Second-quarter revenue of $26.5 million increased 45%, membership of
15.4 million increased 34%, visits of 199,106 increased 59% year-
over-year
LEWISVILLE, Texas--(BUSINESS WIRE)--
Teladoc, Inc. (NYSE: TDOC), the first and largest telehealth platform in
the United States, today announced results for its second quarter ended
June 30, 2016.
“During the second quarter, we saw continued momentum across numerous
dimensions of our business,” Jason Gorevic, chief executive officer of
Teladoc, commented. “Visits exceeded our expectations, and for the 14th
consecutive quarter, visit growth outpaced our membership growth,
reinforcing our increasing utilization trends. Additionally, we are
making progress toward our goal of EBITDA breakeven by the end of 2017,
as we saw a $1.4 million sequential reduction in our second-quarter
loss.”
Mr. Gorevic continued, “In spite of these positive trends in our
business, we did not achieve our revenue expectations for the second
quarter. A significant increase in the cost of advertising in our
direct-to-consumer segment led to fewer ads placed, and therefore less
revenue. In addition, two large, new clients that were forecasted to be
implemented in the second half of 2016 delayed their launch dates to the
start of 2017. Thus, we have adjusted our outlook for the remainder of
the year.”
Financial Performance for the Three Months
Ended June 30, 2016
All comparisons, unless otherwise noted, are to the quarter ended June
30, 2015.
-
Total revenue was $26.5 million, an increase of 45%. Revenue from
subscription access fees and visit fees was $21.5 million and $5.0
million, respectively, compared to $15.1 million and $3.2 million,
respectively, an increase of 42% and 57%, respectively.
-
Total visits were 199,106, compared to 125,322, an increase of 59%.
-
Paid visits as a percentage of total visits remained at 64% for both
periods.
-
Gross margin was consistent for both periods at 74%.
-
Net loss was $14.9 million, compared to a net loss of $17.1 million.
-
Net loss per basic and diluted share was $0.38, compared to a net loss
per share of $7.20.
-
EBITDA was a loss of $12.9 million, compared to a loss of $15.3
million.
-
Adjusted EBITDA was a loss of $10.5 million, compared to a loss of
$14.4 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
Third Quarter 2016 Guidance: Revenue for the company’s third
quarter 2016 is expected to be in the range of $32 million to $33
million. EBITDA is expected to be in the range of a loss of $12 million
to a loss of $13 million. Adjusted EBITDA is expected to be in the range
of a loss of $9 million to a loss of $10 million. Membership is expected
to total approximately 16.5 million to 17.0 million at September 30,
2016. Total visits are projected to be between 205,000 and 215,000.
Third quarter net loss per share, based on 45.7 million weighted average
shares outstanding, of between $(0.35) and $(0.38) is projected.
Full Year 2016 Guidance: Revenue for the company’s full year 2016
is expected to be in the range of $121 million to $124 million. EBITDA
is expected to be in the range of a loss of $48 million to a loss of $50
million. Adjusted EBITDA is expected to be in the range of a loss of $41
million to a loss of $43 million. Membership is expected to total
approximately 17.0 million to 17.5 million at December 31, 2016. Total
visits for the full year are projected to be between 915,000 and
945,000. The 2016 net loss per share, based on 42.2 million weighted
average shares outstanding, is expected to be between $(1.47) and
$(1.52).
Quarterly Conference Call
Stockholders and interested participants may listen to a live broadcast
of the conference call today, Wednesday, August 3 at 5 pm ET by dialing
877-201-0168 or 647-788-4901 for international callers, and referencing
participant code 46193070 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 August 17,
2016 and can be accessed by dialing 855-859-2056 or 404-537-3406 for
international callers, and referencing participant code 46193070.
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 6,000
clients — including health plans, health systems, employers and other
organizations — more than 15 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 and a
robust, scalable platform and a Lewisville, Texas-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, unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
55,781
|
|
|
$
|
55,066
|
|
|
Short-term investments
|
|
|
56,698
|
|
|
|
82,282
|
|
|
Accounts receivable, net of allowance of $3,086 and $1,812,
respectively
|
|
|
13,209
|
|
|
|
12,134
|
|
|
Prepaid expenses and other current assets
|
|
|
1,661
|
|
|
|
2,096
|
|
|
Total current assets
|
|
|
127,349
|
|
|
|
151,578
|
|
|
Property and equipment, net
|
|
|
6,100
|
|
|
|
6,259
|
|
|
Goodwill
|
|
|
56,342
|
|
|
|
56,342
|
|
|
Intangible assets, net
|
|
|
13,794
|
|
|
|
15,265
|
|
|
Other assets
|
|
|
305
|
|
|
|
293
|
|
|
Total assets
|
|
$
|
203,890
|
|
|
$
|
229,737
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
506
|
|
|
$
|
2,213
|
|
|
Accrued expenses and other current liabilities
|
|
|
6,608
|
|
|
|
8,197
|
|
|
Accrued compensation
|
|
|
4,631
|
|
|
|
6,326
|
|
|
Long-term bank and other debt-current portion
|
|
|
4,250
|
|
|
|
1,250
|
|
|
Total current liabilities
|
|
|
15,995
|
|
|
|
17,986
|
|
|
Other liabilities
|
|
|
7,441
|
|
|
|
6,775
|
|
|
Deferred taxes
|
|
|
1,357
|
|
|
|
1,185
|
|
|
Long term bank and other debt, net
|
|
|
27,137
|
|
|
|
25,227
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
Common stock, $0.001 par value; 75,000,000 shares authorized as of
June 30, 2016 and December 31, 2015; 38,744,118 shares and
38,524,922 shares issued and outstanding as of June 30, 2016 and
December 31, 2015, respectively
|
|
|
39
|
|
|
|
38
|
|
|
Additional paid-in capital
|
|
|
312,589
|
|
|
|
309,078
|
|
|
Accumulated deficit
|
|
|
(160,693
|
)
|
|
|
(130,510
|
)
|
|
Accumulated other comprehensive income (loss)
|
|
|
25
|
|
|
|
(42
|
)
|
|
Total stockholders’ equity
|
|
|
151,960
|
|
|
|
178,564
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
203,890
|
|
|
$
|
229,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except share and per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
Quarters Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenue
|
|
$
|
26,488
|
|
|
$
|
18,283
|
|
|
$
|
53,376
|
|
|
$
|
34,771
|
|
|
Cost of revenue
|
|
|
6,891
|
|
|
|
4,793
|
|
|
|
14,834
|
|
|
|
10,074
|
|
|
Gross profit
|
|
|
19,597
|
|
|
|
13,490
|
|
|
|
38,542
|
|
|
|
24,697
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Advertising and marketing
|
|
|
7,804
|
|
|
|
4,730
|
|
|
|
15,854
|
|
|
|
9,071
|
|
|
Sales
|
|
|
5,860
|
|
|
|
4,397
|
|
|
|
11,130
|
|
|
|
8,079
|
|
|
Technology and development
|
|
|
4,829
|
|
|
|
3,203
|
|
|
|
10,054
|
|
|
|
6,109
|
|
|
Legal
|
|
|
1,666
|
|
|
|
5,332
|
|
|
|
2,788
|
|
|
|
6,817
|
|
|
Regulatory
|
|
|
772
|
|
|
|
733
|
|
|
|
1,620
|
|
|
|
1,010
|
|
|
General and administrative
|
|
|
11,570
|
|
|
|
10,423
|
|
|
|
23,207
|
|
|
|
20,629
|
|
|
Depreciation and amortization
|
|
|
1,558
|
|
|
|
923
|
|
|
|
3,066
|
|
|
|
1,826
|
|
|
Loss from operations
|
|
|
(14,462
|
)
|
|
|
(16,251
|
)
|
|
|
(29,177
|
)
|
|
|
(28,844
|
)
|
|
Interest income (expense), net
|
|
|
(407
|
)
|
|
|
(642
|
)
|
|
|
(834
|
)
|
|
|
(1,210
|
)
|
|
Net loss before taxes
|
|
|
(14,869
|
)
|
|
|
(16,893
|
)
|
|
|
(30,011
|
)
|
|
|
(30,054
|
)
|
|
Income tax (provision) benefit
|
|
|
(10
|
)
|
|
|
(171
|
)
|
|
|
(172
|
)
|
|
|
287
|
|
|
Net loss
|
|
$
|
(14,879
|
)
|
|
$
|
(17,064
|
)
|
|
$
|
(30,183
|
)
|
|
$
|
(29,767
|
)
|
|
Net loss per share, basic and diluted
|
|
$
|
(0.38
|
)
|
|
$
|
(7.20
|
)
|
|
$
|
(0.78
|
)
|
|
$
|
(13.13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used to compute basic and diluted net loss
per share
|
|
|
38,717,186
|
|
|
|
2,370,113
|
|
|
|
38,650,765
|
|
|
|
2,266,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands, unaudited)
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
Cash flows used in operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(30,183
|
)
|
|
$
|
(29,767
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
3,066
|
|
|
|
1,826
|
|
|
Allowance for doubtful accounts
|
|
|
1,429
|
|
|
|
958
|
|
|
Stock-based compensation
|
|
|
2,922
|
|
|
|
1,378
|
|
|
Deferred income taxes
|
|
|
172
|
|
|
|
(287
|
)
|
|
Accretion of interest
|
|
|
175
|
|
|
|
81
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(2,504
|
)
|
|
|
(2,639
|
)
|
|
Prepaid expenses and other current assets
|
|
|
435
|
|
|
|
(105
|
)
|
|
Other assets
|
|
|
(12
|
)
|
|
|
32
|
|
|
Accounts payable
|
|
|
(1,707
|
)
|
|
|
3,748
|
|
|
Accrued expenses and other current liabilities
|
|
|
(1,589
|
)
|
|
|
4,066
|
|
|
Accrued compensation
|
|
|
(1,695
|
)
|
|
|
1,648
|
|
|
Other liabilities
|
|
|
616
|
|
|
|
1,466
|
|
|
Net cash used in operating activities
|
|
|
(28,875
|
)
|
|
|
(17,595
|
)
|
|
Cash flows provided by (used in) investing activities:
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(778
|
)
|
|
|
(3,466
|
)
|
|
Purchase of internal software
|
|
|
(658
|
)
|
|
|
(849
|
)
|
|
Purchase of marketable securities
|
|
|
(44,188
|
)
|
|
|
—
|
|
|
Proceeds from the liquidation/maturity of marketable securities
|
|
|
69,749
|
|
|
|
—
|
|
|
Acquisition of business, net of cash acquired
|
|
|
—
|
|
|
|
(13,545
|
)
|
|
Net cash provided by (used in) investing activities
|
|
|
24,125
|
|
|
|
(17,860
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Net proceeds from the exercise of stock options
|
|
|
590
|
|
|
|
261
|
|
|
Payment of deferred offering costs
|
|
|
—
|
|
|
|
(2,411
|
)
|
|
Proceeds from borrowing under bank and other debt
|
|
|
5,500
|
|
|
|
6,800
|
|
|
Repayment of bank loan
|
|
|
(625
|
)
|
|
|
(208
|
)
|
|
Net cash provided by financing activities
|
|
|
5,465
|
|
|
|
4,442
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
715
|
|
|
|
(31,013
|
)
|
|
Cash and cash equivalents at beginning of the period
|
|
|
55,066
|
|
|
|
46,436
|
|
|
Cash and cash equivalents at end of the period
|
|
$
|
55,781
|
|
|
$
|
15,423
|
|
|
Interest paid
|
|
$
|
1,050
|
|
|
$
|
920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA Reconciliation
|
|
(In thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net loss
|
|
$
|
(14,879
|
)
|
|
$
|
(17,064
|
)
|
|
$
|
(30,183
|
)
|
|
$
|
(29,767
|
)
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
Interest (income) expense, net
|
|
|
407
|
|
|
|
642
|
|
|
|
834
|
|
|
|
1,210
|
|
|
Income tax provision (benefit)
|
|
|
10
|
|
|
|
171
|
|
|
|
172
|
|
|
|
(287
|
)
|
|
Depreciation expense
|
|
|
490
|
|
|
|
215
|
|
|
|
936
|
|
|
|
429
|
|
|
Amortization expense
|
|
|
1,068
|
|
|
|
708
|
|
|
|
2,130
|
|
|
|
1,397
|
|
|
EBITDA (1)
|
|
|
(12,904
|
)
|
|
|
(15,328
|
)
|
|
|
(26,111
|
)
|
|
|
(27,018
|
)
|
|
Stock-based compensation
|
|
|
1,634
|
|
|
|
567
|
|
|
|
2,922
|
|
|
|
1,378
|
|
|
Transaction related costs
|
|
|
763
|
|
|
|
362
|
|
|
|
763
|
|
|
|
535
|
|
|
Adjusted EBITDA (2)
|
|
$
|
(10,507
|
)
|
|
$
|
(14,399
|
)
|
|
$
|
(22,426
|
)
|
|
$
|
(25,105
|
)
|
(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 and transaction
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 transaction 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160803006489/en/
Source: Teladoc, Inc.