Optavia Coaches Reach a Record 44200 as Quarterly Revenue Jumps 55 Percent

Medifast, the public company behind Optavia, reported fourth-quarter 2020 revenue of 264.9 million dollars, up 55.3 percent from a year earlier. Active earning Optavia coaches rose 39.0 percent to a record 44,200. Revenue per active earning coach rose 13.4 percent to 5,932 dollars. Net income rose 40.8 percent to 28.0 million dollars, or 2.36 dollars a diluted share.

Optavia-branded products were 87.2 percent of consumable units sold in the quarter, compared with 79.0 percent a year earlier. Gross margin was 75.2 percent. Income from operations rose to 38.0 million dollars, or 14.3 percent of revenue.

Full-year revenue rose 31.0 percent to 934.8 million dollars. Full-year net income rose 32.0 percent to 102.9 million dollars, or 8.68 dollars a share. Adjusted net income was 108.3 million dollars. Cash, cash equivalents, and investment securities totaled 174.5 million dollars, and the company had no interest-bearing debt.

Chairman and chief executive Dan Chard said coaches attracted and kept a record number of new clients and that demand for health and wellness held up through the pandemic. A quarterly dividend of 1.13 dollars a share, totaling 13.4 million dollars, was paid on February 5, 2021.