NEW YORK, Dec. 09, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, has received approval to uplist to the Nasdaq Capital Market. The company’s common stock will commence trading on the exchange at the opening of the market tomorrow, December 10, 2020, under the same symbol, CVLB.
“As the leading securities exchange for emerging growth stocks, we anticipate a Nasdaq listing will elevate our corporate profile and increase awareness of our growth story across the financial community,” stated Conversion Labs CEO, Justin Schreiber. “We expect this to support greater liquidity, broaden our shareholder base of retail and institutional investors, and attract analyst coverage.”
The Nasdaq listing represents another major milestone for Conversion Labs, which has grown from essentially zero revenue in 2016 to an annualized revenue run-rate of nearly $50 million, with gross margins exceeding 75%.
In addition to Conversion Labs’ rapid topline growth, its annual recurring revenue (ARR) from subscriptions to products and services has reached $22.1 million, up 514% over last year. This growing level of customer retention demonstrates a high level of customer satisfaction and increasing leverage in the company’s business model.
“We expect sales to continue to accelerate into the new year as we launch additional telemedicine offerings, such as Nava MD™, our recently announced first teledermatology and over-the-counter skincare brand with patented and clinically proven formulations,” continued Schreiber. “The launch of Nava MD will be supported by the upcoming roll out of our new telemedicine platform, Veritas MD™.”
Conversion Labs’ new head of corporate development, Corey Deutsch, who is also the founder of Paradigm Opportunities, a hedge fund that served as one of the lead participants in the company’s recently oversubscribed $16 million private placement, commented: “As a hands-on investor I try to find opportunities where I believe I can make a strong contribution. I’m excited to join Conversion Labs at this pivotal stage in its development. The team has done a tremendous job building the company into a leading player in the direct-to-consumer telemedicine space.”
“We expect the enhanced exposure created by this Nasdaq listing to help attract valuable institutional investors,” added Deutsch. “Moreover, the listing affirms the company’s promising future ahead, as we capitalize on the major paradigm shift in the healthcare sector created by the increasing adoption of telehealth.”
About Nasdaq
Nasdaq, Inc. (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Its diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. The Nasdaq Stock Market is a trusted pillar of capital markets and innovation, providing U.S. equity markets liquidity, resiliency and transparency that propel investment ideas to fruition. For more about Nasdaq, go to www.nasdaq.com.
About Conversion Labs
Conversion Labs, Inc. is a telemedicine company with a portfolio of online direct-to-consumer brands. The company’s brands combine virtual medical treatment with prescription medications and unique over-the-counter products. Its network of licensed physicians offers telemedicine services and direct-to-consumer pharmacy to consumers across the U.S. To learn more, visit Conversionlabs.com.
Annual Recurring Revenue
Conversion Labs calculates annual recurring revenue (ARR) by multiplying by 12 the monthly sum of revenue attributed exclusively to automatic subscription sales from customers that are engaged in the company’s rebill structure for the brands of Shapiro MD, Rex MD and PDFSimpli. In the company’s calculation of ARR, it does not consider sales from customers that repurchase its products themselves in the company’s checkout pages, Amazon Marketplace or through assistance of the company’s customer service representatives, since those sales have a marginal advertising/marketing expense associated with the respective sale. The company also does not consider the revenue attributed to the initial purchase upon acquisition of the respective customer.
