Teladoc Health Previews First-Quarter 2020 Results
PURCHASE, NY, April 14, 2020 — Teladoc Health, Inc. (NYSE: TDOC), the global leader in virtual care, today announced preliminary financial and operating results for its first quarter ended March 31, 2020. The preliminary results are subject to completion of the company’s quarterly financial reporting process and are based on present circumstances.
As a result of the global outbreak of COVID-19, Teladoc Health has experienced an unprecedented surge in demand for its services. The company is now routinely providing in excess of 20,000 virtual medical visits per day in the United States, representing an increase of over 100% as compared to the first week of March. As a mission driven organization, Teladoc Health has stepped up in this time of need to address physical delivery system limitations to ensure that those in need have access to high quality care from a physician.
The performance of Teladoc Health’s technology platform has been exceptional, and the company has responded to the rising demand with a number of initiatives. These initiatives include streamlining the company’s provider onboarding process to rapidly expand new physician capacity, enhancing visit queue algorithms, and temporarily increasing physician compensation in certain cases to ensure the company’s clients and members have access to high-quality physician care in as timely a manner as possible during the COVID-19 pandemic. These efforts have combined to significantly expand the number of active providers, while greatly enhancing the productivity of our existing network of physicians.
As the majority of Americans have seen their communities come under orders to shelter in place, more than 60 percent of current Teladoc Health visits are with members who are new to the platform, seeking care ranging from possible COVID-19 infections to non-respiratory ailments, in an effort to avoid traveling in their communities and stay away from a clogged brick and mortar health care system.
“Our first priority is to ensure that every patient who comes to us receives the high-quality medical care they need,” said Jason Gorevic, chief executive officer of Teladoc Health. “The Teladoc Health team and platform are performing extremely well as more consumers, employers and hospital systems rely on us during this unprecedented time. Virtual care is playing a central role during this crisis, when the traditional healthcare system is under intense pressure, and I am confident that role will only continue to expand.”
Update on First Quarter 2020 Outlook
Teladoc Health now anticipates revenue for the first quarter of 2020 to be in the range of $180-181 million, compared to $129 million in the first quarter of 2019. Adjusted EBITDA for the first quarter is expected to be in the range of $10-11 million, compared to $1.2 million in the first quarter of 2019. Total visit volume is expected to exceed 1.8 million visits in the first quarter of 2020, representing growth of approximately 70% as compared to the first quarter of 2019.
Expected results for the first quarter of 2020 include additional expenses estimated at $4 million, associated with the company’s incremental investments in its physician network in response to the global outbreak of COVID-19, which is expected to impact reported gross margin and adjusted EBITDA margin during the quarter.
The ultimate impact of COVID-19, including the impact on the company’s volume growth and investments in our physician network, is highly uncertain and will depend on many factors, including the length of time that the pandemic continues, its impact on the global economy, and its effect on the demand for the company’s services.
Teladoc Health anticipates providing full financial results for the quarter ended March 31, 2020 and an updated financial outlook on April 29, 2020.
Management will host a conference call and webcast to discuss the preliminary first quarter results on Tuesday, April 14, 2020, at 5:00 p.m. EST. The conference call can be accessed by dialing 1-833-241-4255 for U.S. participants, or 1-647-689-4206 for international participants, and referencing Teladoc Health, or via 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 Health
A mission-driven organization, Teladoc Health, Inc. is successfully transforming how people access and experience healthcare, with a focus on high quality, lower costs, and improved outcomes around the world. The company’s award-winning, integrated clinical solutions are inclusive of telehealth, expert medical services, AI and analytics, and licensable platform services. With more than 2,400 employees, the organization delivers care in more than 175 countries and in more than 40 languages, partnering with employers, hospitals and health systems, and insurers to transform care delivery. For more information, please visit www.teladochealth.com or follow @TeladocHealth on Twitter.