Executive Summary

Net product revenue rose 142% year-over-year to $7.514M, driven by the launch of the national media campaign; gross margin expanded to 34.6% from 9.2% on higher volumes and manufacturing scale-up .
Net loss was $(5.703)M; Adjusted EBITDA was $(26.932)M, reflecting heavy SG&A spend to build awareness and non-cash fair value adjustments .
FY2022 product revenue guidance of about $58M was reiterated; prior guidance also included gross profit of $25–$30M and Adjusted EBITDA of $(55)–$(60)M, which was not updated in the Q1 release .
Catalysts: rapid member acquisition (40,400 new members) and units sold (114,570) in Q1, with >80% of revenue occurring in February/March post campaign launch, supporting momentum and potential estimate revisions to marketing efficiency metrics .

What Went Well and What Went Wrong

“We saw all-time highs of people seeking and starting Plenity prescriptions… we are encouraged that our message is resonating with the right people.” — CEO Yishai Zohar .
Gross margin improved materially to 34.6% (from 9.2% YoY) following completion of the first phase of commercial manufacturing scale-up at the end of 2021 .
Strong demand signals: 40,400 new members (+187% YoY), 114,570 units sold, and ASP of $65.58 per unit; >80% of revenue occurred in Feb–Mar post media launch .

Operating expenses surged: SG&A rose to $37.706M; total operating expenses were $50.596M, driving negative Adjusted EBITDA $(26.932)M .
Guidance dependency on future financing and liquidity to sustain broad awareness media; growth trajectory contingent on advertising investment cadence .
Non-cash volatility: large change in fair value of earnout liability ($33.869M) and warrants ($3.484M), adding noise to reported results and complicating comparability .

Metric	Q1 2021	Q4 2021	Q1 2022
Revenue ($USD Millions)	$3.101	n/a	$7.514
Gross Profit ($USD Millions)	$0.285	n/a	$2.601
Gross Margin (%)	9.2%	n/a	34.6%
Net Income ($USD Millions)	$(18.586)	n/a	$(5.703)
Diluted EPS ($USD)	$(9.38)	n/a	$(0.70)
Adjusted EBITDA ($USD Millions)	$(13.890)	n/a	$(26.932)
Total Operating Expenses ($USD Millions)	$19.704	n/a	$50.596

Notes: Q4 2021 quarterly figures were not disclosed in company filings; FY2021 aggregates are provided separately .

KPI	Q1 2021	Q1 2022
New Members Acquired (count)	14,100	40,400
Units Sold (count)	48,761	114,570
Average Selling Price per Unit, net ($USD)	$63.60	$65.58
Revenue Concentration (Feb–Mar share of Q1 revenue)	n/a	>80%

Metric ($USD Thousands)	Dec 31, 2021	Mar 31, 2022
Cash and Cash Equivalents	$28,397	$33,985
Accounts & Grants Receivable	$9,903	$9,762
Inventories	$13,503	$16,276
Property & Equipment, net	$58,515	$58,321
Total Assets	$146,301	$152,879
Total Liabilities	$152,688	$131,138
Total Stockholders’ Equity (Deficit)	$(329,836)	$10,037

Metric	Period	Previous Guidance	Current Guidance	Change
Product Revenue, net ($USD Millions)	FY 2022	~$58	~$58	Maintained
Gross Profit ($USD Millions)	FY 2022	$25–$30	Not updated in Q1 release	n/a
Adjusted EBITDA ($USD Millions)	FY 2022	$(55)–$(60)	Not updated in Q1 release	n/a

Management noted guidance depends on financing availability and the timing/amount of broad awareness media investment .

Transcript not available for Q1 2022; company scheduled a call for May 12, 2022 at 4:30 pm ET .

Topic	Previous Mentions (Q-2)	Previous Mentions (Q-1)	Current Period (Q1 2022)	Trend
Broad Awareness Media Campaign	Unavailable	Early campaign kickoff; strong early demand signals	Debut Jan 31; >80% revenue in Feb–Mar; 140% web traffic and Rx request increases	Improving momentum
Manufacturing Scale-Up	Unavailable	Completed first phase end of 2021	Enabled gross margin improvement; scaling to meet demand	Positive operational leverage
Product Performance & Adoption	Unavailable	Growing members; Ro preorders $40M; high demand	40,400 new members; 114,570 units; ~70% new to Rx weight management	Expanding adoption
Regulatory/Safety	Unavailable	Indication and safety info reiterated	No black box safety warnings; safety info reiterated	Stable
Macro/Inflation	Unavailable	Acknowledged inflation risk in risk factors	Inflation risk noted in forward-looking/risk disclosures	Risk monitoring

CEO: “We saw all-time highs of people seeking and starting Plenity prescriptions… we are encouraged that our message is resonating with the right people” .
CFO: “We were pleased by the improvement in our gross margin this quarter that resulted from completing the first phase of our commercial manufacturing scale-up last year” and “We are targeting a consumer acquisition cost of less than $100 at the point when there is broad awareness of Plenity” .
Operations: Demonstrated ability to scale manufacturing; rapid online-to-prescription conversion (90% complete treatment request within 24 hours; delivery within ~2 days) .

Transcript unavailable; call logistics provided, but no transcript content was retrievable in the document set .

Attempted to retrieve Wall Street consensus for Q1 2022 via S&P Global; consensus data unavailable due to missing CIQ mapping for GLSHQ, so estimate comparisons cannot be provided at this time (Values retrieved from S&P Global)*.
Given the magnitude of revenue outperformance vs prior year and margin expansion, sell-side models may need to update marketing efficiency assumptions, conversion rates, and unit economics once consensus is established .

Strong early traction from national media campaign drove 142% YoY revenue growth to $7.514M and gross margin expansion to 34.6%; operational scale-up is translating to improved unit economics .
Heavy SG&A investment ($37.706M) reflects deliberate growth strategy to build broad awareness; near-term losses and negative Adjusted EBITDA $(26.932)M should improve as marketing efficiency and scale accrue .
FY2022 product revenue guidance maintained at ~$58M, but execution is contingent on financing and advertising spend cadence; monitor liquidity and marketing pulses as growth drivers .
Demand indicators are strong: 40,400 new members, 114,570 units, >80% revenue concentrated in Feb–Mar post-campaign; ~70% of members are new to prescription weight management, suggesting category expansion .
With Q4 quarterly detail and sell-side consensus unavailable, focus on intra-quarter operating KPIs and margin progress; any updates to guidance ranges (gross profit, Adjusted EBITDA) on future calls will be key .
Tactical: Positive momentum narrative and maintained revenue guidance are supportive into subsequent quarters; watch disclosures on consumer acquisition cost targets (<$100) and the media investment path for inflection .
Strategic: Proprietary hydrogel platform and safety profile (no black box warnings) may underpin long-term adoption; manufacturing scale and unit economics are central to medium-term margin trajectory .