Teladoc Health Reports Second-Quarter 2020 Results
Year-over-year Q2 revenue grows 85% to $241.0 million and total visits increase 203% to 2.8 million
Year-over-year six months revenue grows 63% to $421.8 million and total visits increase 144% to 4.8 million
Issues 2020 third-quarter guidance, raises full-year expectations, and provides preliminary 2021 revenue growth outlook
PURCHASE, NY, July 29, 2020 (GLOBE NEWSWIRE) -- Teladoc Health, Inc. (NYSE: TDOC), the global leader in virtual care, today reported strong financial results for the quarter ending June 30, 2020, citing sustained momentum across its diversified portfolio. In its U.S. market, the brief period of national COVID-19 containment in late May and early June provided visibility into continuing demand for virtual care, with utilization stabilizing at a level 40 percent higher than before COVID. Greater awareness and acceptance of virtual care, in addition to continued lower cost sharing, are helping to drive this sustained growth. Demand for specialty care including virtual mental health visits also continued to show rapid acceleration while InTouch Health, acquired by Teladoc Health on July 1st, has solidified the company’s leadership in hospital-based telemedicine and is projected to grow over 35 percent in 2020.
“Even as we continue to battle the coronavirus in the U.S. and other hard-hit countries, we are also seeing sustained demand in areas that are no longer considered hotspots. In some states where the curve has flattened, we are still seeing twice as many patient visits as last year,” said Jason Gorevic, CEO of Teladoc Health. “While COVID-19 has accelerated the virtual care needs of consumers and providers alike, our broad based momentum in 2020 and beyond is rooted in the satisfaction and trust our partners have in our ability to transform the healthcare experience.”
Financial Highlights for the Second Quarter and Six Months Ended June 30, 2020
|Quarter Ended||Year over Year||Six Months Ended||Year over Year|
|June 30,||Growth||June 30,||Growth|
|Subscription Access Fees Revenue|
|Visit Fee Revenue|
|U.S. Paid Visits||39,041||15,083||159||%||69,939||33,331||110||%|
|U.S. Visit Fee Only||19,471||3,546||449||%||32,057||7,667||318||%|
|International Paid Visits||347||406||(14||)||%||609||656||(7||)||%|
|Membership & Visit Fee Only Access|
|Quarter Ended ||Year over Year|
|June 30, ||Growth|
|Total U.S. Paid Membership||51.5||26.8||92||%|
|Total U.S. Visit Fee Only Access||21.8||9.7||125||%|
|Quarter Ended ||Year over Year||Six Months Ended ||Year over Year|
|June 30, ||Growth||June 30, ||Growth|
|Paid Visits from U.S. Paid Membership||797||291||174||%||1,445||656||120||%|
|Percent of Paid Visits from U.S. Paid Membership||40||%||48||%||43||%||49||%|
|Visits Included from U.S. Paid Membership||1,199||319||276||%||1,938||672||188||%|
|Total Visits from U.S. Paid Membership||1,996||610||227||%||3,383||1,328||155||%|
|U.S. Visit Fee Only||306||54||468||%||533||116||358||%|
- Net loss was $(25.7) million for the second quarter 2020 compared to $(29.3) million for the second quarter 2019.
- Net loss per basic and diluted share was $(0.34) for the second quarter 2020 compared to $(0.41) for the second quarter 2019. The net loss per share includes a 10 cent net impact associated with our May 2020 convertible debt offering which includes a charge associated with a loss on extinguishment of a portion of our previously outstanding debt that was to mature in 2022.
- GAAP Gross margin which includes depreciation and amortization was 61.7 percent for the second quarter 2020 and 67.2% for the second quarter 2019.
- Adjusted Gross margin was 62.3 percent for the second quarter 2020 compared to 68.0 percent for the second quarter 2019.
- EBITDA was a positive $2.7 million for the second quarter 2020 compared to a loss of $(12.2) million for the second quarter 2019.
- Adjusted EBITDA was a positive $26.3 million for the second quarter 2020 compared to a positive $6.3 million for the second quarter 2019.
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”.
Teladoc Health provides guidance based on current market conditions and expectations. Given the uncertainty of the expected path of the COVID-19 outbreak as well as the broader economic impact, our updated guidance is based on what we know today. As this is an emerging situation, circumstances are likely to change in the coming weeks and months, but we believe our guidance ranges provide a reasonable baseline for 2020 financial performance.
For the third-quarter 2020, we expect:
- Total revenue to be in the range of $275 million to $285 million.
- EBITDA to be in the range of $(3) million to $1 million.
- Adjusted EBITDA to be in the range of $27 million to $31 million.
- Total U.S. paid membership to be approximately 50 million to 51 million members and visit-fee-only access to be available to approximately 21 to 22 million individuals, including 2 to 3 million members on a temporary basis.
- Total visits to be between 2.5 million and 2.7 million.
- Net loss per share, based on 83.4 million weighted average shares outstanding, to be between $(0.35) - $(0.30).
For the full-year 2020, we expect:
- Total revenue to be in the range of $980 million to $995 million.
- EBITDA loss to be in the range of $(13) million to $(6) million.
- Adjusted EBITDA to be in the range of positive $85 million to $92 million.
- Total U.S. paid membership to be at least 50 million members and visit-fee-only access to be available to approximately 19 to 20 million individuals.
- Total visits to be between 9.8 million to 10.3 million.
- Net loss per share, based on 79.6 million weighted average shares outstanding, to be between $(1.45) - $(1.36).
Anticipated results for the full-year 2020 include approximately $63 million of revenue, net of an anticipated $2 million to $3 million purchase accounting reduction to deferred revenue, for the acquisition of InTouch Health, which closed on July 1, 2020.
Preliminary outlook for 2021:
Given the significant level of change in the marketplace, Teladoc Health is providing a preliminary outlook for expected revenue growth in 2021. For the full-year 2021, the company anticipates year-over-year revenue growth to be in the range of 30% to 40%.
Quarterly Conference Call
The second quarter 2020 earnings conference call and webcast will be held Wednesday, July 29, 2020 at 4:30 p.m. EDT. The conference call can be accessed by dialing 1-833-968-2101 for U.S. participants, or 1-236-714-2089 for international participants, and including the following Conference ID Number: 4085218 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 Health
Teladoc Health is transforming how people access and experience healthcare. Recognized as the world leader in virtual care, Teladoc Health directly delivers millions of medical visits across 175 countries each year through the Teladoc Health Medical Group and enables millions of patient and provider touchpoints for thousands of hospitals, health systems and physician practices globally. Ranked #1 among direct-to-consumer telehealth providers in the J.D. Power 2019 U.S. Telehealth Satisfaction Study and Best in KLAS for Virtual Care Platforms for 2020, Teladoc Health leverages more than a decade of expertise and real-time insights to meet the growing virtual care needs of consumers, healthcare professionals, employers and health plans. For more information, please visit www.teladochealth.com or follow @TeladocHealth on Twitter.
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,|