TDOC - Earnings call transcript Q1 2019

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Operator

Welcome to the Teladoc Health's First Quarter 2019 Earnings Conference Call and Webcast. All participants have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and answer-session. [Operator Instructions] Thank you. It is now my pleasure to turn the floor over to Valerie Haertel, at Teladoc Health Investor Relations.

Valerie Haertel

afternoon, good and you, everyone. Thank market Today, release issued press we our after first the announcing quarter a results. closed, XXXX financial The the in teladochealth.com is section release the website. Investor of press Relations available

to discuss Officer; Controller. Executive Cappucci, Joining me Gabe this our are our and Officer Jason Accounting Chief results our Chief Gorevic, and afternoon

financial evaluating reconciliation in believe also details found these will two, will important posted performance. quarter we our on followed Q&A by second GAAP discuss be be today's will release non-GAAP and call, we outlook We XXXX our measures More certain comparable non-GAAP session. most on measures measures, our in can are of the provide remarks our press and our that website. On a prepared the

during Health certain could call from defer which and reminder, forward-looking statements risks, made Teladoc subject that those other statements. or factors by a for be to statements are results the will to forward-looking uncertainties implied materially expressed actual this cause As

For available to the and the the like over earnings turn with cautionary our At filings additional press SEC statements in to to please our time, I release website. call this would information, Jason. on our refer

Jason Gorevic

to our XX% total you'll as financial our including X.X all And expected especially Advance when XXXX, and operating In expectations XXXX joining us in met with and Valerie, million membership U.S. health new million existing QX exceeded adding EBITDA and thank versus saw members through and of growth exclude year. XX% the We comparison of first million grew adjusted or the X.XX million. afternoon. our remainder the you everyone our range plan strong we volume prospects of at million I'm $XXX.X growth very Visit about Thanks, the clients. pleased XX% in in members XX.X revenue organic or start enthusiastic increase members this million for XX% new grew strong to among new our X.X Medical. extremely XXXX quarter excluding to for the Medical. quarter came first Advance paid in visits within X.X quarter.

quarter and channels commitment excellence. first enterprise-wide underscores diversification to across geographies, and robust growth of the products our business operational our Our increasing

me minutes our It's worth primary our in this and that our last strong call make same couldn’t drove Let which quarter visit crossed first possible. very the The spend our is of first few and be million quarter identified threshold a on who a volume. visits volume. we've noting our I this proud in I physicians factors team

lift slow we flu by visit in XX% weaker of Despite our resulting As sound by would marked we the surround strategy, impact season. start last organic season of diversification a this XX% which to Compared offset this from a realize campaigns adoption year's declining levels, by overall quarter in the epidemic was later were of and mainstream flu benefits year-over-year. modest tailwinds to the all followed deliver trends, our able flu growth. a headwind, visits

in surround driver channels. Among our breadth and resulting was behavioral the to a annualized of of QX efforts, of both last continue strong rate XX%, DTC in more becomes and ahead slightly clinical of expand of continues significantly increase our with BXB be our growth, effectiveness which predictable, the sound even year. we As our capabilities a health utilization clinical visit growth to momentum specialties, our continued engagement

behavioral revenue expect this strong adoption, of total the to XX% result health exceed growth a for full-year. we As

spend the health U.S. health pipeline our this fact terms the from have for the the quarter and last days in of to recently in with the few volume population of many of to Additionally, beyond, delivery as consumer of year, encouraged XXX% to systems growth areas plan in visit one large and on volume market of intensity visit health present much including that a for across over continues care needed service. and total services. to testament Switching XXXX product, mental particularly healthcare I breadth strategies. landscape we products plans strong greatest the value of by a and leaders a focus C-suite health I'm key gratified opportunity May, component potential the the of the enter by increased incredibly was virtual as in and versus month medical health I behavioral awareness by

members the me care their that equip achieve healthcare services, goals. of plan address health ability our proven with increasingly X the broad drive the proof healthcare wrestle Health of Teladoc in it's of at through to to As how XXXX consumer of make intuitive players the is becoming to our array them importantly to clinical system, our ability to a our Due adoption. order traditional to single scope channel uniquely paid interface, to continued widest front needs On the growth QX to virtual clear over positioned and of success. is million consumer

see the As time deploy have we our these to strong can rates growth we've this in a channel dampening engagement and grow average utilization effect over initially. populations. We our actually rates strategies said past, overall utilization PMPM as large typically on in

and quarterly the further when will metrics dynamics to due our a into delve our our as financials. success. that us of this victims You'll mix Dave reviews he is these of entirely case own in being see

is organic steps virtual while On capitalize accelerate we greatest our opportunity In closed the first mover have the European good position. we're in to to where only this focus leadership solution, first The our quarter. cross seeing first the to see execute a we took international on strategy of several we where market Teladoc growth advantage. example successfully this positioning continued have front, maintaining quarter, of global the several on as and the sales excellent care

partners and increasingly favorable a MedecinDirect of leading Paris-based acquisition client expands care. that in market virtual of the from insurance announced reimbursement clinical recently spectrum services where footprint are MedecinDirect Teladoc can European Health. has and a our we now complementary highly much to benefit conditions that base access broader toward well through established Additionally, regulatory of a

never our U.S. or business of quarter Finally, highlighted first the opportunities call. launch to has Canada stronger. positive of new the go access is Telemedicine and XXXX. quality our across has on the been all in of our in client the we initiative regardless pipeline high offering care, Market services live Teladoc very across growth their to with first scheduled of a of In February Canadians XXxX Canada, summary, and we This reception announced kind location third provide been its convenient medical channels

picture in We continue for positive leading to trends beyond. the see global XXXX and to season selling a regulatory promising environment, the

negotiated increase medical we lower Before a estimated over this is of pricing in I directly as It's the the key We're Pricing for since reimbursement. in be call Medicare Advantage. to important this and did it expect we'll discussions year. Medicare very Telemedicine will topic note XXXX costs. important CMS rule half while has to Telemedicine that the to health I'd and how into plans turn have much be accessibility year Gabe, services behind prescribe from savings of to market information like clients, to has to us the inclusion CMS not serving providers the plans. on both active for Advantage care between to the with like spanning government we been back existing released in the prospective ruling, virtual this and care cover briefly recently head for the and

to review quarter Now, the I'd and guidance. Gabe like our to financials over second to quarter our turn for

Gabriel Cappucci

you, now start review financial XXXX good Jason's comments performance Teladoc echo I more will afternoon Thank to Jason like Health's everyone. first and our and in detail. regarding strong to I'd quarter

first revenue XX% to revenue. constituted revenue subscription increased year XX% Revenue me XX with for for basis, accounted Total of XXXX. Let the XX% of revenue, quarter ago. accounts quarter first revenue from of to while compared fees for million quarter. about increased XX% year Visit total million XX organic million increased to and prior access continuous of representing a subscription The in year of growth international U.S. revenue subscription revenue remaining and as million $XX.X fee ago three access On total of balance. our million compared quarter discussion the for increased represent total fee a to the the an revenue. start subscription $XXX the $XXX.X of by quarter XX% XX% revenue of to compared the to the of for a

with Turning XX% paid ago. quarter membership, million a we XX.X the members, year up to to U.S. ended

visit a U.S. fee definition our that PMPM As members membership does paid not only. and include includes with or of a are just members U.S. reminder, access paid associated

to addition, and is XX.X experience increases the plan our of and visit as which channel services to PMPM our we plan basis broad a utilize most to current reflected the at our the saw $X.XX fee members clients plan the impact enabling as mix member increasing which on us surround $X.XX was increases our Jason visit plan the rates. services, result offer access quarterly other to provide, drives year-ago Further, as we generally from with XXXX members client overtime. relationships health available adjusting It Even the sequential populations in increased health or The our PMPM our services forma us a our million quarter opportunity at within meaningful to the sound important impact a large individuals to mind keep when see of discussed, utilization. On engagement from that health a we end new competitive base a In members. health advance deliver first saving pro membership of additional clients, clients our expansion reduced provide volume $X a for also the a allow the $X.XX from quarter. our at as medical. expand and from was basis,

members volume adjusting quarter XX increase visits, look XX% Medical, the quarter. increased prior with respect from increased compared last utilization visit our year's membership over closer to with visit first quarter to the increase first to a fee As at were of mentioned, annualized and represents the our from XXX,XXX our U.S. visits Advance from totaled we Visits the quarter, with have an visits and XX% for by International for members. of point the visits memberships on XXX,XXX included To impact the a completed quarter were paid basis When million the paid my paid $XX.X as increase of only Taking access. visit a which XXX,XXX quarter XX% XXXX. paid for the visits them quarter generated compared visits, XXX,XXXm XX% Jason visits over we of U.S. approximately during in XX,XXX year. excellent X,XXX,XXX other with the commentary revenue, XX% individuals volume wrap-up a an to U.S. year-ago. or in

first a XX% compared well the this other from totaled such with of line as primarily expert million expectations XXXX well the the $XX.X decline in acquisition margins commercial The and XX.X increase. line quarter Terms last the medical to million or of quarter Advance an of we eliminated, our at shift a as costs total medical of Medical. to are as general stock includes compared reminder of ago, quarter As a visits from year. expenses reflects XX% first $XX.X compensation, dollars representing gross in and comprised percentage behavioral adjusted amortization, XX% revenue margin $XXX.X increase charges in mix in specialty a last million of million, in health generated expense XX.X% $XX.X in are the the Gross quarter services. acquisition When of depreciation midyear the as Operating related in revenue. and year-over-year million were to one-time net quarter from generate visits gross revenue of operating income margin leverage. the XX% loss communication for first year as and to year. XXXX Adjusted as non-cash to a EBITDA year. $X.XX of ability year's of which the or compared of digital quarter for for first the loss year. through in quarter basis, to our the improved period reflecting to synergies per EBITDA last was million XX.X million compared year. loss quarter our million app first our of $X.X a of Concluding prior X.X the positive adjustments a members loss On XX.X was compared revenue, leverage loss the net for to These was XX.X share web. our same the last adjusted XXXX to the of EBITDA commentary a a quarter quarter, aforementioned first million better first for operating including $X.XX improved million compared XX% $XX.X million my loss the $XX.X or operating increased of compares quarter, for choosing our XXXX reflect statement, million favorably last the

to we ended short-term and quarter approximately equivalents Turning cash of $XXX.X the increase the sheet, the of cash, $X year. million in balance from investments, with million beginning an the

XXXX total convertible The note our the second notes my XXX.X issuances. Our million, and at notes quarter was as million commentary $XXX.X two conclude I'll the million expectations debt during full March of convertible XXXX. our X% X.XXX% XX, consists XXXX that the end for of with and of XXX that year. mature mature which

million $XX EBITDA and loss we million, expect EBITDA revenue be to quarter $XXX million. to be individuals. paid and million fee be only Total $XX and $X U.S. be visit XX to $XXX adjusted million $X million to XX approximately between between access million between to total the membership positive to million million approximately to For and to XX XXXX, second be of available

expect average shares be $X.XX between between and be XXX,XXX $X.XX XX.X and visits weighted We XXX,XXX and based net share outstanding. share to on per million loss to per total

of the $XX between adjusted through million visit EBITDA XX between be total we total members, full access year million expectations of approximately to membership and only affirm XX individuals. $XX available For approximately $XX XXXX, million U.S. million, and $XXX and and between XX million to million, previous million $XXX fee our million $XX and million paid positive revenue EBITDA

We as the before, in per we expect and And and cash for share loss to $X.XX million time to be between $XX.X net flow between we first on per expect visits $X.X million, million weighted total based $X.XX positive shares $X.X XXXX. be share said outstanding. average

call back remarks. turn Jason Let me his the for closing now to

Jason Gorevic

Thanks, Gabe.

seeing update I although to a candidates is and questions, not we high process our I'm provide for Before open some our a the confident priority wanted search. we're remains call CFO brief on This concluded. yet the to be in Gabe for keep as time we us you find and to the finance us news forward. we gives organization to drive our I'll step sure have updated team announce. which the to right need great

the commitment our living beginning the and quarter pleased for world to at team our call, their the mission the said I'm I As of thank like And results. continued very we'd with to the Teladoc to around values.

deliver been greater on with and And Our with our for year. strategic for members. opportunities we continuing value forward call have and our will I you clients never that, throughout execute updates open plan to as the look the we to questions. share

Operator

Instructions] Your Morgan. JP Lisa Gill question comes with first [Operator from

Your open. is line

Mike Minchak

that Thanks. a for generated lot our It's start questions actually it's just of been Maybe Minchak off, given that's end. topic to Lisa. Mike in a

might process extension? the could you talk talk little feedback NCQA any Just from bit wondering, what, you accreditation, about the you what if about that a can recent regarding have And entails? NCQA gotten

Jason Gorevic

with back saying we've XXXX. start question. I'd Sure, to certified first dating got Mike. NCQA. for by and a been accredited for years, the We've Thanks good relationship

of We about two this I go process, of are process be process. respect we would nothing highly That's part do much expect through just respectful We're review that There's moving middle to in been the as their reaccredited. process. the to weeks. of the by with they and date say,

Mike Minchak

year? your current to talk could more for a compare prospective of pipeline the last you this that. How or one to Thanks greater any traditional in more same if looking season the models business? on relative customers about are subscription alternative and selling the this point it. little fee for of then access you the solution bring then, wondering, And year the to you relative And does just from Got seen with bit And model? time offerings? seeing interest have in than sort comprehensive in interest customers new

Jason Gorevic

more of integrated RFP, year, characterized Yes, of that as concentration, first process. subject forbid but that so RFP services last or clinical more is opposed of the question fully much fee as concentration seeing. part our which two comprehensive by last sort or or we're the of part year the much one the volume solution the the of Similar as to higher solutions first were of much what question was exactly

a process any of clinical that end So, like. RFP of payment deeper structures. before really the start include what array I bigger way financial that We're generally in difference going early we're It relative seeing see toward so, looks our opportunities don’t those Obviously, dictate, you having to in not financial and alternative much the discussions, year significant financial model the pricing seeing gets the structuring move models. capabilities. is much to the and we're but still usually

Operator

next comes with Stockton Jamie from Fargo. question Your the Wells of line

open. is line Your

Jamie Stockton

Maybe of some just like Jason specific Do a your when the something majority plan that plan, they that in the is. Advantage the for the a kind the on guess more folding about the year? other I that a be you've to on divisions saw we third of Advantage do throughout Or in of more you would think X of second then the years? kind X the MA is in or landscape one. will a comments the opportunity, will think span Health there would think you question over maybe said, be see Tela I the benefit And year. is the guess, confined I Medicare XXXX lot of relatively this see opportunity, you half I If making? quick one decision we'd we think more quarter maybe like Medicare next

Jason Gorevic

we're MA that the in I the plans, of going a couple respect the that's would by QX. yes, to with see of -- probably to decisions say probably One, concentration things.

are holder place with we the a going head a Others finalize I XX work. they health bids of they're due will with partner Obviously, are who will June. essentially start make the the respect put details in selection have to plans with while the already of whom that. our we Some almost decisions with in them there in bids of and their now to before

we move So, to expect them overall faster.

in are prospects. as clients plans with discussions as existing many We MA well both actively

health that majority more of of respect about. over virtual for to to probably I'm of with and care obviously to XXXX? expect the the course do of question with have MA plans three include the sort lot our that Or I I stretch think we've in but pump think I going care those gradual Will the of commercial years. pace is rollout over with the primed the years? couple a a about to it population. MA more plans much anything commercial the all of work also your for a realistic plans less virtual be plans, adoption would maybe

Operator

Your with Jaffray. Wieland is Sean next question from Piper

Your is line open.

Sean Wieland

update of the opportunities an What us larger the rollout been you expectation is Can working give some on United? for TRICARE, you've there?

Jason Gorevic

always could respect Yes, and delivering operationally information you as the service delivering of We're where mercy I them government wish I great with the on for well as at experience. their timing. to as give federal more TRICARE member excellent results

much speed really actively to are only try so there's can that do. working we to We but along,

respect United, continues obviously we to contractor who's continue Our the with relationship relationship there United. a with Optum great to excellent. to have be prime With

The much provider larger population. we've haven't I'm that agreement expand happy several been plans made to to their very for rollout a populations. care said I before, report reached As United's of public. we're virtual to

at relationship. So, expansion but limited by excited can extremely is time, I provide I'm this of there our information this

Operator

with Ryan from Your next is question William Daniels Blair.

is open. line Your

Ryan Daniels

one design I on benefits the front. have

membership announced seeing planned in curious, plan and where leverage you're a into of a of attract pipeline accordingly? for perhaps similar a actually in to lower customers one or the with and competitors actually I'm where if overall kind go think strategy either First and I First who right members mental Virtual your to conversation offer premiums your premium any that. health your they're Virtual strategy you lowering type point-of-care medical people can the costs lower get

Jason Gorevic

that's Yes, we're what exactly Ryan, seeing. absolutely,

number health two, plan we're to plans, looking health premium network a people our are virtual in plan cured a designs. the excellence discussion including time level programs of most center of into tissues of some by programs, of having first formulary Number optimal programs addition the lever the using like disease and plans the rest by care as etc. around utilize majority patient the most resolving Virtual those setting; all things care more better getting in virtual And management, of reduce and cost-effective one, it in and arsenal setting at First to the management With of tools the earlier to curing by.

from at decreases we to groups and looking when plans virtual the these are large So most double economics these designs. groups they're that which coming medical tend in centric among health from result conservative anywhere talk the premiums could plan there to be are, digit

Ryan Daniels

pretty expense on the Okay, that's than very sales leverage we one helpful. income one good And you're seeing in specific the then like looks really line, some certainly statement, it thought. more

over it year there behind your XX% year was color line what's under particular? think up despite in in driving of leverage kind strong revenue that growth. Any the I

Gabriel Cappucci

this Hi, Gabe. is

expense, Just when look at correct. our you're you absolutely sales

we've within we our winning have we board. on that and As clients really troops, lots working the of success headcount new had in deploy

closely very to very that that as productivity on quotas really terms be sales are of and and we the with track we the successful So, front. in rewards continue seeing

Jason Gorevic

clients of I that that big the in to seen greater think, bites get terms so to efficiencies help on, in get tend have we coming can productivity Ryan, we larger we -- and area. drive

Operator

is question Citi. next from Demko with Stephanie Your

Your line is open.

Stephanie Demko

thank taking my question. guys, Hi, you for

can you such of back win could or Children's the the competitive give share announcement, on share the on you rate? an pipeline any us possible Cincinnati channel riding update provider and as Just metrics

Jason Gorevic

channels. quickly. The our Stephanie. relationship be be customer that's a going a the Yes, think organization. It We're excited of channel to to with Cincinnati really care relative pediatric one breakthrough Children's about fastest marquee grow we continues to incredibly thanks and growing obviously to provider continues

that continuing and the at continue rates. we What for they are our rolled hospital success hospitals year that we in strong win capabilities look of the seeing more very, year, that. specific virtualize we're a about We the of to clinical array workflows to this which their see talked the different see is HIMSS also is of We specifically, expansion last very it really enables broader clinical come for us to to service And lines. cases, we're valuable. as seeing design use to capabilities, asking out

opportunity but sell hospital whom So, we hospitals that also grow work, the think there's those to continue we scope to of the the with we products and into services systems.

Stephanie Demko

just got Very the other still to into helpful. in one And the growth strong are you demographics it version the then about and your a for What health, further eucentric right of pivoting behavioral one you talked more given expanding in now? thoughts channel. divers

Jason Gorevic

not deep any business. of buy our versus into given build go Sorry, on too to try part

think point, frankly, at I strong BXC seeing and quite channel. BXB organic very we're in very, the the this growth, results in both

asset might our about is But of set say capabilities. It's feel revenue an both as very importantly visit would never could a growth thought channels. that additional that good we the organic to not we well leverage as membership, really smaller those into we we very deliver of tuck-in, so, And strong. in volume terms capability

Stephanie Demko

been on Perfect. safe controversy? say has the little to a there And that YouTube impact

Jason Gorevic

none. would say I virtually Yes,

Operator

with Dodge question from Jefferies. next Sean is Your

Your open. line is

Sean Dodge

that regulatory else technical there's like make looks that's in a issues can there, bit one outside bit share in expected your there you've states Maybe all on you -- some to now than it's of available longer holding I live or but control. CVS, taking Are in that's But realized a what's 'XX rollout pace anything so you're about back the remaining. another far? the encountered

Jason Gorevic

-- at way. a that in Yes, first little exactly out quarter, at in regulatory standing of rolling to decides it's right. one Sean, that, expected question I quarter. CVS and a are couple area Having we states an said there it's the the happen. simply and I'm get quarter are saw a the It make issues, technical I the you're spillover of that issues expect, look there not roll no cadence where the out I area It's rollout as that disappointed are in which that no to

great see an have I regular relationship collaborative, art of more sort we just frankly C-level with have and their of effect We become of through there. relationship, so to that continue stronger, Aetna to going with with the and them I and quite the the them think a CVS continue more machinations never both strategic, it's rollout. conversations

Sean Dodge

then, on you And on or revenue MedecinDirect acquisition, from the can anything contributions is EBITDA there annual them? share

Jason Gorevic

Sean, both small, it's it's on very front. immaterial

for market, And ahead their buying in they is To specific Essentially, change credit, small. insurance French the real and regulatory out relationships ahead France. with services. give created I companies they really imbursement details, the so, got their going of what in these we're and structures of being not their it, very local call would very, about to XX we're there but presence a market and relationships

they've all Now, that which opened ground up we -- change we're that together can of be market the just beneficiary the think the that regulatory laid. seen and just does we we've so, work

So, revenue we're now, but the it's there. about excited opportunity very, smaller very

Operator

with Close Genuity. next Canaccord Richard from is Your question

is line Your open.

Richard Close

Jason, provided the had pretty some obviously, I Yes, about target, something and sound here and normalization continue XX% call in you XX%. that feeling quarter bullish the last this to confidence organic both trends business think on to growth XXXX. to you 'XX said XX% So, in you you've were the

thoughts what those whether targets? reaffirm your about XXXX can just So and you curious, XXXX are

Jason Gorevic

we are. year. quarterly days I guidance our think very good Richard. absolutely, our where this report. after feel behind I I for Obviously, XX we last that, about We're only Yes, reaffirmed XXX% we gave

prospects very good I fairly XX% take relative and this to pipeline when having conservative prospects to I half of continue clients, and about XX% and still our view know we're with at also XXXX feel we given feel guidance, think to I I'm looking that the a to discussions what for So, back I about year but well. the for as

Richard Close

million. Okay. membership the a seems have It the I for around guidance that for guidance on United. in the to I year. don’t the guess on remainder XX TRICARE Sean's and then, only that's guess question TRICARE And the you of any visits follow-up like Is really Based staying correct?

Jason Gorevic

That's correct.

Richard Close

Okay. that's not And same thing population the the United's you've in guidance? just the then with mentioned

Jason Gorevic

correct. That's

let to We clarify. Those do included we is membership any membership and our with into rollout we're that have what guidance communicated the we me United, and sure haven't revenue our sync are rollout while their respectful we in because projections XXX% So any them built and how United to just so expectations. clients our these have guidance, for we in hasn't are cost guidance. and expectations our be it's have plan included been very haven't both be

Richard Close

to So say fair that's would from it the revenue that is that quite your haircut a guidance bit population. in be

Jason Gorevic

say relative expectations our I very taken view we've there. would conservative to a

Operator

Your with next from Gupte SVB is Leerink. question Ana

is line Your open.

Ana Gupte

evening. thanks, Hey good

Following the up revenue if at and look the know Advantage of United. impact you that question, XXXX you on Medicare potential

years. expected the with XXXX that You it's and growing assume in members to to the have be to United, how it's fair on of contracting market million I as something know and double at assuming for you're I'm millions commercial do growth and I'm MA. but the a PMPM that you whatever three model, that than more, XX-ish larger it you the saying they needle know, is, next it, sure if with as the all year, can the commercial we members. is this mean, up not adoption much We a one X-XX% to typical you going utilization could percentage pricing, and story in And stock? drive like move look Jason three is between you per to about visit, the at ultimately now? going way that's even even think with if and something two potential if a to low to you what contracts gain. the of to digits these two, have those what's is to come share is what's going least start know depend your is

Jason Gorevic

not careful over skies. So, always our been getting we've very very, about

the MA well right clients to opportunities relative macro work couple in for follow internally, our with of ready the over opportunities Medicare to I to big think of fully years. we I you're those Obviously, We're not the you're large catalyst. quantify fee build the we're them into in us expect as changes. until thinking careful about suit way. but do right exactly a as service guidance. them quantify the the trends, to is front next regulatory and the specific

So, the me XX% prospects of said mainstream the better never the sort and felt care which of reaffirming we're organic adoption next I way, business about to and the growth. into my another moved has for fact that XX to around the expectations confident makes see starting wave virtual that in so

Ana Gupte

it more have that Then health helpful. Doctor network be the big to follow-up as strength on There's one some I yourself, than be saying terms been right technologies disruptive now, MDLive, is, Okay know had you will that plans largest in at the Amwell you of Demand. you catalyst you the player franchise for our and least just get know these adopted. of the

the strategic in least looks relationship Demand, Amwell, on it We at with Cigna now with drove have like a with Anson Healthcare commercial has us market MDLive. forth and Humana Doctor

United this open not a right health it now like goes all is aligning you forward? the Do is with in terms looks way or not. of gains am the I see each architecture you plan have opportunities with large of these what share sure going You of particular for CVS,

Jason Gorevic

ourselves a our characterize aligning. of health across XX frankly. track wins we And takeaway neutral, around record health not I'd our to the have relative get, we're clinical footprint of where as so, current the expanse terms I services, that and saying, see our success, it ourselves that plans clients, we and business. based pack And by channels, plans to few fact first certainly limited to our seeing not scale global we in quite from We the guess engagement of on are distance levels multiple of plans. continue the only our we even the

the about positioned many grow a are for the think would say that liked penetration with clients able uniquely there things this the leader of opportunities. growth, one by increasing utilization on to opportunity capitalize within we I've we I but existing to with to and those have continue and expansion where, so that scope of business be the always levers is to I as relative to both services offer. It's and new clients,

Operator

from is question Robert Baird. Matthew next Your Gillmor with

open. is line Your

Matthew Gillmor

I fee? really whether it us or population then model tell wanted to terms But you try to much And the be I sense it's visit indication if us said. than and a of give follow-up in you on respect covered pricing with government? the can already appreciate more PMPM the can will any you've United that any types commercial this or

Jason Gorevic

I I why question really Matt. the asking. appreciate and you're can't,

clear and of get very the to timeline I to client Again, we their become more and we think respectful our launch as communications will as be date. United want strategy. closer

relationship so more again, think clear closer excited have we of into about really the become phase And as to the we moved And our I date. get and we will implementation I'm that. launch are

Matthew Gillmor

is Virtual physician the following the with more to And was then little changed Virtual And curious, design. have Virtual your influence contracting you has still does Ryan a for benefit contracting with up have Or respect model bit network enough. model First need through doctors First discussion Fair if care offering? with thinking current on I any the you under to the work had employment? First. the primary with there with respect

Jason Gorevic

work how and for on call concentric the who been where what larger becoming question, good will a Teladoc physicians Matt. toward now, optimally model a highly of of are it's have network we doing more closely more time, trained call the core, we a the Yes, We've at what sort spending and their we circles doing aligned of moving likely to organization, concentration membership, the list virtual our and with become of who physicians and always that is then a fellowship list specifically needs. members we to most to and have very way future. are the that on for University in core, our of efficient convenient you much more consumers available move transactional for continue launched means the deliver the responsive episodically the will And that that out creating a might with program recall we you as from focused virtual Hospital Jefferson

Operator

Your SunTrust. next question is from Sandy of Draper

open. is line Your

Sandy Draper

season is right market Thank but that how international Is my things before are are you going sort we're them for selling they selling of on bought part Medical season organization, before sort how any been was of just sort on the asked, the U.S., maybe the follow-up of that seeing? right of likely maybe questions it typical but is a not and you've just international that I and the very on much. the I'm just Advance versus was sort Most large have much broader going of sure market year-ago? thoughts guess, being of them? of differences how offerings? sort how for Just one

Jason Gorevic

Yes, I'm Sandy. growth. opportunities sure very, about and international and very excited our

cross What that most I their of bolus suite lines. where you selling no membership call full the we know, is of of differentiate than our private And or the different totally many when concentration. have the out to about companies would in that's with U.S. in to availing full cases we're they sit because is actually, healthcare examples selling with clients international many nationalized U.S. clients. were you they one the successful real is care of And capabilities a adoption the full by say respect themselves are course who clients system. over year on on. themselves embracing being excited virtual suite of of only the service we're, are virtual services actually continuum the cases, ahead insurance we're January top across smooth their is It As the health of There many no who a that of centric the seasons services. two of comes in looking the

well I see set then especially our in lastly, say of European going the the And launch we've clients, across to and new announced of broadening really but populations among we're Canadian would as program. as expansion So, Telemedicine of wins market. solutions our the landscape,

We to up in unique the because Canada again just to border between client live lined have first the program quarter. a it's go that's third U.S. and And our reiterate, cross

they It's two get seamless come Canadian one the population can program. For side still a a it's programs it's by as not rather by they seamless side south experience.

Operator

with question is Hooker next KeyBanc. Your from Donald

Your line is open.

Donald Hooker

margins gross that guess My you more took I a detailed the in maybe a thinking Medical. Advance is past about question on you talked I assume financial obviously question the part big of dip. statements. about

-- and that gross walk low start there quarter that a is is mark So sort the sort order of the up stabilize? little for during year to margins? Should of this bit

Gabriel Cappucci

first fourth in margin lowest a quarters, and correct. be typically our Don. quarter to our tend exactly And at acquired Medical is the comparison gross activity. higher Gabe. versus have you of percentage for Yes, in do the year-over-year This our that visit first of exactly That's quarter we What experienced mid-year it's XXXX concentration we as then is look we when year. which the year Advance of XXXX, percent last margin quarter

Donald Hooker

specific for incurring describe you're services of you're there sort incremental a and Maybe the opportunity expenses for now any that preparation Medicare that? for lined you mean prepare I any there with you Advantage XX you XXXX question in to mentioned, that are already are you're incurring? plans anything doing specific? just maybe what a you health follow-up Are up needed population? on that for what Can beyond, and

Jason Gorevic

call investment quarterly different are of last there out I and -- called one them. think four of on was areas the Yes, we MA

do specifically focused regulatory there's compliance, sure And things to of on whole which a compliant so, regs. you with make order in to set you're have Medicare

regulatory and little is some to network of between relative there construction physicians. regulatory an Second requirements bit the network there's overlap are a and because

do most customer when sure into that engagement we to market or our all populations for that return product the we as channel with our that for optimizing And Third all population. investment we optimizing segment just is different is in fourth the want product are sound a surround our sound. yield sort new MA to the make strategies of surround because go and communications on optimizing we're the with we making population sure of for

research we're testing market doing some so, And and that. relative some to

Operator

question next Credit Suisse. with is from Your Singh Jailendra

Your line is open.

Jailendra Singh

include second even at hi and you guys to it everyone. help Can of half ramp EBITDA, QX reported I high-end lot, some the XQ, us second half ramp the revenue half the and XXXX? first decent Thanks a EBITDA the you still guidance If from for full-year look in in to get understand your require would and to guidance. revenue in

there? half are Just what give assuming you some like for color second ramp

Jason Gorevic

macro ramp looks but obviously of can right maybe third now, say, you not view, well bit Gabe would sort are we like. what sort little color give quarter of give aware fill guidance I'll or the in fourth and So, a we're going of I of commentary. to quarter

a lower If you and always a quarter. second revenue visit visit volume lower quarter look therefore the at that's

get subscription visibility if Last in the visibility. in granular we fourth increase full corresponding And impacts you members and twos, and and line are of And anything, as giving ones Gape, see. and of so, volume start quarter double subscription visit And visit the from. based new into late have talk you'll for see contracts to that we like that comes revenue. say as about deals of in visibility a more third but very to think we course, quarter the fourth And continue want revenue onboard to that our than on would pretty that's subscription continued revenue the good pipeline I'm and already get and into north where what maybe sight looks continue good that improved line quarter That new and signed, on therefore revenue, the EBITDA. clients. into year. quarter, said revenue we of you I growth the we well sight. continues of add XX% going as well as have significant the not we the I have, bump the as stage increased our again, to growth that

Gabriel Cappucci

in and I see that at access throughout centric the as ramping From as been phenomena see that. visits P&L obviously similar now. EBITDA that see sequentially do of adjusted we're right from throughout growth standpoint, we more saying see that standpoint, to you you'll throughout revenue we've increasing, in in, have one, We'll even will and fourth less we'll EBITDA as of as dynamics and just the the XXXX correct, we Jason. will associated grow exactly with quarter, the fees year, so year, kick been also an sort that's continue and increases the see looking then as sort year. on we've one, as Yes, an that anticipate mean,

Jailendra Singh

the Can follow-up. on any you final one contract do the renewal? then to update update expect When have provide and there? you Aetna Okay

Jason Gorevic

we're have I confident will relationship shared success then would that forward. for myself when ever large and relationship do going good we've we think have been several learned the a not more strategic concerns I when for a with our been. with will It's locking on stronger great never that very been. continue it going timeline my contracts. relationship together. we're I've it's strong number years respect in not there. the it and into a very to lesson I'm have and no I but to earlier, have But results mentioned really of that seeing be myself about to I favor confidence exactly that, to than ever feel going signed And clients than that's I now have paper to is as had that, handicap of one, more collaborative it's in it say

Operator

Teladoc Health (TDOC) 30 Apr 192019 Q1 Earnings call transcript