Teladoc Announces Third Quarter 2015 Results

Teladoc, Inc. (NYSE: TDOC), the first and largest telehealth platform in the United States, today announced results for its third quarter ended September 30, 2015.

Jason Gorevic, Chief Executive of Officer of Teladoc, commented, “Our third quarter results show solid growth across all of our metrics. Visit growth continued to see strong momentum and for the eleventh consecutive quarter, our visit growth exceeded our membership growth, which demonstrates that our impactful consumer engagement strategies are working and driving utilization. In terms of our revenue streams, this quarter saw an increase in revenue from visit fees, as well as from subscription fees. Importantly, our PMPM fees increased both sequentially and year over year.”

Mr. Gorevic continued, “New account wins continue at a record pace, as we’ve already signed over 500 new clients across all of our market segments during this selling season. We are executing on our business plan, our sales pipeline is full, and we remain the leader in this exciting telehealth market.”

Financial Performance for the Three Months Ended September 30, 2015

All comparisons, unless otherwise noted, are to the quarter ended September 30, 2014.

• Total revenue was $20.0 million, an increase of 83%. Revenue from subscription access fees and visit fees was $17.0 million and $3.0 million, respectively, an increase of 78% and 122%, respectively.
• Total membership was 12.6 million, compared to 8.1 million, an increase of 56%.
• Total visits were 117,213, compared to 61,929, an increase of 89%.
• Gross margin was 78%, compared to a gross margin of 80%.
• Operating loss was $13.2 million, compared to an operating loss of $4.5 million.
• Net loss per basic and diluted share was $0.37, compared to a net loss per share of $2.68.
• EBITDA was a loss of $11.1 million, compared to a loss of $3.2 million.
• Adjusted EBITDA was a loss of $10.4 million, compared to a loss of $3.1 million.
• Total cash, cash equivalents and short-term investments in marketable securities were $152.0 million at the end of the third quarter of 2015.

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

Fourth Quarter 2015 Guidance: Revenue for the company’s fourth quarter 2015 is expected to be in the range of $21 million to $22 million. EBITDA is expected to be in the range of a loss of $13 million to a loss of $14 million. Adjusted EBITDA is expected to be in the range of a loss of $12.3 million to a loss of $13.3 million. Total visits are projected to be between 150,000 and 160,000. Fourth quarter net loss per share, based on 38.4 million weighted average shares outstanding, of between $(0.41) and $(0.43).

Full Year 2015 Guidance: Revenue for the company’s full year 2015 is expected to be in the range of $75.5 million to $76.5 million. EBITDA is expected to be in the range of a loss of $51 million to a loss of $52 million. Adjusted EBITDA is expected to be in the range of a loss of $48 million to a loss of $49 million. Total visits for the full year are projected to be between 540,000 and 550,000. The 2015 net loss per share, based on 19.9 million weighted average shares outstanding, of between $(2.95) and $(3.00).

Quarterly Conference Call

Teladoc will host a conference call to discuss its third quarter 2015 results today, November 2, 2015, at 5:00 p.m. EST. Interested parties 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 56728128. A live webcast of the conference call will be available on the investor relations section of the company’s website 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 November 16, 2015 and can be accessed by dialing 855-859-2056 or 404-537-3406 for international callers, and referencing participant code 56728128.

About Teladoc

Teladoc, Inc. (NYSE: TDOC) is the nation’s first and largest telehealth platform, delivering on-demand healthcare anytime, from almost anywhere via mobile devices, the internet, secure video and phone. More than 12.5 million U.S. members are connected to Teladoc’s network of over 2,650 board-certified, state-licensed physicians and behavioral health professionals who provide care for a wide range of non-emergency conditions. With a median response time of less than 10 minutes, Teladoc physicians will perform approximately 550,000 telehealth visits in 2015. Teladoc and its physicians consistently earn a 95 percent member satisfaction rating or better, and Teladoc is the only telehealth company to be certified by the National Committee for Quality Assurance (NCQA) for its physician credentialing process.

Recognized in June 2015 by MIT Technology Review as “One of the 50 Smartest Companies,” Teladoc works with health plans, employers, organizations and individuals to provide access to affordable, high-quality healthcare on-demand. Teladoc is transforming the access, cost and quality dynamics of healthcare delivery. For more information, please visit teladoc.com, twitter.com/teladoc, facebook.com/teladoc or linkedin.com/teladoc.

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. Therefore, you should not rely on any of these 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. Additional relevant risks that may affect our results are described in certain of our filings with the Securities and Exchange Commission.

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.

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