Nov. 5, 2021
Medifast continued its momentum into the 3rd quarter and is poised to reach 2021 yearly sales of $1.5 billion, topping even Weight Watchers revenue to take over the lead for the first time. This is truly a remarkable feat, in light of the fact that Medifast has never run a national TV campaign. This proves the viability of MLM as a distribution/marketing model when it comes to weight loss products.
"We saw continued strong momentum during the third quarter, reflecting our ongoing success in offering a differentiated and personalized health and wellness program to a growing community of clients across the United States and Asia Pacific." said Dan Chard, CEO of Medifast. "We have more active earning OPTAVIA Coaches than at any point in our history..."
Third quarter revenue increased 52.3% to $413.4 million from revenue of $271.5 million for the third quarter of 2020. The total number of active earning OPTAVIA Coaches increased 44.9% to 61,000 compared to 42,100 for the third quarter of 2020. The average revenue per active earning OPTAVIA Coach was $6,773 compared to $6,329 for the third quarter last year, an increase of 7.0%.
The company's balance sheet remains strong with cash, cash equivalents and investment securities of $159.9 million as of September 30, 2021 compared to $174.5 million at December 31, 2020.
The company expects full-year 2021 revenue to be in the range of $1.51 billion to $1.53 billion and full-year 2021 EPS to be in the range of $13.27 to $13.96. The 9-month revenue through Sept. 30, 2021 is up 71% over 2020, to $1.14 billion.
Third Quarter 2021 Highlights Compared to the Prior-Year Period
- Revenue increased 52.3% to $413.4 million
- 44.9% growth in active earning OPTAVIA Coaches to a record level of 61,000
- Revenue per active earning OPTAVIA Coach increased 7.0% to new high of $6,773
- Net income increased 21.9% to $42.0 million.
The complete Press Release and financial tables can be found here:
The Nov. 4 conference call will be broadcast live over the Internet hosted at the Investor Relations section of Medifast's website at www.MedifastInc.com or directly at https://www.webcaster4.com/Webcast/Page/1029/42930, and will be archived online through November 11, 2021. In addition, listeners may dial (855) 560-2579. A telephonic playback will be available from 6:30 p.m. ET, November 4, 2021, through November 11, 2021. Participants can dial (877) 344-7529 to hear the playback and enter passcode 10160327.
As stated above, Medifast topping $1 billion in revenues is a milestone for the weight loss market. If it meets projected guidance, MED revenues will top WW, and it will be the largest weight loss company by revenues for the first time. MLM has long been a popular model for weight loss products, as evidence by the success of Herbalife, Beach Body and other companies. Yet, Medifast is still not an American household name in weight loss, due to the absence of a national TV ad campaign. We at Marketdata have to think that Medifast, Noom, Herbalife and other continue to take market share away from WW. Apparently, consumers like the model that combines the direct home delivery of diet food, coupled with weight loss coaching. We at Marketdata just don't buy the excuse by WW that consumers are taking a pause with dieting because of the pandemic. If that was the case, then Noom and Medifast would not be growing. Investors seem to agree as well, since MED stock price is at $222 and WW is just $18.
For More Information About The Weight Loss Market and Competitors Such as Medifast...
See Marketdata's March 2021 report (FS67): "The U.S. Weight Loss & Diet Control Market", an in-depth 400+ page study published since 1989 that tracks ALL segments of the weight loss market, dieter demographics, trends, 2025 Forecasts and more. Marketdata provides custom weight loss market research and consulting services, and phone consults. Contact John LaRosa, Research Director and Head Consultant, for details (813-971-8080). Find details and Table of Contents for Marketdata's weight loss reports at: marketdataenterprises.com. A $99, 46-page Overview Summary report is also available (OV4).