TDOC - Earnings call transcript Q4 2019

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Operator

Welcome to Teladoc's Fourth Quarter 2019 Earnings Conference Call and Webcast. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following managements’ prepared remarks. [Operator Instructions]

It is now my pleasure to turn the floor over to Patrick Feeley, Vice President of Investor Relations.

You may begin.

Patrick Feeley

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

to call Officer; Executive Murthy, our Mala this are Jason discuss On and Officer. Financial Gorevic, Chief our Chief results the

and also question-and-answer will remarks be by a During will first and prepared provide this call, full our quarter session. our we year XXXX outlook followed

believe measures we important Please the measures non-GAAP most be we financial the release can Teladoc note performance. in comparable found thereof will certain Health's press website. that that that evaluating discussing relationship be measures between to GAAP are posted Details on is our in reconciliations these and non-GAAP the on

statements will results the call. XXXX. of uncertainties to materially implied that from this by and during those that defined as expressed other or note subject be cause Health statements forward-looking Private please Securities this actual Reform on call the factors risks, for differ statements Teladoc are Also, certain to Litigation forward-looking Such Act made could

information, filings additional all the refer For which in cautionary website. of our available with are on SEC, and release to our press statement please our our

the to turn call I'll now Jason. over

Jason Gorevic

And we growth XXXX. have we're Thanks across or experienced through continues expectations this robust across everyone multiple off, channels to Health. enabling for our key pay benefit year metrics reporting thank afternoon. in fourth strategies important exceed the the growth three diversified of Patrick. first quarters joining record as trajectory continued meet our The the XXXX to It’s And today, in quarter. to board. you Teladoc for us great performance on you to was an us

ability us gives in confidence results stronger it And in XXXX. to deliver our even great

This the members adding remarks. U.S. in X.X we with adds million our we'll largest XX over million later quarter. member which discuss paid ended confidence XXXX, this that a brings fourth We another members company XXXX. million total paid in XX% You see members, our rate approximately in issued afternoon, representing new reflected in the XXXX guidance that new XX.X the in history, of to number growth

only fee wins more double at resulting again in with year fourth highlight our expansions visits total full year. competitive Visit the reflects The was than growing new X.X the million over a prior in the XX% quarter, million XX.X the of quarter, year-end, to marketplace. in growth individuals pace for access visits and offerings resonating virtual prior year's the and Visit increased client how are comprehensive over XXXX. fourth

to continued specialties as We see strategies. accelerating increasingly adoption our engagement our across are clients embracing

fourth evident year's clients XX% the our is flu over is multiple prior to our real-time, even season year's the diversified Teladoc in data overall results available. more business. gives look as before past the the severe our in has CDC tracker, According XX visit product products clients volume quarter. year. to us it the help as prior at season, is flu This also a top versus not which diversification given been This Visit Health with than flu largest impacted operating by the offering growth of particularly drive meaningful our the our from flu was trends flu as among is although

season one approximately was And this the during flu than the in have February, flu of early out cases of of eight U.S. peak general flu of more prior season number We related. the versus medical experienced the our double visits year.

came visits who services. utilized month services first previously members use once from again. our of completed the half had that much users About time, they us our see January also for likely to We our more are the use of in not

products. and us We continue of our to season help increased flu expect benefit to strong adoption a drive

to more look of users for Teladoc new needs. their As healthcare Health

Mental channels. and DXC adoption BXB momentum health in and both be driver to the increased a strong see we as continues

side, doubled demand solution. in our a mental reflecting to been include mental XXXX, accelerating On Bookings than the health health for significant BXB has mental contributor our client more adoption. health multi-product that

fact, the the mental quarter experienced In of adds. fourth strongest was we've product health one new for

expectations, DXC BetterHelp in outperform. side, leadership lives, our the to has only product is consistently position significantly members' it channel. improving direct-to-consumer the On continues BetterHelp Not our our exceeded extending

expansion nutrition, to continue counseling, utilizing the During develop with nutrition to specialized offering combined quarter, the care. work launch based the expand program personalized Teladoc we service a directly a our on registered fourth the product with outcomes dietician and to health for offering with medical of consistent guidelines of Members personalized offering our with overall virtual comprehensive science-based reduce the of Nutrition will Academy chronic ultimately particularly and improve for members conditions. with long-term latest latest our us Dietetics. individuals This costs, allow

call briefly about to turn I in the Mala to and to wanted talk over for outlook Before our results I XXXX. more detail, XXXX discuss XXXX guidance

season XXXX, significant and we robust we saw selling revenue Following feel for exiting the outlook our in confident a growth. momentum XXXX

in revenue toward $XXX year end of range. upper target the XX% XX% to we the For XXXX, million the XX% to to growth, of full XX% to $XXX range be expect million, our representing long-term

very the including we're XXXX. the populations we're momentum expect as to with revenue mental We And in business, international health broad-based activate we in in visit growth strength accelerate pleased marketplace. large and across the the continued seeing we added

Medicare contributor growth. We more meaningful also to to a advantage expect become begin our to

a we opportunity expect that As multiyear said we've over to period. out play previously,

plans to adopt As care virtual MA begin strategies.

over and will that X of January opportunities pipeline in robust than XX, XX new of us the As have future. lives benefit clients more we a advantage Medicare million with

growth for view proposal which for avenue month, of the to the advantage a would telehealth adoption like within network continue highlight virtual requirements program. care CMS encouraging providers. a in And would adequacy Medicare we Medicare Medicare ease that CMS released with see also this last evidence contract further plans from as I of population. the significant to We

acquisition the be the second of on and the teams planning. could strategy end combined announced, InTouch six at and we quarter. pleased close previously the made progress commercial weeks with the more our Finally, integration running Only deal, the signing passed as not ground since we expect the being have have Health to but hit

signed sell to And Health from feedback a collective system the combined with commercial have been health offerings us has We the closing. allows Teladoc jointly of InTouch that transaction agreement positive. Health and extremely InTouch ahead the our clients

Teladoc see have committed a In InTouch collective virtualizing system care family. to welcome our fact, first we And excited opportunity the bases. extremely cross-selling, our cross-sale tremendous upselling, the contract. I'm for team in already We across and health customer Health to

call for as review financials a fourth detailed our Mala quarter I'll turn and full the over guidance. of that, year XXXX to With as well

Mala Murthy

Jason's you, performance. now I business the comments the Thank fourth momentum the I Jason that full level. like the a quarter review to more very regarding year would everyone. experiencing good echo broad based and at will with and the XXXX we is and afternoon pleased are granular

$XXX.X Total fourth revenue entirely impact increased was the million to growth that organic, Direct small for in revenue the of but quarter, acquisition. Medicine XX% the

$XXX.X on basis. or XXXX, For XX% total the full year revenue increased million an organic XX% of to

year growth. approximately stronger resulting in XX U.S. We year full dollar revenue FX growth the our prior reported continue revenue adjusted basis an see versus above points to a

revenue access remaining grew fee international accounted of visit consolidated to for year. subscription quarter subscription million, momentum U.S. fee the XX% million, last revenue versus exited XX% fee demonstrating year the $XX.X we accelerating in grew and $XX.X of the as revenue, for XX% XX% the and access Global with subscription year quarter grew of comprising revenue XX%. versus $XXX prior our million, revenue the

year. fee the Of Visit to with quarter million revenue or quarter for visit revenue the which from individuals versus in growth the the year. access fee $X representing only over prior growth increased XXX% prior was $XX.X representing XX% million

virtual Jason our the quarter and care offering. service to as access, membership million highlighted, Turning year, XX.X paid up adoption this prior XX% and to demand for increased reflecting versus U.S. comprehensive membership members the increased of

As up U.S. visit only end quarter does million fourth access. with and at with prior members paid includes the X.X only include sequentially. million X.X PMPM XX.X access individuals the increased visit not of a million Individuals only with fee reminder, approximately fee associated year and the the a to versus membership

volume year. over decrease last XX% versus XXX,XXX, members visit annualized increase grew total to utilization was in quarter. point X,XXX,XXX XX% quarter prior U.S. a visits, rate volume year’s the an in represents paid representing basis to which from the Visit XXX Turning of fourth the a X.X%,

the Excluding fourth been the quarter utilization would large over of XXXX. annualized third XXX health the impact plan during quarter, on-boarding of quarter during fourth points basis up XX.X% the the have

$X.XX year, full the prior year. we growth compared million in the $X.XX was year’s completed quarter. X.X in For quarter visits, of the prior representing PMPM over the XX% to over

health new see to average previously onboard As on a plan large we dampening we expect PMPM, effect member have when discussed, populations. we

quarter plan the fourth the third $X.XX. would PMPM added be of during the Excluding impact population health large quarter,

revenue visit to quarter growth total revenue fourth compared visit year. XX% margin XX% the revenue expectations quarter fourth quarter decline XX% in fee reflects compared fourth in Gross quarter, The of the strong percentage comprised and for the year-over-year year. percentage XX% at our in the as fee margin with quarter gross was to of visit the in of in performance line in last last the

XX.X% or the XX% $XXX.X full expense For fourth the in million. the revenue year. increased XX% full quarter XX.X% Dollar last year percentage year, compared in $XXX gross margin previous to the for compared to the to XX% gross was of totaled for year. margin of million Operating quarter

to Excluding related of were revenue quarter non-cash or compared adjusted stock such charges acquisition and in XX% operating and year. one-time as expenses, integration $XX.X million amortization, quarterly and the compensation expenses of last fourth depreciation XX%

compensation in EBITDA to our acquisition operating same $X.X year’s growth of increased in quarter, EBITDA a $XX.X compared million stock million the the the leverage. year. quarter period for quarter ability last loss reflecting was revenue one-time $X.X drive and including to last compared $X.X fourth loss million Adjusted million to cost for strong and to

million year, EBITDA For increased prior points. adjusted EBITDA the than adjusted to the margins versus doubling $XX.X over more as basis XXX expanded year, full

a a fourth million fourth of loss in was quarter $XX quarter net million quarter net loss of the the compared in $XX to $X.XX per basis, On share quarter of Our for the fourth in our year. net loss compared the $X.XX to was last XXXX.

For the compared the loss year. previous $X.XX $X.XX in was full XXXX share net to year, in per

we nearly achieve from flow cash At for have And the our outset full key cash financial million positive delivered to of that year, flows operations. operating on $XX year of the goals the generating XXXX. of of was one

investments we sequentially. the short-term $XXX $XX a quarter prior the million million year nearly ended cash in $XX with result, and and improvement and of As versus million

outstanding million, which two convertible Our December of our total as notes. was of consists debt XX $XXX.X

second the that Until announced InTouch is forward closes, recently impact the forward at all to the end acquisition. Please Now of guidance which turning Health of transaction guidance. quarter. note the exclude will the expected

XXXX, range noted, year Jason to all of be year, million to which XX% to $XXX versus prior for is $XXX As in substantially the organic. XX% full the expect we again the growth representing revenue million

paid membership XX% We XX only fee expect to members, of approximately approximately million access XXXX. total growth as to be to to XX to visit U.S. membership in XX new to XX% available million XX million And compared representing individuals. million

We expect XX% to to XX% prior million be million total and X.X total representing between X.X year. of over visits the growth visit

expect range million The grow double on million continued $XX focus in EBITDA positive weighted with to $X.XX in leverage adjusted expected more to in share the shares at growth of is us $X We to efficiencies, investments continue EBITDA per improvement we EBITDA an still a to adjusted of reflects against loss as loss line future is than and of the Net our top operating million, midpoint. significant operating XX.X $XX to which per from the EBITDA loss XXXX range million to $X.XX opportunities. range allowing on make while based million conjunction outstanding. $XX share expected

adjusted operations to with EBITDA growth. We expect flow from cash consistent grow

quarter the million we For expect of of total $XXX to XXXX, revenue million. $XXX first

membership available only to We be to individuals. quarter U.S. the XX.X million members access fee with expect approximately visit approximately XX XX paid of end million to and million to

the in between We million million visits of total and expect quarter. X.X X.X

loss million, in million shares $X financial between I’m the $X.XX business momentum see with million loss of across EBITDA adjusted We we per pleased the first and we $XX the million, about excited be to our quarter expect as range share enter $X based on net a $X XX.X to conclusion, XXXX. and and million to EBITDA of In outstanding. results $X.XX positive

the call turn remarks. that, I closing will With for to Jason back

Jason Gorevic

Thanks, for important Mala. Health. Teladoc XXXX year was an

to commitment our for another on successful and exceeded their expectations the we As delivered to like commitments the world our to I’d and team our around key mission across year. our contributions thank metrics.

constituents. Our they that our are the diverse unique and Health and their capabilities range of product to continues see to as them offerings Teladoc provides with value expand and clients resonating

We adoption confident way We positioned to ability to care see and the impact the healthcare increasing of to in well is needs to are we’re the marketplace. and pace satisfy accelerating delivered. continue of virtual and beyond forward positively the XXXX our look

the you hear which of you’ll for March are to as will opportunity. why We have in Health demonstrate also InTouch so the offering we where New on this opportunity see us team to more up about hope York as Day, from well our to our combined Investor able excited X leadership be close, join will help product

strategic based and President welcome Milwaukee of for Jacobson Q&A, turn Cathy delivery to call system. the Cathy a Health, of like to is Before over key moment Froedtert I health organizations board systems priorities a She of insight very the integrated these time a virtual into directors. currently becoming focus I’d of us. join to is area and pleased at have brings our a her CEO take to care deep we’re for when

one Since Investor Day, the always, please. Operator? continued to Teladoc seeing Health for story. like to next questions. all today at the interest thank with open As you we’ll we’ll we’d for call all limit you And week be your that in everyone question

Operator

[Operator Gill Lisa Instructions] question J.P. Our is first Morgan. with from

Your line is open.

Lisa Gill

the much. you potentially made I care facilities. type and health CDC for of year, at I’m on outlook that comments services, expectation Congratulations about surprised the Thanks has talk incremental great telehealth with are very around a coronavirus. your of Jason, being prepared know contaminated all for the in comments, people as didn’t use XXXX. others in afraid

maybe think into remember to those you two as like, as new continue continue coming they to platform? start of think the half What’s coming being Teladoc. we think pull-through about new see the year, we again? but the to how those that onto customers about you’re I you as would similar you well. can and just to So it that Just impact something the do as of new, then there you come about new people kind back last to do system was see, elements expect

Jason Gorevic

Thanks, not Lisa. I’m closely from your tracking we’ve the beginning. first question. the been in Clearly, surprised coronavirus outbreak

members access and actively our the physicians of world around which have ensure comprised of and our our and teams, relevant to are care, regarding to have thousands clients and if unfolding timely it. clinical Our of alongside the when the been working they commercial the this access to most teams that latest information situation need

have it’s Yesterday’s the of could officials, significant able obviously, outbreak. still impact a early That been And signal milestone this to on are the scenarios. several having said, potential potentially from business. U.S. the progression outbreak the health quantify at too the in point, still comments to there that our be

affected, and individuals spanning the who of potentially are world. Our to care care people, both around top take is now priority right those providers

Mala can a and I Medical Q&A. your asked for Chief said, to and I not our little question perspective the just coronavirus by I’m on us and Levy provide Lewis role. the so Officer, surprised our Dr. bit Lewis, Maybe join you more As

Lewis Levy

Jason. Thanks,

to As you teams focused high quality mentioned, they expect the a with the Health. have potential same come clinical Teladoc of meeting our care our members needs healthcare outbreak accessible in on are from

already there contribution three like we a of where clinical health longstanding positioned uniquely make As ongoing public to leadership, to which believe I’d result are efforts. meaningful our highlight, quality a I to really are areas, key

have they the been visits best who ensuring COVID-XX. to exposed First, virtual care practice patients, may for think for

most teams treat to with the medical All the way regarding and information at virus. up-to-date evaluate appropriate global directors of for provided this patients risk have potential their our

Secondly, care we the of Health, greater InTouch health platform. Teladoc are through as at the capabilities virtual enabling as well and scale systems provide the both to technology Health

data been specifically, disease equipped CDC quality actively And the our are proliferate like now, team, we thirdly, near by guidelines. as U.S. clinical to practice the well we for to provide have led disease several leadership real-time I’d clinical the last raise specific as in is surveillance that weeks partnering with point

Jason Gorevic

to think depending here us I more to next new Lisa, about scenarios continue you’ll the flywheel plays second we’ll users into just those our benefit Investor over out. visit answer the The active one talk growth expect So users. an we half bringing activating then your flu drives do of play that week Day. severe at I see of a season And this which have role question, that active by when people we time. on becoming feeds new

Health each next platform the that more user And year, the X.X this will used Day. Stephany last effect Investor saw about week shed has Teladoc our on we flywheel As times. at

Lisa Gill

you week. Thank See next Great. you.

Jason Gorevic

Thanks Lisa.

Operator

question Piper next Your Sandler. with Wieland from is Sean

line open. Your is

Sean Wieland

much. very Thanks

market your telestroke opportunity strong the if beyond with is the fit the could got a cross-sell about what and And How of a with very a wanted – And what little that does the backbone. a behavioral. InTouch, network capabilities, the an speak So the I Venn we would bit can with to thinking get you they’ve Venn particular you in in that. diagram integration like, draw understanding if that your look assets of also business? had and

Jason Gorevic

and that Sean. into enables know, companies’ primarily between to is Health overlap some in resources you well in out as Teladoc very provide as hospitals portfolios clinical cases, network the product the are acuity Essentially, hospital. extend the There technology hardware the software community. that the and Thanks, a we they And the the for situations as high platform little services providing Yes. two provide. and software,

overlap but the of is visits provider done a provider little primarily very to a using bit There’s the scheduled InTouch fraction tiny cases. overlap. for that overall of that use is are on platform, basis there so And little a

And who a have services do the interface the that so they’re interface, integration for significant and physicians consumers that care I single have platform single a providers, are the what operating so a of receiving. opportunity unified regardless see receiving the on are the who unified

client that you that two by to then companies for of really entire base. get extension clients. on the relative lastly, provider the put technology the when the our And Health population populations to together, network, you enabling allows effect collective And physician really capacity this network InTouch tremendous the the of entire

and as with remarks, think excited planning doing all my very, So very actively teams other those integration each said around we’re are engaged I the prepared in of areas.

Operator

is Blair. Daniels William next question Your with from Ryan

Your line is open.

Ryan Daniels

Hey, for guys. so This might is questions. utilization trends United engagement early new kind my was for for tracking be to Ryan. lives how Spiekhout Thanks in activation it taking bit guess, a Nick to little I start and tell, but the I far? are of curious off,

Jason Gorevic

Yes. Thanks, Nick.

We’re pleased with the we’ve the made progress with United.

off teams efforts bulk marketing working are We the in well our kicked Our quarter. the really together. of first very activation

through slow a us into little fourth the that. gives And we we’re bit the teams around two at the together. confidence business in really So United activation We as that, marketing it fourth was what early it head our the relatively ramp we’re quarter. stages XXXX. strongly quarter, of from accelerates of of It’s rapidly a still part occur a having the XXXX said but as benefit very guidance. And saw seeing work

to going think only velocity. and improve gain So I that’s

Operator

with Matthew from Baird. Gillmor is question next Your

line Your open. is

Matthew Gillmor

it’s question. that just to continuing on for that. on and Wanted so the that or new platform get think BetterHelp lower? some Jason outperform turns due are ask a staying Hey, hoping more signups about details I longer to around the to mentioned members Is the thanks to BetterHelp,

Jason Gorevic

is both. answer the Matt, Fortunately,

Duration stickiness, extend. improve, We’re continues meaning all a to to continues the come to acquisition to value therefore, three customer metrics member down. of lifetime or key And each so continues of improve. of costs to speak, seeing member continue

we pace. that. in continue incredibly that any business to end for robust So see at see sight growing don’t an And

Operator

from with Jamie Wells Stockton Your next Fargo. is question

open. is Your line

Jamie Stockton

you It guess, originally had member the my quarter I growth. expected. Thanks there you than I’ll like for seems question. more fourth ads taking saw, on ask one maybe guys the in

incrementally going would live? Or anything lives? Just any of that just great. the that type on that Is color customer front MA be on was

Jason Gorevic

early It’s predominant waiting Yes, in as X. the from lines across it’s came quarter Jamie. of primarily – rather But sort commercial see programs plan lives. fourth both thanks well plan than government business, multiple January of some will lives. ads if was did health the We population as health the employers for on you members but who

Jamie Stockton

you. Okay. Thank

Operator

RBC Your next Capital question is with from Dodge Sean Markets.

Your open. line is

Thomas Keller

is this Keller Sean. Thomas for Hi, on

continue Virtual a sort just Can on help all us of the of payers, that little data these with a question of of you iteration progressed you self-insured the year payer. launch a first antidotes around how then as to ago sense you you XXXX? over this sort other a kind Just conversations any concept? of And traction First, over on to that’s have share the any give or of kind with can

Jason Gorevic

Yes.

full So that I or sort we’ve evolving that capability would call is Virtual a First kind a seen what of of and Virtual Care Primary design into is plan capability. a rapidly

So the you’ve and out payers some encourage care first the you’re that I’m now plan member. virtual of seen the for roll as seeing stop designs big sure

think as to see we’ll Virtual about capability stepping next healthcare consumers forward reimagine I set look week. really this We consuming truly of care Primary primary consumer the looks how in and facing market the and bigger capabilities Care that talk as think and we broader about access the at trends a when overall.

interface of that capabilities given and friendly positioned and the for we access, our set And uniquely the consumer that. we’re broad think

as deliver combined Virtual Virtual see design really we to I us consumers think where how as both, well a in well as coming So get care. enable that deliver Primary a from capability the it transforming providers Care with that you’ll market First plan

Operator

from question with Rhyee Your Cowen. next Charles is

Your open. line is

Charles Rhyee

particularly percent maybe get the do market of kind right additional you a – I sense offer for about these in clients in sort so have. of that advantage. for the your are Medicare starting kind ask guess, members. you of And you’ve taking I using provider far turn the side? plans their to push you their then really what telehealth benefits for more marketing saturated with services? Or you the soft not that to to do of encourage members telehealth the – see XX Thanks are that that’s how seen Can What of to Yes. from Wanted they guess, word. in MA of driving the speak sort the question. to to particular,

Jason Gorevic

Yes.

So Charles, appreciate I the question.

I in this to multi than we remarks think said a year and clients phase-in. what prepared than going what the XX members. more And million a more was is we’ve always is said be

going the this I year Our And feel best guests but We years, is – this MA a we’ll a provider north not end good by XXX% pretty I year XX%. of of far, driven certainly initiative. really to get close, three pretty into three was thus of rollout. that. think not still get may about

mechanism. tricky The to the don’t deliver reimbursement payment for a becomes a based provider, generally consumer they what because on they differentiate

and fee-for-service than to deliver don't would member still they different doesn't Medicare fee-for-service MA an member services to So that Medicare they a pay.

it initiative messaging is really working with consumer, commercial consumer. nuances for how plan-driven almost to So plans reach we MA to we the work what our identically the of and the we're with plans, how a but our the is

overall sort from integration perspective. with of a And course, the of plan regulatory the

is this from activation of a would much of our taking plan sort call perspective, marketing more the I it, capabilities. advantage So

Operator

Your with next Donald question is from Hooker KeyBanc.

open. line is Your

Donald Hooker

want a clarity, just know on maybe on looking back. ask but not to forward-looking the question of kind a to guidance provide little you're to InTouch that, Great. I bit willing Good of acquisition, Wanted afternoon.

revenues think I that mentioned in You've had about $XX XXXX. million InTouch of

XX% to just I So up, that and think that of growth confirm north revenue year-over-year. was

some believe it, does understand I growth of that’s XX%, us or Now Health, and help deals maybe up that maybe InTouch can or that one-time much you some I normalized looking at – would like mean, you organic? revenue of how growth include that acquisitions large back sort

Mala Murthy

give would upon will So we detailed with more close. is guidance the are What business. momentum of the pleased we say I

is pretty on Health both of focused we it are we be through laser in Health, working this What's the or of Teladoc each his phase, are as the them mentioned sides remarks, Jason businesses through closely As integration on et InTouch house, period. important integration prepared cetera. go planning own our we with that

say So we you end of all at keep the have. detailed more be guidance momentum we'll now. much for QX. we'll that’d That's up give And the

Operator

Bank. from next question Your Deutsche with is George Hill

open. is line Your

George Hill

Good and Jason, a advantage thanks was to afternoon taking the I hoping little for topic more. revisit question. the guys bit Medicare

You I mentioned than or that environment, how million I members. the more you rate than maybe more selling of XX can clients guess, can kind win – broader in about you plus of targets MA? a going utilization in is talk the X seen it's And this you've to RFPs model. many delivery know care early imagine chronic little for to I one the talk book. about in a be the

just color topics. you'd kind I any know it on but those of Would of more a around the MA As you opportunity? engagement put thinking we guys think bit, strategy. touched the about love

Jason Gorevic

interest Yes. Thanks George. I there. understand your

market. of by haven't generally RFP or sort – down and don't rates sub-sector volume the We win break of

year. the of it to pipeline Many out market. And for the as bids and we'll said, continue of we I that roll it out think filed I haven't into area. place that I say the sort the yet and it robust marker plans we very over CMS expect have quarter, course a in a think have last MA continuing for I in that. will to their rolled

was a the one you're and big over the think course expand roll This X bang continues done not I that year. January and of that. out going see to of to that sort So season for

Operator

Craig-Hallum from Capital. Hewitt Your Matt next question with is

open. is line Your

Matt Hewitt

for thanks Good question. taking the afternoon and

from And that of had U.S. factored you to Thank you also CDC. contact tailwind have if the in coronavirus, with been follow-up with international the agencies? Just that any I you've on tangentially, your kind mentioned Have guess, regulators, I'm you you. curious close it guidance. contacts into

Mala Murthy

then So Jason. let take part the turn first me it to

not scenarios know and have alluded us forward-looking We too as as in included the early of It's Jason our that will which for well. to guidance impact mentioned transpire.

included not have in for forward-looking now, our so we guidance. And

Jason Gorevic

the And with we a agencies. of in been number touch have international

mentioned, the a we've in medical have touch WHO been have directors Lew Specifically, involved network with markets. global and as in their of locally been actively we who

global a So, enables our where this presence us is really collaboratively amongst situation to ourselves. work

authorities And we're interacts, world the market. that information proliferate able WHO so local from as to similarly our example or gathered the with and for team U.S. the the health information around from CDC, in

As a you China we and presence time. have know, for have in some

network. flow and ability And gives that and that to information market to us so, from the the our have of clinical to rest

Operator

with Kevin Your UBS. from Caliendo next is question

Your line open. is

Adam Noble

Thanks Adam for Noble Kevin. for the question. This on is

wanted PMPM by number Just implementation. heavily the obviously around XQ to the ask the rate, United impacted

thoughts on look be any contracts, or more year? how could it PMPM throughout dampen typical somewhat? of a year UNH the and ramp other seasonal some that does there implementation Should should the Just your next

Mala Murthy

the PMPM in population continue of PMPM Again, in expanding to expect Yes, to And the of in large Absent thanks talked onboarding have $X.XX that question. the impact grow would populations. range. I normalize PMPM growing we say the for to would the is, for see $X.XX grow in we to continue range. And typically what the the XXXX. impact to of I large onboarding, again expect about

Operator

America is of Merrill from Bank question Your Allen next with Lynch. Lutz

Your open. is line

Allen Lutz

the for contributing how health, then Thanks talk to the bookings? BXB and is On behavioral about questions. can that multi-product you the taking on demand side much

Jason Gorevic

Yes.

perspective, of XXXX. we multi-product were that from XXXX. health larger multi-product in single into channel There's that both BXB saw as has than our would XX% of driver on were as see bookings. driver product sales. average a it's to So if our multi-product substantially of revenue And been XX% well bookings multi-product a our increased and growth, significant we significant through visits client demand, And bookings XXXX sales strongest coming to demand expect bookings behavioral continue

again, single driver is and behavioral of So, health the biggest that.

Operator

Your next Jonathan question Barclays. is with from Young

Your open. is line

Jonathan Young

Hey, thanks for the question.

there members? on these so products, curious, the you're Just member new you do be single Thanks. multi-products, helpful. any to they have adding, the capability Just guidance. marketing largely full color members would I’m that are

Jason Gorevic

able any we business clients. yes about we're marketing our that of XX% sort bookings or time a actively we where the And XXXX. years collaborate multi-product would say, our for a get, ago, could deal for so of we Yes, we ago – when for weren't many to market scraping to were were long with

honest, investment not not, We of us it the strategy. pay most our capabilities in generally because the it worth to of to return that higher for there's through on engagement price just those it's with clients for willing from and event them. value engage real away a to not drives there's because be and implementation And more walk activation go our are now us a

Operator

Jefferies. next from David Your with question Windley is

open. is line Your

David Windley

on my Hi, your of thanks guidance add a paid U.S. Kind question. is related quite the question, for attractive member taking side.

the customers fee And kind Your visit are to those model. days idiosyncratic a lives particular relatively the perhaps fully point only of these your pipeline PMPM bought in Is now that potential it reflection you're the time? at your are kind having exclusively on pipeline, of or that flat. in the is this discussions

Jason Gorevic

bit only little a clients flip I anomalous. insight. would around are Yes, it's it the fee a visit and say good

just what not trends. Conversely, the understand is, we and and your one which large to of – pay therefore goes representative unique, for right, our of the very is that them that So provide the overall statement the results is it clients handful the a value client PMPM of they're yields. and exactly each

that and we if absolute fee only think a I single And strong demand can't for case. continue model XXX% a I visit but with That's case in look, pricing so model. And say anything can't pipeline. of I revenue a ever to our see

Operator

Your next Singh Credit Suisse. with question is from Jailendra

open. is line Your

Jailendra Singh

Thanks.

– As margin there more in should XXXX on on we and any investments on elaborate focused particular your the you are color that? guys impact talked long-term about XXXX. XX%, significant think you Are areas Can you how EBITDA getting target some in making that? about primarily on some any of

Mala Murthy

Yes.

So we've XXXX, year the full you we’ve given you guidance. revenue for guidance EBITDA given of

on the you we see can As guidance given. Jailendra, have based

year basis a of in We margins XXX points. We're continued XXXX expecting XXXX. adjusted basis the are points EBITDA XXXX. as expecting expansion full in of in well had We that for XXX

operating Investor I to it should It's week. pace today that business, have. will in how invested quick that and our to about we leverage The investments, talk of were we Day a as do invest that in think our things continue expect. just revenue an growth. highlights But the see about give spend from keep will as to with And if of standpoint, will few A&M revenue it, in we a you acquisition, marketing be customer kinds marketing well on in more the membership engine back that of next we we But we in nice to as growth you continue said. our

we will efficient it. to as We get expect spend

mix, manage smarter are how We terms of we channel getting in et cetera. our

you should to continue that. So see

make need to will investments judiciously continue technology make. the to that We we

more Day. so about bit a And as on little our terms speak to term. more in Again, Investor will we'll we longer we to that of talk come that

stay So tuned.

Operator

last Hoffman Canaccord from question with Brian our Genuity. And comes

Your open. line is

Brian Hoffman

for you How the taking us Hey, you many now? an thanks any in with are rollout Brian would give uptake you and question. my is This be in your for have visit Richard Thank states? those commentary states other great. that How may you. progressing update on is has on relationship CVS? Close. on been how Can And volume

Jason Gorevic

the relationship on the continued some quite of of and Sure. working them and sides still spend we're I month strong, house exciting The is is on CVS Brian. personally terms time The excellent. bit side. has although, strategic visit growth with with every in of opportunities. both small very really volume on a the trajectory

my to pleased currently to states. we on. to but XX the rollout continued XX look of get that's very over their forward expectations trajectory skis want all So don't in We're them. plus And with impact that terms and with we're D.C. I in states

Operator

you time, and may for thank gentlemen, conference and Q&A conclude We you this And Ladies your now does do participation. this today's call. at disconnect. the

Teladoc Health (TDOC) 26 Feb 202019 Q4 Earnings call transcript