May 6, 2021
Medifast reported results for the first quarter ended March 31, 2021.
"This has been an exceptional quarter of growth and productivity, reflecting the outstanding abilities of both our independent OPTAVIA Coaches and our employees," said Dan Chard, Chairman and Chief Executive Officer of Medifast. "We now have a record 52,500 OPTAVIA Coaches who are achieving new productivity highs by leveraging technology to support Clients and support new OPTAVIA Coaches. These technologies include our own app-based platforms as well as social media channels and field-led training platforms."
First Quarter 2021 Highlights Compared to the Prior-Year Period
- Revenue increased 90.9% to $340.7 million
- 61.0% growth in active earning OPTAVIA Coaches to a record level of 52,500
- Revenue per active earning OPTAVIA Coach increased 21.0% to $6,454
- Net income increased 122.2% to $41.1 million
First quarter revenue increased 90.9% to $340.7 million from revenue of $178.5 million for the first quarter of 2020.
The total number of active earning OPTAVIA Coaches increased 61.0% to 52,500 compared to 32,600 for the first quarter of 2020. The average revenue per active earning OPTAVIA Coach was $6,454 compared to $5,333 for the first quarter last year, an increase of 21.0%.
Gross profit increased 83.8% to $248.5 million from $135.2 million for the first quarter of 2020. The company's gross profit as a percentage of revenue was 73.0% compared to 75.8% in the first quarter of 2020.
Income from operations increased $29.3 million to $52.8 million from $23.5 million in the prior-year period reflecting higher sales and gross profit and a reduction in the SG&A expense as a percentage of revenue.
The company expects full-year 2021 revenue to be in the range of $1.4 billion to $1.475 billion and full-year 2021 EPS to be in the range of $12.69 to $14.14.
The complete Press Release and financial tables can be found here:
The following, we think, is the most significant statement by Medifast:
"The company expects full-year 2021 revenue to be in the range of $1.4 billion to $1.475 billion."
This is a huge development. Medifast, if this revenue tally is achieved, will be on a par or possibly outpace Weight Watchers and could become the largest weight loss company in the market--a phenomenal achievement that shows the power of the MLM sales model. What remains to be seen is just when, or if, Medifast might decide to use it war chest of funds to launch a national advertising campaign that will make it a household brand name in weight loss.