Good afternoon. Thank you for joining us today to discuss the results for LifeMD's third quarter ended September 30, 2021. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Marc Benathen, Chief Financial Officer of LifeMD. Following management's prepared remarks, we will open the call for a question-and-answer session. I'd like to remind everyone that today's call is being hosted via webcast, and the recording will be made available via the link in today's press release, which is available in the investor relations section of the company's website. Before we begin, I would like to remind everyone that during this call, the company will make a number of forward-looking statements, which are subject to numerous risks and uncertainties that may cause the company's actual results to differ materially from those projected.
These risks and uncertainties are described in the company's 10-K and 10-Q filings, and within other filings that LifeMD may make with the SEC from time to time. Forward-looking statements made during this call are based on current information available to the company as of today, November 10, 2021. The company assumes no obligation to update or revise any forward-looking statements after today's call, except as required by law. Also, please note that management will be discussing certain non-GAAP financial measures that the company believes are important in evaluating LifeMD's performance. Details on the relationship between these non-GAAP measures to their most comparable GAAP measures and reconciliations thereof can be found in the press release issued earlier today.
Finally, I would like to remind everyone that today's call is being recorded and will be available for replay in the investor relations section of the company's website. Now, I'd like to turn the call over to LifeMD's CEO, Justin Schreiber. Please go ahead.
Thank you, Shamal, and good afternoon, everyone. Thank you for joining us today to discuss our third quarter 2021 results. I wanna start this call by giving a huge congratulations to the LifeMD team for launching earlier this week the LifeMD virtual care platform. I believe this launch is a transformational turning point for the company, for our patients, and for our shareholders. Furthermore, I believe the business model supporting our primary care platform will help change and disrupt the U.S. healthcare system and will serve as a model for how exceptional healthcare can be delivered in a virtual environment that is affordable, convenient, and most importantly, results in better outcomes for patients. For those of you who haven't seen our platform yet, I would encourage you to visit our new website we just launched at lifemd.com.
Aside from virtual primary care and telehealth, there are two big and important takeaways I think are important for everyone on this call to understand. First, our new platform will enable us to develop deeper, broader, and longer-term relationships with our current patient population and have a bigger impact on their overall health and wellbeing. As most of you know, we have an extensive and expanding business treating specific conditions like erectile dysfunction, hair loss, and dermatological issues. We're very proud of these businesses, their standalone unit economics, and their growth trajectories. They're likely going to be around for an extremely long time. Nevertheless, I believe the incorporation of our virtual primary care platform will create a tectonic change in our business that will dramatically improve the level of satisfaction and the overall experience of all of these patients. It goes without saying, but I'll say it.
Happier patients who are invested in a long-term relationship with an outstanding doctor provided by LifeMD are going to be very loyal and will help generate unit economics and overall profit levels that are best in class in the industry. On a side note, as I've spent time over the past several months with our founding team of primary care physicians, I've realized that our doctors, with their expertise and compassion and the relationships they're going to build with patients, these doctors are without a doubt one of our strongest assets or intellectual property that any company can own. I believe this intellectual property and the deeper relationships we will begin to foster with our patients will be transformative not only for our new LifeMD primary care offering, but all of our existing brands.
Americans crave access to great doctors, and LifeMD is going to be the company that meets this need. The second important takeaway is that our new virtual care platform dramatically expands the scope of our business and the clinical areas in which we can offer telehealth products and services. From urgent medical issues like sinus infections, cold and flu, UTIs, and STDs, to chronic conditions like diabetes, weight management, asthma, allergies, anxiety, LifeMD now is a platform supported by licensed providers who can treat a wide range of conditions. Perhaps most importantly, we don't just offer telehealth services. In addition to same-day guaranteed virtual treatment, we offer discounted prescriptions conveniently delivered to the patient's home and discounted diagnostics that can be collected in the patient's home in most major metro areas.
As most of you also know, we have a great relationship with Quest Diagnostics that patients can conveniently visit throughout the country. Additionally, we are working on incorporating other in-home tools and continuous monitoring devices like wearables that will truly revolutionize the relationships our patients have with their doctors. As you can probably tell, I'm very excited about this platform and what it can do for our patients. Launching it was the vision we always had for LifeMD, and I'm extremely excited to watch our proven team of clinicians, technologists, and marketing gurus grow this into a substantial business. All this has been made possible by the accomplishments we achieved this quarter. We continued to see strong order growth with telehealth products and services up 153%, driven by both strong acquisition and more significantly, by strong retention of our existing patients.
Currently, 93% of our revenue comes from recurring subscriptions. I think this demonstrates the high level of satisfaction our patients have with the telehealth services and the products that we provide. Thanks to the closing of our capital raise with net proceeds of $55 million, LifeMD is now in the strongest capital position it's ever been since our founding. Not only was this offering oversubscribed, but we believe that the funds raised from it have sufficiently capitalized our business to reach profitability while continuing our aggressive growth strategy. Mark and I view it as permanent capital for the company. In an earlier call, I mentioned our commitment to preserving and growing shareholder value. I believe this recent raise reflects those commitments. We looked for a minimally dilutive transaction to finance the company, and that's exactly what we achieved.
The raise allowed us to eliminate all of our debt, which was approximately $15 million. By paying off this debt prior to maturity, we avoided 1 million shares of additional dilution. We sold 3.8 million shares in the common offering alongside our non-dilutive preferred offering. Total dilution to shareholders to permanently capitalize the company was around 2.8 million shares, or approximately 8% of the company on a fully diluted basis for $55 million. More than enough capital to propel us through the next stage of growth. Also, during the quarter, we made a key appointment to our board, adding Naveen Bhatia. Naveen is a highly accomplished investor and private equity professional who has an extensive career in the investing world, most notably with 10 years of experience as a senior member of Blackstone's Tactical Opportunities team and extensive board experience.
Thrilled to have him on board as he provides helpful guidance heading into what is sure to be our most exciting year yet as a company and as a provider of exceptional healthcare through telehealth. With that, I will now turn the call over to our CFO, Marc Benathen, who will provide the summary of this quarter's financial results. Marc.
Thank you, Justin, and good afternoon, everyone. We are extremely proud of our third quarter performance. Not only did we achieve record revenue, but we began to successfully achieve operating and marketing expense leverage ahead of our expectations, resulting in a 24% sequential improvement in Adjusted EBITDA versus the prior quarter. We also successfully closed the largest financing in company history, raising $55 million of net proceeds led by a preferred stock offering, supplemented by an institutionally led common stock offering. Following this financing, we believe LifeMD is sufficiently capitalized to support both our investment in aggressive growth objectives and attaining Adjusted EBITDA profitability. This financing also allowed us to eliminate our previously existing senior secured debt with a permanent source of flexible capital that minimized dilution to common shareholders. Now turning to results for the third quarter.
Revenue in the third quarter of 2021 totaled a record $24.9 million, up 127% as compared to the same quarter a year ago. 93% of the total revenues in the third quarter were generated from recurring subscriptions, compared to 61% in the same year ago period. Telehealth net revenues grew over 97% to $18.5 million and 17% sequentially versus the prior quarter. Our WorkSimpli subsidiary contributed net revenue of $6.4 million, up 309% from the year ago quarter, with sequential revenue essentially flat. WorkSimpli revenue was temporarily impacted by approximately $700,000 related to the one-time cost of new trial offers, which WorkSimpli has since discontinued. Following this, WorkSimpli is back on track with sequential revenue growth in the fourth quarter.
Telehealth order volume grew 153% versus a year ago period to 232,293 orders. Following our continued robust performance, we are reiterating our full year 2021 revenue guidance of $90 million-$100 million, reflecting annual growth in 2021 of between 141% and 168% versus prior year. Gross profit in the second quarter increased 113% to $19.9 million, compared to $9.3 million in the same year ago quarter.
Gross profit as a percentage of revenue in the third quarter of 2021 was 80%, compared to 85% in the same year ago quarter, with the decrease primarily due to a change in the product sales mix, coupled with the one-time non-cash write-off of legacy product deposits. Our platform contribution, a non-GAAP financial measure defined as GAAP operating loss before general and administrative expenses, excluding payment processing fees, selling and marketing expenses, and other expenses, is an important non-GAAP financial measure which monitors our performance based on the direct cost of delivering the products and services we sell across our brands. We believe it is useful to measure how we are controlling our direct variable costs and how effectively we retain our providers, patients, and customer subscribers.
Platform Contribution in the third quarter totaled $17.5 million, compared to $8.1 million in the same year-ago quarter, an increase of 115%. Now turning to operating expenses. Operating expense in the third quarter of 2021 was $32.4 million, up from $29.9 million in the same year-ago quarter. The increase was predominantly due to increases in discretionary growth, selling and marketing expenses of $9.8 million, other operating expenses of $272,000, customer services expenses of $275,000, and development costs of approximately $13,000. General and administrative expenses decreased $7.7 million during the quarter and included non-cash expenses for stock-based compensation and amortization of $4.8 million.
The decrease was primarily due to a $13.3 million decrease in stock-based compensation expense. Additionally, operating expenses decreased by $1.8 million sequentially versus the prior quarter, driven primarily by increased efficiency realized in selling and marketing spend, resulting in a $2.1 million sequential decrease in that category and a 1,900 basis point sequential improvement in selling and marketing expenses as a percentage of total net revenues. Our GAAP net loss attributable to common stockholders for the second quarter totaled $14.4 million, or -$0.54 per share. This compares to a net loss attributable to common stockholders of $24.2 million or $1.65 per share in the third quarter of 2020.
Adjusted EPS is a non-GAAP measure that excludes $3.1 million in non-cash stock-based compensation expense, $118,000 of non-cash depreciation and amortization expense, $187,000 of non-recurring financing transaction expenses, and $1.6 million of non-cash debt discount amortization. This figure totaled a loss of $0.36 per share for the third quarter as compared to a loss of $0.52 in the same year-ago period. Additionally, adjusted EPS improved 25% sequentially versus the prior quarter. Adjusted EBITDA, a non-GAAP financial measure which factors out non-cash stock-based compensation, depreciation and amortization, financing transaction expenses, litigation costs, and interest expenses totaled a loss of $9 million in the third quarter of 2021, as compared to a loss of $3.8 million in the same year-ago period. Adjusted EBITDA improved 24% sequentially versus the prior quarter.
Now turning to our balance sheet. Cash totaled $9.4 million as of September 30, 2021. As discussed earlier, in October 2021, we completed a preferred equity offering supplemented with a complementary common equity offering, raising approximately $55 million in net proceeds, which we believe will sufficiently capitalize us to reach our stated goal of achieving Adjusted EBITDA breakeven by the fourth quarter of 2022. This wraps up our financial results. I'd now like to turn the call back over to Justin.
Thanks, Marc. Overall, we had a tremendous third quarter of 2021, both operationally with record revenues and fundamentally with the launch of our virtual care platform and minimally dilutive financing. Something else I'd like to point out, you know, we've also. A big focus of the company this year has been to institutionalize, you know, our shareholder base. You know, our company is now, as of today, 40% of the float is institutionally held. You know, I believe that number by the end of this quarter, you know, could be closer to 50%, you know, given the number of institutions that participated in our last financing.
I think that's an awesome metric, and I think it speaks to the quality of the business, that we can attract, the caliber of institutions that, you know, now make up 40%-50% of our float. That's something that we're going to, you know, continue to focus on as a company. I remain extremely confident that we'll be able to continue growing aggressively while achieving our goal of Adjusted EBITDA breakeven by the fourth quarter of 2022. Before I open the call for Q&A, I want to leave everybody with the following. We now have an outstanding world-class virtual care technology platform powered by our premier doctor network and the best direct-to-consumer marketing team in the industry.
When you reflect on all of this, it seems clear we are well-positioned to benefit from the changes sweeping through the U.S. healthcare system. Everybody knows our healthcare system is broken. Change is inevitable. With our proprietary technology and our network of physicians who truly care about their patients, we stand poised to disrupt healthcare for the better. We are combining diagnostics, prescription medications, medical records, and eventually wearables to deliver totally integrated healthcare. We are building something that has the potential to become the biggest medical practice in America. We can honestly and truly say what patients want to hear. The doctor will see you now. Not four days from now or three weeks from now, but now. That's healthcare where and when you need it.
What's most exciting is the thought of the millions, if not tens of millions of Americans who will be happier and healthier because of LifeMD. To me, that's the most thrilling thing about my job. Going forward, we will have to wage a battle for the mind share of our customers. Till now, we've focused on lifestyle concerns such as ED, hair loss, and skin care, which are all great businesses with strong unit economics.
They should be seen as a case study for what we can do in direct-to-consumer healthcare. We've already crushed it in an incredibly competitive market with much less capital than our competitors. LifeMD is changing. Now we have a platform that allows us to go after the entire U.S. healthcare system, and we're just getting started. It's been a very busy fall, and there's more exciting news on the way. We've been working on some significant new partnerships in the pharma and technology sectors. We plan to hold an investor day in the new year to showcase our technology platform, introduce the leaders of our physician team and of our partner companies, and much, much more. Stay tuned. We're just getting started, and 2022 is looking to be our greatest year yet.
We recently posted our shareholder letter in the investor relations section of lifemd.com, so please give it a read. We're also going to send it out this evening via Twitter. With a big final thanks to our providers, our patients, our team, and our shareholders for their support, I would like to open the call for Q&A. Operator?
Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of David Larsen with BTIG. Please proceed with your question.
Hey, Justin and Mark and team. Congratulations on your success so far. Just a couple of quick ones from me. Can you talk about, you know, maybe revenue growth? Revenue came in a little bit lighter than what we were modeling. The growth rate in telehealth orders was up 153% year-over-year. That compares to the year-over-year growth in product revenue, which I think was around 96%. The number of orders are up, but the product revenue isn't up as high in terms of the growth rate. Then it looks like the revenue per order was good. I mean, it was flat sequentially, but down 20% year-over-year.
Just any color there on what's going on with revenue per order and why the growth rate in product revenue isn't as high as the growth rate in actual orders?
Yeah. It's Marc. You know, the primary reason for that was if you look at Q2 last year, the business was far less subscription-based, and there were some outsized average order values that took place in that particular quarter. As we've transitioned to having a business that we believe is much stronger on a long-term basis, has more of a retention, and is subscription driven versus having about half of the business not subscription driven, some of the AOVs will be lower than what they were about a year ago. Still very competitive for the industry and still ahead of many of our competitors on a subscription basis. That's the main reason why you see that delta between the growth in the number of orders and the growth in the revenue.
With that being said, we believe that the growth that we had this particular year, while it may, you know, differ a little from the BTIG model, was very much in line with our expectations for the quarter. 17% sequential revenue growth and obviously about 100% year-on-year growth, and has also been very consistent with the sequential growth we've been seeing in prior quarters.
Okay. With the slight decline in AOV, is part of that being driven by the derm product, Nava? How is that progressing? Is part of that being driven by the primary care solution? How is that progressing?
Yeah. None of it's the primary care solution. We just actually beta launched a couple of days ago. A little bit of the trial offer in Nava, and then a little bit of it is the fact that rather than go and try to scoop up an initial sale where, you know, if you look at a year ago in Q2, Shapiro, the hair loss brand, had multiple OTC products bundled for a fairly high AOV that also didn't drive a lot of retention. From a long-term perspective, it wasn't necessarily as strong of a model. The current model obviously has us, you know, bundling products, but driving it at an AOV that is much more competitive on a long-term basis.
It's really a lot of it has to do with the subscription model versus doing more of a one-off transaction at a much higher AOV.
When you say subscription model, can you just remind me what that means? Does that mean you basically buy-
Yeah. What it means is you will sign up with LifeMD. You will put down your payment information, and you'll get either a one, two, three, four month, we've started to move into six month subscriptions. You'll get that quantity of supply, and you'll get billed on that frequency, you know, as your supplies run out. If you're on a three month subscription, you'll get billed once every three months from us, and you get a three month supply. If you're on a one month subscription, you'll get billed every single month and get a one month supply from us. That's the subscription model. The one-off transaction model would be, we bundle everything together, we sell it to you, and you don't get auto-billed for, you know, additional orders in the future.
It becomes a one-off transaction, and then you have to go and take the step to buy again. Subscriptions obviously drive substantially more retention. Frankly, it's a lot easier for a lot of our patients as well to manage, which is why most people have made the election to move on to that particular model. It's one of the reasons why, you know, from an LTV standpoint, you're gonna do better in the subscription model if you look at it over a 12-month period. I mean, we're getting LTVs now of $350-$400. When we were not on that as heavy of a subscription model Q2 of last year, those one year LTVs were closer to $250-$300, albeit you would cram everything into a shorter time period.
Okay. I don't wanna hog up all the Q&A time here. I'm sure there's other folks that have questions, but can you maybe just talk a little bit about the sales and marketing spend per order? That is a metric that I think actually looked pretty good. Congratulations on the EBITDA improvement. Can you just talk about the source of the 22% sequential improvement in sales and marketing per order spend? And also, like I've heard from other areas like that the online advertising cost, it's not a slight increase that has occurred over the past six months. In some cases, it's been like a tenfold increase. So just any color on what drove the improvement in sales and marketing spend would be very helpful.
Yeah, twofold. One, we've continued to work to optimize our media. I mean, I'm not gonna get into the specifics by channel because that's somewhat of a trade secret for us. But we're very laser-focused on that, really digging into the data and making sure that we optimize across online and offline media. We saw that in the last couple of quarters as well. We continued that trend. The second piece is retention. You know, at the end of the day, we've continued, particularly in the prescription side of the business, continued to have strong retention, which has enabled us to be able to drive more and more revenue associated with rebillings of existing patients, so we don't actually have to go out and pay money in marketing to acquire those people.
In fact, if you look at the sequential growth of our revenue that comes from rebillings of existing patients every quarter, that number tends to be very much in line to sometimes a little bit better than what our sequential revenue growth is overall for the company. It's really the optimization of those spends, really sort of tightening down on the data behind it. The second piece is obviously retention, which, you know, that's gonna serve the business for a very long time.
Okay. Then just without getting ahead of ourselves, can you maybe just talk about your expectations for EBITDA as we progress into 2022? Just any sort of high level color. Like, since you just launched.
Yeah.
On the primary care platform, would you expect EBITDA margin pressure in Q4? Is that gonna be an earnings headwind? Then any, just any thoughts on how sustainable a 130% year-over-year revenue growth rate is? Thanks.
From an EBITDA standpoint, we continue to expect even with some of these launches that we'll have some mild improvement heading into the fourth quarter in EBITDA versus the third quarter. I don't think it'll be substantial, but mild improvement. Heading into next year, we're still very much on track to achieve our stated goal of getting to EBITDA breakeven to slight profitability by the fourth quarter of next year. We expect to see sequential improvement throughout the year next year. I would say that sequential improvement is probably gonna be most pronounced between the second quarter and fourth quarter of next year versus the first quarter. We do expect to continue to see that.
From a top-line growth standpoint, you know, we're in the process of finalizing our budgeting and planning for next year, as we speak, but, you know, we still continue to remain very optimistic about growth in the business. Do I expect to see consistent triple-digit growth year-on-year? Not 100% sure. I think, you know, from a, you know, an estimate standpoint, I think it's probably safer to assume, as, you know, has been assumed to date, that it's gonna be substantial double-digit top-line growth.
Substantial double digit. Okay. Thanks very much. I'll hop back in the queue.
As a reminder, if anyone has any questions, you may press star one on your telephone keypad to join the Q&A session. Our next question comes from the line of Marc Wiesenberger with B. Riley Securities. Please proceed with your question.
Thank you. Good afternoon, congrats on a very good quarter and the progress on the primary care offering. I'm wondering if you could start off by updating us on the percentage of telehealth orders that are currently under multi-month subscriptions and your expectations for that going forward.
Yeah. We're approximately 50% of our telehealth orders are on multi-month subscriptions. You know, our expectation is that number will slowly inch up over the next 12 months. Do I think it's gonna get to 70%-80%? No. You know, do I think it can get to somewhere between 50% and 60%? Yes. You know, we believe that we have a greater percentage, at least from what I've seen publicly, of multi-month orders versus, you know, smaller players in the industry. That's kind of where we are right now.
Great. Are you seeing any changes in patient behavior or ordering patterns across cohorts as the duration on the platform extends?
No, not really. You know, at the end of the day, you know, even as restrictions have eased and this somewhat transitioning to a post-COVID world, we really haven't seen any changes in ordering patterns. What I do think can happen, and it's too early for us to tell, we're not gonna know this until we probably get closer to mid-2022, is with the launch of virtual primary care, there's the potential that we have the ability to drive even greater unit economics retention and potentially some, you know, additional cross-sell opportunities and some changes in ordering behavior, you know, as that platform continues to gain traction. Like I said, it's too early for us to be able to tell that at this point.
Sure. Understood. I think you alluded to it a little bit before, but if you could talk about the advertising environment across your different channels, that'd be helpful. Then there was some discussion with kind of the Apple iOS update and associated privacy kind of changes there. I was wondering if you were impacted at all in your ability to target new patients.
Yeah. Go ahead, Mark. Look, hi, Mark, it's Justin. Look, we're continuing to diversify our advertising mix, which is really helping us out on the acquisition side. We're seeing some. You know, we have at least three to five new channels that we've started to see significant traction on in the last quarter. You know, we actually believe that those channels and others are more scalable. You know, that's a very positive thing for the business and kinda goes to what we've always said about, you know, there's just.
These are massive markets, and there's still enormous opportunity, and we think there will be for a long time. You know, everybody that's in the kinda D2C world is going to be impacted by you know by these changes to kind of tracking users, right, across devices. I actually believe that LifeMD and our expertise is. You know, I think we're in a better position than anybody to you know to respond to this and actually to in a way benefit from us. I mean, I've been really clear you know even in this call with what you know.
Aside from providing amazing healthcare, which is obviously our first priority, we're awesome at marketing and acquisition and, you know, we've got a lot of tools in our toolbox that I don't think other companies have, and that's what's gonna continue to drive the growth. As you take away maybe some of the, call it low-hanging fruit, that you know, we've all benefited from through being able to kinda track and better target customers, you know, if you're gonna bet on someone that's gonna benefit from these changes, in my opinion, that's LifeMD. I don't know if that's helpful, but that's our perspective. We actually think this could be a positive for our business.
Got it. Nope, very helpful. Then I'd like to hear about how the expansion of the customer support center has gone and maybe how that's improved conversion and upsells.
Sure. I mean, look, we've continued, you know, this is obviously like a big really important part of our business. You know, we have an awesome team in South Carolina that runs our call center. Our patients love it. You know, I would prefer not to give like specific numbers, but I'll just say that business and that operation continues to shine. It could easily double over the next six to 12 months in size.
It is certainly very helpful, right, on the acquisition side and also, you know, obviously there's a big part of that operation that's patient and customer-focused and, you know, really proud of like wait times and response times and all of that stuff, including, you know, we now have a, you know, a significant MA operation, medical assistant operation that we started to build, you know, in Greenville along with credentialing and, you know, also looking at nurses. All of these things that are going to be supportive of our 50 state, you know, primary care business. It's a really great asset. It's something I love to show off to investors. I always bring people down here and, you know, great part of the business.
Great. Two more from me, turning to the primary care offering. You've talked a lot about how important longitudinal care is. I'm wondering if you could talk about the technology infrastructure that you've built that will help facilitate that and maybe even more broadly help patients who then have more complex conditions be able to really get the care that they need through LifeMD and then partners as well.
On the technology side, you know, we've been working on this build for, I don't know, probably at least a year. You know, it's our first native mobile application. Also there's a desktop version as well. We've already integrated Quest and kind of real-time labs. We're also, you know, working on finalizing before the end of the year the kind of in-home collection component of labs, so that's all integrated. You know, it also combines the prescription like intelligence piece. You know, all of that someone needs a prescription filled in or refilled, you know, to a local pharmacy or through one of our regional pharmacies, whether that be a traditional pharmacy or compounding pharmacy, you know, all of that is integrated.
Patients importantly are gonna be able to get really significant discounts, you know, on all of those prescriptions as in addition to diagnostics. You know, I like to point that out, that the price points on common diagnostics that we'll be able to offer through LifeMD are, you know, just unheard of, right? People probably won't believe them. You know, we're also we have integrated with Particle Health. So most people's medical records will also be pulled immediately into the platform. We're looking at integrating, you know, so and potentially partnering with one of the biggest manufacturers in the world for in the wearables space.
That's something that I think is very, very exciting and could be done very quickly, where now we're actually not only giving you this great doctor that, you know, all of a sudden really cares about you, has time for you, gets back to you, takes the time to explain your blood work, but also like now can even see your respiratory rate, your blood oxygen level, your maybe even, you know, all of these very important, you know, metrics, which really has never been done. The technology is complex. It's something that's always going to be evolving, and we're gonna continue to make a significant investment in it. As far as...
By the way, Mark, that's one of the reasons why we're doing this investor day. I pushed it to January intentionally because I want all of these features to be live and everybody to be able to play with all this stuff. We're gonna spend a half a day to a day and, like, literally go through all the technology, all the capabilities, bring in, like, put our different clinical directors and our chief medical officer, let them talk about, like, you know, how they built this out. It's going to be a great day, right? Also, I wanna pull in the CEOs of, like, some of these technology companies we partner with and let our investors hear from them, like, why they think LifeMD is one of their most important partnerships.
That'll be something to look forward to for everybody. Look, on the complex side, when you mentioned your second part of your questions was about, you know, treating complex conditions. I mean, we're going to have to obviously have some restrictions. I mean, we're not going to be able to do everything. Obviously, we can't do everything virtually. You know, some pretty prominent academic medical centers have, you know, kinda done a lot of work on this recently, and the number is probably somewhere in the 60%-70% range of what a platform like ours can treat virtually. Obviously, it's 100% for a lot of people that are healthy.
We are going to. Again, this will greatly expand, like, the number of conditions that we can treat, but there are going to be, you know, some limitations. Obviously, certain things have to be managed by a specialist, and that's something that, you know, will be very clear to patients when they are onboarding the platform. Look, most urgent conditions, we have a great team of ER docs supporting, like, the 50-state launch. You know, our chief medical officer is a former ER doctor, so has, like, you know, a lot of experience with urgent care. Certainly chronic conditions that are prevalent, you know, almost all of those we're gonna be able to treat. Then a lot of wellness, right?
Like, a big part of this is, you know, like our chief medical officer and a lot of the team of founding physicians we've attracted to the platform, like, are trained in, like, integrative medicine, right? Tony's a graduate of the Andrew Weil Center for Integrative Medicine in Arizona, which is kind of the world's leading integrative health center. That's something else I'm really excited about, is I think there's a big opportunity for on the wellness and, like, health optimization side as well, for this platform. The opportunities are endless. We need to kind of. You know, we're gonna figure out kind of where to focus this thing and, of course, focusing it on existing patients.
You know, we have this very big medical group right now where we have a large number of new patients coming in every day. We have hundreds of thousands of prior customers and patients, and there's an opportunity there to kind of build a fairly big business around this, you know, quickly just from that existing population.
Sure. No, that's very helpful.
Mm-hmm.
A lot of good color there. Just the final one, could you talk about the experience thus far onboarding doctors, kinda how we should expect that to ramp over the coming quarters, and then also kinda resource allocation between the established telehealth brands and the new primary care offering going forward? Thank you.
We've brought on a few full-time, you know, medical professionals and doctors that are 50-state licensed to help support the launch and build out a lot of the protocols for, you know, our new primary care offering. You know, we also have a lot of other doctors that we were very fortunate to find, you know, just through our network that, you know, have agreed to, you know, basically commit 30 hours a week to this. We have the capabilities right now to, you know, service, like, a very large patient population.
Many of these doctors are also treating patients in our condition-specific businesses. So, you know, they're already very happy with the relationship they have with LifeMD, and they're kind of, you know, they've committed to a certain number of hours and schedules to support the launch of this business, the primary care business, in addition to, like, those other consults they're doing with us. Moving forward, the plan is to, you know, hire full-time physicians, you know, and they'll be affiliated providers that work for our medical group. You know, it's great for the doctors. They really enjoy these kind of virtual practices.
You know, we can pay them extremely well, just as good or even better than they're doing in a brick-and-mortar setting. As the business scales, we'll continue to onboard doctors. It's an attractive setup where, you know, we don't really have to because of the existing infrastructure that we have with our other telehealth businesses, like, we didn't have to go out and hire. You know, even 10 or 20, right, doctors that are 50 state licensed or 30 to 50 state licensed and earn $300,000 a year, right? We've kind of managed to get this thing launched with our existing infrastructure and some small investments in medical personnel.
We'll scale the medical personnel as the business grows. We have a number of doctors that are awesome doctors that are, you know, kind of there, and they're ready to leave traditional practices and work for LifeMD full-time, and they're very excited about it. I think you mentioned like resources, you know, other businesses versus, you know, LifeMD. Look, we know it's probably one of the most common criticisms of the company is that we're trying to do too much. You know, I think. Look, I'm very confident that we can execute on both of these businesses. You know, we've greatly expanded the team and our infrastructure over the last 12 months. You know, our lifestyle and dermatology businesses are very complementary for LifeMD.
As I pointed out, they're essentially like lead gen for this kind of longer term, you know, broader primary care model. I don't see an issue executing on both.
Got it. Very helpful. Lots of good color, and congrats on a good quarter. Thanks.
Thanks, Marc.
We have reached the end of the question and answer session. I'll now turn the call over to Justin Schreiber for closing remarks.
Thank you, operator. Thanks everybody for taking the time to listen to our call. We really appreciate everyone's support and, you know, please reach out to Marc or I if any of you have any specific questions for us. We always do our best to respond to anybody that emails us through our investor relations email address. Thanks. Really appreciate your support and, we're really excited about the future for LifeMD. Have a great evening.
This concludes today's conference, and you may disconnect your line at this time. Thank you for your participation.