Teladoc Announces Second Quarter 2017 Results
Second Quarter Revenue of $44.6 million Grew 68% Year-Over-Year
Total Membership of 20.5 million Grew 33% Year-Over-Year
Total Visits of 309,000 Grew 55% Year-Over-Year
PURCHASE, NY (August 2, 2017) — Teladoc, Inc. (NYSE: TDOC), the undisputed leader in telehealth, today announced results for the second-quarter ended June 30, 2017.
“Teladoc continued to deliver very strong results in the second quarter, meeting or exceeding our guidance on all key metrics. Building upon our excellent performance in the first half of 2017, the recent acquisition of Best Doctors makes me more optimistic than ever that Teladoc is uniquely positioned to transform how people access healthcare,” said Jason Gorevic, chief executive officer of Teladoc. “We continue to receive enthusiastic demand for the combined Teladoc and Best Doctors product offering, which delivers a clear, market-leading value proposition for our clients and partners.”
Financial Performance for the Three Months Ended June 30, 2017
All comparisons are to the three months ended June 30, 2016.
Total revenue was $44.6 million, an increase of 68%.
- Revenue from Subscription Access Fees was $37.5 million, an increase of 74%.
- Revenue from Visit Fees was $7.1 million, an increase of 44%.
- Total membership was 20.5 million, an increase of 33%.
Total visits of approximately 309,000, an increase of 55%.
- Paid visits as a percentage of total visits was 55% compared to 64%.
- Gross margin increased to 77.5% compared to 74.0%.
- Net loss was $15.4 million, compared to $14.9 million.
- Net loss per basic and diluted share was $0.28, compared to $0.38.
- EBITDA was a loss of $11.8 million, compared to a loss of $12.9 million.
- Adjusted EBITDA improved to a loss of $5.1 million, compared to a loss of $10.5 million.
A reconciliation of generally accepted accounting principles (“GAAP”) in the United States 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”.
Third Quarter 2017 Guidance: Revenue for the third quarter 2017 is expected to be in the range of $67 million to $68 million. EBITDA is expected to be in the range of a loss of $16 million to a loss of $17 million. Adjusted EBITDA is expected to be in the range of a loss of $2 million to a loss of $3 million. Membership is expected to total approximately 22.0 million to 22.5 million at September 30, 2017. Total visits are projected to be between 275,000 and 300,000. Third quarter net loss per share, based on 56.5 million weighted average shares outstanding, is expected to be between $(0.56) and $(0.58).
Full Year 2017 Guidance: Revenue for the full year 2017 is expected to be in the range of $230 million to $235 million. EBITDA is expected to be in the range of a loss of $46 million to $48 million. Adjusted EBITDA is expected to be in the range of a loss of $15 million to $17 million and the Company targets to be Adjusted EBITDA positive in the fourth-quarter of 2017. Membership is expected to total approximately 22.5 million to 23.0 million at December 31, 2017. Total visits for the full year are projected to be between 1,400,000 and 1,450,000. Net loss per share, based on 55.1 million weighted average shares outstanding, is expected to be between $(1.52) and $(1.55).
Quarterly Conference Call
The second quarter 2017 earnings conference call and webcast will be held Wednesday, August 2, 2017 at 5:00 p.m. ET. The conference call can be accessed by dialing 1-877-201-0168 for U.S. participants, or 1-647-788-4901 for international participants, and including the following Conference ID Number: 71800717 to expedite caller registration; or via a live audio webcast available online at http://ir.teladoc.com/news-and-events/events-and-presentations/. A webcast replay will be available for on-demand listening shortly after the completion of the call at the same web link.
About Teladoc, Inc.
Teladoc, Inc. (NYSE:TDOC) is the largest and most trusted telehealth provider in the world. Recognized by MIT Technology Review as one of the “50 Smartest Companies”, Teladoc is forging a new healthcare experience with an innovative portfolio of virtual care delivery solutions. Currently, Teladoc serves more than 10,000 clients – from payers to providers to employers – and more than 20 million members who connect within minutes to Teladoc’s network of more than 3,100 board-certified, state-licensed physicians and therapists, 24/7. Teladoc’s services and solutions marry a highly engaging consumer experience with the latest in data and analytics, and a highly flexible technology platform. Teladoc has delivered more than 2.5 million medical visits for general medical, dermatology, counseling, psychiatry, sexual health, and tobacco cessation. For additional information, please visit www.teladoc.com.
Jordan E. Kohnstam
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding future revenues, future earnings, future numbers of members or clients, litigation outcomes, regulatory developments, market developments, new products and growth strategies, and the effects of any of the foregoing on our future results of operations or financial conditions.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market conditions and receptivity to our services and offerings; (iii) results of litigation; (iv) the loss of one or more key clients; and (v) changes to our abilities to recruit and retain qualified providers into our network. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.