Teladoc Health, Inc. (NYSE: TDOC), the global leader in
whole-person virtual care, today reported financial results for the
second quarter ended June 30, 2022.
“Teladoc Health delivered solid second quarter results with
significant progress against our whole person care strategy,
including growing momentum in Primary360”, said Jason Gorevic,
chief executive officer of Teladoc Health.
“While we continue to see increased uncertainty in the
macroeconomic backdrop, we remain confident in our ability to
execute against our strategy to deliver a unified care experience
that we believe only Teladoc Health has the breadth and scale to
achieve.”
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financial
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ thousands, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
Year over Year |
|
Six Months Ended |
|
|
Year over Year |
|
|
June 30, |
|
|
Change |
|
June 30, |
|
|
Change |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
Revenue |
|
$ |
592,379 |
|
|
$ |
503,139 |
|
|
|
18 |
|
% |
|
$ |
1,157,729 |
|
|
$ |
956,814 |
|
|
|
21 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(3,101,461 |
) |
|
$ |
(133,819 |
) |
|
|
N/M |
|
|
|
$ |
(9,775,984 |
) |
|
$ |
(333,468 |
) |
|
|
N/M |
|
|
Net Loss per share, basic and
diluted |
|
$ |
(19.22 |
) |
|
$ |
(0.86 |
) |
|
|
N/M |
|
|
|
$ |
(60.72 |
) |
|
$ |
(2.16 |
) |
|
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA* |
|
$ |
46,711 |
|
|
$ |
66,784 |
|
|
|
(30 |
) |
% |
|
$ |
101,208 |
|
|
$ |
123,388 |
|
|
|
(18 |
) |
% |
* A reconciliation of each non-GAAP measure to the most
comparable measure under GAAP has been provided in this press
release in the accompanying tables. An explanation of these
Non-GAAP measures is also included below under the heading
“Non-GAAP Financial Measures.”nm – Not meaningful
Second Quarter 2022
Revenue increased 18% to $592.4 million from
$503.1 million in the second quarter of 2021. Access fees revenue
grew 20% to $518.7 million and visit fee revenue grew 7% to $66.7
million. U.S. Revenues grew 18% to $521.4 million and International
revenues grew 13% to $71.0 million.
Non-cash goodwill impairment charge of $3.0
billion was recorded in the second quarter of 2022. The non-cash
charge had no impact on the provision for income taxes.
Net loss totaled $3,101.5 million, or ($19.22)
per share, for the second quarter of 2022, compared to $133.8
million, or ($0.86) per share, for the second quarter of 2021.
Results for the second quarter of 2022 primarily included a
non-cash goodwill impairment charge of $3,030.0 million, or
($18.78) per share, as well as stock-based compensation expense of
$51.0 million, or ($0.32) per share, and amortization of acquired
intangibles of $49.1 million, or ($0.30) per share.
Results for the second quarter of 2021 included stock-based
compensation expense of $83.0 million, or ($0.53) per share,
amortization of acquired intangibles of $46.1 million, or ($0.30)
per share, loss on extinguishment of debt $31.4 million, or ($0.20)
per share, and non-cash income taxes charges of $3.2 million, or
($0.02) per share.
Adjusted EBITDA* decreased 30% to $46.7
million, compared to $66.8 million for the second quarter of
2021.
GAAP gross margin, which includes depreciation
and amortization, was 68.2 percent for the second quarter of 2022,
compared to 67.9 percent for the second quarter of 2021.
Adjusted gross margin* was 69.2 percent for the
second quarter of 2022, compared to 68.1 percent for the second
quarter of 2021.
Average revenue per U.S. paid member increased
to $2.60 in the second quarter of 2022, from $2.31 in the second
quarter of 2021.
Six Months Ended June 30, 2022
Revenue increased 21% to $1,157.7 million from
$956.8 million in the first half of 2021. Access fees revenue grew
24% to $1,010.1 million, and visit fee revenue grew 10% to $134.7
million. U.S. Revenues grew 21% to $1,012.6 million, and
International revenues grew 20% to $145.1 million for the first
half of 2022.
Non-cash goodwill impairment charges of $9.6
billion were recorded in the first half of 2022. The non-cash
charges had no impact on the provision for income taxes.
Net loss totaled $9,776.0 million, or ($60.72)
per share, for the first half of 2022, compared to $333.5 million,
or ($2.16) per share, for the first half of 2021. Results for the
first half of 2022 primarily included non-cash goodwill impairment
charges of $9,630.0 million, or ($59.81) per share, as well as
stock-based compensation expense of $111.4 million, or ($0.69) per
share, and amortization of acquired intangibles of $98.5 million,
or ($0.61) per share.
Results for the first half of 2021 included stock-based
compensation expense of $169.3 million, or ($1.10) per share,
amortization of acquired intangibles of $90.9 million, or ($0.59)
per share, loss on extinguishment of debt $42.9 million, or ($0.28)
per share, and non-cash income taxes charges of $90.2 million, or
($0.59) per share.
Adjusted EBITDA* decreased 18% to $101.2
million compared to $123.4 million for the first half of 2021.
GAAP gross margin, which includes depreciation
and amortization, was 67.1 percent for the first half of 2022,
compared to 67.4 percent for the first half of 2021.
Adjusted gross margin* was flat at 68.1 percent
for the first half of 2022 and 2021.
Average revenue per U.S. paid member increased
to $2.56 in the first half of 2022, from $2.20 in the first half of
2021.
Financial Outlook
The company is maintaining its previously issued revenue and
adjusted EBITDA outlook for the fiscal year ending December 31,
2022. However, based on current trends in the market, management
now expects results to be toward the lower end of those ranges.
Teladoc Health provides an outlook based on current market
conditions and expectations and what we know today. In addition,
given the uncertainty of the expected path of the COVID-19 pandemic
as well as the broader economic impact, this is an evolving
situation and circumstances may change. Based on what we know
today, we believe our outlook ranges provide a reasonable baseline
for 2022 financial performance.
For the third quarter of 2022, we expect:
|
|
|
3Q 2022 Outlook Range |
Revenue |
$600 - $620 million |
EBITDA |
($46) - ($29) million |
Adjusted EBITDA |
$35 - $45 million |
Net loss per share |
($0.85) - ($0.60) |
Total U.S. Paid
Membership |
55.5 - 56.5 million |
Visit Fee Only Access |
~24 million |
Total Visits |
4.8 - 5.0 million |
For the full year 2022, we expect:
|
|
|
Full Year 2022 Outlook Range |
Revenue |
$2,400 - $2,500 million |
EBITDA |
($41) - $8 million |
Adjusted EBITDA |
$240 - $265 million |
Net loss per share |
($62.00) - ($61.00) |
Total U.S. Paid
Membership |
55.0 - 56.5 million |
Visit Fee Only Access |
~24 million |
Total Visits |
18.8 - 19.3 million |
Earnings Conference Call
The second quarter 2022 earnings conference call and webcast
will be held Wednesday, July 27, 2022 at 4:30 p.m. E.T. The
conference call can be accessed by dialing 1-844-200-6205 for U.S.
participants, or 1-929-526-1599 for international participants, and
referencing Conference ID Number: 303657; or via a live audio
webcast available online at
http://ir.teladoc.com/news-and-events/events-and-presentations/. A
webcast replay will be available for on-demand listening shortly
after the completion of the call at the same web link, and will
remain available for approximately 90 days.
About Teladoc Health
Teladoc Health empowers all people everywhere to live their
healthiest lives by transforming the healthcare experience. As the
world leader in whole-person virtual care, Teladoc Health uses
proprietary health signals and personalized interactions to drive
better health outcomes across the full continuum of care, at every
stage in a person’s health journey. Ranked #1 among
direct-to-consumer telehealth providers in the J.D. Power 2021 U.S.
Telehealth Satisfaction Study, Teladoc Health leverages more than a
decade of expertise and data-driven insights to meet the growing
virtual care needs of consumers and healthcare professionals. For
more information, please visit www.teladochealth.com or
follow @TeladocHealth on Twitter.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as: “anticipate,”
“intend,” “plan,” “believe,” “project,” “estimate,” “expect,”
“may,” “should,” “will” and similar references to future periods.
Examples of forward-looking statements include, among others,
statements we make regarding future financial or operating results,
future numbers of members or clients, future numbers of visits,
litigation outcomes, regulatory developments, market developments,
new products and growth strategies, and the effects of any of the
foregoing on our future results of operations or financial
condition.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Important factors that could cause our
actual results and financial condition to differ materially from
those indicated in the forward-looking statements include, among
others, the following: (i) changes in laws and regulations
applicable to our business model; (ii) changes in market conditions
and receptivity to our services and offerings; (iii) results of
litigation; (iv) the loss of one or more key clients; (v) changes
in valuations or useful lives of our assets; (vi) changes to our
abilities to recruit and retain qualified providers into our
network; (vii) the impact of impairment losses; (viii) risks
relating to impairment losses, including with respect to goodwill;
and (ix) the impact of the COVID-19 pandemic on our operations,
demand for our services and general economic conditions, as well as
orders, directives and legislative action by local, state, federal
and foreign governments in response to the spread of COVID-19. For
a detailed discussion of the risk factors that could affect our
actual results, please refer to the risk factors identified in our
SEC reports, including, but not limited to, our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, as filed with the
SEC.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. We undertake no obligation
to publicly update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
Revenues and Summary Operating Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue($
thousands, except Average U.S. |
|
Quarter Ended |
|
Year over Year |
|
Six Months Ended |
|
Year over Year |
Revenue Per Member) |
|
June 30, |
|
Change |
|
June 30, |
|
Change |
|
|
2022 |
|
2021 |
|
|
|
2022 |
|
2021 |
|
|
Access Fees
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
450,426 |
|
$ |
371,591 |
|
21 |
|
% |
|
$ |
871,572 |
|
$ |
699,144 |
|
25 |
|
% |
International |
|
|
68,304 |
|
|
59,474 |
|
15 |
|
% |
|
|
138,495 |
|
|
114,027 |
|
21 |
|
% |
Total |
|
|
518,730 |
|
|
431,065 |
|
20 |
|
% |
|
|
1,010,067 |
|
|
813,171 |
|
24 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Visit Fee
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
64,240 |
|
|
59,196 |
|
9 |
|
% |
|
|
128,713 |
|
|
116,324 |
|
11 |
|
% |
International |
|
|
2,493 |
|
|
3,058 |
|
(18 |
) |
% |
|
|
5,948 |
|
|
6,441 |
|
(8 |
) |
% |
Total |
|
|
66,733 |
|
|
62,254 |
|
7 |
|
% |
|
|
134,661 |
|
|
122,765 |
|
10 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
6,720 |
|
|
9,363 |
|
(28 |
) |
% |
|
|
12,301 |
|
|
20,034 |
|
(39 |
) |
% |
International |
|
|
196 |
|
|
457 |
|
(57 |
) |
% |
|
|
700 |
|
|
844 |
|
(17 |
) |
% |
Total |
|
|
6,916 |
|
|
9,820 |
|
(30 |
) |
% |
|
|
13,001 |
|
|
20,878 |
|
(38 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
$ |
592,379 |
|
$ |
503,139 |
|
18 |
|
% |
|
$ |
1,157,729 |
|
$ |
956,814 |
|
21 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Revenue |
|
$ |
521,386 |
|
$ |
440,150 |
|
18 |
|
% |
|
$ |
1,012,586 |
|
$ |
835,502 |
|
21 |
|
% |
International Revenue |
|
|
70,993 |
|
|
62,989 |
|
13 |
|
% |
|
|
145,143 |
|
|
121,312 |
|
20 |
|
% |
Total Revenue |
|
$ |
592,379 |
|
$ |
503,139 |
|
18 |
|
% |
|
$ |
1,157,729 |
|
$ |
956,814 |
|
21 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average U.S. Revenue Per
Member (1) |
|
$ |
2.60 |
|
$ |
2.31 |
|
13 |
|
% |
|
$ |
2.56 |
|
$ |
2.20 |
|
16 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Visits |
|
Quarter Ended |
|
Year over Year |
|
Six Months Ended |
|
Year over Year |
(thousands) |
|
June 30, |
|
Change |
|
June 30, |
|
Change |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
U.S. Visits |
|
|
3,604 |
|
|
|
2,723 |
|
|
32 |
% |
|
|
7,016 |
|
|
|
5,184 |
|
|
35 |
% |
International Visits |
|
|
1,055 |
|
|
|
929 |
|
|
14 |
% |
|
|
2,153 |
|
|
|
1,810 |
|
|
19 |
% |
Total Visits |
|
|
4,659 |
|
|
|
3,652 |
|
|
28 |
% |
|
|
9,169 |
|
|
|
6,994 |
|
|
31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilization (2) |
|
|
24.0 |
% |
|
|
19.1 |
% |
|
492 |
pt |
|
|
23.7 |
% |
|
|
18.3 |
% |
|
542 |
pt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform-Enabled Sessions
(3) |
|
|
1,040 |
|
|
|
1,017 |
|
|
2 |
% |
|
|
2,215 |
|
|
|
2,109 |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Visits & Sessions
Provided & Enabled |
|
|
5,699 |
|
|
|
4,669 |
|
|
22 |
% |
|
|
11,384 |
|
|
|
9,103 |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
Membership and Visit
Fee Only Access |
|
Quarter Ended |
|
Year over Year |
|
(millions) |
|
June 30, |
|
Change |
|
|
|
2022 |
|
2021 |
|
|
|
U.S. Paid Membership |
|
56.6 |
|
52.0 |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
U.S. Visit Fee Only
Access |
|
24.0 |
|
22.0 |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
Unique Chronic Care Members
(4) |
|
0.798 |
|
0.709 |
|
13 |
% |
|
|
|
(1) Average U.S. Revenue Per Member measures the average amount
of access revenue that the Company generates from a U.S. paid
member for a particular period. It is calculated by dividing the
U.S. access revenue generated from the Company’s U.S. paid members,
excluding certain non-member based access fees, by the total
average number of U.S. paid members during the applicable
period.
(2) Utilization measures the ratio of visits to total U.S. paid
members. It is calculated by dividing visits during a particular
period (excluding visit fee only visits) by U.S. paid members in
the applicable period and annualizing the result.
(3) Platform-Enabled Sessions are a unique instance in which our
licensed software platform has facilitated a virtual voice or video
encounter between a care provider and our client’s patient, or
between care providers. We believe platform-enabled sessions are an
indicator of the value our clients derive from the platform they
license from us in order to facilitate virtual care.
(4) Unique Chronic Care Members represent the number of unique
individuals enrolled in our suite of chronic care programs at the
end of a given period.
TELADOC HEALTH,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except share and per
share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
592,379 |
|
|
$ |
503,139 |
|
|
$ |
1,157,729 |
|
|
$ |
956,814 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of depreciation and amortization, which
is shown separately below) |
|
182,470 |
|
|
|
160,273 |
|
|
|
369,495 |
|
|
|
306,232 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Advertising and marketing |
|
164,574 |
|
|
|
103,221 |
|
|
|
298,174 |
|
|
|
192,660 |
|
Sales |
|
57,930 |
|
|
|
63,856 |
|
|
|
116,259 |
|
|
|
128,649 |
|
Technology and development |
|
80,826 |
|
|
|
80,759 |
|
|
|
168,238 |
|
|
|
158,767 |
|
General and administrative |
|
110,868 |
|
|
|
111,216 |
|
|
|
215,791 |
|
|
|
216,388 |
|
Acquisition, integration, and transformation costs |
|
2,892 |
|
|
|
11,421 |
|
|
|
7,399 |
|
|
|
17,744 |
|
Depreciation and amortization |
|
59,371 |
|
|
|
51,341 |
|
|
|
118,304 |
|
|
|
100,000 |
|
Goodwill impairment |
|
3,030,000 |
|
|
|
0 |
|
|
|
9,630,000 |
|
|
|
0 |
|
Total expenses |
|
3,688,931 |
|
|
|
582,087 |
|
|
|
10,923,660 |
|
|
|
1,120,440 |
|
Loss from operations |
|
(3,096,552 |
) |
|
|
(78,948 |
) |
|
|
(9,765,931 |
) |
|
|
(163,626 |
) |
Loss on extinguishment of
debt |
|
(0 |
) |
|
|
31,419 |
|
|
|
(0 |
) |
|
|
42,878 |
|
Other expense (income),
net |
|
1,760 |
|
|
|
(217 |
) |
|
|
1,036 |
|
|
|
(5,869 |
) |
Interest expense, net |
|
4,337 |
|
|
|
20,473 |
|
|
|
9,817 |
|
|
|
42,598 |
|
Net loss before provision for
income taxes |
|
(3,102,649 |
) |
|
|
(130,623 |
) |
|
|
(9,776,784 |
) |
|
|
(243,233 |
) |
Provision for income
taxes |
|
(1,188 |
) |
|
|
3,196 |
|
|
|
(800 |
) |
|
|
90,235 |
|
Net loss |
$ |
(3,101,461 |
) |
|
$ |
(133,819 |
) |
|
$ |
(9,775,984 |
) |
|
$ |
(333,468 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(19.22 |
) |
|
$ |
(0.86 |
) |
|
$ |
(60.72 |
) |
|
$ |
(2.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used
to compute basic and diluted net loss per share |
|
161,377,695 |
|
|
|
156,055,090 |
|
|
|
161,002,075 |
|
|
|
154,187,739 |
|
Stock-based Compensation Summary
Compensation costs for stock-based awards were classified as
follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Cost of revenue (exclusive of
depreciation and amortization, which is shown separately) |
$ |
2,123 |
|
$ |
1,786 |
|
$ |
4,319 |
|
$ |
4,148 |
Advertising and marketing |
|
3,198 |
|
|
4,815 |
|
|
6,909 |
|
|
9,897 |
Sales |
|
10,709 |
|
|
18,953 |
|
|
22,781 |
|
|
40,120 |
Technology and
development |
|
15,785 |
|
|
27,699 |
|
|
33,872 |
|
|
54,425 |
General and
administrative |
|
19,185 |
|
|
29,717 |
|
|
43,555 |
|
|
60,680 |
Total stock-based compensation
expense (1) |
$ |
51,000 |
|
$ |
82,970 |
|
$ |
111,436 |
|
$ |
169,270 |
(1) Excluding the amount capitalized related to internal
software development projects.
TELADOC HEALTH,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands, unaudited)
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
Operating activities: |
|
|
|
|
|
Net loss |
$ |
(9,775,984 |
) |
|
$ |
(333,468 |
) |
Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
|
|
Goodwill impairment |
|
9,630,000 |
|
|
|
0 |
|
Depreciation and amortization |
|
118,304 |
|
|
|
100,000 |
|
Depreciation of rental equipment |
|
1,486 |
|
|
|
1,663 |
|
Amortization of right-of-use assets |
|
6,540 |
|
|
|
5,858 |
|
Provision for doubtful accounts |
|
5,857 |
|
|
|
7,534 |
|
Stock-based compensation |
|
111,436 |
|
|
|
169,270 |
|
Deferred income taxes |
|
(2,528 |
) |
|
|
83,823 |
|
Accretion of interest |
|
1,659 |
|
|
|
32,566 |
|
Loss on extinguishment of debt |
|
0 |
|
|
|
39,782 |
|
Gain on sale of investment |
|
0 |
|
|
|
(5,901 |
) |
Other, net |
|
0 |
|
|
|
38 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Accounts receivable |
|
(43,948 |
) |
|
|
(16,573 |
) |
Prepaid expenses and other current assets |
|
(20,195 |
) |
|
|
(26,758 |
) |
Inventory |
|
11,974 |
|
|
|
(2,234 |
) |
Other assets |
|
(17,453 |
) |
|
|
1,919 |
|
Accounts payable |
|
47,417 |
|
|
|
(4,741 |
) |
Accrued expenses and other current liabilities |
|
20,712 |
|
|
|
5,380 |
|
Accrued compensation |
|
(38,328 |
) |
|
|
(35,606 |
) |
Deferred revenue |
|
10,823 |
|
|
|
17,205 |
|
Operating lease liabilities |
|
(7,266 |
) |
|
|
(5,833 |
) |
Other liabilities |
|
216 |
|
|
|
267 |
|
Net cash provided by operating
activities |
|
60,722 |
|
|
|
34,191 |
|
Investing activities: |
|
|
|
|
|
Capital expenditures |
|
(6,455 |
) |
|
|
(4,405 |
) |
Capitalized software |
|
(69,213 |
) |
|
|
(21,508 |
) |
Proceeds from marketable securities |
|
0 |
|
|
|
50,000 |
|
Proceeds from the sale of investment |
|
0 |
|
|
|
10,901 |
|
Acquisitions of business, net of cash acquired |
|
(0 |
) |
|
|
(56,336 |
) |
Other, net |
|
3,264 |
|
|
|
3,150 |
|
Net cash used in investing
activities |
|
(72,404 |
) |
|
|
(18,198 |
) |
Financing activities: |
|
|
|
|
|
Net proceeds from the exercise of stock options |
|
4,980 |
|
|
|
17,781 |
|
Repurchase of 2022 Notes |
|
0 |
|
|
|
(137 |
) |
Proceeds from advances from financing companies |
|
5,113 |
|
|
|
7,924 |
|
Payment against advances from financing companies |
|
(7,789 |
) |
|
|
(8,122 |
) |
Proceeds from employee stock purchase plan |
|
1,972 |
|
|
|
11,031 |
|
Cash received for withholding taxes on stock-based compensation,
net |
|
54 |
|
|
|
5,159 |
|
Other, net |
|
(2,848 |
) |
|
|
(98 |
) |
Net cash provided by financing
activities |
|
1,482 |
|
|
|
33,538 |
|
Net decrease in cash and cash
equivalents |
|
(10,200 |
) |
|
|
49,531 |
|
Foreign exchange
difference |
|
(2,119 |
) |
|
|
869 |
|
Cash and cash equivalents at
beginning of the period |
|
893,480 |
|
|
|
733,324 |
|
Cash and cash equivalents at
end of the period |
$ |
881,161 |
|
|
$ |
783,724 |
|
|
|
|
|
|
|
TELADOC HEALTH,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands, except share and per share
data, unaudited)
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
881,161 |
|
|
$ |
893,480 |
|
Short-term investments |
|
2,539 |
|
|
|
2,537 |
|
Accounts receivable, net of provision of $15,095 and $12,384,
respectively |
|
205,434 |
|
|
|
168,956 |
|
Inventories |
|
60,260 |
|
|
|
73,079 |
|
Prepaid expenses and other current assets |
|
107,875 |
|
|
|
87,387 |
|
Total current assets |
|
1,257,269 |
|
|
|
1,225,439 |
|
Property and equipment, net |
|
27,403 |
|
|
|
27,234 |
|
Goodwill |
|
4,858,196 |
|
|
|
14,504,174 |
|
Intangible assets, net |
|
1,872,172 |
|
|
|
1,910,278 |
|
Operating lease - right-of-use assets |
|
49,795 |
|
|
|
46,780 |
|
Other assets |
|
37,940 |
|
|
|
20,703 |
|
Total assets |
$ |
8,102,775 |
|
|
$ |
17,734,608 |
|
Liabilities and stockholders’
equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
94,371 |
|
|
$ |
47,257 |
|
Accrued expenses and other current liabilities |
|
127,187 |
|
|
|
102,933 |
|
Accrued compensation |
|
51,594 |
|
|
|
91,941 |
|
Deferred revenue-current |
|
86,254 |
|
|
|
75,569 |
|
Advances from financing companies |
|
12,073 |
|
|
|
13,313 |
|
Total current liabilities |
|
371,479 |
|
|
|
331,013 |
|
Other liabilities |
|
1,609 |
|
|
|
1,492 |
|
Operating lease liabilities, net of current portion |
|
44,274 |
|
|
|
41,773 |
|
Deferred revenue, net of current portion |
|
3,373 |
|
|
|
3,834 |
|
Advances from financing companies, net of current portion |
|
7,855 |
|
|
|
9,291 |
|
Deferred taxes, net |
|
55,926 |
|
|
|
75,777 |
|
Convertible senior notes, net |
|
1,533,609 |
|
|
|
1,225,671 |
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Common stock, $0.001 par value; 300,000,000 shares authorized;
161,892,008 shares and 160,469,325 shares issued and outstanding as
of June 30, 2022 and December 31, 2021, respectively |
|
162 |
|
|
|
160 |
|
Additional paid-in capital |
|
17,239,092 |
|
|
|
17,473,336 |
|
Accumulated deficit |
|
(11,124,740 |
) |
|
|
(1,421,454 |
) |
Accumulated other comprehensive loss |
|
(29,864 |
) |
|
|
(6,285 |
) |
Total stockholders’ equity |
|
6,084,650 |
|
|
|
16,045,757 |
|
Total liabilities and stockholders’ equity |
$ |
8,102,775 |
|
|
$ |
17,734,608 |
|
Non-GAAP Financial Measures:
To supplement our financial information presented in accordance
with GAAP, we use adjusted gross profit, adjusted gross margin,
EBITDA, and adjusted EBITDA, which are non-GAAP financial measures,
to clarify and enhance an understanding of past performance. We
believe that the presentation of these financial measures enhances
an investor’s understanding of our financial performance. We
further believe that these financial measures are useful financial
metrics to assess our operating performance and financial and
business trends from period-to-period by excluding certain items
that we believe are not representative of our core business. We use
certain financial measures for business planning purposes and in
measuring our performance relative to that of our competitors. We
utilize adjusted EBITDA as the primary measure of our
performance.
Adjusted gross profit is our total revenue minus our total cost
of revenue (exclusive of depreciation and amortization, which is
shown separately) and adjusted gross margin is adjusted gross
profit as a percentage of our total revenue.
EBITDA consists of net loss before interest; other expense
(income), net, including foreign exchange gain or loss; provision
for income taxes; depreciation and amortization; goodwill
impairment; and loss on extinguishment of debt. Adjusted EBITDA
consists of net loss before interest; other expense (income), net,
including foreign exchange gain or loss; provision for income
taxes; depreciation and amortization; goodwill impairment; loss on
extinguishment of debt; stock-based compensation; and acquisition,
integration, and transformation costs.
We believe the above financial measures are commonly used by
investors to evaluate our performance and that of our competitors.
However, our use of the terms adjusted gross profit, adjusted gross
margin, EBITDA, and adjusted EBITDA may vary from that of others in
our industry. None of adjusted gross profit, adjusted gross margin,
EBITDA, nor adjusted EBITDA should be considered as an alternative
to net loss before provision for income taxes, net loss, net loss
per share or any other performance measures derived in accordance
with GAAP.
Adjusted gross profit, adjusted gross margin, EBITDA, and
adjusted EBITDA have important limitations as analytical tools and
you should not consider them in isolation or as a substitute for
analysis of our results as reported under GAAP. Some of these
limitations are:
- adjusted gross margin has been and
will continue to be affected by a number of factors, including the
fees we charge our clients, the number of visits and cases we
complete, the costs paid to providers and medical experts, as well
as the costs of our provider network operations center;
- adjusted gross margin does not
reflect the significant depreciation and amortization to cost of
revenue;
- EBITDA and adjusted EBITDA do not
reflect goodwill impairment;
- EBITDA and adjusted EBITDA do not
reflect the interest expense on our debt;
- EBITDA and adjusted EBITDA eliminate
the impact of the provision for income taxes on our results of
operations;
- EBITDA and adjusted EBITDA do not
reflect the loss on extinguishment of debt;
- EBITDA and adjusted EBITDA do not
reflect other expense (income), net;
- adjusted EBITDA does not reflect the
significant acquisition, integration, and transformation costs.
Acquisition, integration and transformation costs include
investment banking, financing, legal, accounting, consultancy,
integration, fair value changes related to contingent consideration
and certain other transaction costs related to mergers and
acquisitions. It also includes costs related to certain business
transformation initiatives focused on integrating and optimizing
various operations and systems, including upgrading our customer
relationship management (CRM) and enterprise resource planning
(ERP) systems. These transformation cost adjustments made to our
results do not represent normal, recurring, operating expenses
necessary to operate the business but rather, incremental costs
incurred in connection with our acquisition and integration
activities;
- adjusted EBITDA does not reflect the
significant non-cash stock compensation expense which should be
viewed as a component of recurring operating costs; and
- other companies in our industry may
calculate adjusted gross profit, adjusted gross margin, EBITDA, and
adjusted EBITDA differently than we do, limiting the usefulness of
these measures as comparative measures.
In addition, although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized will often have
to be replaced in the future, and adjusted gross profit, adjusted
gross margin, EBITDA and adjusted EBITDA do not reflect any
expenditures for such replacements.
We compensate for these limitations by using adjusted gross
profit, adjusted gross margin, EBITDA, and adjusted EBITDA along
with other comparative tools, together with GAAP measurements, to
assist in the evaluation of operating performance. Such GAAP
measurements include net loss, net loss per share, and other
performance measures.
In evaluating these financial measures, you should be aware that
in the future we may incur expenses similar to those eliminated in
this presentation. Our presentation of adjusted gross profit,
adjusted gross margin, EBITDA, and adjusted EBITDA should not be
construed as an inference that our future results will be
unaffected by unusual or nonrecurring items.
The following is a reconciliation of gross profit and gross
margin, the most directly comparable GAAP financial measures, to
adjusted gross profit and adjusted gross margin, respectively:
Reconciliation of GAAP Gross Profit to
Adjusted Gross Profit and Adjusted Gross Margin(In
thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Revenue |
|
$ |
592,379 |
|
|
$ |
503,139 |
|
|
$ |
1,157,729 |
|
|
$ |
956,814 |
|
|
Cost of revenue (exclusive of
depreciation and amortization, which is shown separately
below) |
|
|
(182,470 |
) |
|
|
(160,273 |
) |
|
|
(369,495 |
) |
|
|
(306,232 |
) |
|
Depreciation and amortization
of intangible assets |
|
|
(6,167 |
) |
|
|
(1,240 |
) |
|
|
(11,286 |
) |
|
|
(5,354 |
) |
|
Gross Profit |
|
|
403,742 |
|
|
|
341,626 |
|
|
|
776,948 |
|
|
|
645,228 |
|
|
Depreciation and amortization
of intangible assets |
|
|
6,167 |
|
|
|
1,240 |
|
|
|
11,286 |
|
|
|
5,354 |
|
|
Adjusted gross profit |
|
$ |
409,909 |
|
|
$ |
342,866 |
|
|
$ |
788,234 |
|
|
$ |
650,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
68.2 |
|
% |
|
67.9 |
|
% |
|
67.1 |
|
% |
|
67.4 |
|
% |
Adjusted gross margin |
|
|
69.2 |
|
% |
|
68.1 |
|
% |
|
68.1 |
|
% |
|
68.0 |
|
% |
The following is a reconciliation of net loss, the most directly
comparable GAAP financial measure, to EBITDA and adjusted
EBITDA:
Reconciliation of GAAP Net Loss to EBITDA
and Adjusted EBITDA(In thousands, except for
outlook data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
Outlook in millions (1) |
|
June 30, |
|
June 30, |
|
Third Quarter |
|
Full Year |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
2022 |
Net loss |
$ |
(3,101,461 |
) |
|
$ |
(133,819 |
) |
|
$ |
(9,775,984 |
) |
|
$ |
(333,468 |
) |
|
$ |
(138) - ($96) |
|
$ |
(9,967) - ($9,866) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment |
|
3,030,000 |
|
|
|
0 |
|
|
|
9,630,000 |
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of
debt |
|
(0 |
) |
|
|
31,419 |
|
|
|
(0 |
) |
|
|
42,878 |
|
|
|
|
|
|
|
Other expense (income),
net |
|
1,760 |
|
|
|
(217 |
) |
|
|
1,036 |
|
|
|
(5,869 |
) |
|
|
|
|
|
|
Interest expense, net |
|
4,337 |
|
|
|
20,473 |
|
|
|
9,817 |
|
|
|
42,598 |
|
|
|
|
|
|
|
Provision for income
taxes |
|
(1,188 |
) |
|
|
3,196 |
|
|
|
(800 |
) |
|
|
90,235 |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
59,371 |
|
|
|
51,341 |
|
|
|
118,304 |
|
|
|
100,000 |
|
|
|
|
|
|
|
Total Adjustments |
|
3,094,280 |
|
|
|
106,212 |
|
|
|
9,758,357 |
|
|
|
269,842 |
|
|
|
92 - 67 |
|
|
9,926 - 9,874 |
EBITDA |
|
(7,181 |
) |
|
|
(27,607 |
) |
|
|
(17,627 |
) |
|
|
(63,626 |
) |
|
|
(46) - (29) |
|
|
(41) - 8 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
51,000 |
|
|
|
82,970 |
|
|
|
111,436 |
|
|
|
169,270 |
|
|
|
|
|
|
|
Acquisition, integration, and
transformation costs |
|
2,892 |
|
|
|
11,421 |
|
|
|
7,399 |
|
|
|
17,744 |
|
|
|
|
|
|
|
Total Adjustments |
|
53,892 |
|
|
|
94,391 |
|
|
|
118,835 |
|
|
|
187,014 |
|
|
|
81 - 74 |
|
|
281 - 257 |
Adjusted
EBITDA |
$ |
46,711 |
|
|
$ |
66,784 |
|
|
$ |
101,208 |
|
|
$ |
123,388 |
|
|
$ |
35 - $45 |
|
$ |
240 - $265 |
(1) We have not provided a full line-item reconciliation for net
loss to EBITDA or adjusted EBITDA outlook because we do not provide
outlook on the individual reconciling items between net loss,
EBITDA, and adjusted EBITDA. This is due to the uncertainty as to
timing, and the potential variability, of the individual
reconciling items such as goodwill impairment, stock-based
compensation and the related tax impact, provision for income taxes
and acquisition, integration, and transformation costs, the effect
of which may be significant. Accordingly, a full line-item
reconciliation of the GAAP measure to the corresponding non-GAAP
financial measure outlook is not available without unreasonable
effort.
Investors:Patrick
Feeley914-265-7925IR@teladochealth.com
Media:Chris
Stenrud860-491-8821pr@teladochealth.com
Teladoc Health (NYSE:TDOC)
Historical Stock Chart
From Apr 2024 to May 2024
Teladoc Health (NYSE:TDOC)
Historical Stock Chart
From May 2023 to May 2024