Teladoc Announces Third Quarter 2017 Results
Third Quarter Revenue of $68.7 million Grew 112% Year-Over-YearTotal Paid Membership of 22.6 million Grew 33% Year-Over-YearTotal Visits of 306,000 Grew 51% Year-Over-Year
PURCHASE, NY, November 1, 2017 — Teladoc, Inc. (NYSE:TDOC), the undisputed leader in telehealth, today announced results for the third-quarter ended September 30, 2017.
“Teladoc demonstrated very strong performance in the third quarter, delivering results that were at or above our expectations on all key metrics. We made meaningful progress across all segments of our business, and take excellent momentum into the final quarter of 2017,” said Jason Gorevic, chief executive officer, Teladoc. “I want to recognize, in particular, our execution as we successfully integrate the Best Doctors products and people into the organization.
In the company’s next step towards building a global organization, and bringing to the market a comprehensive virtual care delivery system, Teladoc is announcing that, effective November 1, 2017, Peter McClennen, president, Best Doctor’s Division, has been appointed to the newly created position of president, Teladoc, Inc., reporting directly to Jason Gorevic.
Mr. McClennen will assume responsibility for all commercial operations globally, including sales, account management, product development and strategy for all Teladoc markets and segments. “I’m incredibly pleased to welcome Peter as Teladoc’s president. With an impressive career leading healthcare IT companies, both domestically and internationally, Peter has a proven track record of successfully translating vision and strategy into world class execution.” said Gorevic. “I look forward to partnering with Peter to take our products, client relationships and market position to new heights.”
Financial Performance for the Three Months Ended September 30, 2017
All comparisons are to the three months ended September 30, 2016.
Total revenue was $68.7 million, an increase of 112%. Organic revenue growth was 45%.
Revenue from Subscription Access Fees was $59.8 million, which includes $19.8 million from the July 14, 2017 acquisition of Best Doctors, an increase of 115%.
Revenue from U.S. Subscription Access Fees was $51.6 million, which includes $11.6 million from Best Doctors. Organic revenue growth for the third quarter 2017 compared to the same period last year was 44%.
Revenue from International Subscription Access Fees was $8.2 million.
Revenue from Visits was $8.9 million, an increase of 94%.
Revenue from General Medical Visits was $6.8 million, compared to $4.6 million.
Revenue from Other Specialty Visits (principally Best Doctors expert second opinions) was $2.1 million.
Total U.S. paid membership was 22.6 million, an increase of 33%.
Total visits of 306,000, an increase of 51%.
Paid visits as a percentage of total visits was 51% compared to 58%.
Gross profit was 75.6% compared to 78.0%.
Net loss was $31.3 million, compared to $29.8 million.
Net loss per basic and diluted share was $0.55, compared to $0.65.
EBITDA was a loss of $16.6 million, compared to a loss of $26.1 million.
Adjusted EBITDA improved to a loss of $0.6 million, compared to a loss of $9.3 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”.
Fourth Quarter 2017 Guidance: Revenue for the fourth quarter 2017 is expected to be in the range of $75 million to $77 million. EBITDA is expected to be in the range of a loss of $8 million to a loss of $9 million. Adjusted EBITDA is expected to be positive in the range of $1 million to $2 million. Membership is expected to total approximately 22.6 million to 23.0 million at December 31, 2017. Total visits are projected to be between 400,000 and 450,000. Fourth quarter net loss per share, based on 57.1 million weighted average shares outstanding, is expected to be between $(0.41) and $(0.43).
Full Year 2017 Guidance: Revenue for the full year 2017 is expected to be in the range of $231 million to $233 million, a change from the previously issued guidance of a range of $230 million to $235 million. EBITDA is expected to be in the range of a loss of $48 million to $49 million, a change from the previously issued guidance of a range of a loss of $46 million to a loss of $48 million. Adjusted EBITDA is expected to be in the range of a loss of $14 million to $15 million, a change from the previously issued guidance of a range of a loss of $15 million to $17 million Membership is expected to total approximately 22.6 million to 23.0 million at December 31, 2017, an increase of 100,000 memebers to the low end of the previously issued range. Total visits for the full year has not been changed from previous guidance and is projected to be between 1,400,000 and 1,450,000 visits.
Net loss per share, based on 55.1 million weighted average shares outstanding, is expected to be between $(1.56) and $(1.58), a change from the previously issued guidance of a range of a loss per share between $(1.52) and $(1.55).
Quarterly Conference Call
The third quarter 2017 earnings conference call and webcast will be held Wednesday, November 1, 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 better convenience, outcomes and value. The company provides virtual access to high quality care and expertise, with a portfolio of services and solutions covering 450 medical subspecialties from non-urgent, episodic needs like flu and upper respiratory infections, to chronic, complicated medical conditions like cancer and congestive heart failure. By marrying the latest in data and analytics with its award-winning user experience and highly flexible technology platform, Teladoc has delivered millions of medical visits to patients around the globe. For additional information, please visit www.teladoc.com.
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.