Chief Executive Officer Justin Schreiber will receive an annual base salary of $500,000, following an amendment to his employment agreement. The company has shown impressive growth, with revenue increasing 42% in the last twelve months.
The adjustment was formalized through a Second Amendment to Mr. Schreiber's Employment Agreement, as disclosed in a current report on Form 8-K filed with the Securities and Exchange Commission (SEC) on Tuesday, December 31, 2024. The report details a change initiated on December 24, 2024, to the executive's remuneration package.
LifeMD, Inc., formerly known as Conversion Labs, Inc., operates within the healthcare sector, with a focus on offices and clinics of doctors of medicine. The company, incorporated in Delaware and headquartered in New York, has been publicly traded on the Nasdaq Global Market under the ticker symbols LFMD for its common stock and LFMDP for its Series A Cumulative Perpetual Preferred Stock. According to InvestingPro analysis, the company maintains impressive gross profit margins of nearly 90% and appears undervalued based on their proprietary Fair Value model.
The SEC filing did not elaborate on the reasons behind the salary increase or the specific terms of the Second Amendment, other than stating the new salary figure. It is typical for such filings to avoid disclosing the strategic rationale behind executive compensation decisions.
While the stock has declined 38% year-to-date, InvestingPro analysts expect net income growth this year, with 8 additional exclusive ProTips available to subscribers. For deeper insights into LifeMD's valuation and growth prospects, investors can access the comprehensive Pro Research Report, part of the extensive analysis available for over 1,400 US stocks on InvestingPro.
In other recent news, LifeMD has seen a notable uptick in its financial performance. The company reported a 38% increase in total revenues, reaching $53.4 million, with a significant surge in telehealth revenue by 65%. Gross profit margins improved to 90.6% while the number of active telehealth subscribers grew 30% to approximately 269,000. LifeMD has also launched a new National Pharmacy in Pennsylvania and now caters to nearly 270,000 patient subscribers.
Recently, LifeMD has been the subject of analyst attention. Lake Street Capital Markets initiated coverage with a Buy rating and a price target of $12.00. They highlighted the company's expansion, its position in the virtual primary care space, and the potential of its weight management offering. On the other hand, Mizuho (NYSE:MFG) started coverage with a Neutral rating and a $7.00 price target, acknowledging the company's growth while also considering potential risks.
Lastly, the company has been actively expanding its capabilities and infrastructure, with a new 22,000 square foot pharmacy and broadening commercial insurance coverage for its patients. LifeMD has also expanded its RexMD men's health offering to include hormone therapy.
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