TDOC - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Teladoc First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question and answer session. [Operator Instructions]. Thank you. conference Patrick the of Vice turn Relations. Investor now over Feeley, to President I'll ahead. go Please

Patrick Feeley

Mala results. Executive and section discuss you, Jason we announcing XXXX in call the press closed, Today to are presentation teladochealth.com Officer; issued release release Financial our Officer. Murthy, available financial Gorevic, website. accompanying quarter this slide first Investor our Thank are our afternoon. the Chief a the good Relations and results after the press Chief and of This the market On

that to is by the During quarter Please website. performance. this this Act statements forward-looking the be the defined outlook, as prepared measures in that our Details press these will non-GAAP call, we statements non-GAAP Also, be statements comparable call Securities will thereof cause the session. Litigation will most certain during between certain on important financial will Health that other actual posted measures and that of Such are could note also Private Reform or made that release and Teladoc from risks, to and Health’s believe provide relationship this to we second discussing results factors followed remarks question-and-answer be measures XXXX full for a found those materially are call. can forward-looking the differ note and GAAP expressed we be please subject our on XXXX. by on reconciliations year uncertainties our Teladoc implied in evaluating

which over to with would press our the to turn our website. like filings I information, our please the are refer release on in additional statement For Jason. call available cautionary SEC, to all of now and our

Jason Gorevic

Teladoc. by we you thank driven as another quarter and increased an million momentum of of strength close revenue quarter, the prior across reported everyone year, this throughout including and market operational the business. organic in draw first Patrick, key for of metric, portfolio financial across broad-based for XXX% the After revenue our outperformance growth legacy us the afternoon. joining $XXX over Thanks, The XX%

of and our our channels continued new $XX we demonstrated result and are expanded of development year. a billion geographies year a the opportunities, the million of the revenue guidance pipeline to raising As billion and $X.XX full to $X.XX by for across momentum

Turning to utilization.

despite $X.X clinician quarter, network Our million over representing during flu season. growth provide XX% first quarter, of more historically the visits the prior than weak year's

volumes, strength particular, also acting to specialty non-infectious BXB in continue and disease both and service multi with in DTC in see driving channels. growth usage. into a mental gateway growth We significant specialty We're as is health visits that finding

Our specialty one care members utilize who our with to significantly services. more other of are engage likely

visits new grew of more penetration the medical per chronic trends continues over multi example, had For of we our than clients. a alone. share prior general visit as care the particularly having who product product. as Membership Livongo within XX,XXX chronic specialty who XX% over general use with had member to more now of given access our medical client toward XX% members sales, is those This one members in deeper in gain And year, products added expand suite than quarter. we members the care to XX% wallet encouraging

performance in engagement into over newer XXXX of population various programs, disease. members direct year strategy quarter. X% the has care on which health addressing Enrollment The led perks to continue whole-person Enrollment of just we the types achievement one rather which of remained is some significant. care our to first needs top is that XX% to with advantage throughout adults of employee medicare over revenue recruitables With us, a government full larger chronic strong care business, that result there XX XX% populations, is Livongo's As our address to chronic of rates meaningfully are the data than the such quarter. first living strong consumer a are now recent with of And in a cases, a science, programs enrolled performance in percentage the than in we investments than one within significant of to across encouraging our than greater as year-over-year across accounts consumer are as more U.S. less populations. have one benefit result, ago. hypertension. years particular in people opportunity we've condition, chronic given execute and Particularly and a in consistent And seen been all chronic program, populations. consistently spectrum enrollment the care more expansion is with compared in

clients. extensive our an in ROI it and proven in clients. integrated demonstrates significant our as takeaway. suite expanding of traction is which Earlier our clients, we diabetes care solution suite month, will drives products covers industry and notable, regional across and health. of This marketplace, product relationship As chronic comprehensive our virtual a to existing differentiated full continues suite another of both for to it and plans of our whole-person offering new East agreement portfolio prevention, and power Moreover, books as solutions, leading solutions members. on well broad resonate signed access including our deal seeing this our and care diabetes, the we're hypertension, our the of engagement, within provide of expand Coast represent the Blue members virtual Blue business to to all as commercial and adding Shield its deliver comprehensive and Beginning digital Cross utilization a to care mental member ability clinical offer next early plan competitive financial to the with products, year, we our significant ultimately

that actionable the takeaways, systems. to health and care technology even And plan to XXX scale as in traction data plans, to pipeline seeing the opportunities, gaining platforms Primary look we new vision health primary in can these In deliver for channel, We're insights. see health leverage continue employers the strong particularly large hospitals at experience in also a market. opportunities our from and clients our addition of expansion interest offering is and and reimagine for enterprise to competitive

Our signed primary launch year. XXX this this progressing expected that launched and earlier to encouraging pilots additional year delivering And clients are already for deals later results and we've well, consumers. several

Our in comprehensive care international solution marketplace. continues momentum to virtual gain the also

the market, industry to signed we partnership platform offer to recently members During leading with its continues region. virtual comprehensive platform MetLife strong to solution MetLife access the virtual Generali In strategic and Hong around with insurance across region care enterprise offer our in across Asia. a a announced to Australia, the hospital to customized demand solutions leading the partnership our our we Kong, the to carrier in care the a quarter, members see health system world. In service

system In Europe of enterprise arena and to this hospitals to Asia, the addition deals the pipeline agreements particularly chronic continues plans. the systems of that bring strategy and our as ACOs bring And their quarter provider take to multiple grow, now the risks own products health to Livongo market. to the through our several care chronic market and new Similarly, dividends. solutions are health expanded opportunities international the to health deals in pay reached capabilities with we've among to continues domestically, we signed suite new increasingly bearing InTouch care to to

Turning We've to an integration. work our on update key progress across considerable made streams.

app. market first programs. several a the enabled creating seamless the toward capabilities mental This and selling to organization members across As this from members effectively combines product fully integrated, entire this also digital to with within for whole-person experience deals health sales integrated commercial we that for engage across previously now us programs will teams the new Earlier of therapists the leading been solution. deliver and with products closed is register mental important early an more the since that a allow wave We've Teladoc our has Livongo with first step noted, psychiatrists portfolio to of member we access our month, Livongo Teladoc health year.

from drive deliver insights combined we leveraging recently and to provide the for enabled engagement, capabilities care into integrated consumer product of relevant depth to consistently refer decision workflow, increase capabilities enable and greater data that providers the aid in and to provider our Livongo experience, care, programs within chronic Additionally, data entire highly clinically underpins organization. significant our clinicians digital it's longitudinal our a members solutions. Teladoc making, robust virtual what with data ability our at in to of Data us right breadth investments is the were and The significant We're capitalize the care capabilities will behavioral right clients. making our a the to consumers integrate and making value part we science on fully time. to platform and and across the offerings, enhance provide to deliver investments get our technology consumers, personalized expand

Our data vision at insights, ability further trusted expertise becoming clinical to our combined scale, health. of deliver will for with destination whole-person driven consumers

transformation over topic on across leading Jensen our healthcare detailed with health Innovation and technology informatics, for our Mala to team deep well as that, the innovation, science, of to data Claus turn I'm product enterprise our guidance. and new With a innovation And of leadership as digital have the organizations, systems, the and as years his join while look I'll like pleased experience to Claus we're XX at more first call products. extremely to and and of data Claus Officer. information experience to forward Finally, review I'd contributions growth. Chief welcome than has quarter

Mala Murthy

good and Jason, you, afternoon, Thank everyone.

of access percent InTouch primarily and quarter. the of of revenue international revenue revenue, revenue majority due Access XXX% of quarter. million, for revenue million XXX% to for million, year the in the quarter. the year's quarter, revenue XX% from of $XXX for Total increase acquired Visit $XXX revenue XX% total to is quarter Health. of XXX% quarter revenue to year's $XX of first and up Both prior acquisition the year the over year-over-year last first a XX% XX%, $XX to XX% representing the revenue from comprise revenue. $XXX of the XX% the year. increased and access fee was in in comprise revenue regenerates prior total The million, first total growth the During year subscription million U.S. as fee excluding their increased to fees. prior of quarter as compared increased over Total revenue, XX% over Livongo increased or total

of purchase XX% increase to PMPM earnings quarter. Livongo. membership our Average adjustments was X.X only temporary an $X million better the includes accounting approximately call, strong the members devices we to $X roughly Turning represents pro our own adjusted over the XXXX outperformance prior Of last of access of quarter. first the was unique benefit XXXX. the in the excludes Livongo related the in by our quarter, compared the revenue million and basis of increase provided attributable and increase performance the quarter members million XXX the back was that an $XX.X include Adjusted in off first in first attributable and EBITDA of that quarter. quarter, Individuals half we encounters Livongo is quarter as mentioned margin prior the functions, amortization the and $X.XX quarter, primarily operating The from fourth increase point excluded care synergies, basis rate over XX.X% purchase visits chronic gross Profit in merger. membership more point first which additional licensed end profile revenue. driven lower program month XX.X gross count. quarter, in cost in to the XX% in against of expense enrollment, on the part with quarter PMPM, the first to in prior depreciation year's higher quarter or enable chronic increased to facilitated a of expenses over XXX,XXX as million the and Adjusted quarter. first growth quarter intangible by compared fourth discussed that quarter we XXX,XXX forma on and in year's in adjusted our point XX.X% of rolls a gross members, revenue QX adjustments one Adjusted basis was first quarter of over million in increase visit consolidating were an million benefit Note, quarter. during now first prior includes revenue million integrating quarter, sessions, first to utilization and the sequential pandemic first the for margin to individuals client of the XX% quarter. clinicians as at $XXX the XXXX. in on-boarded the with Platform from of prior extra increase year which are Adjusted $X.XX the contribution margin the as the X.X first was of of representing to prior make membership quarter. The growth in the an fee the year's driven million, previously. our the million a the by member was EBITDA $X.XX to office X.X for and enrolled year's in gross facilitated of XXX million first in access, The increased annualized by which Livongo $X.XX the adjusted ended up as increase We've profit XXX% EBITDA members clinicians in gross first first year's vendors. approximately continue progress quarter. was including Total the sequentially to the U.S. of processes, and provided Gross quarter streamlining paid $XX compared during attributable fee $XX.X profit merger first XX% to for quarter approximately care XXX access accounting was

tax compensation, continued synergies degree confidence net Net the the growth the the our to of million cost back to we've ability targets. of achieve have the remainder our the loss we and per into $X.XX share discussed with $X.XX. for $XXX.X larger quarter loss primarily $X.XX As attributable year. at includes million, energy short of term was We primarily a cash increase first loss over the XXXX. basis, in of valuation Overall, was Amortization investments. income intangibles, loss the quarter, of acquired deferred of of adjustment acquired compensation and tax business anticipate The the the first a to reinvesting of merger of in to a share stock-based first loss was $XXX quarter of $X.XX. ended compared in income of a in and Net year. expense multi-year On per to related previously, revenue intangibles high amortization net stock-based of quarter cost to million quarter loss adjustments Livongo. compared and $X.XX a last $XX.X net in

as While debt our XX, March was reported total outstanding of $X.X billion.

Now forward to guidance. turning

per year of billion now in higher expect $X.XX guidance among to as billion, $XX growth revenue the per well prior visits. strong driven up million by be the we particularly $X.XX For full utilization, in fees, to range member month XXXX, expected from specialty as

expenses the in in from accounting to merger. $XX lower to adjustments We Livongo related Livongo approximately on range million an EBITDA benefit of including million expect attributable million, the purchase to $XXX XXXX adjusted $XXX devices

Livongo we over the data year. between to visits platform. visits, now XX% spending expect of and business, year over of product of the development course of increased into XX% integrated of the discussed, and integration new launches, in the growth invest and expect growth we the our XX.X to representing XX.X prior as XXXX, in million We total previously markets, we expansions the in be particularly the As new

$XXX quarter. quarter of representing For revenues to expect XXX% $XXX XXXX, growth the million XXX% prior of over second the of we to million,

of million second total in visits. anticipate membership million XX range quarter X.X XX expect million the million between X.X We during visits and to total paid the of and

in Livongo to approximately million, EBITDA purchase of to for on the to devices be call $XX to the from the an I turn With million million including range adjusted that, accounting related $XX adjustments We expect remarks. X lower second Jason expenses benefits quarter Livongo merger. will closing back attributable to

Jason Gorevic

Marla. Thanks

to very compilation to ever members first hard acknowledge over most of Time were This turn Before in team recognized be take XXX I pleased world. of want Q&A, to week, influential around our the the Magazine's call moment to companies. a the work I the we

recognition inclusion a and clients a leaders we other meaningful do and Our that XXXX of every day. our all global of along is result for our colleagues, direct members

thank your for in we'll call always, the open you Health. Teladoc questions. And for As interest that, continued with Operator?

Operator

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

Lisa Gill

recent Good afternoon. my with your competition. really Jason. most you want thoughts Thank question. for taking start I to just on

that embedded get Rounds of around comments think of talking talked questions health MDlive for of how care. about think looking as well about some Amazon some Grand do lot deep idea Demand both your about the As displacing we Care, Doctors sold plans a been wins On has to someone and a that of employers others, We business that Whole the together. you has about as coming fact enterprise Cigna. platform. we The with

maybe level And when there for think competitive pieces So can that over field couple you the shifted has the years? you who you are last of changed really business? out these how just you're playing of winning and landscape about how just seeing

Jason Gorevic

want basis. comprehensive episodic we systems, solutions. last are makeup for plans, by comprehensive it's characterized seen other by pipeline. a Clients Multi are health mentioned plans, really themselves on well large in health health in point on and large the our another as we from the And to integrate particular market a other think bear. there move they usage, for to I More And as a deals we increased multi effort acute does opportunities clinicians, announced blues that those one more, that today, to seen the sort of the smaller that in our them. Coast Livongo interest, And get when of and And competitors stitch solutions plan. leaders Sure. that to Thanks, that. and pipeline. create There's moving. have summer in characterized in chronic being this the the preponderance strategic of the care, market ours the general chessboard of really been from disintermediate the the looking market the competing some have we've as health And pipeline. comparable accelerated, competitive acute most on customer based of Lisa. that put InTouch the foresaw together With didn't advantages. well complex and as that plans. both care, product Teladoc Is care moves move proof somewhat booked, episodic from in of moves to larger terms and solutions, seen, deals visits. to to and as digital and our We channels, there's in cases, on no doesn't in call health and before. pipeline, is ever are fact certainly ranging of driving as gateway the you the a talked the about have it we've we close as consumer focus we around and you've And health comes then specialty solution, recall as together to together unmatched market see bring set that range And talked and than nobody some mentioned, about across an employers that. and the the think the see to the ranging who that. bringing fact that of services, product the the the direct-to-consumer chronic for success broadest as competitive about takeaways both plan and in Livongo buy plan, care, to for toward had product They're not specialty professional very being that advantages, point higher and was clinical cases, looking and the In we East we I the to have in hospitals antagonistic the foresee. in benefit you'll acquisition. gone is can to part, competitive medical data And to our that of We all solution behind usage the we the that respect our an well market we multi

greater not been system, with view us, to it's care align it. to our that's beneficial And our be work as for with them and value. partners health the proven So we against bring

So, mentioned, never traction. them within gain sort are I'm part, those realm of And that solutions out not and call some or new we bumped we entrants, just the most competitors But we're moves not individual that expected. going for of mentioned. to what of you almost into, you all seeing of of the many the

Lisa Gill

Just anything did the pipeline quick give several next up, there versus ask can the of about think pipeline we we quantified conversation. going as forward think that a in about this us love about into the as follow Or times years? to that, year size I previous in word the XXXX? say any you you because as year. that for way around Is

Jason Gorevic

sure. Yes,

would reported results, It say moved last that I as in than And fact larger since XX%, One, recall, of pipeline about the year was along two deal a few talked we and months you has full members quarter ago, the only So, new it the year. about our at then. fourth time we terms when the stage. has same of grown things. also

sale us. said and for a were have have characterized we as of earlier was very move in we've we one we expected. that would but it And there deals So late you'll into seen of those the stage. that recall gross Obviously, those sort pipeline, also others a very deals, larger opportunity, along materialized by significant stage

would than Livongo and multi we've of would for into very are about encouraged I faster the just I we've large suite along moving expected. deals then, hospital since than XXX arising also thing pipeline that, That we increased ever than last, materially product And system Primary ago. the maybe other large offering. faster The the I'm before. have months our we health talked seen expected has there. is And by seeing products have very, two channel. more That's deals see moving opportunities And along

raise We year, recall did very in for last us So, that when you'll it's in guidance that this we but it at face of really in the massive hitting But time wave increased we've at the we've of that don't our we that unusual saw and time COVID the the was year. year. think before look, I states. the guidance this to ever

And revenue that well the in both the so, this performance year the think today, I seeing increase on going our based expectations guidance have is as we for we're forward. as that

Operator

And Sandler. question by next from Sean Wieland your Piper comes

Sean Wieland

you much. Thank very

care And So, on beyond book the to whole most behavioral. in I'd this than your mentioned. across But you you standard I that, what role taking really you different of economics? plan the any economics and care said contract are like a really the are business. whole-person it I'm interested coordinate know, medical especially know at like to blues this includes on

Jason Gorevic

So, what is, it's full of solutions. chronic we're book plan. for blues this that selling our suite And we care their commercial telehealth entire and of said

as have get of the the well refer as those bring integration a access across within to ability set the as single to We bear the mentioned, the clinicians for ability -- for will to services, our we also to consumer app to full solutions.

With economics, one going we're and for feed that significant of In are client. certainly this And Sean, thesis economies out or we get year. when multiple suite it's launch a into integration, develop that of next products. single utilization continue of the service course benefit the from that displace competitor. that'll we there have to executed selling full under behind part was products. specialty year, for early advantage higher them first this that And, wave all mentioned, over competitive this data these together solutions, to. a get from And we So, resonates, now the will as our we people some the It's to and all of bringing use of when roof. a case, assets one respect our a on

a we using because services. user we to because that get bring out competitive it it. able So, multiple are more of drive the per higher bear price, to And we economies they're ultimately, at revenue of

Operator

question next your Dodge RBC comes And Sean from with Capital.

Sean Dodge

Maybe Jason, the of mentioned how that ramp Primary think can program, it? Maybe increasing. offerings kind quickly over like some think you afternoon. on could us virtual revenue they're years? XXX much the enhanced Good few next And -- that? member? around per put there primary you member care said Can primary did is you've any Can the Any larger. before, much Thanks. achieve you bookings per then, XXX how a the sense how virtual opportunity give of quantification? in revenue you care pipeline, what you you of the pilots, adoption much Primary

Jason Gorevic

Yes.

we've Fortune launch what's account, don't We've and nationally year, out roll bag it always And into year. be we to still XXXX our this we increased we've revenue a over taken looking we very over our second guidance about pipeline. per first are increase member, about mixed in talk year. to in this contributor half next We year. be the to as meaningful that when strong. do expect expect for. clients And the talk expect to the time. it's the for already When what we closed several revenue even of said, to So, contributor We've the among year. quarter to deals pipeline next And material in it a this is opportunity a

happy more arrangements, of benefit the those from those are have including visits visits. where Some leading the higher opportunity migrate going our I of market. that we go. anyone to capability and one where up fees that opportunity are And time. be really going that one reflect arrangements over value-based I and term. of them of do Others unique and to increased PMPM relative sort a more short into we have risk not going value intensity think of That's higher visit each we're of of to we're preponderance to with scale, else the that think that's to those in because generate. a do that, we increased looking the the savings But each to in for the And to the arrangements

Mala Murthy

thing our is about for multi we other an if of to long very the reasons of nature, as because medium is, by the over XXX, also one it opportunity about its it term, sort us it's product. Primary expand to is you The PMPM I'd why think think Sean PMPM, add,

because and looking that of to be capture both So the we will incremental PMPM of economics, the population. from expansion

Operator

And from with William Ryan your next question Blair. Daniels comes

Ryan Daniels

COVID Yes. Jason, in not It on due Thanks area that business. the the et to like sustained care, with more to benefited, question. only more wanting unfortunately, visits. in up for taking for that's And conversational, checks of in from my and employers but one has less increase particular, a is It follow wanted cetera. and in-person that. truly then telehealth channel movement that sounds our also an insurers need stigma maybe has behavioral towards strength versus

market on more seeing dive emerging curious to just little a So in BXB that what the and the DTC organization? you're then for Thanks. both more into bit I'm market the

Jason Gorevic

Ryan. Yes,

our growth that to We market. health visits clearly Ryan as and offering. of portfolio. continues that double than in together growing single health And we're attraction that the continuing XXXX, even mental I more mental seeing talked capabilities a in in XXX% our Livongo continuing well, over by increase. last assets need that's to we're right. with fastest service track we incredibly on the specialty to growing product therapists and The psychiatrists digital year this bringing in our for about exactly explosive are increase. BXB be You're the year into XXXX. after our to mentioned, resonating And

we're an So traction much of give getting. idea you that should how

meaningful The our other you of that thing will, product, of that access sort health mentioned we multiple second medical. certainly And over I mental general to is think is that the leading specialties. now is to if XX% members have

to that also direct-to-consumer On the continue just for see we side, product. demand surging

scale more to also the text many to between that think also value be to has to live the our interactions with bring I to consumers price us ago, us. us interactions the scalability to point, one continue that toward therapist interactions. focused is And utilization attractive continue primarily on live and the service and economically used at ability more therapists to We the see to work an to migrated shift the both based consumer. years for to is that consumer the for a What the significant It who was credit of a team, platform. enables continuing advantageous to and

Operator

comes And Davis from your SVB question next Stephanie with Leerink.

Stephanie Davis

been on since months about congratulations again. quarter And you It's taking for the Livongo once guys, six question. my closed. thank you've Hey,

to integration the was experience standpoint? I end are get together can on user side? a front back bring can see an And we we the an update platform really Where one, So integrated in hoping from the you end? platforms

Jason Gorevic

now plus, products. XX.X And plus the sort course of into be data is up referring products. breaking appreciate bringing a significant excited optimizes work. that integrate those bring visits of engagement, data a asked redesigned app. of I and Stephanie. of million And the drives you, programs incredible We're is different platform. that integration commercial think about believe will and about experience together, And can just the The those providers your the access that just year the And thank in and have capabilities a step. We the suite of and the we just really side. Well, a all treasure sort Yes. done million That's provider you very We mentioned on mentioned user tremendous consumer data. from I you we for work market integration then if we we'll the really the that first I consumer this the those source and into those of that an comments. unified have back integration. to first the consumers next of products We wave Livongo that team And material incredible who early all comprehensive more of rapid which is because team the capabilities. directly drives territories, on XX hard do trove job. really will, optimizes the expect to year, and funnel to the would integrates launched And end, data done the through progress revenue those Teladoc can of experience progress has reallocating, has visits. critical. have -- -- just the completely the

much much more for clients. results blood behavior With than personalized million move more example, outcomes change, much the makes all for better more ROI and week X the in other it and just the consumer, we everything get, glucose as to readings for our able more the on consumer needle a more as well products, powerful, which from

deep be. bringing So as that we some think talking really just the what in And his time And are that We together is well. today leadership joining we're and get the can about the excited Jensen vision I to of really I'm going process. us. that Claus for benefit teams spend

Mala Murthy

amount thing good roadmap. roadmap. a add team have prioritizing clear a And a very, leadership very spent also is, of we I'd Stephanie. The fair have we time as that

in terms that, about, the expect against as on an priorities against a data year. investments it a we eligibility our R&D recognizing aligned we and identity clear ask, in that, you stacked way of this. we've to be whether from is are say, member would unique perspective. in It be roadmap, well the those And put integration. requires as So to and very deep That I integration, talked XXXX investment I

Operator

from Citi. Daniel question next with comes your And Grosslight

Daniel Grosslight

Hey, for question. guys. taking my Thanks

better around a questions couple Just health specifically. of

had that I the sell started that EAP. you quarter, think last to you mentioned into

search, changes capture that's And BXB strategy paid revenue specifically, any the heard to then that So on will platform? I there's behavioral pretty behavioral if alongside side, DTC elevated health better particularly in health? your curious this previously how we've marketing your was curious year? impacting XX% for work And main in traditional mentioned how growth that the

Jason Gorevic

Yes. optimize of acquisition more channels, are continues as as the increased getting sort DTC that from That as see virtually acceptance per we our efficient dollar market on the we channel. spent Actually, therapy the use has fact revenue increase to we substantially. get customer continue to benefiting of we in think well, I

that the that and provides believe as also course in addition all last And of helps, of tailwind a so, And several that to a service. service awareness as years. learn of of I the acceptance that we've over tests gotten the a

different So, built large behavioral we're or employers. acquisition in plan not an health on are and relative actually costs a customer really the to always challenge package. And alongside it's into there services that not seeing the It's benefit health channel. for side. services The most are buyers are EAP that

So EAP most together. of the sell an large insurers them also offer and

of is commercial limited capabilities health also some our bundling plan, better has Does generally our if so that provide direct-to-consumer with that recipe them option consumer they behavioral into And visits? them we're into health their EAP. number exhaust there on in those rolling benefit, EAP services the health there of the BXB to that's And for And are of they have selling we the basis. same visits. a then, the

becomes an us with continue that consumer. So the the to relationship for opportunity

Mala Murthy

And of to DTC. of across efficiencies as mentioned, and in see that lifetime greater our as And continue to our continue we've drives that we CAC, coming back including on Jason see that, business, a value. the And we attention. gains better lot metrics we monitor, terms to your question said, and

sort levers still strong. growth revenue So the they're of are the that drive underlying

Operator

George And Bank. Hill your comes question next Deutsche with from

George Hill

roadmap, the I partnerships of to a kind as the evolve clear to talked rapidly Good and guess, it into talk areas but maybe relates you value relates about to that your you think M&A. the about you and and afternoon, Jason, question, Mala, Jason thanks space pretty chain touch? don't can it guys as clients? the you. how product continues Thank for taking about you And cost moving dollar opportunities higher up

Jason Gorevic

George. Yes. Thanks,

saw the of around portfolio. to clinical you our will year continue expand announcements And make earlier this disease. us some kidney We chronic scope

develop higher you'll the on think has is an And to higher point cardiometabolic therefore for us continue I whole-person continuum, our which to along a to and of economic us again, impact make impact. focus your course see dollar care. opportunity

that can There there remotely. things do so, are And you area that do remotely. things can't you

the opportunity into consumer. us see that to diagnostics. they And and for see provide increase as as both a to provides system Livongo as well will guess value expand bring our channel, we'll the you -- to my more continue think us is, trend I can in hospital to opportunities of toward home the do, with deliver us with at health then, solutions will And and for we what continue we scope the opportunities. the internationally scope of

our of see as And partner. an terms to don't and that end continuing I buy always, look at So, we'll in build, expansion.

Operator

Singh Jailendra And your from with question comes Suisse. next Credit

Jailendra Singh

the wins. clients hospitals Yes. they of organic health you in the been in available contract hospital or actually, than faster Have employees Jason, and These these systems, system those where been expected successful were the opportunities contracting these. health within you. Livongo you system I've existing Thank talked Livongo health business in their about have market. to

help understand maybe clients? there? system health differentiation us these more with about bit resonating a What Just your is

Jason Gorevic

suite where and moving big Jailendra on we're and side. clients Livongo plan. the bringing system and captive move used cross-sells, the which C either of the is Livongo them Most or or are is to the within into The the Yes. ACO Teladoc population risk HR focused health big from system of Because sell health suite. the within hospital where their our shift, the their health on at or capabilities into existing is InTouch C department, their hospital owned

step capabilities their with contracting hospitals of Livongo that a their capabilities avoid plan, to readmissions, at cost and So up avoid risk going relationship up or a terms an and ability whether a set of JV is are direct higher populations for to and their members. or patients massive in and the avoid one ability discharge they exacerbations ACO that health the of means a they health they're a more more relationship, plan in have with or

Operator

from And your comes question with Richard Canaccord Close next Genuity.

Richard Close

ended Great. the Lisa's of on membership. raise time on spent pipeline call your And Thanks for question. in a to the with guidance. answer lot fourth Jason, question quarter the

However, change. the didn't membership guidance

should So, more on from start takeaway provide that we referencing, to deals it these business? of as upside does potentially? you're XXXX think that XXXX Or

Jason Gorevic

Yes.

impact status XXXX, pipeline, in in current sight of in in to see sales and say confidence half factored we're would And I XXXX is season on I course in good question. the increases, increased back over the a year. year So our We've and essentially line great Where the will a on membership of XXXX. much chronic upside deals. of care closing significant It's this based actually, we're enrollment. our have the likely this flu XXXX Richard. Livongo have thanks, on of no than looks that what bigger the like into

So of if if our numbers. in DTC this it half would upside of we were to were And our accelerate, upside in And back season see course, a on that that's performing channel, well. incredibly would revenue more year, that to be flu provide to XXXX. normal the also

Operator

And your next Cowen. question with from Rhyee comes Charles

Charles Rhyee

the third your Thanks question. for their platform, additional party Jason, developers when competitors talked opening to add capabilities. for taking particularly today Yes. about

maybe Can of that investments? but about as some of broader presents you working sort you us platform? know going the build you that -- in about I as think remind us of remind talked I about well. that you you sort think with that talk don't talk Teladoc if Google Thanks. the partner, as you're of can kind for talked sort about -- area, who well? a kind And of by ecosystem you of can with opportunities forward? Cloud about as you you think about decision making And cloud guys on just you Can how that maybe using the

Jason Gorevic

Sure.

side, On multi we're platform. cloud the

because for But own of don't to vision we bit to to whole-person best to be financial a that curated, because more integrate, where own partnership opportunity of then, deep I the the open with all things well there's outside Rather, many deeply really are clinical only for model. going to perspective consumer what the we I sort partnership, assets there's the them. think that, reasons, set with best I concentric in experience, experience. and my it's one consumer to economic we to is where a right? best really that there we advantage of integration circle, take the kinds own, do of we it's opportunity And So we a to. impact perspective, a the So, that the part we not and platform, of of to be platform see And deliver experience. other not client. open. want are either cloud consumer as all and our think competencies, I'm want as as to beneficial think and that respect of the it's of order provider. across consumer cloud the need able believe integral to and going important a little for from where and it next optimize what not we partner then on comers. of diversified. providers as want of it's to for And are deep will I of intend don't work it's care, the open things but we areas they're that's And to to not things to Then the it vision for outcomes work all or core there going circles

value makes responsibility, have as as third the to the to ring, of than else think can the that third large also that in And well curate I fact think in frankly, partner. we population meaningfully that quite unmatched to market I an larger the it's access providing our to really us value those scale ideal by we the population bring serve. and but anyone that we consumer set where areas parties

Operator

Lutz question from your Allen of with Bank America. comes next And

Allen Lutz

the taking then better year. from? percent specifically expect you spending you Primary from absolute an Thanks increased over that Mala, revenue? XXX coming that also, increased a And said that of Where is rollout? that of that Or the for Is increase? Is the question. the from is as course health?

Mala Murthy

so, invest and talked will want we coming Yes. with more especially question. great have. It's roadmap, the about cloud R&D now the against the even roadmap We we clear that, in, fact a to

product to is the integrated experience big investment. it's as something be deliver. an whether whether will us. Jason investments it Definitely say, it's talked that, a about, XXX, unified that Primary the and year would I So require intend a that will platform, it data it It for round, be we be that, multi against

So that is definitely something.

behavioral whether health, or continue DTC it will be the invest We the on on to side BXB side. in

that will to an us. continue be So investment for

be kinds would those looking areas we that perspective. investment from the that of So, at an are are

I what We And -- will What versus can grow look of what percentage I investments? to the to for the about the what what importantly, is the question look see have manage, day, priorities them? of percentage it And ROIs the at on revenue. those against At I most importantly, make? is, looking are -- do think look Definitely the the it's end our the at we both the we How do second of and day, ways. stack investment have? I be revenue I'm payback we at it At absolute. investments really very the to margins dollar priorities clear and I have we are returns? eating. but also at in what Going end of are

Operator

question your Caliendo And from Kevin UBS. next with comes

Adam Noble

quarter. wanted in the Hey, circle Noble to to for little just back bit a for I around This Kevin. comments thanks the Adam question. PMPM your on is the

Livongo. jump of the of half sequential from mentioned XQ, you think came I that versus month XX% the of extra that

just break beyond the as down growth $X.XX upsells that that. between as other of dynamics? well the I'm And behavioral So chronic sequential the $X.XX care kind in could itself, business, you and if curious growth the business and

Mala Murthy

our remarks. breakout of I with out very in do the given prepared components different we say the our Yes, business specific provide more we Adam. that -- and numbers I what therefore don't have is, will different on have We generally the components But of PMPM.

buckets in addition it and the would the whether with and can even that the the whether of of talked we have I about trends it expansion Livongo. overarching PMPM. You multi be of business, drove service be product, drivers see sort the as And say usage, multi the

do the that continued PMPM those Now, of in I all are foresee. key expansion drivers

Jason Gorevic

acute. where just incremental. them care may of in talked product. of chronic are a both what some using but our like? some point our data well per we couple That's more than them this as lastly, the the when stats, per our on is And and of revenue members the entire gets really really one product your And our third we're are product more member. our point remarks, that about now more now across, And chronic talk then only than you a give ago, to what's care my more portfolio, but an and pipeline, be about Yes. I'll And we our buying ago. of revenue tripled clients client at per to of right? of chronic you is a important year as our talked maybe right? care chronic about about increasing a client since it's is than we're per one us client, understand for So ago, XX% those, a you multi prepared XX% all But about can of when we're about getting of versus up all sales, fact revenue care year combine the how contributes point not also PMPM. So we Maybe that more getting XX% from revenue look

Mala Murthy

is you the there's if And think Same as that continue enormous by contracting. X% there to significant runway the as from grown us. runway But expand, thing also it the about is Sunset of way, XX%. right? be clients, to So fact that'd to ahead shows the a

expansion. is continue to and that there the progress, we've So made point is significant room

Operator

concludes And call. gentlemen, have for that you we this and time conference is today's the all Ladies for participating. Thank questions.

disconnect. now You may

Teladoc Health (TDOC) 29 Apr 212021 Q1 Earnings call transcript