2016 Revenue of $123.2 million, growth of 59%; 4Q 2016 Revenue of
$37.4 million, growth of 65%
Total Membership of 17.5 million, growth of 43%
2016 Visits of 952,081, growth of 65%; 4Q 2016 Visits of 310,467,
growth of 68%
LEWISVILLE, Texas--(BUSINESS WIRE)--
Teladoc, Inc. (NYSE:TDOC), the undisputed leader in telehealth,
providing access to care for millions, today announced results for the
full-year and fourth-quarter ended December 31, 2016.
“In 2016, we executed on our key financial and strategic objectives,
while strengthening our product portfolio to drive further consumer
engagement and the overall inflection point in telehealth adoption,”
said Jason Gorevic, chief executive officer of Teladoc. “Looking to
2017, we remain focused on our long-term growth levers, which will
deliver continued progress towards our previously stated 2017 financial
targets.”
Financial Performance for the Fourth Quarter
and Full-Year Ended December 31, 2016
All comparisons are to the fourth quarter and full-year ended December
31, 2015 respectively.
-
Total revenue was $37.4 million for fourth quarter 2016, an
increase of 65%. Full-year 2016 revenue was $123.2 million, an
increase of 59%.
-
Revenue from Subscription Access Fees was $30.4 million for fourth
quarter 2016, an increase of 69%. For the full-year 2016, revenue
from Subscription Access Fees was $100.5 million, an increase of
59%.
-
Revenue from Visit Fees was $7.0 million for fourth quarter 2016,
an increase of 50%. For the full-year 2016, revenue from Visit
Fees was $22.7 million, an increase of 61%.
-
Total membership was 17.5 million, an increase of 43%.
-
Total visits recorded was 310,467 visits for fourth quarter
2016, an increase of 68%. Full-year 2016 total visits recorded was
952,081, an increase of 65%.
-
Paid visits as a percentage of total visits was 59% in the fourth
quarter 2016 compared to 64%. For the full-year 2016, paid visits
as a percentage of total visits was 61% compared to 64%.
-
Gross margin was 73.2% for fourth quarter 2016 compared to
71.4%. Full-year 2016 gross margin was 74.0% compared to 72.8%.
-
Adjusted EBITDA improved to a loss of $8.0 million for fourth
quarter 2016, compared to a loss of $11.8 million. For the full-year
2016, Adjusted EBITDA improved to a loss of $39.7 million, compared to
a loss of $47.3 million.
-
EBITDA improved to a loss of $10.6 million for fourth quarter
2016, compared to an EBITDA loss of $12.8 million. For the full-year
2016, EBITDA loss was $62.8 million compared to $50.9 million. EBITDA
loss for the full-year 2016 included previously disclosed
non-recurring, primarily non-cash charges of $15.4 million incurred
during the second and third quarter of 2016.
-
Net loss was $14.3 million for fourth quarter 2016, compared to
$15.0 million. For the full-year 2016, net loss was $74.2 million
compared to $58.0 million. Net loss in the full-year 2016 includes the
previously mentioned non-recurring, primarily non-cash charges.
-
Net loss per basic and diluted share was $0.31 for fourth
quarter 2016, compared to a net loss per share of $0.39. For the
full-year 2016, net loss per basic and diluted share improved to $1.75
from $2.91. Excluding the non-recurring, primarily non-cash charges
noted above, net loss per basic and diluted share would have been
$1.39 for the full-year ended December 31, 2016.
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
First Quarter 2017 Guidance: Revenue for the company’s first
quarter 2017 is expected to be in the range of $41.5 million to $42.5
million. EBITDA is expected to be in the range of a loss of $14 million
to $15 million. Adjusted EBITDA is expected to be in the range of a loss
of $10 million to $11 million. Membership is expected to total
approximately 20.0 million to 20.5 million at March 31, 2017. Total
visits are projected to be between 375,000 and 385,000. First quarter
net loss per share, based on 52.1 million weighted average shares
outstanding, is expected to be between $(0.33) and $(0.34).
Full Year 2017 Guidance: Revenue for the full year 2017 is
expected to be in the range of $180 million to $185 million. EBITDA is
expected to be in the range of a loss of $31 million to $34 million.
Adjusted EBITDA is expected to be in the range of a loss of $19.5
million to $22.5 million and the Company targets to be Adjusted EBITDA
break-even in the fourth-quarter of 2017. Membership is expected to
total approximately 21.5 million to 23.0 million at December 31, 2017.
Total visits for the full year are projected to be between 1,400,000 and
1,450,000. Net loss per share, based on 54.2 million weighted average
shares outstanding, is expected to be between $(0.85) and $(0.91).
Quarterly Conference Call
The fourth quarter 2016 earnings conference call and webcast will be
held Wednesday, March 1, 2017 at 5:00 p.m. Eastern. The conference call
can be accessed by dialing 1-877-201-0168 for U.S. participants, or
1-647-788-4901 for international participants, and including the
following Conference ID Number: 56315696 to expedite caller
registration; or via a live audio webcast available online at http://ir.teladoc.com.
A webcast replay will be available for on-demand listening shortly after
the completion of the call in the same web link.
About Teladoc
Teladoc, Inc. (NYSE:TDOC) is the nation’s leading provider of telehealth
services and a pioneering force in bringing the virtual care visit into
the mainstream of today’s health care ecosystem. Serving some 7,500
clients — including health plans, health systems, employers and other
organizations — more than 17.5 million members can use phone, mobile
devices and secure online video to connect within minutes to Teladoc’s
network of more than 3,000 board-certified, state-licensed physicians
and behavioral health specialists, 24/7. With national coverage, a
robust, scalable platform and a Lewisville, TX-based member services
center staffed by 400 employees, Teladoc offers the industry’s most
comprehensive and complete telehealth solution including primary care,
behavioral health care, dermatology, tobacco cessation and more. For
additional information, please visit www.teladoc.com.
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)
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
50,015
|
|
$
|
55,066
|
Short-term investments
|
|
|
15,793
|
|
|
82,282
|
Accounts receivable, net of allowance of $2,422 and $1,812,
respectively
|
|
|
13,806
|
|
|
12,134
|
Prepaid expenses and other current assets
|
|
|
3,103
|
|
|
2,096
|
Total current assets
|
|
|
82,717
|
|
|
151,578
|
Property and equipment, net
|
|
|
7,479
|
|
|
6,259
|
Goodwill
|
|
|
188,184
|
|
|
56,342
|
Intangible assets, net
|
|
|
24,875
|
|
|
15,265
|
Other assets
|
|
|
415
|
|
|
293
|
Total assets
|
|
$
|
303,670
|
|
$
|
229,737
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
2,236
|
|
$
|
2,213
|
Accrued expenses and other current liabilities
|
|
|
7,981
|
|
|
8,197
|
Accrued compensation
|
|
|
8,856
|
|
|
6,326
|
Long-term bank and other debt-current portion
|
|
|
2,000
|
|
|
1,250
|
Total current liabilities
|
|
|
21,073
|
|
|
17,986
|
Other liabilities
|
|
|
7,609
|
|
|
6,775
|
Deferred taxes
|
|
|
1,694
|
|
|
1,185
|
Long term bank and other debt, net
|
|
|
42,424
|
|
|
25,227
|
Commitments and contingencies
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
Common stock, $0.001 par value; 75,000,000 shares authorized as of
December 31, 2016 and 2015; 46,201,563 shares and 38,524,922 shares
issued and outstanding as of December 31, 2016 and 2015, respectively
|
|
|
46
|
|
|
38
|
Additional paid-in capital
|
|
|
435,551
|
|
|
309,078
|
Accumulated deficit
|
|
|
(204,726)
|
|
|
(130,510)
|
Accumulated other comprehensive loss
|
|
|
(1)
|
|
|
(42)
|
Total stockholders’ equity
|
|
|
230,870
|
|
|
178,564
|
Total liabilities and stockholders’ equity
|
|
$
|
303,670
|
|
$
|
229,737
|
|
|
|
|
|
|
|
See accompanying notes to audited consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2016
|
|
2015
|
|
2014
|
Revenue
|
|
|
$
|
123,157
|
|
$
|
77,384
|
|
$
|
43,528
|
Cost of revenue
|
|
|
|
31,971
|
|
|
21,041
|
|
|
9,929
|
Gross profit
|
|
|
|
91,186
|
|
|
56,343
|
|
|
33,599
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Advertising and marketing
|
|
|
|
34,720
|
|
|
20,236
|
|
|
7,662
|
Sales
|
|
|
|
26,243
|
|
|
17,976
|
|
|
11,571
|
Technology and development
|
|
|
|
21,815
|
|
|
14,210
|
|
|
7,573
|
Legal
|
|
|
|
4,117
|
|
|
8,878
|
|
|
1,311
|
Regulatory
|
|
|
|
3,158
|
|
|
2,433
|
|
|
429
|
Acquisition related costs
|
|
|
|
6,959
|
|
|
551
|
|
|
196
|
General and administrative
|
|
|
|
48,568
|
|
|
42,981
|
|
|
17,687
|
Depreciation and amortization
|
|
|
|
8,270
|
|
|
4,863
|
|
|
2,320
|
Loss from operations
|
|
|
|
(62,664)
|
|
|
(55,785)
|
|
|
(15,150)
|
Amortization of warrants and loss on extinguishment of debt
|
|
|
|
8,454
|
|
|
—
|
|
|
—
|
Interest expense, net
|
|
|
|
2,588
|
|
|
2,199
|
|
|
1,499
|
Net loss before taxes
|
|
|
|
(73,706)
|
|
|
(57,984)
|
|
|
(16,649)
|
Income tax provision
|
|
|
|
510
|
|
|
36
|
|
|
388
|
Net loss
|
|
|
$
|
(74,216)
|
|
$
|
(58,020)
|
|
$
|
(17,037)
|
Net loss per share, basic and diluted
|
|
|
$
|
(1.75)
|
|
$
|
(2.91)
|
|
$
|
(10.25)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used to compute basic and diluted net loss
per share
|
|
|
|
42,330,908
|
|
|
19,917,348
|
|
|
1,962,845
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
2016
|
|
2015
|
|
2014
|
Cash flows used in operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(74,216)
|
|
$
|
(58,020)
|
|
$
|
(17,037)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
8,270
|
|
|
4,863
|
|
|
2,320
|
Allowance for doubtful accounts
|
|
|
2,412
|
|
|
2,034
|
|
|
1,308
|
Stock-based compensation
|
|
|
7,723
|
|
|
3,075
|
|
|
533
|
Deferred income taxes
|
|
|
510
|
|
|
36
|
|
|
388
|
Accretion of interest
|
|
|
262
|
|
|
460
|
|
|
106
|
Amortization of warrants
|
|
|
7,717
|
|
|
798
|
|
|
—
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
—
|
|
|
—
|
Accounts receivable
|
|
|
(2,900)
|
|
|
(6,795)
|
|
|
(5,079)
|
Prepaid expenses and other current assets
|
|
|
(826)
|
|
|
(957)
|
|
|
(436)
|
Other assets
|
|
|
(42)
|
|
|
5
|
|
|
(185)
|
Accounts payable
|
|
|
(813)
|
|
|
(612)
|
|
|
2,099
|
Accrued expenses and other current liabilities
|
|
|
(2,221)
|
|
|
3,457
|
|
|
(26)
|
Accrued compensation
|
|
|
1,688
|
|
|
2,887
|
|
|
1,971
|
Other liabilities
|
|
|
641
|
|
|
1,588
|
|
|
2,679
|
Net cash used in operating activities
|
|
|
(51,795)
|
|
|
(47,181)
|
|
|
(11,359)
|
Cash flows provided by (used in) investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(2,108)
|
|
|
(6,275)
|
|
|
(1,069)
|
Purchase of internal software
|
|
|
(1,304)
|
|
|
(1,542)
|
|
|
(665)
|
Purchase of marketable securities
|
|
|
(44,146)
|
|
|
(103,030)
|
|
|
—
|
Proceeds from the liquidation/maturity of marketable securities
|
|
|
110,717
|
|
|
20,411
|
|
|
—
|
Acquisition of business, net of cash acquired
|
|
|
(37,013)
|
|
|
(17,767)
|
|
|
(13,844)
|
Net cash provided by (used in) investing activities
|
|
|
26,146
|
|
|
(108,203)
|
|
|
(15,578)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Net proceeds from the exercise of stock options
|
|
|
2,524
|
|
|
428
|
|
|
747
|
Proceeds from issuance of convertible preferred stock
|
|
|
—
|
|
|
—
|
|
|
50,082
|
Proceeds from borrowing under bank and other debt
|
|
|
34,990
|
|
|
6,800
|
|
|
19,700
|
Repayment of bank loan and other debt
|
|
|
(17,166)
|
|
|
(6,332)
|
|
|
—
|
Proceeds from issuance of common stock under IPO
|
|
|
—
|
|
|
163,118
|
|
|
—
|
Proceeds from issuance of common stock
|
|
|
250
|
|
|
—
|
|
|
—
|
Repurchase of stock
|
|
|
—
|
|
|
—
|
|
|
(368)
|
Net cash provided by financing activities
|
|
|
20,598
|
|
|
164,014
|
|
|
70,161
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(5,051)
|
|
|
8,630
|
|
|
43,224
|
Cash and cash equivalents at beginning of the period
|
|
|
55,066
|
|
|
46,436
|
|
|
3,212
|
Cash and cash equivalents at end of the period
|
|
$
|
50,015
|
|
$
|
55,066
|
|
$
|
46,436
|
Interest paid
|
|
$
|
2,387
|
|
$
|
1,995
|
|
$
|
1,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 1
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA Reconciliation
(In thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
2014
|
Net loss
|
|
|
$
|
(74,216)
|
|
$
|
(58,020)
|
|
$
|
(17,037)
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
2,588
|
|
|
2,199
|
|
|
1,499
|
Income tax provision
|
|
|
|
510
|
|
|
36
|
|
|
388
|
Depreciation expense
|
|
|
|
2,176
|
|
|
1,133
|
|
|
335
|
Amortization expense
|
|
|
|
6,094
|
|
|
3,730
|
|
|
1,985
|
EBITDA(1)
|
|
|
|
(62,848)
|
|
|
(50,922)
|
|
|
(12,830)
|
Stock-based compensation
|
|
|
|
7,723
|
|
|
3,075
|
|
|
533
|
Amortization of warrants and loss on extinguishment of debt
|
|
|
|
8,454
|
|
|
—
|
|
|
—
|
Acquisition related costs
|
|
|
|
6,959
|
|
|
551
|
|
|
196
|
Adjusted EBITDA(2)
|
|
|
$
|
(39,712)
|
|
$
|
(47,296)
|
|
$
|
(12,101)
|
|
|
|
|
|
|
|
|
|
|
|
(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, stock-based compensation, amortization of
warrants and loss on extinguishment of debt and acquisition related
costs related to mergers and acquisitions. 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. 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
-
does not reflect the significant non-recurring charge associated with
the amortization of warrants and loss on extinguishment of debt; and
-
does not reflect the significant acquisition related costs related to
mergers and acquisitions; 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.
|
Table 2
|
Net Loss Per Share Reconciliation
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
Year Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
GAAP net loss per share, basic and diluted
|
|
$
|
(0.31)
|
|
$
|
(0.39)
|
|
$
|
(1.75)
|
|
$
|
(2.91)
|
Adjustment for non-recurring expenses (1)
|
|
|
—
|
|
|
—
|
|
|
0.36
|
|
|
0.03
|
Net loss per share, excluding non-recurring expenses
|
|
$
|
(0.31)
|
|
$
|
(0.39)
|
|
$
|
(1.39)
|
|
$
|
(2.88)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustment for non-recurring expenses
For 2016, this adjustment represents the acquisition related
non-recurring and primarily non-cash charge of $6.9 million, net of tax
for the year ended December 31, 2016 as well as the amortization of
warrants and loss on extinguishment of debt non-recurring and primarily
non-cash charge of $8.5 million, net of tax for the year ended December
31, 2016. For 2015, this adjustment represents the acquisition related
non-recurring charge of $0.6 million, net of tax for the year ended
December 31, 2015.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170301006372/en/
Source: Teladoc, Inc.