Teladoc Announces Full-Year and Fourth Quarter 2016 Results
2016 Revenue of $123.2 million, growth of 59%; 4Q 2016 Revenue of $37.4 million, growth of 65%
Total Membership of 17.5 million, growth of 43%
2016 Visits of 952,081, growth of 65%; 4Q 2016 Visits of 310,467, growth of 68%
Teladoc, Inc. (NYSE:TDOC), the undisputed leader in telehealth, providing access to care for millions, today announced
results for the full-year and fourth-quarter ended December 31, 2016.
“In 2016, we executed on our key financial and strategic objectives, while strengthening our product portfolio to drive further
consumer engagement and the overall inflection point in telehealth adoption,” said Jason Gorevic, chief executive officer of
Teladoc. “Looking to 2017, we remain focused on our long-term growth levers, which will deliver continued progress towards our
previously stated 2017 financial targets.”
Financial Performance for the Fourth Quarter and Full-Year Ended December 31, 2016
All comparisons are to the fourth quarter and full-year ended December 31, 2015 respectively.
-
Total revenue was $37.4 million for fourth quarter 2016, an increase of 65%. Full-year 2016 revenue was $123.2 million,
an increase of 59%.
- Revenue from Subscription Access Fees was $30.4 million for fourth quarter 2016, an increase of
69%. For the full-year 2016, revenue from Subscription Access Fees was $100.5 million, an increase of 59%.
- Revenue from Visit Fees was $7.0 million for fourth quarter 2016, an increase of 50%. For the
full-year 2016, revenue from Visit Fees was $22.7 million, an increase of 61%.
- Total membership was 17.5 million, an increase of 43%.
-
Total visits recorded was 310,467 visits for fourth quarter 2016, an increase of 68%. Full-year 2016 total visits
recorded was 952,081, an increase of 65%.
- Paid visits as a percentage of total visits was 59% in the fourth quarter 2016 compared to 64%.
For the full-year 2016, paid visits as a percentage of total visits was 61% compared to 64%.
- Gross margin was 73.2% for fourth quarter 2016 compared to 71.4%. Full-year 2016 gross margin
was 74.0% compared to 72.8%.
- Adjusted EBITDA improved to a loss of $8.0 million for fourth quarter 2016, compared to a loss
of $11.8 million. For the full-year 2016, Adjusted EBITDA improved to a loss of $39.7 million, compared to a loss of $47.3
million.
- EBITDA improved to a loss of $10.6 million for fourth quarter 2016, compared to an EBITDA loss
of $12.8 million. For the full-year 2016, EBITDA loss was $62.8 million compared to $50.9 million. EBITDA loss for the full-year
2016 included previously disclosed non-recurring, primarily non-cash charges of $15.4 million incurred during the second and
third quarter of 2016.
- Net loss was $14.3 million for fourth quarter 2016, compared to $15.0 million. For the
full-year 2016, net loss was $74.2 million compared to $58.0 million. Net loss in the full-year 2016 includes the previously
mentioned non-recurring, primarily non-cash charges.
- Net loss per basic and diluted share was $0.31 for fourth quarter 2016, compared to a net loss
per share of $0.39. For the full-year 2016, net loss per basic and diluted share improved to $1.75 from $2.91. Excluding the
non-recurring, primarily non-cash charges noted above, net loss per basic and diluted share would have been $1.39 for the
full-year ended December 31, 2016.
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
First Quarter 2017 Guidance: Revenue for the company’s first quarter 2017 is expected to be in the range of $41.5 million
to $42.5 million. EBITDA is expected to be in the range of a loss of $14 million to $15 million. Adjusted EBITDA is expected to be
in the range of a loss of $10 million to $11 million. Membership is expected to total approximately 20.0 million to 20.5 million at
March 31, 2017. Total visits are projected to be between 375,000 and 385,000. First quarter net loss per share, based on 52.1
million weighted average shares outstanding, is expected to be between $(0.33) and $(0.34).
Full Year 2017 Guidance: Revenue for the full year 2017 is expected to be in the range of $180 million to $185 million.
EBITDA is expected to be in the range of a loss of $31 million to $34 million. Adjusted EBITDA is expected to be in the range of a
loss of $19.5 million to $22.5 million and the Company targets to be Adjusted EBITDA break-even in the fourth-quarter of 2017.
Membership is expected to total approximately 21.5 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 54.2 million weighted average shares outstanding, is
expected to be between $(0.85) and $(0.91).
Quarterly Conference Call
The fourth quarter 2016 earnings conference call and webcast will be held Wednesday, March 1, 2017 at 5:00 p.m. Eastern. 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: 56315696 to expedite caller registration; or via a live audio webcast available
online at http://ir.teladoc.com. A webcast replay will be available for on-demand listening shortly after the completion
of the call in the same web link.
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 7,500 clients — including health plans, health
systems, employers and other organizations — more than 17.5 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, TX-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.
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.
|
|
|
|
|
|
|
|
Consolidated Balance Sheets
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
50,015 |
|
$ |
55,066 |
| Short-term investments |
|
|
15,793 |
|
|
82,282 |
| Accounts receivable, net of allowance of $2,422 and $1,812, respectively |
|
|
13,806 |
|
|
12,134 |
| Prepaid expenses and other current assets |
|
|
3,103 |
|
|
2,096 |
| Total current assets |
|
|
82,717 |
|
|
151,578 |
| Property and equipment, net |
|
|
7,479 |
|
|
6,259 |
| Goodwill |
|
|
188,184 |
|
|
56,342 |
| Intangible assets, net |
|
|
24,875 |
|
|
15,265 |
| Other assets |
|
|
415 |
|
|
293 |
| Total assets |
|
$ |
303,670 |
|
$ |
229,737 |
| Liabilities and stockholders’ equity |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
|
$ |
2,236 |
|
$ |
2,213 |
| Accrued expenses and other current liabilities |
|
|
7,981 |
|
|
8,197 |
| Accrued compensation |
|
|
8,856 |
|
|
6,326 |
| Long-term bank and other debt-current portion |
|
|
2,000 |
|
|
1,250 |
| Total current liabilities |
|
|
21,073 |
|
|
17,986 |
| Other liabilities |
|
|
7,609 |
|
|
6,775 |
| Deferred taxes |
|
|
1,694 |
|
|
1,185 |
| Long term bank and other debt, net |
|
|
42,424 |
|
|
25,227 |
| Commitments and contingencies |
|
|
|
|
|
|
| Stockholders’ equity: |
|
|
|
|
|
|
| Common stock, $0.001 par value; 75,000,000 shares authorized as of December 31, 2016
and 2015; 46,201,563 shares and 38,524,922 shares issued and outstanding as of December 31, 2016 and 2015, respectively |
|
|
46 |
|
|
38 |
| Additional paid-in capital |
|
|
435,551 |
|
|
309,078 |
| Accumulated deficit |
|
|
(204,726) |
|
|
(130,510) |
| Accumulated other comprehensive loss |
|
|
(1) |
|
|
(42) |
| Total stockholders’ equity |
|
|
230,870 |
|
|
178,564 |
| Total liabilities and stockholders’ equity |
|
$ |
303,670 |
|
$ |
229,737 |
|
|
|
|
|
|
|
See accompanying notes to audited consolidated financial statements.
| |
|
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2016 |
|
2015 |
|
2014 |
| Revenue |
|
|
$ |
123,157 |
|
$ |
77,384 |
|
$ |
43,528 |
| Cost of revenue |
|
|
|
31,971 |
|
|
21,041 |
|
|
9,929 |
| Gross profit |
|
|
|
91,186 |
|
|
56,343 |
|
|
33,599 |
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
| Advertising and marketing |
|
|
|
34,720 |
|
|
20,236 |
|
|
7,662 |
| Sales |
|
|
|
26,243 |
|
|
17,976 |
|
|
11,571 |
| Technology and development |
|
|
|
21,815 |
|
|
14,210 |
|
|
7,573 |
| Legal |
|
|
|
4,117 |
|
|
8,878 |
|
|
1,311 |
| Regulatory |
|
|
|
3,158 |
|
|
2,433 |
|
|
429 |
| Acquisition related costs |
|
|
|
6,959 |
|
|
551 |
|
|
196 |
| General and administrative |
|
|
|
48,568 |
|
|
42,981 |
|
|
17,687 |
| Depreciation and amortization |
|
|
|
8,270 |
|
|
4,863 |
|
|
2,320 |
| Loss from operations |
|
|
|
(62,664) |
|
|
(55,785) |
|
|
(15,150) |
| Amortization of warrants and loss on extinguishment of debt |
|
|
|
8,454 |
|
|
— |
|
|
— |
| Interest expense, net |
|
|
|
2,588 |
|
|
2,199 |
|
|
1,499 |
| Net loss before taxes |
|
|
|
(73,706) |
|
|
(57,984) |
|
|
(16,649) |
| Income tax provision |
|
|
|
510 |
|
|
36 |
|
|
388 |
| Net loss |
|
|
$ |
(74,216) |
|
$ |
(58,020) |
|
$ |
(17,037) |
| Net loss per share, basic and diluted |
|
|
$ |
(1.75) |
|
$ |
(2.91) |
|
$ |
(10.25) |
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average shares used to compute basic and diluted net loss per
share |
|
|
|
42,330,908 |
|
|
19,917,348 |
|
|
1,962,845 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2016 |
|
2015 |
|
2014 |
| Cash flows used in operating activities: |
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(74,216) |
|
$ |
(58,020) |
|
$ |
(17,037) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
8,270 |
|
|
4,863 |
|
|
2,320 |
| Allowance for doubtful accounts |
|
|
2,412 |
|
|
2,034 |
|
|
1,308 |
| Stock-based compensation |
|
|
7,723 |
|
|
3,075 |
|
|
533 |
| Deferred income taxes |
|
|
510 |
|
|
36 |
|
|
388 |
| Accretion of interest |
|
|
262 |
|
|
460 |
|
|
106 |
| Amortization of warrants |
|
|
7,717 |
|
|
798 |
|
|
— |
| Changes in operating assets and liabilities: |
|
|
|
|
|
— |
|
|
— |
| Accounts receivable |
|
|
(2,900) |
|
|
(6,795) |
|
|
(5,079) |
| Prepaid expenses and other current assets |
|
|
(826) |
|
|
(957) |
|
|
(436) |
| Other assets |
|
|
(42) |
|
|
5 |
|
|
(185) |
| Accounts payable |
|
|
(813) |
|
|
(612) |
|
|
2,099 |
| Accrued expenses and other current liabilities |
|
|
(2,221) |
|
|
3,457 |
|
|
(26) |
| Accrued compensation |
|
|
1,688 |
|
|
2,887 |
|
|
1,971 |
| Other liabilities |
|
|
641 |
|
|
1,588 |
|
|
2,679 |
| Net cash used in operating activities |
|
|
(51,795) |
|
|
(47,181) |
|
|
(11,359) |
| Cash flows provided by (used in) investing activities: |
|
|
|
|
|
|
|
|
|
| Purchase of property and equipment |
|
|
(2,108) |
|
|
(6,275) |
|
|
(1,069) |
| Purchase of internal software |
|
|
(1,304) |
|
|
(1,542) |
|
|
(665) |
| Purchase of marketable securities |
|
|
(44,146) |
|
|
(103,030) |
|
|
— |
| Proceeds from the liquidation/maturity of marketable securities |
|
|
110,717 |
|
|
20,411 |
|
|
— |
| Acquisition of business, net of cash acquired |
|
|
(37,013) |
|
|
(17,767) |
|
|
(13,844) |
| Net cash provided by (used in) investing activities |
|
|
26,146 |
|
|
(108,203) |
|
|
(15,578) |
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
| Net proceeds from the exercise of stock options |
|
|
2,524 |
|
|
428 |
|
|
747 |
| Proceeds from issuance of convertible preferred stock |
|
|
— |
|
|
— |
|
|
50,082 |
| Proceeds from borrowing under bank and other debt |
|
|
34,990 |
|
|
6,800 |
|
|
19,700 |
| Repayment of bank loan and other debt |
|
|
(17,166) |
|
|
(6,332) |
|
|
— |
| Proceeds from issuance of common stock under IPO |
|
|
— |
|
|
163,118 |
|
|
— |
| Proceeds from issuance of common stock |
|
|
250 |
|
|
— |
|
|
— |
| Repurchase of stock |
|
|
— |
|
|
— |
|
|
(368) |
| Net cash provided by financing activities |
|
|
20,598 |
|
|
164,014 |
|
|
70,161 |
| Net increase (decrease) in cash and cash equivalents |
|
|
(5,051) |
|
|
8,630 |
|
|
43,224 |
| Cash and cash equivalents at beginning of the period |
|
|
55,066 |
|
|
46,436 |
|
|
3,212 |
| Cash and cash equivalents at end of the period |
|
$ |
50,015 |
|
$ |
55,066 |
|
$ |
46,436 |
| Interest paid |
|
$ |
2,387 |
|
$ |
1,995 |
|
$ |
1,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 1
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA Reconciliation
(In thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
December 31, |
|
|
|
2016 |
|
2015 |
|
2014 |
| Net loss |
|
|
$ |
(74,216) |
|
$ |
(58,020) |
|
$ |
(17,037) |
| Add (deduct): |
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
|
2,588 |
|
|
2,199 |
|
|
1,499 |
| Income tax provision |
|
|
|
510 |
|
|
36 |
|
|
388 |
| Depreciation expense |
|
|
|
2,176 |
|
|
1,133 |
|
|
335 |
| Amortization expense |
|
|
|
6,094 |
|
|
3,730 |
|
|
1,985 |
| EBITDA(1) |
|
|
|
(62,848) |
|
|
(50,922) |
|
|
(12,830) |
| Stock-based compensation |
|
|
|
7,723 |
|
|
3,075 |
|
|
533 |
| Amortization of warrants and loss on extinguishment of debt |
|
|
|
8,454 |
|
|
— |
|
|
— |
| Acquisition related costs |
|
|
|
6,959 |
|
|
551 |
|
|
196 |
| Adjusted EBITDA(2) |
|
|
$ |
(39,712) |
|
$ |
(47,296) |
|
$ |
(12,101) |
|
|
|
|
|
|
|
|
|
|
|
(1) EBITDA
EBITDA consists of net loss before interest, taxes, depreciation and amortization.
(2) Adjusted EBITDA
To supplement our financial information presented in accordance with generally accepted accounting principles in the United
States, or U.S. GAAP, we use Adjusted EBITDA, a non-U.S. GAAP financial measure. We believe that the presentation of this financial
measure enhances an investor’s understanding of our financial performance. We further believe that this financial measure is a
useful financial metric to assess our operating performance from period-to-period by excluding certain items that we believe are
not representative of our core business. We use certain financial measures for business planning purposes and in measuring our
performance relative to that of our competitors. Accordingly, we utilize Adjusted EBITDA as the primary measure of our
performance.
Adjusted EBITDA consists of net loss before interest, taxes, depreciation, amortization, stock-based compensation, amortization
of warrants and loss on extinguishment of debt and acquisition related costs related to mergers and acquisitions. We believe that
making such adjustment provides investors meaningful information to understand our results of operations and the ability to analyze
financial and business trends on a period-to-period basis.
We believe this financial measure is commonly used by investors to evaluate our performance. However, our use of the term
Adjusted EBITDA may vary from that of others in our industry. Adjusted EBITDA should not be considered as an alternative to net
loss before taxes, net loss, loss per share or any other performance measures derived in accordance with U.S. GAAP as measures of
performance.
Adjusted EBITDA has an important limitation as an analytical tool and you should not consider it in isolation or as a substitute
for analysis of our results as reported under U.S. GAAP. Some of these limitations are:
Adjusted EBITDA:
- does not reflect the significant interest expense on our debt; and
- does not reflect the significant non cash stock compensation expense which should be viewed as a
component of recurring operating costs; and
- does not reflect the significant non-recurring charge associated with the amortization of warrants
and loss on extinguishment of debt; and
- does not reflect the significant acquisition related costs related to mergers and acquisitions;
and
- eliminates the impact of income taxes on our results of operations; and
- although depreciation and amortization are non-cash charges, the assets being depreciated and
amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any expenditures for such
replacements; and
- other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting the
usefulness of Adjusted EBITDA as comparative measures.
We compensate for these limitations by using Adjusted EBITDA along with other comparative tools, together with U.S. GAAP
measurements, to assist in the evaluation of operating performance. Such U.S. GAAP measurements include gross profit, net loss, net
loss per share and other performance measures.
In evaluating these financial measures, you should be aware that in the future we may incur expenses similar to those eliminated
in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be
unaffected by unusual or nonrecurring items.
| |
|
Table 2
|
|
Net Loss Per Share Reconciliation
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| GAAP net loss per share, basic and diluted |
|
$ |
(0.31) |
|
$ |
(0.39) |
|
$ |
(1.75) |
|
$ |
(2.91) |
| Adjustment for non-recurring expenses (1) |
|
|
— |
|
|
— |
|
|
0.36 |
|
|
0.03 |
| Net loss per share, excluding non-recurring expenses |
|
$ |
(0.31) |
|
$ |
(0.39) |
|
$ |
(1.39) |
|
$ |
(2.88) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustment for non-recurring expenses
For 2016, this adjustment represents the acquisition related non-recurring and primarily non-cash charge of $6.9 million, net of
tax for the year ended December 31, 2016 as well as the amortization of warrants and loss on extinguishment of debt non-recurring
and primarily non-cash charge of $8.5 million, net of tax for the year ended December 31, 2016. For 2015, this adjustment
represents the acquisition related non-recurring charge of $0.6 million, net of tax for the year ended December 31, 2015.
Teladoc, Inc.
Investors:
Jisoo Suh, 914-265-6706
Director of Investor Relations
jsuh@teladoc.com
or
Media:
Courtney McLeod, 203-253-3257
Director of Public Relations
cmcleod@teladoc.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170301006372/en/