Teladoc Health Reports First-Quarter 2020 Results
Year-over-year Q1 revenue grows 41% to $180.8 million
Total visits increase 92% to 2.0 million
Issues 2020 second-quarter guidance and updates full-year expectations
PURCHASE, NY, April 29, 2020 — Teladoc Health, Inc. (NYSE: TDOC), the global leader in virtual care, today reported financial results for the first quarter ending March 31, 2020.
"In the first quarter of 2020 alone Teladoc Health delivered two million medical visits to people around the world, while simultaneously expanding access to millions of new members," said Jason Gorevic, chief executive officer. "As our clients and consumers have turned to us during these unprecedented times, our proven ability to meet their needs has elevated our global leadership role and accelerated our impact on the healthcare system overall."
Financial Highlights for the First Quarter Ended March 31, 2020
- Net loss was $(29.6) million for the first quarter 2020 compared to $(30.2) million for the first quarter 2019.
- Net loss per basic and diluted share was $(0.40) for the first quarter 2020 compared to $(0.43) for the first quarter 2019.
- Gross margin was 60.0 percent for the first quarter 2020 compared to 65.3 percent for the first quarter 2019.
- EBITDA was $(11.3) million for the first quarter 2020 compared to $(13.3) million for the first quarter 2019.
- Adjusted EBITDA was a positive $10.7 million for the first quarter 2020 compared to a positive $1.2 million for the first 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 second quarter 2020, we expect:
- Total revenue to be in the range of $215 million to $225 million.
- EBITDA to be in the range of $(1) million to $3 million.
- Adjusted EBITDA to be in the range of $20 million to $24 million.
- Total U.S. paid membership to be approximately 49 million to 50 million members and visit-fee-only access to be available to approximately 21 to 22 million individuals, including the addition of 2 to 3 million members on a temporary basis.
- Total visits to be between 2.3 million and 2.4 million.
- Net loss per share, based on 74.6 million weighted average shares outstanding, to be between $(0.28) and $(0.23).
For the full year 2020, we expect:
- Total revenue to be in the range of $800 million to $825 million.
- EBITDA loss to be in the range of $(14) million to $(4) million.
- Adjusted EBITDA to be in the range of positive $70 million to $80 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 8 million to 9 million.
- Net loss per share, based on 74.7 million weighted average shares outstanding, to be between $(1.27) and $(1.13).
Quarterly Conference Call
The first quarter 2020 earnings conference call and webcast will be held Wednesday, April 29, 2020 at 4:30 p.m. ET. 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 including the following Conference ID Number: 5662826 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
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. Ranked #1 among direct-to-consumer telehealth providers in the J.D. Power 2019 U.S. Telehealth Satisfaction Study, the integrated services from Teladoc Health include telehealth, expert medical services, AI and analytics, and licensable platform services. With more than 2,400 employees, the organization delivers care in 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.comor follow @TeladocHealthon Twitter.