Teladoc Health Announces Third Quarter 2018 Financial Results
Third quarter revenue grows 62 percent year over year to $111.0 million
Total paid membership grows 18 percent year over year to 22.6 million
Third quarter total visits grow 110 percent year over year to 641,000
PURCHASE, NY, November 1, 2018 — Teladoc Health, Inc. (NYSE: TDOC), the global leader in virtual care, today announced financial results for the third quarter ending September 30, 2018.
“Teladoc Health delivered very strong third quarter results. We carry significant momentum into the end of the year as demand for our comprehensive suite of virtual care services is robust across channels and geographies,” said Jason Gorevic, Teladoc Health’s chief executive officer. “We have a tremendous growth opportunity in front of us as the entry point into the health care system where individuals can go for guided access to a fully integrated, high-quality care experience."
Financial Results for the Third Quarter Ended September 30, 2018
*Organic third quarter 2018 revenue, excluding Advance Medical, was $88.3 million, up 29 percent year over year.
*Organic third quarter 2018 U.S. Paid Membership, excluding Advance Medical, was 21.4 million, up 12 percent year over year.
**Adjusted for 3.5 million Aetna visit fee only lives.
Gross margin was 69.2 percent for the third quarter 2018 compared to 75.6 percent for the third quarter 2017.
Net loss was $(23.3) million for the third quarter 2018 compared to $(31.3) million for the third quarter 2017.
Net loss per basic and diluted share was $(0.34) for the third quarter 2018 compared to $(0.55) for the third quarter 2017.
EBITDA was $(6.0) million for the third quarter 2018 compared to $(16.6) million for the third quarter 2017.
Adjusted EBITDA was a positive $6.3 million for the third quarter 2018 compared to a loss of $(0.6) million for the third quarter 2017.
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.
For the fourth quarter 2018, we expect :
Revenue to be in the range of $119 million to $121 million.
EBITDA to be in the range of a loss of $(9) million to a loss of $(11) million.
Adjusted EBITDA to be in the range of $4 million to $6 million.
Total visits to be between 720,000 and 820,000.
Net loss per share, based on 70.4 million weighted average shares outstanding, to be between $(0.36) and $(0.38).
For the full-year 2018, we expect:
Revenue to be in the range of $414 million to $416 million.
EBITDA to be in the range of a loss of $(36) million to a loss of $(38) million.
Adjusted EBITDA to be in the range of $12 million to $14 million.
Total U.S. paid membership to be in the range of 22.6 million to 23.5 million and visit fee only access to be available to approximately 9.4 million individuals at December 31, 2018.
Total visits to be between 2.5 million to 2.6 million.
Net loss per share, based on 65.9 million weighted average shares outstanding, to be between $(1.48) and $(1.50).
Quarterly Conference Call
The third quarter 2018 earnings conference call and webcast will be held Thursday, November 1, 2018 at 4:30 p.m. EST. 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: 5178989 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. The company’s award-winning, integrated clinical solutions are inclusive of telehealth, expert medical services, AI and analytics, and licensable platform services. With more than 2,000 employees, the organization delivers care in 125 countries and in more than 20 languages, partnering with employers, hospitals and health systems, and insurers to transform care delivery. 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.