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, N.Y.--(BUSINESS WIRE)--
Teladoc, Inc. (NYSE: TDOC), the 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.”
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.
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. Therefore, you should not
rely on any of these 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. Additional relevant risks that may affect our results are
described in certain of our filings with the Securities and Exchange
Commission.
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)
|
|
|
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
50,193
|
|
|
$
|
55,066
|
|
|
Short-term investments
|
|
|
69,522
|
|
|
|
82,282
|
|
|
Accounts receivable, net of allowance of $2,589 and $1,812,
respectively
|
|
|
13,819
|
|
|
|
12,134
|
|
|
Prepaid expenses and other current assets
|
|
|
2,639
|
|
|
|
2,096
|
|
|
Total current assets
|
|
|
136,173
|
|
|
|
151,578
|
|
|
Property and equipment, net
|
|
|
6,087
|
|
|
|
6,259
|
|
|
Goodwill
|
|
|
56,342
|
|
|
|
56,342
|
|
|
Intangible assets, net
|
|
|
14,588
|
|
|
|
15,265
|
|
|
Other assets
|
|
|
293
|
|
|
|
293
|
|
|
Total assets
|
|
$
|
213,483
|
|
|
$
|
229,737
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,078
|
|
|
$
|
2,213
|
|
|
Accrued expenses and other current liabilities
|
|
|
9,485
|
|
|
|
8,197
|
|
|
Accrued compensation
|
|
|
3,135
|
|
|
|
6,326
|
|
|
Long-term bank and other debt-current portion
|
|
|
1,250
|
|
|
|
1,250
|
|
|
Total current liabilities
|
|
|
14,948
|
|
|
|
17,986
|
|
|
Other liabilities
|
|
|
7,128
|
|
|
|
6,775
|
|
|
Deferred taxes
|
|
|
1,347
|
|
|
|
1,185
|
|
|
Long term bank and other debt, net
|
|
|
24,957
|
|
|
|
25,227
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
Common stock, $0.001 par value; 75,000,000 shares authorized as of
March 31, 2016 and December 31, 2015; 38,707,479 shares and
38,524,922 shares issued and outstanding as of March 31, 2016 and
December 31, 2015, respectively
|
|
|
39
|
|
|
|
38
|
|
|
Additional paid-in capital
|
|
|
310,861
|
|
|
|
309,078
|
|
|
Accumulated deficit
|
|
|
(145,814
|
)
|
|
|
(130,510
|
)
|
|
Accumulated other comprehensive income (loss)
|
|
|
17
|
|
|
|
(42
|
)
|
|
Total stockholders’ equity
|
|
|
165,103
|
|
|
|
178,564
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
213,483
|
|
|
$
|
229,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except share and per share data, unaudited)
|
|
|
|
|
|
Quarters Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
Revenue
|
|
$
|
26,888
|
|
|
$
|
16,488
|
|
|
Cost of revenue
|
|
|
7,943
|
|
|
|
5,281
|
|
|
Gross profit
|
|
|
18,945
|
|
|
|
11,207
|
|
|
Operating expenses:
|
|
|
|
|
|
Advertising and marketing
|
|
|
8,050
|
|
|
|
4,341
|
|
|
Sales
|
|
|
5,270
|
|
|
|
3,682
|
|
|
Technology and development
|
|
|
5,225
|
|
|
|
2,906
|
|
|
General and administrative
|
|
|
13,607
|
|
|
|
11,968
|
|
|
Depreciation and amortization
|
|
|
1,508
|
|
|
|
903
|
|
|
Loss from operations
|
|
|
(14,715
|
)
|
|
|
(12,593
|
)
|
|
Interest income (expense), net
|
|
|
(427
|
)
|
|
|
(568
|
)
|
|
Net loss before taxes
|
|
|
(15,142
|
)
|
|
|
(13,161
|
)
|
|
Income tax (provision) benefit
|
|
|
(162
|
)
|
|
|
458
|
|
|
Net loss
|
|
$
|
(15,304
|
)
|
|
$
|
(12,703
|
)
|
|
Net loss per share, basic and diluted
|
|
$
|
(0.40
|
)
|
|
$
|
(5.87
|
)
|
|
|
|
|
|
|
|
Weighted-average shares used to compute basic and diluted net loss
per share
|
|
|
38,584,345
|
|
|
|
2,162,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands, unaudited)
|
|
|
|
|
|
Quarters Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
Cash flows used in operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(15,304
|
)
|
|
$
|
(12,703
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
1,508
|
|
|
|
903
|
|
|
Allowance for doubtful accounts
|
|
|
777
|
|
|
|
451
|
|
|
Stock-based compensation
|
|
|
1,288
|
|
|
|
811
|
|
|
Deferred income taxes
|
|
|
162
|
|
|
|
(458
|
)
|
|
Accretion of interest
|
|
|
129
|
|
|
|
39
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(2,462
|
)
|
|
|
(2,281
|
)
|
|
Due from officer
|
|
|
—
|
|
|
|
253
|
|
|
Prepaid expenses and other current assets
|
|
|
(543
|
)
|
|
|
(1,593
|
)
|
|
Other assets
|
|
|
—
|
|
|
|
12
|
|
|
Accounts payable
|
|
|
(1,135
|
)
|
|
|
1,357
|
|
|
Accrued expenses and other current liabilities
|
|
|
1,288
|
|
|
|
3,475
|
|
|
Accrued compensation
|
|
|
(3,191
|
)
|
|
|
(670
|
)
|
|
Other liabilities
|
|
|
353
|
|
|
|
68
|
|
|
Net cash used in operating activities
|
|
|
(17,130
|
)
|
|
|
(10,336
|
)
|
|
Cash flows provided by (used in) investing activities:
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(275
|
)
|
|
|
(365
|
)
|
|
Purchase of internal software
|
|
|
(385
|
)
|
|
|
(434
|
)
|
|
Purchase of marketable securities
|
|
|
(37,122
|
)
|
|
|
—
|
|
|
Proceeds from the liquidation/maturity of marketable securities
|
|
|
49,856
|
|
|
|
—
|
|
|
Acquisition of business, net of cash acquired
|
|
|
—
|
|
|
|
(3,269
|
)
|
|
Net cash provided by (used in) investing activities
|
|
|
12,074
|
|
|
|
(4,068
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Net proceeds from the exercise of stock options
|
|
|
496
|
|
|
|
28
|
|
|
Repayment of bank loan
|
|
|
(313
|
)
|
|
|
—
|
|
|
Net cash provided by financing activities
|
|
|
183
|
|
|
|
28
|
|
|
Net decrease in cash and cash equivalents
|
|
|
(4,873
|
)
|
|
|
(14,376
|
)
|
|
Cash and cash equivalents at beginning of the period
|
|
|
55,066
|
|
|
|
46,436
|
|
|
Cash and cash equivalents at end of the period
|
|
$
|
50,193
|
|
|
$
|
32,060
|
|
|
Interest paid
|
|
$
|
604
|
|
|
$
|
424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA Reconciliation
|
|
(In thousands, unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(15,304
|
)
|
|
$
|
(12,703
|
)
|
|
Add (deduct):
|
|
|
|
|
|
Interest (income) expense, net
|
|
|
427
|
|
|
|
568
|
|
|
Income tax provision (benefit)
|
|
|
162
|
|
|
|
(458
|
)
|
|
Depreciation expense
|
|
|
447
|
|
|
|
214
|
|
|
Amortization expense
|
|
|
1,061
|
|
|
|
689
|
|
|
EBITDA(1)
|
|
|
(13,207
|
)
|
|
|
(11,690
|
)
|
|
Stock-based compensation
|
|
|
1,288
|
|
|
|
811
|
|
|
Adjusted EBITDA(2)
|
|
$
|
(11,919
|
)
|
|
$
|
(10,879
|
)
|
|
|
|
|
|
|
|
|
|
|
(1) EBITDA
EBITDA consists of net loss before interest, taxes, depreciation and
amortization.
(2) Adjusted EBITDA
To supplement our financial information presented in accordance with
generally accepted accounting principles in the United States, or U.S.
GAAP, we use Adjusted EBITDA, a non-U.S. GAAP financial measure. We
believe that the presentation of this financial measure enhances an
investor’s understanding of our financial performance. We further
believe that this financial measure is a useful financial metric to
assess our operating performance from period-to-period by excluding
certain items that we believe are not representative of our core
business. We use certain financial measures for business planning
purposes and in measuring our performance relative to that of our
competitors. Accordingly, we utilize Adjusted EBITDA as the primary
measure of our performance.
Adjusted EBITDA consists of net loss before interest, taxes,
depreciation, amortization and stock-based compensation. We believe that
making such adjustment provides investors meaningful information to
understand our results of operations and the ability to analyze
financial and business trends on a period-to-period basis.
We believe this financial measure is commonly used by investors to
evaluate our performance and that of our competitors. However, our use
of the term Adjusted EBITDA may vary from that of others in our
industry. Adjusted EBITDA should not be considered as an alternative to
net loss before taxes, net loss, loss per share or any other performance
measures derived in accordance with U.S. GAAP as measures of performance.
Adjusted EBITDA has an important limitation as an analytical tool and
you should not consider it in isolation or as a substitute for analysis
of our results as reported under U.S. GAAP. Some of these limitations
are:
Adjusted EBITDA:
-
does not reflect the significant interest expense on our debt; and
-
does not reflect the significant non-cash stock compensation expense
which should be viewed as a component of recurring operating costs; 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 Adjusted EBITDA does not reflect any expenditures
for such replacements; and
-
other companies in our industry may calculate Adjusted EBITDA
differently than we do, limiting the usefulness of Adjusted EBITDA as
comparative measures.
We compensate for these limitations by using 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 similar to those eliminated in this
presentation. Our presentation of Adjusted EBITDA should not be
construed as an inference that our future results will be unaffected by
unusual or nonrecurring items.
|
|
|
EPS Reconciliation
|
|
(In thousands, except share and per share data, unaudited)
|
|
|
|
|
|
1Q14
|
|
2Q14
|
|
3Q14
|
|
4Q14
|
|
1Q15
|
|
2Q15
|
|
3Q15
|
|
4Q15
|
|
1Q16
|
|
GAAP Net Loss
|
|
$
|
(2,314
|
)
|
|
$
|
(3,200
|
)
|
|
$
|
(4,529
|
)
|
|
$
|
(6,994
|
)
|
|
$
|
(12,703
|
)
|
|
$
|
(17,064
|
)
|
|
$
|
(13,246
|
)
|
|
$
|
(15,008
|
)
|
|
$
|
(15,304
|
)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock Dividends
|
|
|
(1,031
|
)
|
|
|
(1,055
|
)
|
|
|
(834
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Accretion of Preferred Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
(168
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
GAAP Net Loss
|
|
$
|
(3,345
|
)
|
|
$
|
(4,255
|
)
|
|
$
|
(5,531
|
)
|
|
$
|
(6,994
|
)
|
|
$
|
(12,703
|
)
|
|
$
|
(17,064
|
)
|
|
$
|
(13,246
|
)
|
|
$
|
(15,008
|
)
|
|
$
|
(15,304
|
)
|
|
GAAP Net Loss per Share
|
|
$
|
(2.35
|
)
|
|
$
|
(2.15
|
)
|
|
$
|
(2.68
|
)
|
|
$
|
(3.25
|
)
|
|
$
|
(5.87
|
)
|
|
$
|
(7.20
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
(0.39
|
)
|
|
$
|
(0.40
|
)
|
|
Weighted Average Common Shares Outstanding Used in Computing GAAP
Net Loss per Share - Basic and Diluted
|
|
|
1,423,732
|
|
|
|
1,974,697
|
|
|
|
2,060,075
|
|
|
|
2,150,228
|
|
|
|
2,162,413
|
|
|
|
2,370,113
|
|
|
|
36,099,556
|
|
|
|
38,460,363
|
|
|
|
38,584,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160510006767/en/
Source: Teladoc, Inc.