Medifast, Inc. (NYSE:MED) Q3 2022 Earnings Conference Call November 3, 2022 4:30 PM ET

Company Participants

Reed Anderson - ICR

Daniel Chard - Executive Chairman & CEO

James Maloney - CFO

Conference Call Participants

Christina Xue - D.A. Davidson

Operator

Good day, and welcome to the Medifast Third Quarter 2022 Earnings Conference Call. [Operator Instructions].

I would now like to turn the conference over to Reed Anderson with ICR. Please go ahead.

Reed Anderson

Good afternoon, and welcome to Medifast's Third Quarter 2022 Earnings Conference Call. On the call with me today are Dan Chard, Chairman and Chief Executive Officer; and Jim Maloney, Chief Financial Officer. By now, everyone should have access to the earnings release for the quarter ended September 30, 2022, and went out this afternoon at approximately 4:05 p.m. Eastern Time. If you have not received the release, it is available on the Investor Relations portion of Medifast's website at www.medifastinc.com. This call is being webcast, and a replay will be available on the company's website.

Before we begin, we would like to remind everyone that the prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. The words believe, expect, anticipate and other similar expressions generally identify forward-looking statements. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them.

Actual results could differ materially from those projected in any forward-looking statements. All of the forward-looking statements contained herein speak only as of the date of this call. Medifast assumes no obligation to update any forward-looking projections that may be made in today's release or call.

And with that, I would like to turn the over to Medifast's Chairman and Chief Executive Officer, Dan Chard.

Daniel Chard

Thank you, Reed, and good afternoon, everyone. Thank you for taking time to be with us today. On the call with me is Jim Maloney, our Chief Financial Officer. I'll start with an overview of the third quarter and continued evolution of our business. Then Jim will run through our financial results in more detail.

Third quarter has been one of calibration and adjustment. We are pleased to see a faster-than-expected recovery in customer retention, which is now back to historical norms following the disruption in Q2 due to consumer spending pressure from higher inflation and interest rates. Customer satisfaction numbers remain at historical highs as our operating infrastructure continue to enable us to deliver a high-quality customer experience that drives retention and brand ambassadorship. Customer experience is one of the key differentiators that allows us to maintain our leadership position, which was recently underscored when Euromonitor, an independent market research firm, named OPTAVIA as the top weight loss program in the U.S. by revenue for last year.