Teladoc Health (TDOC) 10-Q 1 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 27, 2018
Document and Entity Information
Entity Registrant Name	Teladoc, Inc.
Entity Central Index Key	1,477,449
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Common Stock, Shares Outstanding		62,334,542

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 65,179	$ 42,817
Short-term investments	54,555	79,489
Accounts receivable, net of allowance of $3,093 and $2,422, respectively	30,701	27,094
Prepaid expenses and other current assets	6,497	6,839
Total current assets	156,932	156,239
Property and equipment, net	7,995	8,963
Goodwill	498,277	498,520
Intangible assets, net	153,493	159,811
Other assets	827	858
Total assets	817,524	824,391
Current liabilities:
Accounts payable	3,290	3,884
Accrued expenses and other current liabilities	21,498	19,357
Accrued compensation	13,024	17,089
Total current liabilities	37,812	40,330
Other liabilities	6,154	4,882
Deferred taxes	12,258	12,906
Convertible senior notes, net	210,432	207,370
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 100,000,000 shares authorized as of March 31, 2018 and December 31, 2017; 62,280,205 shares and 61,534,101 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	62	61
Additional paid-in capital	882,804	866,330
Accumulated deficit	(335,439)	(311,577)
Accumulated other comprehensive income	3,441	4,089
Total stockholders' equity	550,868	558,903
Total liabilities and stockholders' equity	$ 817,524	$ 824,391

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Allowance of Accounts receivable	$ 3,093	$ 2,422
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	62,280,205	61,534,101
Common stock, shares outstanding	62,280,205	61,534,101

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements of Operations
Revenue	$ 89,644	$ 42,898
Cost of revenue	26,856	12,139
Gross profit	62,788	30,759
Operating expenses:
Advertising and marketing	20,325	12,616
Sales	13,783	7,988
Technology and development	12,904	6,512
Legal	481	343
Regulatory	564	1,007
Acquisition and integration related costs	1,569
General and administrative	24,001	14,488
Depreciation and amortization	8,253	2,607
Loss from operations	(19,092)	(14,802)
Interest expense, net	4,873	702
Net loss before taxes	(23,965)	(15,504)
Income tax (benefit) provision	(103)	150
Net loss	$ (23,862)	$ (15,654)
Net loss per share, basic and diluted	$ (0.39)	$ (0.30)
Weighted-average shares used to compute basic and diluted net loss per share	61,797,762	52,192,859

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements of Comprehensive Loss
Net loss	$ (23,862)	$ (15,654)
Other comprehensive income (loss), net of tax
Net change in unrealized (loss) gains on available-for-sale securities	1	(3)
Cumulative translation adjustment	(649)
Other comprehensive income (loss), net of tax	(648)	(3)
Comprehensive loss	$ (24,510)	$ (15,657)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows used in operating activities:
Net loss	$ (23,862)	$ (15,654)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	8,253	2,607
Allowance for doubtful accounts	1,148	306
Stock-based compensation	7,832	3,097
Deferred income taxes	(585)	150
Accretion of interest	3,018	(18)
Changes in operating assets and liabilities:
Accounts receivable	(4,738)	(1,809)
Prepaid expenses and other current assets	599	(430)
Other assets	31	(9)
Accounts payable	(533)	(287)
Accrued expenses and other current liabilities	1,836	966
Accrued compensation	(7,917)	(1,921)
Other liabilities	1,047	495
Net cash used in operating activities	(13,871)	(12,507)
Cash flows (used in) provided by investing activities:
Purchase of property and equipment	(557)	(620)
Purchase of internal-use software	(471)	(152)
Purchase of marketable securities		(34,957)
Proceeds from marketable securities	25,000	14,740
Net cash provided by (used in) investing activities	23,972	(20,989)
Cash flows provided by financing activities:
Net proceeds from the exercise of stock options	8,643	1,195
Repayment of bank borrowings and other debt		(2,000)
Proceeds from issuance of common stock		123,928
Cash for withholding taxes on stock-based awards, net	3,555	306
Net cash provided by financing activities	12,198	123,429
Net increase in cash and cash equivalents	22,299	89,933
Foreign exchange difference	63
Cash and cash equivalents at beginning of the period	42,817	50,015
Cash and cash equivalents at end of the period	65,179	139,948
Income taxes paid	52	994
Interest paid	$ 2	$ 2,387

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2018
Organization and Description of Business
Organization and Description of Business	Note 1. Organization and Description of Business Teladoc, Inc. was incorporated in the State of Texas in June 2002 and changed its state of incorporation to the State of Delaware in October 2008. Unless the context otherwise requires, Teladoc, Inc., together with its subsidiaries, is referred to herein as “Teladoc” or the “Company”. The Company’s principal executive offices are located in Purchase, New York and Lewisville, Texas. Teladoc is the nation’s largest telehealth company. On December 4, 2017, Teladoc completed a follow on public offering (the “December Offering”) in which the Company issued and sold 4,096,600 shares of common stock, including the exercise of an underwriter option to purchase additional shares, at an issuance price of $35.00 per share. The Company received net proceeds of $134.7 million after deducting underwriting discounts and commissions of $8.2 million as well as other offering expenses of $0.5 million. On July 14, 2017, the Company completed the acquisition of Best Doctors Holdings, Inc. (“Best Doctors”), an expert medical consultation company focused on improving health outcomes for the most complex, critical and costly medical issues. See Note 5 “Business Acquisition”. On January 24, 2017, Teladoc completed its follow on public offering (the “Follow-On Offering”) in which the Company issued and sold 7,887,500 shares of common stock, including the exercise of an underwriter option to purchase additional shares, at an issuance price of $16.75 per share. The Company received net proceeds of $123.9 million after deducting underwriting discounts and commissions of $7.6 million as well as other offering expenses of $0.6 million.

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	3 Months Ended
	Mar. 31, 2018
Basis Of Presentation And Principles Of Consolidation
Basis of Presentation and Principles of Consolidation	Note 2. Basis of Presentation and Principles of Consolidation Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly the financial position, results of operations and cash flows of the Company at the dates and for the periods indicated. The interim results for the three months ended March 31, 2018 are not necessarily indicative of results for the full 2018 calendar year or any other future interim periods. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Form 10-K for the year ended December 31, 2017. The unaudited consolidated financial statements include the results of Teladoc, its wholly owned subsidiaries, two professional associations and twenty two professional corporations and a service corporation (collectively, the “Association”). Teladoc Physicians, P.A. is party to several Services Agreements by and among it and the professional corporations pursuant to which each professional corporation provides services to Teladoc Physicians, P.A. Each professional corporation is established pursuant to the requirements of its respective domestic jurisdiction governing the corporate practice of medicine. The Company holds a variable interest in the Association which contracts with physicians and other health professionals in order to provide services to Teladoc. The Association is considered a variable interest entity (“VIE”) since it does not have sufficient equity to finance its activities without additional subordinated financial support. An enterprise having a controlling financial interest in a VIE, must consolidate the VIE if it has both power and benefits—that is, it has (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance (power) and (2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE (benefits). The Company has the power and rights to control all activities of the Association and funds and absorbs all losses of the VIE. Total revenue and net income for the VIE were $16.3 million and $0.7 million, respectively, for the quarter ended March 31, 2018 and $8.6 million and $(2.6) million, respectively, for the quarter ended March 31, 2017. The VIE’s total assets were $9.1 million and $4.5 million at March 31, 2018 and December 31, 2017, respectively. Total liabilities for the VIE were $40.4 million and $36.5 million at March 31, 2018 and December 31, 2017, respectively. The VIE’s total stockholders’ deficit was $31.2 million and $31.9 million at March 31, 2018 and December 31, 2017, respectively. The functional currency for each of the Company’s foreign subsidiaries is the local currency. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the weighted average exchange rate during the period. Cumulative translation gains or losses are included in stockholders’ equity as a component of accumulated other comprehensive income (loss). The Company operates in a single reportable segment – health services. Revenue earned by foreign operations outside of the United States were $10.9 million for the quarter ended March 31, 2018 and zero for the quarter ended March 31, 2017. Long-lived assets from foreign operations totaled $161.6 million as of March 31, 2018 and zero as of March 31, 2017. All intercompany transactions and balances have been eliminated. The Company adopted ASU 2014-09, Revenue from Contracts with Customers during the quarter ended March 31, 2018, as described below. There have been no other changes to the significant accounting policies described in the 2017 Form 10-K that have had a material impact on the consolidated financial statements and related notes. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under GAAP. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the revised guidance required that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The revised guidance was effective for the Company beginning in the quarter ending March 31, 2018; early adoption was allowed. The revised guidance was required to be applied retrospectively to each prior reporting period presented or modified retrospectively applied with the cumulative effect of initially applying it recognized at the date of initial application. The Company adopted this standard on January 1, 2018 utilizing the modified retrospective approach. The Company underwent a process of identifying the various types of revenue streams, performed an evaluation of the components of the associated contractual arrangements and determined that the adoption of the new standard had no impact on the consolidated financial statements. See Note 3 “Revenue”, for further information. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of fiscal 2019; early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of this standard on its consolidated financial statements .

Revenue

Revenue	3 Months Ended
	Mar. 31, 2018
Revenue
Revenue	Note 3. Revenue The Company generates virtual service revenue from contracts with Clients who purchase access to the Company’s professional Provider network or medical experts for their employees, dependents and other beneficiaries. The Company’s Client contracts include a per-Member-per-month subscription access fee as well as certain contracts that generate additional revenue on a per-telehealth visit basis for general medical and other specialty visits and expert medical opinion on a per case basis. The Company also has certain contracts that generate revenue based solely on a per telehealth visit basis for general medical and other specialty visits. Accordingly, the Company generates subscription access revenue from subscription access fees and visit fee revenue for general medical, expert medical opinion and other specialty visit. The Company’s agreements generally have a term of one year. The majority of Clients renew their contracts following their first year of services. Revenues are recognized when the Company satisfies its performance obligation to stand ready to provide telehealth services which occurs when the Company’s Clients and Members have access to and obtain control of the telehealth service. The Company generally bills for the telehealth services on a monthly basis with payment terms generally being 30 days and there are not significant differences between the timing of revenue recognition and billing. Consequently, the Company has determined that client contracts do not include a financing component. Revenue is recognized in an amount that reflects the consideration that is expected in exchange for the service and this may include a variable transaction price as the number of Members may vary from the initial billing. Based on historical experience, the Company estimates this amount which is recorded as a component of revenue. Subscription access revenue accounted for approximately 80% of our total revenue during both of the quarters ended March 31, 2018 and 2017. The following table presents the Company’s revenues disaggregated by revenue source (in thousands): Quarters Ended March 31, 2018 2017 Subscription Access Fees: U.S. $ 61,020 $ 34,343 International Operations 10,709 — Visit Fee Revenue: U.S. General Medical, Dermatology and Behavioral Health 12,755 8,555 Other Specialty Visit (Expert Medical Opinion and Other) U.S. 1,454 — International Operations 167 — Visit Fee Only Revenue: U.S. - General 3,539 — Total Revenues $ 89,644 $ 42,898 As of March 31, 2018, accounts receivable related to virtual healthcare services, net of allowance for doubtful accounts, were $30.7 million. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on historical experience, specific account information and other currently available evidence. For certain virtual healthcare service products, payment is required for future months before the telehealth services access is delivered to the Member. The Company records deferred revenue when cash payments are received in advance of the Company’s performance obligation to provide telehealth service access. The net increase of $0.4 million in the deferred revenue balance for the three months ended March 31, 2018 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations, offset by revenue recognized that were included in the deferred revenue balance at the beginning of the period. The Company anticipates that it will satisfy most of its performance obligation associated with the deferred revenue within the prospective fiscal year. The Company’s contracts do not generally contain refund provisions for fees earned related to services performed. However, the Company’s direct-to-consumer behavioral health product provides for member refunds. Based on historical experience, the Company estimates the expected amount of refunds to be issued which are recorded as a reduction of revenue. For the three months ended March 31, 2018, the Company issued refunds of approximately $1.2 million. Additionally, certain of the Company’s contracts include client performance guarantees that are based upon minimum Member utilization and guarantees by the Company for specific service level performance of the Company’s services. If client performance guarantees are not being realized, the Company records, as a reduction to revenue, an estimate of the amount that will be due at the end of the respective client’s contractual period. For the three months ended March 31, 2018, revenue recognized from performance obligations related to prior periods for the aforementioned changes in transaction price or client performance guarantees, was not material.

Lease Abandonment

Lease Abandonment	3 Months Ended
	Mar. 31, 2018
Lease Abandonment
Lease Abandonment	Note 4. Lease Abandonment In connection with the Company’s abandonment of a facility in Boston, Massachusetts, the Company incurred $1.5 million in lease abandonment charges during the quarter ended March 31, 2018, which is included within acquisition and integration related costs in the consolidated statement of operations. The following table details the associated liability. The current portion of the liability of $0.9 million was recorded in accrued expenses and other current liabilities and the non-current portion of the liability of $0.6 million was recorded in other liabilities in the consolidated balance sheet (in thousands): Balance January 1, 2018 $ — Charged to expense 1,479 Paid or settled — Balance March 31, 2018 $ 1,479

Business Acquisitions

Business Acquisitions	3 Months Ended
	Mar. 31, 2018
Business Acquisitions
Business Acquisitions	Note 5. Business Acquisitions On July 14, 2017, the Company completed the acquisition of Best Doctors through a merger in which Best Doctors became a wholly-owned subsidiary of the Company. The aggregate merger consideration paid was $445.5 million, net of cash acquired of $13.7 million, which was comprised of 1,855,078 shares of Teladoc’s common stock valued at $66.2 million on July 14, 2017, and $375.0 million of cash, subject to post-closing working capital adjustments in the amount of $4.3 million. Best Doctors provides technology innovations and services to help employers, health plans and provider organizations to ensure that their members combat medical uncertainty with access to the best medical minds. The acquisition was considered a stock acquisition for tax purposes and accordingly, the goodwill resulting from this acquisition is not tax deductible. The total acquisition related costs of the acquisition were $9.1 million and included transaction costs for investment bankers and other professional fees. The acquisition described above was accounted for using the acquisition method of accounting, which requires, among other things, the assets acquired and the liabilities assumed be recognized at their fair values as of the acquisition date. The results of the acquisition was included within the consolidated financial statements commencing on the respective aforementioned acquisition dates. The following table summarizes the fair value estimates of the assets acquired and liabilities assumed at the acquisition date. The Company, with the assistance of a third-party valuation expert, estimated the fair value of the acquired tangible and intangible assets. Identifiable assets acquired and liabilities assumed (in thousands): BestDoctors Purchase price, net of cash acquired $ 445,535 Less: Accounts receivable 11,205 Property and equipment, net 2,650 Other assets 2,483 Client relationships 112,810 Internal-use software 8,480 Trademarks 24,920 Accounts payable (393) Deferred taxes (11,800) Other liabilities (12,337) Goodwill $ 307,517 The amount allocated to goodwill reflects the benefits Teladoc expects to realize from the growth of the respective acquisitions operations.

Intangible Assets, Net

Intangible Assets, Net	3 Months Ended
	Mar. 31, 2018
Intangible Assets, Net
Intangible Assets, Net	Note 6. Intangible Assets, Net Intangible assets, net consist of the following (in thousands): Weighted Average Useful Accumulated Net Carrying Remaining Life Gross Value Amortization Value Useful Life March 31, 2018 Client relationships 2 to 10 years $ 136,292 $ (19,021) $ 117,271 9.0 Non-compete agreements 1.5 to 5 years 3,480 (3,277) 203 0.6 Trademarks 3 to 15 years 26,439 (2,022) 24,417 14.0 Patents 3 years 200 (89) 111 1.6 Internal-use software 2 to 5 years 20,783 (9,292) 11,491 1.8 Intangible assets, net $ 187,194 $ (33,701) $ 153,493 9.2 December 31, 2017 Client relationships 2 to 10 years $ 136,362 $ (14,711) $ 121,651 9.3 Non-compete agreements 1.5 to 5 years 3,480 (3,143) 337 0.8 Trademarks 3 to 15 years 26,454 (1,502) 24,952 14.2 Patents 3 years 200 (72) 128 1.9 Internal-use software 2 to 5 years 20,312 (7,569) 12,743 1.7 Intangible assets, net $ 186,808 $ (26,997) $ 159,811 9.4 Amortization expense for intangible assets was $6.7 million and $1.9 million for the quarters ended March 31, 2018 and 2017, respectively.

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2018
Goodwill
Goodwill	Note 7. Goodwill Goodwill consists of the following (in thousands): As of March 31, As of December 31, 2018 2017 Beginning balance $ 498,520 $ 188,184 Additions associated with acquisitions - 307,517 Cumulative translation adjustment (243) 2,819 Goodwill $ 498,277 $ 498,520 Goodwill is not amortized, but is tested for impairment annually on October 1 or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company’s annual goodwill impairment test resulted in no impairment charges in any of the period presented in the consolidated financial statements.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2018
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	Note 8. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): As of March 31, As of December 31, 2018 2017 Professional fees $ 1,115 $ 1,325 Consulting fees/provider fees 2,816 4,028 Client performance guarantees 3,098 2,617 Legal fees 1,031 759 Interest payable 2,429 367 Lease abandonment obligation - current 829 — Marketing 643 524 Earnout and compensation — 722 Printing and postage — 302 Deferred revenue 4,703 4,111 Other 4,834 4,602 Total $ 21,498 $ 19,357

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Measurements
Fair Value Measurements	Note 9. Fair Value Measurements The Company measures its financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires it to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs that are supported by little or no market activity. The Company measures its cash equivalents at fair value on a recurring basis. The Company classifies its cash equivalents within Level 1 because they are valued using observable inputs that reflect quoted prices for identical assets in active markets and quoted prices directly in active markets. The Company measures its short-term marketable securities at fair value on a recurring basis and classifies such as Level 2. They are valued using observable inputs that reflect quoted prices directly or indirectly in active markets. The short-term marketable securities amortized cost approximates fair value. The Company measures its contingent consideration at fair value on a recurring basis and classifies such as Level 3. The Company estimates the fair value of contingent consideration as the present value of the expected contingent payments, determined using the weighted probability of the possible payments. The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above input categories (in thousands): March 31, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 65,179 $ — $ — $ 65,179 Short-term investments $ — $ 54,555 $ — $ 54,555 December 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 39,051 $ 3,766 $ — $ 42,817 Short-term investments $ — $ 79,489 $ — $ 79,489 Contingent liability (included in accrued expenses and other current liabilities and other liabilities) $ — $ — $ 666 $ 666 There were no transfers between fair value measurement levels during the quarter and three months ended March 31, 2018 and 2016. The change in fair value of the Company’s contingent liability is recorded in general and administrative expenses in the consolidated statements of operations. The following table reconciles the beginning and ending balance of the Company’s Level 3 contingent liability: Balance at December 31, 2017 $ 666 Payments earned (744) Change in fair value 78 Fair value at March 31, 2018 $ —

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	Note 12. Commitments and Contingencies Legal Matters The Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of its business. At March 31, 2018, the Company is not a party to any material legal proceeding, and it is not aware of any pending or threatened litigation that would have a material adverse effect on its business, results of operations, cash flows or financial condition should such litigation be resolved unfavorably.

Long Term Bank Loan

Long Term Bank Loan	3 Months Ended
	Mar. 31, 2018
Long Term Bank Loan
Long Term Bank Loan	Note 10. Long Term Bank Loan There was no long term bank loan outstanding as of March 31, 2018 and December 31, 2017. On July 14, 2017 and concurrent with the consummation of the Best Doctors acquisition, the Company entered into a $175.0 million Senior Secured Term Loan Facility (the “New Term Loan Facility”) and a $10.0 million Senior Secured Revolving Credit Facility (the “New Revolving Credit Facility”). The New Term Loan Facility was used to fund the purchase of Best Doctors and the New Revolving Credit Facility is available for working capital and other general corporate purposes. In December 2017, the Company used the proceeds from the December Offering and repaid all the outstanding amounts under the $175.0 million New Term Loan Facility. The Company has maintained the New Revolving Credit Facility and, as described above, there was no amount outstanding as of March 31, 2018 and December 31, 2017. The Company was in compliance with all debt covenants at March 31, 2018 and December 31, 2017.

Convertible Senior Notes

Convertible Senior Notes	3 Months Ended
	Mar. 31, 2018
Convertible Senior Notes
Convertible Senior Notes	Note 11. Convertible Senior Notes On June 27, 2017, the Company issued, at par value, $275 million aggregate principal amount of 3% convertible senior notes due 2022 (the “2022 Notes”). The 2022 Notes bear cash interest at a rate of 3% per year, payable semi-annually in arrears on June 15 and December 15 of each year. The 2022 Notes will mature on December 15, 2022. The net proceeds to the Company from the offering were $263.7 million after deducting offering costs of approximately $11.3 million. The 2022 Notes are senior unsecured obligations of the Company and rank senior in right of payment to the Company’s indebtedness that is expressly subordinated in right of payment to the 2022 Notes; equal in right of payment to the Company’s liabilities that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities incurred by the Company’s subsidiaries. Holders may convert all or any portion of their 2022 Notes in integral multiples of $1,000 principal amount, at their option, at any time prior to the close of business on the business day immediately preceding June 15, 2022 only under the following circumstances: · during any calendar quarter commencing after the calendar quarter ending on September 30, 2017 (and only during such calendar quarter), if the last reported sale price of the shares of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; · during the five business day period after any ten consecutive trading day period (the ‘‘measurement period’’) in which the trading price (as defined in the indenture governing the 2022 Notes (the “2022 Notes Indenture”)) per $1,000 principal amount of 2022 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; · upon the occurrence of specified corporate events described under the 2022 Notes Indenture; or · if the Company calls the 2022 Notes for redemption, at any time until the close of business on the second business day immediately preceding the redemption date as described under the 2022 Notes Indenture. On or after June 15, 2022, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2022 Notes, regardless of the foregoing circumstances. The conversion rate for the 2022 Notes was initially, and remains, 22.7247 shares of the Company’s common stock per $1,000 principal amount of the 2022 Notes, which is equivalent to an initial conversion price of approximately $44.00 per share of the Company’s common stock. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. If the Company elects (or is deemed to have elected) to satisfy the conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and shares of the Company’s common stock, the amount of cash and shares of the Company’s common stock, if any, due upon conversion will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 25 trading day observation period (as defined in the 2022 Notes Indenture). The Company may redeem for cash all or any portion of the 2022 Notes, at its option, on or after December 22, 2020 if the last reported sale price of its common stock exceeds 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading days ending on, and including the trading day immediately preceding the date on which the Company provides notice of the redemption. The redemption price will be the principal amount of the 2022 Notes to be redeemed, plus accrued and unpaid interest, if any. In addition, calling any 2022 Note for redemption on or after December 22, 2020 will constitute a make-whole fundamental change (as defined in the 2022 Notes Indenture) with respect to that 2022 Note, in which case the conversion rate applicable to the conversion of that Note, if it is converted in connection with the redemption, will be increased in certain circumstances as described in the 2022 Notes Indenture. In accounting for the issuance of the 2022 Notes, the Company separated the 2022 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2022 Notes as a whole. The excess of the principal amount of the liability component over its carrying amount, referred to as the debt discount, is amortized to interest expense from the issuance date to June 15, 2022 (the first date on which the Company may be required to repurchase the 2022 Notes at the option of the holder). The equity component is not re-measured as long as it continues to meet the conditions for equity classification. The equity component related to the 2022 Notes was $62.4 million, net of issuance costs which was recorded in additional paid-in capital on the accompanying condensed consolidated balance sheet. In accounting for the transaction costs related to the issuance of the 2022 Notes, the Company allocated the total costs incurred to the liability and equity components of the 2022 Notes based on their relative values. Transaction costs attributable to the liability component are being amortized to interest expense over the five and a half year term of the 2022 Notes, and transaction costs attributable to the equity component are netted with the equity components in stockholders’ equity. The 2022 Notes consist of the following (in thousands): As of March 31, As of December 31, Liability component 2018 2017 Principal $ 275,000 $ 275,000 Less: Debt issuance costs, net (1) (64,568) (67,630) Net carrying amount $ 210,432 $ 207,370 (1) Included in the accompanying consolidated balance sheets within convertible senior notes and amortized to interest expense over the expected life of the 2022 Notes using the effective interest rate method. The fair value of the 2022 Notes was approximately $327 million as of March 31, 2018. The Company estimates the fair value of its 2022 Notes utilizing market quotations for debt that have quoted prices in active markets. Since the 2022 Notes do not trade on a daily basis in an active market, the fair value estimates are based on market observable inputs based on borrowing rates currently available for debt with similar terms and average maturities, which are classified as Level 2 measurements within the fair value hierarchy. See Note 9, “Fair Value Measurements,” for definitions of hierarchy levels. As of March 31, 2018, the remaining contractual life of the 2022 Notes is approximately 4.3 years. The following table sets forth total interest expense recognized related to the 2022 Notes (in thousands): Three Months Ended March 31, 2018 Contractual interest expense $ 2,034 Amortization of debt discount 3,062 Total $ 5,096 Effective interest rate of the liability component 10.0 %

Common Stock and Stockholders'

Common Stock and Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Common Stock and Stockholders'Equity
Common Stock and Stockholders' Equity	Note 13. Common Stock and Stockholders’ Equity Capitalization Effective May 25, 2017, the authorized number of shares of the Company’s common stock was increased from 75,000,000 to 100,000,000 shares. On December 4, 2017, Teladoc closed on its December Offering in which the Company issued and sold 4,096,600 shares of common stock, including the exercise of an underwriter option to purchase additional shares, at an issuance price of $35.00 per share. The Company received net proceeds of $134.7 million after deducting underwriting discounts and commissions of $8.2 million as well as other offering expenses of $0.5 million. On January 24, 2017, Teladoc closed on its Follow-On Offering in which the Company issued and sold 7,887,500 shares of common stock, including the exercise of an underwriter option to purchase additional shares, at an issuance price of $16.75 per share. The Company received net proceeds of $123.9 million after deducting underwriting discounts and commissions of $7.6 million as well as other offering expenses of $0.6 million. Stock Plan and Stock Options The Company’s 2015 Incentive Award Plan (the “Plan”) provides for the issuance of incentive and non-statutory options and other equity-based awards to its employees and non‑employees. Options issued under the Plan are exercisable for periods not to exceed ten years, and vest and contain such other terms and conditions as specified in the applicable award document. Options to buy common stock are issued under the Plan, with exercise prices equal to the closing price of shares of the Company’s common stock on the New York Stock Exchange on the trading day immediately preceding the date of award. Activity under the Plan is as follows (in thousands, except share and per share amounts and years): Weighted- Weighted- Average Shares Number of Average Remaining Aggregate Available Shares Exercise Contractual Intrinsic for Grant Outstanding Price Life in Years Value Balance at December 31, 2017 1,105,856 8,393,888 $ 17.56 8.36 $ 145,810 Increase in Plan authorized shares 3,076,705 — $ — — $ — Restricted stock units granted (911,805) — $ — — $ — Stock option grants (945,501) 945,501 $ 38.20 — $ — Restricted stock units forfeited 15,891 — $ — — $ — Stock options exercised — (651,010) $ 13.44 — $ 16,850 Stock options forfeited 97,970 (97,970) $ 24.24 — $ 1,194 Stock options expired — — $ — — $ — Balance at March 31, 2018 2,439,116 8,590,409 $ 20.07 8.35 $ 173,771 Vested or expected to vest at March 31, 2018 8,590,409 $ 20.07 8.35 $ 173,771 Exercisable at March 31, 2018 2,591,375 $ 12.02 7.33 $ 73,279 The total grant‑date fair value of stock options granted during the quarter ended March 31, 2018 was $52.0 million. Stock‑Based Compensation All stock‑based awards to employees are measured based on the grant‑date fair value of the awards and are generally recognized in the Company’s consolidated statement of operations over the period during which the employee is required to perform services in exchange for the award (generally requiring a four‑year vesting period for each award). The Company estimates the fair value of stock options granted using the Black‑Scholes option‑pricing model. Compensation cost is generally recognized over the vesting period of the applicable award using the straight‑line method. The assumptions used in the Black‑Scholes option‑pricing model are determined as follows: Volatility. Since the Company does not have a trading history prior to July 2015 for its common stock, the expected volatility was derived from the historical stock volatilities of several unrelated public companies within its industry that it considers to be comparable to its business combined with the Company’s stock volatility over a period equivalent to the expected term of the stock option grants. Risk‑Free Interest Rate. The risk‑free interest rate is based on U.S. Treasury zero‑coupon issues with terms similar to the expected term on the options. Expected Term. The expected term represents the period that the stock‑based awards are expected to be outstanding. When establishing the expected term assumption, the Company utilizes historical data. Dividend Yield. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and therefore, it used an expected dividend yield of zero. Forfeiture rate. The Company recognizes forfeitures as they occur. The fair value of each option grant was estimated on the date of grant using the Black‑Scholes option‑pricing model with the following assumptions and fair value per share: Three Months Ended March 31, 2018 2017 Volatility 44.4% – 48.1% 46.7% – 47.7% Expected life (in years) 6.2 6.1 Risk-free interest rate 2.45% - 2.79% 2.10% - 2.30% Dividend yield – – Weighted-average fair value of underlying common stock $ 28.02 $ 10.54 For the quarter ended March 31, 2018 and 2017, the Company recorded compensation expense related to stock options granted of $5.4 million and $2.9 million, respectively. As of March 31, 2018, the Company had $60.4 million in unrecognized compensation cost related to non‑vested stock options, which is expected to be recognized over a weighted‑average period of approximately 3.0 years. Restricted Stock Units In May 2017, the Company commenced issuing Restricted Stock Units (“RSU’s”) to employees and Board members under the 2017 Employment Inducement Incentive Award Plan. The fair value of the RSU’s is determined on the date of grant. On a monthly basis, the Company will record compensation expense in the consolidated statement of operations on a straight-line basis over the vesting period. The vesting period for employees and members of the Board of Directors is ranges from one to four years. Activity under the RSU’s is as follows (in thousands, except share and per share amounts and years): Weighted-Average Grant Date Shares Fair Value Per Share Balance at December 31, 2017 633,115 $ 33.84 Granted 911,805 $ 38.51 Vested and issued (95,094) $ 33.51 Cancelled/forfeited (15,891) $ 32.52 Balance at March 31, 2018 1,433,935 $ 36.84 Vested and exercisable at March 31, 2018 180,000 $ 35.25 Non-vested at March 31, 2018 1,223,939 $ 36.81 The total grant‑date fair value of RSU’s granted during the quarter March 31, 2018 were $35.1 million. There was no RSU’s granted during the quarter ended March 31, 2017. For the quarter ended March 31, 2018, the Company recorded stock based compensation expense related to the RSU’s of $2.3 million. There was no charge for the quarter ended March 31, 2017. Employee Stock Purchase Plan In July 2015, the Company adopted the 2015 Employee Stock Purchase Plan, or ESPP. A total of 645,258 shares of common stock were reserved for issuance under this plan as of March 31, 2018. The Company’s ESPP permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. Under the ESPP, the Company may specify offerings with durations of not more than 27 months, and may specify shorter purchase periods within each offering. Each offering will have one or more purchase dates on which shares of its common stock will be purchased for employees participating in the offering. An offering may be terminated under certain circumstances. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock at the beginning of an offering period or on the date of purchase. During the quarter ended March 31, 2018, the Company had not issued any shares under the ESPP. During 2017, the Company issued 127,510 shares under the ESPP. 517,748 shares remained available for issuance as of March 31, 2018. For the quarter ended March 31, 2018 and 2017, the Company recorded stock-based compensation expense related to the ESPP of $0.1 million and $0.2 million, respectively, based on offerings made under the plan to-date. Total compensation costs charged as an expense for stock‑based awards, including stock options, RSU’s and ESPP, recognized in the components of operating expenses are as follows (in thousands): Quarters Ended March 31, 2018 2017 Administrative and marketing $ 402 $ 203 Sales 1,574 754 Technology and development 1,215 449 General and administrative 4,641 1,691 Total stock-based compensation expense $ 7,832 $ 3,097

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Taxes
Income Taxes	Note 14. Income Taxes As a result of the Company’s history of net operating losses, the Company has provided for a full valuation allowance against its deferred tax assets for assets that are not more-likely-than-not to be realized. For the quarter ended March 31, 2018, the income tax benefit was recognized for the indefinite lived NOL that is forecasted for the 2018 calendar year which can be netted up to 80% of the deferred tax liability associated with the goodwill, offset by timing differences with respect to the treatment of the amortization of tax deductible goodwill, as well as foreign related income. Income tax provisions recognized for the quarter ended March 31, 2017, were primarily attributable to the timing differences with respect to the treatment of the amortization of tax deductible goodwill. A majority of the Company’s operations, and resulting deferred tax assets, were generated in the United States. H.R. 1, commonly referred to as the Tax Cuts and Jobs Act, was enacted on December 22, 2017. The Tax Act included significant changes to the Internal Revenue Code of 1986, as amended, including amendments which significantly change the taxation of business entities. ASC 740, Accounting for Income Taxes, requires companies to recognize the effect of tax law changes in the period of enactment. The Company recognized the impact of the reduction in the U.S. statutory rate from 35% to 21% at December 31, 2017 as well as the impact of the mandatory repatriation, which was fully offset with a change in valuation allowance. Given the significance of the legislation, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (SAB 118), which clarifies accounting for income taxes under ASC 740 if information is not yet available or complete and provided for up to a one-year period in which to complete the required analyses and accounting. The Company is continuing to evaluate the impacts of the Tax Cuts and Jobs Act in accordance with SAB 118. Beginning with the quarter ended March 31, 2018, the Company is calculating tax expense based on the newly enacted U.S. statutory rate of 21%. The Tax Act includes a Base Erosion Anti-Abuse Tax, commonly referred to as BEAT, which imposes a minimum tax on certain deductible payments or accruals made to foreign affiliates in tax years beginning after December 31, 2017. The Company has determined that it is currently not subject to BEAT. The Tax Act imposes a minimum tax on global intangible low-taxed income, commonly referred to as GILTI. The Company does not expect to recognize any tax expense related to GILTI as it has net operating losses available and a full valuation allowance. In addition the Tax Act imposes an interest expense limitation which disallows a portion of the interest deduction based on EBTIDA. While the disallowed interest deduction is deferred, there is no impact to tax expense due to the current year taxable loss and related valuation allowance.

Basis of Presentation and Pri21

Basis of Presentation and Principles of Consolidations (Policies)	3 Months Ended
	Mar. 31, 2018
Basis Of Presentation And Principles Of Consolidation
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly the financial position, results of operations and cash flows of the Company at the dates and for the periods indicated. The interim results for the three months ended March 31, 2018 are not necessarily indicative of results for the full 2018 calendar year or any other future interim periods. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Form 10-K for the year ended December 31, 2017. The unaudited consolidated financial statements include the results of Teladoc, its wholly owned subsidiaries, two professional associations and twenty two professional corporations and a service corporation (collectively, the “Association”). Teladoc Physicians, P.A. is party to several Services Agreements by and among it and the professional corporations pursuant to which each professional corporation provides services to Teladoc Physicians, P.A. Each professional corporation is established pursuant to the requirements of its respective domestic jurisdiction governing the corporate practice of medicine. The Company holds a variable interest in the Association which contracts with physicians and other health professionals in order to provide services to Teladoc. The Association is considered a variable interest entity (“VIE”) since it does not have sufficient equity to finance its activities without additional subordinated financial support. An enterprise having a controlling financial interest in a VIE, must consolidate the VIE if it has both power and benefits—that is, it has (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance (power) and (2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE (benefits). The Company has the power and rights to control all activities of the Association and funds and absorbs all losses of the VIE. Total revenue and net income for the VIE were $16.3 million and $0.7 million, respectively, for the quarter ended March 31, 2018 and $8.6 million and $(2.6) million, respectively, for the quarter ended March 31, 2017. The VIE’s total assets were $9.1 million and $4.5 million at March 31, 2018 and December 31, 2017, respectively. Total liabilities for the VIE were $40.4 million and $36.5 million at March 31, 2018 and December 31, 2017, respectively. The VIE’s total stockholders’ deficit was $31.2 million and $31.9 million at March 31, 2018 and December 31, 2017, respectively. The functional currency for each of the Company’s foreign subsidiaries is the local currency. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the weighted average exchange rate during the period. Cumulative translation gains or losses are included in stockholders’ equity as a component of accumulated other comprehensive income (loss). The Company operates in a single reportable segment – health services. Revenue earned by foreign operations outside of the United States were $10.9 million for the quarter ended March 31, 2018 and zero for the quarter ended March 31, 2017. Long-lived assets from foreign operations totaled $161.6 million as of March 31, 2018 and zero as of March 31, 2017. All intercompany transactions and balances have been eliminated. The Company adopted ASU 2014-09, Revenue from Contracts with Customers during the quarter ended March 31, 2018, as described below. There have been no other changes to the significant accounting policies described in the 2017 Form 10-K that have had a material impact on the consolidated financial statements and related notes.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under GAAP. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the revised guidance required that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The revised guidance was effective for the Company beginning in the quarter ending March 31, 2018; early adoption was allowed. The revised guidance was required to be applied retrospectively to each prior reporting period presented or modified retrospectively applied with the cumulative effect of initially applying it recognized at the date of initial application. The Company adopted this standard on January 1, 2018 utilizing the modified retrospective approach. The Company underwent a process of identifying the various types of revenue streams, performed an evaluation of the components of the associated contractual arrangements and determined that the adoption of the new standard had no impact on the consolidated financial statements. See Note 3 “Revenue”, for further information. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of fiscal 2019; early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of this standard on its consolidated financial statements .

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue
Schedule of disaggregation of revenue	The following table presents the Company’s revenues disaggregated by revenue source (in thousands): Quarters Ended March 31, 2018 2017 Subscription Access Fees: U.S. $ 61,020 $ 34,343 International Operations 10,709 — Visit Fee Revenue: U.S. General Medical, Dermatology and Behavioral Health 12,755 8,555 Other Specialty Visit (Expert Medical Opinion and Other) U.S. 1,454 — International Operations 167 — Visit Fee Only Revenue: U.S. - General 3,539 — Total Revenues $ 89,644 $ 42,898

Lease Abandonment (Tables)

Lease Abandonment (Tables)	3 Months Ended
	Mar. 31, 2018
Lease Abandonment
Schedule of lease abandonment liability	The current portion of the liability of $0.9 million was recorded in accrued expenses and other current liabilities and the non-current portion of the liability of $0.6 million was recorded in other liabilities in the consolidated balance sheet (in thousands): Balance January 1, 2018 $ — Charged to expense 1,479 Paid or settled — Balance March 31, 2018 $ 1,479

Business Acquisitions (Tables)

Business Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2018
Business Acquisitions
Summary of identifiable assets acquired and liabilities assumed	Identifiable assets acquired and liabilities assumed (in thousands): BestDoctors Purchase price, net of cash acquired $ 445,535 Less: Accounts receivable 11,205 Property and equipment, net 2,650 Other assets 2,483 Client relationships 112,810 Internal-use software 8,480 Trademarks 24,920 Accounts payable (393) Deferred taxes (11,800) Other liabilities (12,337) Goodwill $ 307,517

Intangible Assets, Net (Tables)

Intangible Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2018
Intangible Assets, Net
Schedule of finite lived intangible assets	Intangible assets, net consist of the following (in thousands): Weighted Average Useful Accumulated Net Carrying Remaining Life Gross Value Amortization Value Useful Life March 31, 2018 Client relationships 2 to 10 years $ 136,292 $ (19,021) $ 117,271 9.0 Non-compete agreements 1.5 to 5 years 3,480 (3,277) 203 0.6 Trademarks 3 to 15 years 26,439 (2,022) 24,417 14.0 Patents 3 years 200 (89) 111 1.6 Internal-use software 2 to 5 years 20,783 (9,292) 11,491 1.8 Intangible assets, net $ 187,194 $ (33,701) $ 153,493 9.2 December 31, 2017 Client relationships 2 to 10 years $ 136,362 $ (14,711) $ 121,651 9.3 Non-compete agreements 1.5 to 5 years 3,480 (3,143) 337 0.8 Trademarks 3 to 15 years 26,454 (1,502) 24,952 14.2 Patents 3 years 200 (72) 128 1.9 Internal-use software 2 to 5 years 20,312 (7,569) 12,743 1.7 Intangible assets, net $ 186,808 $ (26,997) $ 159,811 9.4

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill
Summary of goodwill	Goodwill consists of the following (in thousands): As of March 31, As of December 31, 2018 2017 Beginning balance $ 498,520 $ 188,184 Additions associated with acquisitions - 307,517 Cumulative translation adjustment (243) 2,819 Goodwill $ 498,277 $ 498,520

Accrued Expenses and Other Cu27

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Accrued Expenses and Other Current Liabilities
Schedule of accrued expenses and other current liabilities	Accrued expenses and other current liabilities consist of the following (in thousands): As of March 31, As of December 31, 2018 2017 Professional fees $ 1,115 $ 1,325 Consulting fees/provider fees 2,816 4,028 Client performance guarantees 3,098 2,617 Legal fees 1,031 759 Interest payable 2,429 367 Lease abandonment obligation - current 829 — Marketing 643 524 Earnout and compensation — 722 Printing and postage — 302 Deferred revenue 4,703 4,111 Other 4,834 4,602 Total $ 21,498 $ 19,357

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Measurements
Schedule assets and liabilities measured at fair value on a recurring basis	The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above input categories (in thousands): March 31, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 65,179 $ — $ — $ 65,179 Short-term investments $ — $ 54,555 $ — $ 54,555 December 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 39,051 $ 3,766 $ — $ 42,817 Short-term investments $ — $ 79,489 $ — $ 79,489 Contingent liability (included in accrued expenses and other current liabilities and other liabilities) $ — $ — $ 666 $ 666
Schedule of reconciliation of company's Level 3 liabilities	Balance at December 31, 2017 $ 666 Payments earned (744) Change in fair value 78 Fair value at March 31, 2018 $ —

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	3 Months Ended
	Mar. 31, 2018
Convertible Senior Notes
Summary of the 2022 Notes	The 2022 Notes consist of the following (in thousands): As of March 31, As of December 31, Liability component 2018 2017 Principal $ 275,000 $ 275,000 Less: Debt issuance costs, net (1) (64,568) (67,630) Net carrying amount $ 210,432 $ 207,370 (1) Included in the accompanying consolidated balance sheets within convertible senior notes and amortized to interest expense over the expected life of the 2022 Notes using the effective interest rate method.
Schedule of total interest expense recognized related to the 2022 Notes	The following table sets forth total interest expense recognized related to the 2022 Notes (in thousands): Three Months Ended March 31, 2018 Contractual interest expense $ 2,034 Amortization of debt discount 3,062 Total $ 5,096 Effective interest rate of the liability component 10.0 %

Common Stock and Stockholders30

Common Stock and Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2018
Common Stock and Stockholders'Equity
Summary of activity under the Plan	Activity under the Plan is as follows (in thousands, except share and per share amounts and years): Weighted- Weighted- Average Shares Number of Average Remaining Aggregate Available Shares Exercise Contractual Intrinsic for Grant Outstanding Price Life in Years Value Balance at December 31, 2017 1,105,856 8,393,888 $ 17.56 8.36 $ 145,810 Increase in Plan authorized shares 3,076,705 — $ — — $ — Restricted stock units granted (911,805) — $ — — $ — Stock option grants (945,501) 945,501 $ 38.20 — $ — Restricted stock units forfeited 15,891 — $ — — $ — Stock options exercised — (651,010) $ 13.44 — $ 16,850 Stock options forfeited 97,970 (97,970) $ 24.24 — $ 1,194 Stock options expired — — $ — — $ — Balance at March 31, 2018 2,439,116 8,590,409 $ 20.07 8.35 $ 173,771 Vested or expected to vest at March 31, 2018 8,590,409 $ 20.07 8.35 $ 173,771 Exercisable at March 31, 2018 2,591,375 $ 12.02 7.33 $ 73,279
Assumptions used for estimate of fair value of options	Three Months Ended March 31, 2018 2017 Volatility 44.4% – 48.1% 46.7% – 47.7% Expected life (in years) 6.2 6.1 Risk-free interest rate 2.45% - 2.79% 2.10% - 2.30% Dividend yield – – Weighted-average fair value of underlying common stock $ 28.02 $ 10.54
Schedule of activity under the RSU's	Activity under the RSU’s is as follows (in thousands, except share and per share amounts and years): Weighted-Average Grant Date Shares Fair Value Per Share Balance at December 31, 2017 633,115 $ 33.84 Granted 911,805 $ 38.51 Vested and issued (95,094) $ 33.51 Cancelled/forfeited (15,891) $ 32.52 Balance at March 31, 2018 1,433,935 $ 36.84 Vested and exercisable at March 31, 2018 180,000 $ 35.25 Non-vested at March 31, 2018 1,223,939 $ 36.81
Components of operating expense charged for compensation cost expense	Total compensation costs charged as an expense for stock‑based awards, including stock options, RSU’s and ESPP, recognized in the components of operating expenses are as follows (in thousands): Quarters Ended March 31, 2018 2017 Administrative and marketing $ 402 $ 203 Sales 1,574 754 Technology and development 1,215 449 General and administrative 4,641 1,691 Total stock-based compensation expense $ 7,832 $ 3,097

Organization and Description 31

Organization and Description of Business (Details) - Follow-On Offering - USD ($) $ / shares in Units, $ in Millions	Dec. 04, 2017	Jan. 24, 2017
Follow-On Offering
Issuance of stock (in shares)	4,096,600	7,887,500
Price of stock issued (in dollars per share)	$ 35	$ 16.75
Proceeds received, net of issuance costs	$ 134.7	$ 123.9
Underwriting discounts and commissions	8.2	7.6
Other offering expenses	$ 0.5	$ 0.6

Basis of Presentation and Pri32

Basis of Presentation and Principles of Consolidation - VIE (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)item	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Variable interest entity
Number of professional associations consolidated as VIEs | item	2
Number of professional corporations consolidated as VIEs | item	22
Number of service corporations consolidated as VIEs | item	1
Primary beneficiary
Variable interest entity
Total revenue of VIEs	$ 16.3	$ 8.6
Net loss of VIEs	0.7	$ (2.6)
Assets of VIEs	9.1		$ 4.5
Liabilities of VIEs	40.4		36.5
Deficit of VIEs	$ 31.2		$ 31.9

Basis of Presentation and Pri33

Basis of Presentation and Principles of Consolidation - Segment and Foreign Operations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)segment	Mar. 31, 2017USD ($)
Segment Information
Number of reportable segments | segment	1
Revenues	$ 89,644	$ 42,898
Foreign
Segment Information
Revenues	10,900	0
Long-lived assets	$ 161,600	$ 0

Revenue - Other Disclosures (De

Revenue - Other Disclosures (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue
Contract term	1 year
Payment terms	30 days
Product and Service Concentration Risk | Revenue from Contract with Customer | Subscription Access Fees
Revenue
Concentration risk (as a percent)	80.00%	80.00%

Revenue - Disaggregation and Ot

Revenue - Disaggregation and Other (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenue
Total Revenues	$ 89,644
Accounts receivable, net of allowance for doubtful accounts	30,701		$ 27,094
Net increase in deferred revenue	400
Member refunds issued relating to Company's direct-to-consumer behavioral health products	1,200
United States | Subscription Access Fees
Revenue
Total Revenues	61,020
United States | Visit Fee Revenue, General
Revenue
Total Revenues	12,755
United States | Visit Fee Revenue, Other Specialty Visit
Revenue
Total Revenues	1,454
United States | Visit Fee Only Revenue, General
Revenue
Total Revenues	3,539
Foreign | Subscription Access Fees
Revenue
Total Revenues	10,709
Foreign | Visit Fee Revenue, Other Specialty Visit
Revenue
Total Revenues	$ 167
Before Adoption of ASU 2014-09, Topic 606
Revenue
Total Revenues		$ 42,898
Before Adoption of ASU 2014-09, Topic 606 | United States | Subscription Access Fees
Revenue
Total Revenues		34,343
Before Adoption of ASU 2014-09, Topic 606 | United States | Visit Fee Revenue, General
Revenue
Total Revenues		$ 8,555

Lease Abandonment (Details)

Lease Abandonment (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Lease Abandonment
Current portion of lease abandonment	$ 829
Charged to expense	1,479
Balance at end of year	1,479
Lease abandonment. | Accrued expenses and other current liabilities
Lease Abandonment
Current portion of lease abandonment	900
Lease abandonment. | Other noncurrent liabilities
Lease Abandonment
Noncurrent restructuring charges	$ 600

Business Acquisitions (Details)

Business Acquisitions (Details) - USD ($) $ in Thousands	Jul. 14, 2017	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Less:
Goodwill		$ 498,277	$ 498,520	$ 188,184
Best Doctors
Business acquisition
Purchase price	$ 445,500
Cash acquired	$ 13,700
Equity consideration (in shares)	1,855,078
Equity consideration	$ 66,200
Cash paid for acquisition	375,000
Adjustments for working capital	4,300
Transaction costs associated with acquisition	9,100
Identifiable assets acquired and liabilities assumed:
Purchase price, net of cash acquired	445,535
Less:
Accounts receivable	11,205
Property and equipment, net	2,650
Other assets	2,483
Accounts payable	(393)
Deferred taxes	(11,800)
Other liabilities	(12,337)
Goodwill	307,517
Best Doctors | Client relationships
Less:
Finite-lived intangibles	112,810
Best Doctors | Internal-Use Software
Less:
Finite-lived intangibles	8,480
Best Doctors | Trademarks
Less:
Finite-lived intangibles	$ 24,920

Intangible Assets, Net - Summar

Intangible Assets, Net - Summary (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Intangible assets
Gross Value	$ 187,194		$ 186,808
Accumulated Amortization	(33,701)		(26,997)
Net Carrying Value	153,493		$ 159,811
Amortization expense for intangible assets	$ 6,700	$ 1,900
Weighted Average
Intangible assets
Weighted Average Remaining Useful Life	9 years 2 months 12 days		9 years 4 months 24 days
Client relationships
Intangible assets
Gross Value	$ 136,292		$ 136,362
Accumulated Amortization	(19,021)		(14,711)
Net Carrying Value	$ 117,271		$ 121,651
Client relationships | Minimum
Intangible assets
Useful life	2 years		2 years
Client relationships | Maximum
Intangible assets
Useful life	10 years		10 years
Client relationships | Weighted Average
Intangible assets
Weighted Average Remaining Useful Life	9 years		9 years 3 months 18 days
Non-compete agreements
Intangible assets
Gross Value	$ 3,480		$ 3,480
Accumulated Amortization	(3,277)		(3,143)
Net Carrying Value	$ 203		$ 337
Non-compete agreements | Minimum
Intangible assets
Useful life	1 year 6 months		1 year 6 months
Non-compete agreements | Maximum
Intangible assets
Useful life	5 years		5 years
Non-compete agreements | Weighted Average
Intangible assets
Weighted Average Remaining Useful Life	7 months 6 days		9 months 18 days
Trademarks
Intangible assets
Gross Value	$ 26,439		$ 26,454
Accumulated Amortization	(2,022)		(1,502)
Net Carrying Value	$ 24,417		$ 24,952
Trademarks | Minimum
Intangible assets
Useful life	3 years		3 years
Trademarks | Maximum
Intangible assets
Useful life	15 years		15 years
Trademarks | Weighted Average
Intangible assets
Weighted Average Remaining Useful Life	14 years		14 years 2 months 12 days
Patents
Intangible assets
Gross Value	$ 200		$ 200
Accumulated Amortization	(89)		(72)
Net Carrying Value	$ 111		$ 128
Useful life	3 years		3 years
Patents | Weighted Average
Intangible assets
Weighted Average Remaining Useful Life	1 year 7 months 6 days		1 year 10 months 24 days
Internal-Use Software
Intangible assets
Gross Value	$ 20,783		$ 20,312
Accumulated Amortization	(9,292)		(7,569)
Net Carrying Value	$ 11,491		$ 12,743
Internal-Use Software | Minimum
Intangible assets
Useful life	2 years		2 years
Internal-Use Software | Maximum
Intangible assets
Useful life	5 years		5 years
Internal-Use Software | Weighted Average
Intangible assets
Weighted Average Remaining Useful Life	1 year 9 months 18 days		1 year 8 months 12 days

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Goodwill
Beginning balance	$ 498,520	$ 188,184
Additions associated with acquisitions		307,517
Cumulative translation adjustment	(243)	2,819
Goodwill	$ 498,277	$ 498,520

Accrued Expenses and Other Cu40

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accrued Expenses and Other Current Liabilities
Professional fees	$ 1,115	$ 1,325
Consulting fees/provider fees	2,816	4,028
Client performance guarantees	3,098	2,617
Legal fees	1,031	759
Interest payable	2,429	367
Lease abandonment obligation - current	829
Marketing	643	524
Earnout and compensation		722
Printing and postage		302
Deferred revenue	4,703	4,111
Other	4,834	4,602
Total	$ 21,498	$ 19,357

Fair Value Measurements - Recur

Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Fair Value
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	$ 0	$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0	0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount	0	0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount	0	0
Fair value assets level 3 net transfers	0	0
Fair value liabilities level 3 net transfers	0	$ 0
Recurring
Fair Value
Cash and cash equivalents	65,179		$ 42,817
Short-term investments	54,555		79,489
Contingent liability			666
Level 1 | Recurring
Fair Value
Cash and cash equivalents	65,179		39,051
Level 2 | Recurring
Fair Value
Cash and cash equivalents			3,766
Short-term investments	$ 54,555		79,489
Level 3 | Recurring
Fair Value
Contingent liability			$ 666

Fair Value Measurements - Level

Fair Value Measurements - Level 3 (Details) - Contingent Liability $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Reconciliation of Level 3 liabilities
Fair value at beginning of period	$ 666
Payments earned	(744)
Change in fair value	$ 78

Long Term Bank Loan (Details)

Long Term Bank Loan (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2017	Mar. 31, 2017	Mar. 31, 2018	Jul. 14, 2017
Long-term bank loan
Repayment of debt		$ 2,000
Long-term Bank Loan
Long-term bank loan
Amount outstanding	$ 0		$ 0
New Term Loan Facility
Long-term bank loan
Maximum borrowings				$ 175,000
Repayment of debt	175,000
New Revolving Credit Facility
Long-term bank loan
Amount outstanding	$ 0		$ 0
Maximum borrowings				$ 10,000

Convertible Senior Notes - Term

Convertible Senior Notes - Terms (Details) - 2022 Notes	Jun. 27, 2017USD ($)Ditem$ / shares	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Convertible Senior Notes
Face amount | $	$ 275,000,000	$ 275,000,000	$ 275,000,000
Interest rate (as a percent)	3.00%
Net proceeds from offering | $	$ 263,700,000
Offering costs | $	11,300,000
Principal multiple amount used in the conversion of the debt instrument | $	$ 1,000
Convertible debt, conversion rate	22.7247
Convertible debt, conversion price (in dollars per share) | $ / shares	$ 44
Trading day observation period used to determine the amount of cash and shares, if any, that are due upon conversion | item	25
Convertible debt, equity component | $	$ 62,400,000
At any time prior to close of business on the business day immediately preceding June 15, 2022
Convertible Senior Notes
Principal multiple amount used in the conversion of the debt instrument | $	$ 1,000
Convertible debt, threshold, trading days | D	20
Convertible debt, threshold, consecutive trading days | D	30
Minimum percentage of common stock price as a percentage of the conversion price	130.00%
Convertible debt, number of business days, measurement period | D	5
Convertible debt, number of consecutive trading days, measurement period | D	10
Trading price expressed as a percentage of the last reported sales price and conversion rate after the specified consecutive trading day period	98.00%
On or after December 22, 2020
Convertible Senior Notes
Convertible debt, threshold, trading days | D	20
Convertible debt, threshold, consecutive trading days | D	30
Minimum percentage of common stock price as a percentage of the conversion price	130.00%

Convertible Senior Notes - Summ

Convertible Senior Notes - Summary (Details) - 2022 Notes - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 27, 2017
Convertible Senior Notes
Principal	$ 275,000	$ 275,000	$ 275,000	$ 275,000
Less: Debt issuance costs, net	(64,568)	(64,568)	(67,630)
Net carrying amount	$ 210,432	210,432	$ 207,370
Remaining contractual life	4 years 3 months 18 days
Interest Expense
Contractual interest expense		2,034
Amortization of debt discount		3,062
Total		$ 5,096
Effective interest rate of the liability component (as a percent)	10.00%	10.00%
Level 2
Convertible Senior Notes
Fair value	$ 327,000	$ 327,000

Common Stock and Stockholders46

Common Stock and Stockholders' Equity - Capitalization (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 04, 2017	Jan. 24, 2017	Mar. 31, 2018	Dec. 31, 2017	May 25, 2017	May 24, 2017
Capitalization
Number of common stock shares authorized			100,000,000	100,000,000	100,000,000	75,000,000
Follow-On Offering
Capitalization
Issuance of stock (in shares)	4,096,600	7,887,500
Price of stock issued (in dollars per share)	$ 35	$ 16.75
Proceeds received, net of issuance costs	$ 134.7	$ 123.9
Underwriting discounts and commissions	8.2	7.6
Other offering expenses	$ 0.5	$ 0.6

Common Stock and Stockholders47

Common Stock and Stockholders' Equity - Stock Plan and Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Stock-Based Compensation
Vesting period	4 years
Other disclosures
Compensation expense	$ 7,832	$ 3,097
Stock options
Aggregate Intrinsic Value
Grant-date fair value of stock options granted during the period	$ 52,000
Fair value assumptions
Volatility, minimum (as a percent)	44.40%	46.70%
Volatility, maximum (as a percent)	48.10%	47.70%
Expected life (in years)	6 years 2 months 12 days	6 years 1 month 6 days
Risk-free interest rate, minimum	2.45%	2.10%
Risk-free interest rate, maximum	2.79%	2.30%
Dividend yield (as a percent)	0.00%	0.00%
Weighted-average fair value of the underlying common stock	$ 28.02	$ 10.54
Other disclosures
Compensation expense	$ 5,400	$ 2,900
Unrecognized compensation cost	$ 60,400
Period over which unrecognized compensation cost is expected to be recognized	3 years
Stock options | Maximum
Stock-Based Compensation
Exercisable period (in years)	10 years
2015 Incentive Award Plan
Shares Available for Grant
Balance, beginning of period (in shares)	1,105,856
Increase in Plan authorized shares	3,076,705
Restricted Stock Units granted (in shares)	(911,805)
Stock options grants (in shares)	(945,501)
Restricted stock units forfeited (in shares)	15,891
Stock options forfeited (in shares)	97,970
Balance, end of period (in shares)	2,439,116		1,105,856
Number of Shares Outstanding
Balance, beginning of period (in shares)	8,393,888
Stock option grants (in shares)	945,501
Stock option exercised (in shares)	(651,010)
Stock options forfeited (in shares)	(97,970)
Balance, end of period (in shares)	8,590,409		8,393,888
Vested or expected to vest at end of period (in shares)	8,590,409
Exercisable as of end of period (in shares)	2,591,375
Weighted-Average Exercise Price
Balance, beginning of period (in dollars per share)	$ 17.56
Stock option grants (in dollars per share)	38.20
Stock option exercised (in dollars per share)	13.44
Stock options forfeited (in dollars per share)	24.24
Balance, end of period (in dollars per share)	20.07		$ 17.56
Vested or expected to vest at end of period (in dollars per share)	20.07
Exercisable as of end of period (in dollars per share)	$ 12.02
Weighted-average remaining contractual life in Years
Weighted-average remaining contractual life (in years)	8 years 4 months 6 days		8 years 4 months 10 days
Vested or expected to vest at end of period (in years)	8 years 4 months 6 days
Exercisable as of end of period (in years)	7 years 3 months 29 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 173,771		$ 145,810
Stock options exercised	16,850
Stock options expired	1,194
Vested or expected to vest at end of period	173,771
Exercisable as of end of period	$ 73,279

Common Stock and Stockholders48

Common Stock and Stockholders' Equity - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock-Based Compensation
Vesting period	4 years
Weighted-Average Grant Date Fair Value Per Share
Stock-based compensation	$ 7,832	$ 3,097
RSU's
Shares
Outstanding at beginning of period (in shares)	633,115
Granted (in shares)	911,805
Vested and issued (in shares)	(95,094)
Cancelled/Forfeited (in shares)	(15,891)
Outstanding at end of period (in shares)	1,433,935
Vested and exercisable (in shares)	180,000
Nonvested (in shares)	1,223,939
Weighted-Average Grant Date Fair Value Per Share
Outstanding at beginning of period (in dollars per share)	$ 33.84
Granted (in dollars per share)	38.51
Vested and issued (in dollars per share)	33.51
Cancelled/Forfeited (in dollars per share)	32.52
Outstanding at end of period (in dollars per share)	36.84
Vested and exercisable (in dollars per share)	35.25
Non-vested (in dollars per share)	$ 36.81
Grant date fair value of RSU's granted	$ 35,100	0
Stock-based compensation	$ 2,300	$ 0
Minimum | RSU's
Stock-Based Compensation
Vesting period	1 year
Maximum | RSU's
Stock-Based Compensation
Vesting period	4 years

Common Stock and Stockholders49

Common Stock and Stockholders' Equity - Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jul. 31, 2015	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Employee Stock Purchase Plan
Stock-based compensation		$ 7,832	$ 3,097
ESPP
Employee Stock Purchase Plan
Shares reserved for issuance under the plan (in shares)		645,258
Maximum offering period	27 months
Stock purchase price as a percentage of fair value (as a percent)	85.00%
Issuance of common stock under employee stock purchase plan (in shares)				127,510
Remaining shares available for issuance under the plan (in shares)		517,748
Stock-based compensation		$ 100	$ 200

Common Stock and Stockholders50

Common Stock and Stockholders' Equity - Compensation Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Compensation costs charged as an expense
Stock-based compensation	$ 7,832	$ 3,097
Administrative And Marketing
Compensation costs charged as an expense
Stock-based compensation	402	203
Sales
Compensation costs charged as an expense
Stock-based compensation	1,574	754
Technology And Development
Compensation costs charged as an expense
Stock-based compensation	1,215	449
General and administrative expenses
Compensation costs charged as an expense
Stock-based compensation	$ 4,641	$ 1,691

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Income Taxes
Maximum percentage of the indefinite lived net operating loss which can be netted against the deferred tax liability associated with the goodwill	80.00%
Corporate tax rate (as a percent)	21.00%	35.00%