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, Aug. 02, 2017 (GLOBE NEWSWIRE) -- 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”.
Business Outlook
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.
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.
| |
| CONSOLIDATED BALANCE SHEETS |
| (In thousands, except share and per share
data, unaudited) |
| |
| |
|
June 30, |
|
December 31, |
| |
|
2017
|
|
2016
|
| |
|
|
|
|
|
| Assets |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
409,224 |
|
|
$ |
50,015 |
|
| Short-term marketable securities |
|
|
31,070 |
|
|
|
15,793 |
|
| Accounts receivable, net of allowance of $2,010 and $2,422,
respectively |
|
|
14,229 |
|
|
|
13,806 |
|
| Prepaid expenses and other current assets |
|
|
2,468 |
|
|
|
3,103 |
|
| Total current assets |
|
|
456,991 |
|
|
|
82,717 |
|
| Property and equipment, net |
|
|
7,424 |
|
|
|
7,479 |
|
| Goodwill |
|
|
188,184 |
|
|
|
188,184 |
|
| Intangible assets, net |
|
|
21,239 |
|
|
|
24,875 |
|
| Other assets |
|
|
308 |
|
|
|
415 |
|
| Total assets |
|
$ |
674,146 |
|
|
$ |
303,670 |
|
| Liabilities and stockholders’ equity |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
|
$ |
1,150 |
|
|
$ |
2,236 |
|
| Accrued expenses and other current liabilities |
|
|
9,684 |
|
|
|
7,981 |
|
| Accrued compensation |
|
|
8,853 |
|
|
|
8,856 |
|
| Long term bank and other debt - current portion |
|
|
— |
|
|
|
2,000 |
|
| Total current liabilities |
|
|
19,687 |
|
|
|
21,073 |
|
| Other liabilities |
|
|
9,254 |
|
|
|
7,609 |
|
| Deferred taxes |
|
|
1,994 |
|
|
|
1,694 |
|
| Long term bank and other debt, net |
|
|
42,440 |
|
|
|
42,424 |
|
| Convertible senior notes, net |
|
|
201,395 |
|
|
|
— |
|
| Commitments and contingencies |
|
|
|
|
|
|
| Stockholders’ equity: |
|
|
|
|
|
|
| Common stock, $0.001 par value; 100,000,000 shares and 75,000,000
shares authorized as of June 30, 2017 and December 31, 2016, respectively; 54,798,273 shares and 46,201,563 shares issued and
outstanding as of June 30, 2017 and December 31, 2016, respectively |
|
|
55 |
|
|
|
46 |
|
| Additional paid-in capital |
|
|
635,186 |
|
|
|
435,551 |
|
| Accumulated deficit |
|
|
(235,864 |
) |
|
|
(204,726 |
) |
| Accumulated other comprehensive loss |
|
|
(1 |
) |
|
|
(1 |
) |
| Total stockholders’ equity |
|
|
399,376 |
|
|
|
230,870 |
|
| Total liabilities and stockholders’ equity |
|
$ |
674,146 |
|
|
$ |
303,670 |
|
| |
|
|
|
|
|
|
|
|
| |
|
| CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
| (In thousands, except share and per share
data, unaudited) |
|
| |
|
| |
|
Quarters Ended
June 30, |
|
Six Months Ended June 30, |
|
| |
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
| Revenue |
|
$ |
44,591 |
|
|
$ |
26,488 |
|
|
$ |
87,489 |
|
|
$ |
53,376 |
|
|
| Cost of revenue |
|
|
10,026 |
|
|
|
6,891 |
|
|
|
22,165 |
|
|
|
14,834 |
|
|
| Gross profit |
|
|
34,565 |
|
|
|
19,597 |
|
|
|
65,324 |
|
|
|
38,542 |
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Advertising and marketing |
|
|
12,278 |
|
|
|
7,804 |
|
|
|
24,894 |
|
|
|
15,854 |
|
|
| Sales |
|
|
7,324 |
|
|
|
5,860 |
|
|
|
15,312 |
|
|
|
11,130 |
|
|
| Technology and development |
|
|
7,537 |
|
|
|
4,829 |
|
|
|
14,049 |
|
|
|
10,054 |
|
|
| Legal |
|
|
277 |
|
|
|
1,193 |
|
|
|
620 |
|
|
|
2,315 |
|
|
| Regulatory |
|
|
987 |
|
|
|
772 |
|
|
|
1,994 |
|
|
|
1,620 |
|
|
| Acquisition related costs |
|
|
2,113 |
|
|
|
763 |
|
|
|
2,113 |
|
|
|
763 |
|
|
| General and administrative |
|
|
15,873 |
|
|
|
11,280 |
|
|
|
30,361 |
|
|
|
22,917 |
|
|
| Depreciation and amortization |
|
|
2,668 |
|
|
|
1,558 |
|
|
|
5,275 |
|
|
|
3,066 |
|
|
| Loss from operations |
|
|
(14,492 |
) |
|
|
(14,462 |
) |
|
|
(29,294 |
) |
|
|
(29,177 |
) |
|
| Interest expense, net |
|
|
774 |
|
|
|
407 |
|
|
|
1,476 |
|
|
|
834 |
|
|
| Net loss before taxes |
|
|
(15,266 |
) |
|
|
(14,869 |
) |
|
|
(30,770 |
) |
|
|
(30,011 |
) |
|
| Income tax provision |
|
|
149 |
|
|
|
10 |
|
|
|
299 |
|
|
|
172 |
|
|
| Net loss |
|
$ |
(15,415 |
) |
|
$ |
(14,879 |
) |
|
$ |
(31,069 |
) |
|
$ |
(30,183 |
) |
|
| Net loss per share, basic and diluted |
|
$ |
(0.28 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.78 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average shares used to compute basic and diluted net loss per share
|
|
|
54,572,862 |
|
|
|
38,717,186 |
|
|
|
53,389,435 |
|
|
|
38,650,765 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
| (In thousands, unaudited) |
|
| |
|
| |
|
Six Months Ended June 30, |
|
| |
|
2017
|
|
2016
|
|
| Cash flows used in operating activities: |
|
|
|
|
|
|
|
| Net loss |
|
$ |
(31,069 |
) |
|
$ |
(30,183 |
) |
|
| Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
5,275 |
|
|
|
3,066 |
|
|
| Allowance for doubtful accounts |
|
|
764 |
|
|
|
1,429 |
|
|
| Stock-based compensation |
|
|
7,662 |
|
|
|
2,922 |
|
|
| Deferred income taxes |
|
|
299 |
|
|
|
172 |
|
|
| Accretion of interest |
|
|
28 |
|
|
|
175 |
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
| Accounts receivable |
|
|
(1,186 |
) |
|
|
(2,504 |
) |
|
| Prepaid expenses and other current assets |
|
|
700 |
|
|
|
435 |
|
|
| Other assets |
|
|
107 |
|
|
|
(12 |
) |
|
| Accounts payable |
|
|
(1,085 |
) |
|
|
(1,707 |
) |
|
| Accrued expenses and other current liabilities |
|
|
1,703 |
|
|
|
(1,648 |
) |
|
| Accrued compensation |
|
|
(264 |
) |
|
|
(1,695 |
) |
|
| Other liabilities |
|
|
1,645 |
|
|
|
616 |
|
|
| Net cash used in operating activities |
|
|
(15,421 |
) |
|
|
(28,934 |
) |
|
| Cash flows (used in) provided by investing activities: |
|
|
|
|
|
|
|
| Purchase of property and equipment |
|
|
(1,299 |
) |
|
|
(778 |
) |
|
| Purchase of internal-use software |
|
|
(285 |
) |
|
|
(658 |
) |
|
| Purchase of marketable securities |
|
|
(34,954 |
) |
|
|
(44,188 |
) |
|
| Proceeds from marketable securities |
|
|
19,677 |
|
|
|
69,749 |
|
|
| Net cash (used in) provided by investing activities |
|
|
(16,861 |
) |
|
|
24,125 |
|
|
| Cash flows provided by financing activities: |
|
|
|
|
|
|
|
| Net proceeds from the exercise of stock options |
|
|
4,316 |
|
|
|
590 |
|
|
| Proceeds from issuance of convertible notes |
|
|
263,722 |
|
|
|
— |
|
|
| Proceeds from borrowing under bank and other debt |
|
|
— |
|
|
|
5,500 |
|
|
| Repayment of bank loan and other debt |
|
|
(2,000 |
) |
|
|
(625 |
) |
|
| Proceeds from issuance of common stock |
|
|
123,928 |
|
|
|
— |
|
|
| Proceeds from employee stock purchase plan |
|
|
1,265 |
|
|
|
— |
|
|
| Cash for withholding taxes on stock-based awards, net |
|
|
260 |
|
|
|
59 |
|
|
| Net cash provided by financing activities |
|
|
391,491 |
|
|
|
5,524 |
|
|
| Net increase in cash and cash equivalents |
|
|
359,209 |
|
|
|
715 |
|
|
| Cash and cash equivalents at beginning of the period |
|
|
50,015 |
|
|
|
55,066 |
|
|
| Cash and cash equivalents at end of the period |
|
$ |
409,224 |
|
|
$ |
55,781 |
|
|
| |
|
|
|
|
|
|
|
| Interest paid |
|
$ |
1,847 |
|
|
$ |
1,050 |
|
|
| |
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures:
To supplement our financial information prepared in accordance with GAAP, we use EBITDA and Adjusted EBITDA, which are non-GAAP
financial measures, for business planning purposes and in measuring our performance relative to that of our competitors. EBITDA
consists of net loss before interest, taxes, depreciation and amortization. Adjusted EBITDA consists of net loss before interest,
taxes, depreciation, amortization, stock-based compensation and acquisition related costs. A reconciliation of these Non-GAAP
financial measures is presented below to net loss, which we believe is the most directly comparable GAAP measure.
We believe that the presentation of these non-GAAP financial measures enhances an investor’s understanding of our financial
performance and are useful financial metrics to assess our operating performance from period-to-period by excluding certain items
that we believe are not comparable across reporting periods or that do not otherwise relate to the Company’s ongoing operating
results.
Our use of the term EBITDA and Adjusted EBITDA may vary from that of others in our industry. Neither EBITDA nor Adjusted EBITDA
should be considered as an alternative to net loss or any other performance measures derived in accordance with GAAP as measures of
performance.
EBITDA and Adjusted EBITDA have important limitation as analytical tools and you should not consider them in isolation or as a
substitute for analysis of our results as reported under GAAP. Some of these limitations are:
EBITDA and Adjusted EBITDA:
- does not reflect the significant interest expense on our debt; 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 both measures do not reflect any expenditures for such replacements; and
- does not reflect the significant transaction costs related to mergers and acquisitions; and
- does not reflect the significant non-cash stock compensation expense which should be viewed as a component of recurring
operating costs; and
- other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do, limiting the usefulness of
EBITDA and Adjusted EBITDA as comparative measures.
We compensate for these limitations by using EBITDA and 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 like those eliminated in
this presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results
will be unaffected by unusual or nonrecurring items.
| |
|
| Reconciliation of EBITDA and Adjusted EBITDA
to Net Loss |
|
| (In thousands, unaudited) |
|
| |
|
| |
|
Three
Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
| Net loss |
|
$ |
(15,415 |
) |
|
$ |
(14,879 |
) |
|
$ |
(31,069 |
) |
|
$ |
(30,183 |
) |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
774 |
|
|
|
407 |
|
|
|
1,476 |
|
|
|
834 |
|
|
| Income tax provision |
|
|
149 |
|
|
|
10 |
|
|
|
299 |
|
|
|
172 |
|
|
| Depreciation expense |
|
|
696 |
|
|
|
490 |
|
|
|
1,354 |
|
|
|
936 |
|
|
| Amortization expense |
|
|
1,972 |
|
|
|
1,069 |
|
|
|
3,921 |
|
|
|
2,130 |
|
|
| EBITDA |
|
|
(11,824 |
) |
|
|
(12,903 |
) |
|
|
(24,019 |
) |
|
|
(26,111 |
) |
|
| Stock-based compensation |
|
|
4,565 |
|
|
|
1,633 |
|
|
|
7,662 |
|
|
|
2,922 |
|
|
| Acquisition related costs |
|
|
2,113 |
|
|
|
763 |
|
|
|
2,113 |
|
|
|
763 |
|
|
| Adjusted EBITDA |
|
$ |
(5,146 |
) |
|
$ |
(10,507 |
) |
|
$ |
(14,244 |
) |
|
$ |
(22,426 |
) |
|
Media: Courtney McLeod 914-265-6789 cmcleod@teladoc.com Investors: Westwicke Partners Jordan E. Kohnstam Office: 443-450-4189 Jordan.kohnstam@westwicke.com
