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Teladoc Announces First Quarter 2016 Results

First Quarter Revenue of $26.9 Million Increased 63%, Membership of 15.1 Million Increased 42%, Visits of 239,942 Increased 61% Year over Year

PURCHASE, NY – (BUSINESS WIRE) May 10, 2016 – Teladoc, Inc. (NYSE: TDOC), the nation's first and largest telehealth platform in the United States, today announced results for its first quarter ended March 31, 2016.

Jason Gorevic, Chief Executive Officer of Teladoc, commented, "Teladoc saw a great start to 2016 with strong first quarter results across the board, as revenue, membership, and visits all met or exceeded the top end of our guidance ranges. Our highly scalable platform allowed us to deliver industry-leading service levels while achieving record volumes in call center activity, e-prescribing, and welcome kits mailed to new members. Even more importantly, we saw the highest member utilization rate in the history of the company, which is critical to the return on investment we deliver for our clients."

Mr. Gorevic continued, "In addition to our financial and operational accomplishments in the quarter, we also saw promising movement on the regulatory front as several states have adopted more favorable telehealth rules or laws over the last several months. I believe this is a very positive signal for the continued adoption of telehealth and, as the industry leader, for Teladoc's growth."

"This is a great relationship for Teladoc," said Jason Gorevic, Teladoc chief executive officer. "The sophistication of our technology and scalability of our platform will undoubtedly support Healthx's member engagement goals, while delivering a substantial ROI to its customer base. Healthx's decision to integrate Teladoc's platform and engagement strategies will give its members national access to convenient, high quality health care at a much lower cost than traditional clinical encounters."

Financial Performance for the Three Months Ended March 31, 2016

All comparisons, unless otherwise noted, are to the quarter ended March 31, 2015.

  • Total revenue was $26.9 million, an increase of 63%. Revenue from subscription access fees and visit fees was $20.7 million and $6.2 million, respectively, compared to $13.2 million and $3.3 million, respectively, an increase of 57% and 87%, respectively.
  • Total visits were 239,942, compared to 148,696, an increase of 61%.
  • Gross margin was 70%, compared to 68%.
  • Net loss was $15.3 million, compared to a net loss of $12.7 million.
  • Net loss per basic and diluted share was $0.40, compared to a net loss per share of $5.87.
  • EBITDA was a loss of $13.2 million, compared to a loss of $11.7 million.
  • Adjusted EBITDA was a loss of $11.9 million, compared to a loss of $10.9 million.

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

Second Quarter 2016 Guidance: Revenue for the company's second quarter 2016 is expected to be in the range of $27.5 million to $28.5 million. EBITDA is expected to be in the range of a loss of $12.3 million to a loss of $13.3 million. Adjusted EBITDA is expected to be in the range of a loss of $10.5 million to a loss of $11.5 million. Membership is expected to total approximately 15.25 million to 15.50 million at June 30, 2016. Total visits are projected to be between 180,000 and 190,000. Second quarter net loss per share, based on 38.75 million weighted average shares outstanding, of between $(0.41) and $(0.42) is projected.

Full Year 2016 Guidance: Revenue for the company's full year 2016 is expected to be in the range of $118 million to $122 million. EBITDA is expected to be in the range of a loss of $42 million to a loss of $44 million. Adjusted EBITDA is expected to be in the range of a loss of $35 million to a loss of $37 million. Membership is expected to total approximately 16.5 million to 17.5 million at December 31, 2016. Total visits for the full year are projected to be between 880,000 and 900,000. The 2016 net loss per share, based on 39.0 million weighted average shares outstanding, is expected to be between $(1.33) and $(1.38).

Quarterly Conference Call

Stockholders and interested participants 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 92054712 approximately 15 minutes prior to the call. A live webcast of the conference call will be available on the investor relations section of the company's web site 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 May 24, 2016 and can be accessed by dialing 855-859-2056 or 404-537-3406 for international callers, and referencing participant code 92054712.

About Teladoc

Teladoc, Inc. (NYSE: TDOC) is the nation's first and largest telehealth platform, delivering on-demand health care anytime, from almost anywhere via mobile devices, the Internet, secure video and phone. Teladoc provides consumers with access to its network of more than 3,100 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 performed over 575,000 telehealth visits in 2015. Teladoc and its physicians consistently earn a 95 percent member satisfaction rating or better, and Teladoc is the first telehealth provider 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 health care on-demand. Teladoc is transforming the access, cost and quality dynamics of health care delivery. For more information, please visit teladoc.com, twitter.com/teladoc, facebook.com/teladoc or linkedin.com/teladoc.