May 3, 2018 - "We are off to a strong start in 2018 driven by our focused, transformational business model that continues to deliver optimal health to our clients through our community of OPTAVIA Coaches," said Dan Chard, Medifast's CEO. "This helped fuel growth and profitability that exceeded our expectations for the first quarter and has led to our raising our annual sales and earnings outlook."
For the first quarter of 2018, revenue increased 39.6% to $98.6 million from revenue of $70.6 million for the first quarter last year. OPTAVIA branded products represented 58% of consumable units sold for the first quarter of 2018 compared to 17% for the first quarter of last year. The total number of active earning OPTAVIA Coaches for Q1 2018 increased to 16,700, compared to 13,000 for Q1 of 2017. The average revenue per active earning OPTAVIA Coach for the first quarter of 2018 increased 18.3% to $5,278 compared to $4,463 for Q1 last year.
Gross profit for the first quarter of 2018 increased to $74.8 million from $52.9 million for the first quarter of 2017. The company's gross profit as a percentage of revenue increased 100 basis points to 75.9% from 74.9% for Q1 last year.
Cash, cash equivalents, and investment securities increased $10.4 million to $109.2 million as of March 31, 2018.
First Quarter 2018 Highlights:
- Medifast revenue of $98.6 million, an increase of 39.6% year-over-year
- Active earning OPTAVIA Coaches of 16,700, an increase of 28.5% year-over-year
- Net income of $12.2 million compared to net income of $6.1 million for the first quarter of 2017.
The company is raising its guidance for the full year 2018, expecting revenue of $385 million to $395 million and earnings per diluted share of $3.55 to $3.65. This compares to the company's previous guidance for revenue of $350 million to $360 million and earnings per diluted share of $3.15 to $3.25.
The complete Pres Release and financial tables can be found here: