Medifast, the parent company of direct selling organization OPTAVIA, announced first quarter 2023 revenue of $349 million, a year-over-year decrease of 16.4% from the same time last year. This decline was primarily driven by a lower number of independent active earning OPTAVIA Coaches, which numbered 58,700 in the first quarter. Average revenue per active OPTAVIA Coach was also down by 9% to $5,945.
Gross profit for the company decreased by 18.5% to $246.4 million, which the company attributed to lower revenue and inflation of costs for raw ingredients, shipping and labor. Net income for the quarter was $40 million with an earnings per diluted share (EPS) of $3.67.
“We’re pleased to see revenue and operating income both ahead of expectations in the quarter, as we continue to adjust to the changing dynamics of the business environment,” said Dan Chard, Medifast Chairman and Chief Executive Officer. “Sustainable long-term growth is at the core of our focus, and we are undertaking a number of initiatives to return the business to a growth trajectory. In addition to working to increase customer acquisition, we are implementing strategies that will expand our addressable market, as we target new demographic segments, geographies, and adjacent categories.”
Second quarter outlook for revenue now includes a range of $250 million to $270 million with a diluted EPS in the range of $1.32 to $1.44.