General

Teladoc announces second quarter 2016 results

Second-quarter revenue of $26.5 million increased 45%, membership of 15.4 million increased 34%, visits of 199,106 increased 59% year- over-year

LEWISVILLE, Texas (August 3, 2016) – Teladoc, Inc. (NYSE: TDOC), the first and largest telehealth platform in the United States, today announced results for its second quarter ended June 30, 2016.

"During the second quarter, we saw continued momentum across numerous dimensions of our business," Jason Gorevic, chief executive officer of Teladoc, commented. "Visits exceeded our expectations, and for the 14th consecutive quarter, visit growth outpaced our membership growth, reinforcing our increasing utilization trends. Additionally, we are making progress toward our goal of EBITDA breakeven by the end of 2017, as we saw a $1.4 million sequential reduction in our second-quarter loss."

Mr. Gorevic continued, "In spite of these positive trends in our business, we did not achieve our revenue expectations for the second quarter. A significant increase in the cost of advertising in our direct-to-consumer segment led to fewer ads placed, and therefore less revenue. In addition, two large, new clients that were forecasted to be implemented in the second half of 2016 delayed their launch dates to the start of 2017. Thus, we have adjusted our outlook for the remainder of the year."

Financial Performance for the Three Months Ended June 30, 2016

All comparisons, unless otherwise noted, are to the quarter ended June 30, 2015.

  • Total revenue was $26.5 million, an increase of 45%. Revenue from subscription access fees and visit fees was $21.5 million and $5.0 million, respectively, compared to $15.1 million and $3.2 million, respectively, an increase of 42% and 57%, respectively.

  • Total visits were 199,106, compared to 125,322, an increase of 59%.

  • Paid visits as a percentage of total visits remained at 64% for both periods.

  • Gross margin was consistent for both periods at 74%.

  • Net loss was $14.9 million, compared to a net loss of $17.1 million.

  • Net loss per basic and diluted share was $0.38, compared to a net loss per share of $7.20.

  • EBITDA was a loss of $12.9 million, compared to a loss of $15.3 million.

  • Adjusted EBITDA was a loss of $10.5 million, compared to a loss of $14.4 million.

A reconciliation of GAAP to non-GAAP results has been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures".

Business Outlook

Third Quarter 2016 Guidance: Revenue for the company's third quarter 2016 is expected to be in the range of $32 million to $33 million. EBITDA is expected to be in the range of a loss of $12 million to a loss of $13 million. Adjusted EBITDA is expected to be in the range of a loss of $9 million to a loss of $10 million. Membership is expected to total approximately 16.5 million to 17.0 million at September 30, 2016. Total visits are projected to be between 205,000 and 215,000. Third quarter net loss per share, based on 45.7 million weighted average shares outstanding, of between $(0.35) and $(0.38) is projected.

Full Year 2016 Guidance: Revenue for the company's full year 2016 is expected to be in the range of $121 million to $124 million. EBITDA is expected to be in the range of a loss of $48 million to a loss of $50 million. Adjusted EBITDA is expected to be in the range of a loss of $41 million to a loss of $43 million. Membership is expected to total approximately 17.0 million to 17.5 million at December 31, 2016. Total visits for the full year are projected to be between 915,000 and 945,000. The 2016 net loss per share, based on 42.2 million weighted average shares outstanding, is expected to be between $(1.47) and $(1.52).

Quarterly Conference Call

Stockholders and interested participants may listen to a live broadcast of the conference call by dialing 877-201-0168 or 647-788-4901 for international callers, and referencing participant code 46193070 approximately 15 minutes prior to the call. A live webcast of the conference call will be available on the investor relations section of the company's web site and an audio file of the call will also be archived for 90 days at ir.teladoc.com. After the conference call, a replay will be available until August 17, 2016 and can be accessed by dialing 855-859-2056 or 404-537-3406 for international callers, and referencing participant code 46193070.

About Teladoc

Teladoc, Inc. (NYSE:TDOC) is the nation's leading provider of telehealth services and a pioneering force in bringing the virtual care visit into the mainstream of today's health care ecosystem. Serving some 6,000 clients — including health plans, health systems, employers and other organizations — more than 15 million members can use phone, mobile devices and secure online video to connect within minutes to Teladoc's network of more than 3,000 board-certified, state-licensed physicians and behavioral health specialists, 24/7. With national coverage, a robust, scalable platform and a Lewisville, Texas-based member services center staffed by 400 employees, Teladoc offers the industry's most comprehensive and complete telehealth solution including primary care, behavioral health care, dermatology, tobacco cessation and more. For additional information, please visit www.teladoc.com.


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