Medifast announced its fourth quarter and full year 2023 financial results, including fourth quarter revenue of $191 million and net income of $6 million. Earnings per diluted share during the quarter were $0.55. Revenue during the quarter was down 43.4%, which the company attributes to a decrease in the number of active earning OPTAVIA Coaches and the decline in productivity per active earning OPTAVIA Coach. Average revenue per OPTAVIA Coach was down 16.1% and total number of OPTAVIA Coaches decreased by 32.5%. Gross profit during the quarter was down 39.5% from the previous year’s quarter to $141.4 million.
Revenue for the full year 2023 reached $1.1 billion, down from $1.6 billion in 2022. Net income for the year reached $99.4 million, compared to $143.6 million in 2022, with an EPS of $9.10.
“We are realigning our business to respond to the evolving dynamics of the weight loss industry and to aggressively execute on bold initiatives to transform our business model,” said Dan Chard, Medifast Chairman and CEO. “We are broadening our customer acquisition activities significantly, launching a broad-based national marketing effort and leaning into the medically-supported weight loss market through our collaboration with LifeMD. This remains a challenging market, and it will take time to navigate the transformational path that we are on. However, I believe that the investments we’re making in our business will broaden our addressable market and strengthen our ability to drive future growth.”
The company ended the year with cash and cash equivalents of $150 million with no interest-bearing debt, a significant increase from $87.7 million in 2022.
