Medifast Inc (NYSE:MED) a major distributor and manufacturer of clinically validated, healthy living programs and products, posted financial report for the fourth quarter closed December 31, 2017. For Q4 2017, revenue came at $78 million as compared to revenue of $62.5 million for Q4 2016.
OPTAVIA revenue came at $68.6 million in Q4 2017 versus revenue of $51.8 million for Q4 2016. This marks as the ninth successive quarter of growth. The total count of active earning OPTAVIA Coaches came at 15,000 in Q4 2017 versus 12,500 for Q4 2016.
Dan Chard, the CEO of Medifast, reported that their financial performance surpassed their anticipations and they are delighted to post a remarkable closed to the year with revenue via their OPTAVIA Coaches model recording exceptional growth. Looking ahead, their OPTAVIA coach community is stronger than ever and extremely well-positioned to grow upon the prevailing business momentum as they share their mission of providing the world lifelong change, one healthy practice at a time.
Medifast reported that direct revenue came at $6.6 million in Q4 2017, as against direct revenue of $6.8 million for the same quarter of 2016. Advertising spend stood at $0.1 million compared to $1.6 million for Q4 2016.
Revenue reported from Franchise Medifast Weight Control Centers came at $2.6 million in Q4 2017 versus $3.6 million for Q4 2016. The drop in revenue was primarily led by fewer franchise facilities in operation during the quarter combined with a drop in activity within the facilities and a drop in resellers. Medifast closed the fourth quarter with 18 reseller locations and 16 franchise centers in operation compared to 19 reseller locations and 37 franchise centers at the close of the same period, a year earlier. Gross profit for Q4 2017 surged to $59.1 million over the fourth quarter of 2016.