Teladoc Health Reports Second-Quarter 2021 Results, Raises Full-Year Revenue Guidance

July 27, 2021
  • Second quarter revenue grows 109% year-over-year to $503 million, driving 2021 revenue outlook increase to $2,000 million to $2,025 million.

  • Total second quarter visits top 3.5 million – 28% higher than Q2 2020, in the first wave of the pandemic.

  • Significant new agreement with HCSC to provide Teladoc Health’s suite of whole-person chronic care solutions.

  • Launched myStrength Complete, an integrated mental health service that combines app-based tools and coaching expertise with Teladoc’s therapists and psychiatrists to enable consumers to receive the level of mental health support and care they need, when they need it.

PURCHASE, NY, July 27, 2021 (GLOBE NEWSWIRE) --  Teladoc Health, Inc. (NYSE: TDOC), the global leader in whole-person virtual care, today reported financial results for the quarter ended June 30, 2021.  

“Teladoc Health delivered a strong second quarter, marked by exciting new client wins, product launches, and tremendous progress on our quest to be the category-defining provider of whole person virtual care,” said Jason Gorevic, chief executive officer of Teladoc Health. “We have solid momentum heading into the second half as the market embraces the unified care experience that only Teladoc Health has the breadth and scale to achieve.” 

                                           
Financial Results for the Second Quarter and Six Months Ended June 30, 2021
                                           
Revenue                                          
($ thousands, unaudited)                                          
  Quarter Ended   Year over Year   Six Months Ended  Year over Year
  June 30,   Growth   June 30, Growth
  2021      2020             2021      2020    
Access Fees Revenue                                          
U.S. $ 396,622     $ 152,021     161   %   $ 747,490     $ 259,960     188   %
International   37,422       30,150     24   %     74,710       59,264     26   %
Total   434,044       182,171     138   %     822,200       319,224     158   %
                                           
Visit Fee Revenue                                          
U.S.   59,196       58,512     1   %     113,536       101,996     11   %
International   130       347     (63 ) %     252       609     (59 ) %
Total   59,326       58,859     1   %     113,788       102,605     11   %
                                           
Other                                          
U.S.   9,363       0     n /m     20,034       0     n /m
International   406       0     n /m     792       0     n /m
Total   9,769       0     n /m     20,826       0     n /m
                                           
Total Revenue $ 503,139     $ 241,030     109   %   $ 956,814     $ 421,829     127   %
 
n/m – Not meaningful

 

Membership and Visit Fee Only Access                
(millions)                
  Quarter Ended      
  June 30,   Growth
  2021
     2020
      
U.S. Paid Membership 52.0     51.5     1 %
                 
U.S. Visit Fee Only Access 22.0     21.8     1 %
                 
Chronic Care Enrollment 0.715     -     n /m

 

Visits                                  
(thousands)                              
  Quarter Ended   Year over Year   Six Months Ended    Year over Year
  June 30,   Growth   June 30,   Growth
  2021      2020          2021      2020    
U.S. Visits   3,037       2,302     32 %     5,760       3,916     47 %
International Visits   477       453     5 %     944       885     7 %
Total Visits   3,514       2,755     28 %     6,704       4,801     40 %
                                   
Utilization   21.5 %     16.0 %   550 pt     20.5 %     14.7 %   588 pt
                                   
Platform-Enabled Sessions*   1,017       -     n /m     2,109       -     n /m
                                   
Total Visits & Sessions Provided & Enabled   4,531       2,755     64 %     8,813       4,801     84 %
                                           

* 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.

  • Net loss was $(133.8) million for the second quarter 2021 compared to $(25.7) million for the second quarter 2020. Net loss was $(333.5) million for the first half of 2021 compared to $(55.3) million for the first half of 2020. The second quarter and first half of 2021 include stock-based compensation expense of $83.0 million and $169.3 million, respectively, an increase of $61.0 million and $129.0 million, respectively, from the second quarter and first half of 2020, substantially reflecting higher expense associated with Livongo stock awards that continue to vest after the merger. Net loss also includes amortization of acquired intangibles of $46.1 million and $90.9 million, respectively, for the second quarter and first half of 2021, an increase of $37.7 million and $74.1 million, respectively, from the second quarter and first half of 2020, substantially reflecting higher amortization of acquired intangible assets from the Livongo and InTouch Health acquisitions. Net loss also includes loss on extinguishment of debt of $31.4 million and $42.9 million, respectively, for the second quarter and first half of 2021, an increase of $23.7 and $35.1 million, respectively, from the second quarter and first half 2020, primarily reflecting the exchange of convertible senior notes due 2025 in the second quarter 2021. Net loss also includes a non-cash income tax expense of $90.2 million for the first half of 2021, substantially reflecting the recording of a valuation allowance on stock compensation benefits associated with the Livongo merger, recorded in the first quarter of 2021.
  • Net loss per basic and diluted share was $(0.86) for the second quarter 2021 compared to $(0.34) for the second quarter 2020. Net loss per basic and diluted share was $(2.16) and $(0.74) for the first half of 2021 and 2020, respectively. Net loss per basic and diluted share includes stock-based compensation expense of $0.53 per share and $0.29 per share for the second quarter 2021 and 2020, respectively, and $1.10 per share and $0.54 per share for the first half of 2021 and 2020, respectively. Net loss per basic and diluted share also includes amortization of acquired intangible assets of $0.30 per share and $0.11 per share for the second quarter 2021 and 2020, respectively, and $0.59 per share and $0.22 per share for the first half of 2021 and 2020, respectively. Net loss per basic and diluted share also includes loss on extinguishment of debt of $0.20 per share and $0.10 per share for the second quarter 2021 and 2020, respectively, and $0.28 per share and $0.10 per share for the first half of 2021 and 2020, respectively. In addition, net loss includes the non-cash income tax charge referred to above of $0.59 per share for the first half of 2021 as compared to a benefit of $(0.04) per share in the first half of 2020. The number of weighted-average shares outstanding was 156.1 million and 154.2 million for the second quarter and first half of 2021, respectively, up from 76.5 million and 74.9 million for the second quarter and first half of 2020, substantially reflecting the impact of the Livongo and InTouch Health acquisitions.
  • GAAP Gross margin, which includes depreciation and amortization, was 67.9 percent for the second quarter 2021 and 61.7 percent for the second quarter 2020. For first half 2021 and 2020, GAAP Gross margin was 67.4 percent and 60.6 percent, respectively.
  • Adjusted Gross margin was 68.1 percent for the second quarter 2021 compared to 62.3 percent for the second quarter 2020. For the first half of 2021 and 2020, Adjusted Gross margin was 68.0 percent and 61.3 percent, respectively.
  • EBITDA was a loss of $(27.6) million for the second quarter 2021 compared to a positive $2.7 million for the second quarter 2020. EBITDA was a loss of $(63.6) million and $(8.6) million, respectively, for the first half of 2021 and 2020. EBITDA includes stock-based compensation expense of $83.0 million and $169.3 million for the second quarter and first half of 2021, respectively, an increase of $61.0 million and $129.0 million from the second quarter and first half of 2020, respectively, substantially reflecting higher expense associated with Livongo stock awards that continue to vest after the merger. EBITDA also includes acquisition, integration and transformation costs of $11.4 million and $17.7 million for the second quarter and first half of 2021, respectively, an increase of $9.8 million and $12.5 million from the second quarter and first half of 2020, respectively.
  • Adjusted EBITDA was $66.8 million for the second quarter 2021 compared to $26.3 million for the second quarter 2020. Adjusted EBITDA was $123.4 million for the first half of 2021 compared to $36.9 million for the first half of 2020.

A reconciliation of generally accepted accounting principles (“GAAP”) in the United States to non-GAAP results has been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.

Financial Outlook
Teladoc Health provides guidance based on current market conditions and expectations. Given the uncertainty of the expected path of the COVID-19 pandemic as well as the broader economic impact, our updated guidance is based on what we know today. As this is an evolving situation, circumstances are likely to change, but we believe our guidance ranges provide a reasonable baseline for 2021 financial performance.

For the third-quarter 2021, we expect:

  • Total revenue to be in the range of $510 million to $520 million.
  • EBITDA to be in the range of $(31) million to $(26) million.
  • Adjusted EBITDA to be in the range of $60 million to $65 million.
  • Net loss per share, based on 159.8 million weighted average shares outstanding, to be between $(0.78) and $(0.68).
  • Total U.S. paid membership to be in the range of 52 million to 53 million members and visit fee only access to be available to approximately 22 million individuals.
  • Total visits to be between 3.4 million and 3.6 million.

For the full-year 2021, we expect:

  • Total revenue to be in the range of $2,000 million to $2,025 million.
  • EBITDA to be in the range of $(120) million to $(100) million.
  • Adjusted EBITDA to be in the range of $255 million to $275 million, including an estimated $20 million in lower expenses primarily related to Livongo devices as a result of the merger.
  • Net loss per share, based on 157.4 million weighted average shares outstanding, to be between $(3.60) and $(3.35).
  • Total U.S. paid membership to be in the range of 52 million to 54 million members and visit fee only access to be available to approximately 22 million individuals.
  • Total visits to be between 13.5 million and 14.0 million.

Quarterly Conference Call

The second quarter 2021 earnings conference call and webcast will be held Tuesday, July 27, 2021 at 4:30 p.m. E.T. The conference call can be accessed by dialing 1-833-968-2101 for U.S. participants, or 1-236-714-2089 for international participants, and referencing Conference ID Number: 9335098; 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 best in KLAS for Virtual Care Platforms in 2020, 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 revenues, future earnings, future numbers of members or clients, 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 to our abilities to recruit and retain qualified providers into our network; and (vi) 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.


CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data, unaudited)

           
  June 30,   December 31,
  2021      2020
         
Assets          
Current assets:          
Cash and cash equivalents $ 783,724     $ 733,324  
Short-term investments   2,538       53,245  
Accounts receivable, net of allowance of $10,952 and $6,412, respectively   179,436       169,281  
Inventories   56,990       56,498  
Prepaid expenses and other current assets   82,149       47,259  
Total current assets   1,104,837       1,059,607  
Property and equipment, net   28,184       28,551  
Goodwill   14,454,712       14,581,255  
Intangible assets, net   1,963,172       2,020,864  
Operating lease - right-of-use assets   41,880       46,647  
Other assets   18,334       18,357  
Total assets $ 17,611,119     $ 17,755,281  
Liabilities and stockholders’ equity          
Current liabilities:          
Accounts payable $ 42,077     $ 46,030  
Accrued expenses and other current liabilities   91,609       83,657  
Accrued compensation   59,629       94,593  
Deferred revenue-current   69,293       52,356  
Advances from financing companies   13,619       13,453  
Current portion of long-term debt   0       42,560  
Total current liabilities   276,227       332,649  
Other liabilities   1,346       1,616  
Operating lease liabilities, net of current portion   36,493       43,142  
Deferred revenue, net of current portion   3,501       2,449  
Advances from financing companies, net of current portion   9,561       9,926  
Deferred taxes   81,882       102,103  
Convertible senior notes, net   1,201,039       1,379,592  
Commitments and contingencies          
Stockholders’ equity:          
Common stock, $0.001 par value; 300,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 159,462,979 shares and 150,281,099 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively   159       150  
Additional paid-in capital   17,314,749       16,857,797  
Accumulated deficit   (1,326,129 )     (992,661 )
Accumulated other comprehensive gain   12,291       18,518  
Total stockholders’ equity   16,001,070       15,883,804  
Total liabilities and stockholders’ equity $ 17,611,119     $ 17,755,281  


CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data, unaudited)

                       
  Quarter Ended June 30,   Six Months Ended June 30,
  2021      2020      2021      2020
Revenue $ 503,139     $ 241,030     $ 956,814     $ 421,829  
Expenses:                      
Cost of revenue (exclusive of depreciation and amortization, which is shown separately below)   160,273       90,780       306,232       163,162  
Operating expenses:                      
Advertising and marketing   103,221       47,578       192,660       80,093  
Sales   63,856       18,687       128,649       36,627  
Technology and development   80,759       23,029       158,767       42,286  
Acquisition, integration and transformation costs   11,421       1,627       17,744       5,291  
General and administrative   111,216       56,615       216,388       102,957  
Depreciation and amortization   51,341       9,893       100,000       19,603  
Total expenses   582,087       248,209       1,120,440       450,019  
Loss from operations   (78,948 )     (7,179 )     (163,626 )     (28,190 )
Loss on extinguishment of debt   31,419       7,751       42,878       7,751  
Other (income) expense, net   (217 )     (111 )     (5,869 )     574  
Interest expense, net   20,473       13,262       42,598       21,880  
Net loss before taxes   (130,623 )     (28,081 )     (243,233 )     (58,395 )
Income tax expense (benefit)   3,196       (2,399 )     90,235       (3,110 )
Net loss $ (133,819 )   $ (25,682 )   $ (333,468 )   $ (55,285 )
                       
Net loss per share, basic and diluted $ (0.86 )   $ (0.34 )   $ (2.16 )   $ (0.74 )
                       
Weighted-average shares used to compute basic and diluted net loss per share   156,055,090       76,512,870       154,187,739       74,919,194  


CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

           
  Six Months Ended June 30,
  2021   2020
Cash flows provided by operating activities:                   
Net loss $ (333,468 )   $ (55,285 )
Adjustments to reconcile net loss to net cash provided by operating activities:          
Depreciation and amortization   100,000       19,603  
Amortization of right-of-use assets and depreciation of rental equipment   7,521       3,052  
Allowance for doubtful accounts   7,534       2,290  
Stock-based compensation   169,270       40,243  
Deferred income taxes   83,823       (3,457 )
Accretion of interest   32,566       16,576  
Loss on extinguishment of debt   39,782       7,751  
Gain on sale of investment   (5,901 )     0  
Change in fair value of contingent consideration   38       214  
Changes in operating assets and liabilities:          
Accounts receivable   (16,573 )     (24,773 )
Prepaid expenses and other current assets   (26,758 )     1,595  
Inventory   (2,234 )     0  
Other assets   1,919       36  
Accounts payable   (4,741 )     1,844  
Accrued expenses and other current liabilities   5,380       37,555  
Accrued compensation   (35,606 )     (1,818 )
Deferred revenue   17,205       (12,347 )
Operating lease liabilities   (5,833 )     (2,788 )
Other liabilities   267       (1,061 )
Net cash provided by operating activities   34,191       29,230  
Cash flows used in investing activities:          
Capital expenditures   (4,405 )     (1,641 )
Capitalized software development costs   (21,508 )     (6,449 )
Proceeds from marketable securities   50,000       0  
Proceeds from the sale of investment   10,901        
Acquisitions of business, net of cash acquired   (56,336 )     (13,500 )
Other, net   3,150       0  
Net cash used in investing activities   (18,198 )     (21,590 )
Cash flows provided by financing activities:          
Net proceeds from the exercise of stock options   17,781       33,513  
Proceeds from issuance of 2027 Notes   0       1,000,000  
Payment of issuance costs of 2027 Notes   0       (24,070 )
Repurchase of 2022 Notes   (137 )     (228,130 )
Proceeds from advances from financing companies   7,924       0  
Payment from customers against advances from financing companies   (8,122 )     0  
Proceeds from employee stock purchase plan   11,031       2,473  
Cash received for withholding taxes on stock-based compensation, net   5,159       4,492  
Other, net   (98 )     0  
Net cash provided by financing activities   33,538       788,278  
Net increase in cash and cash equivalents   49,531       795,918  
Foreign exchange difference   869       (1,428 )
Cash and cash equivalents at beginning of the period   733,324       514,353  
Cash and cash equivalents at end of the period $ 783,724     $ 1,308,843  
           
Income taxes paid $ 52     $ 59  
           
Interest paid $ 7,972     $ 5,609  


Stock-based Compensation Summary

Total compensation costs for stock-based awards were recorded as follows (in thousands):

                               
  Quarter Ended   Six Months Ended 
  June 30,   June 30,
  2021      2020      2021      2020
Cost of revenue (exclusive of depreciation and amortization, which is shown separately) $ 1,786     $ 0     $ 4,148     $ 0  
Advertising and marketing   4,815       1,544       9,897       2,803  
Sales   18,953       3,271       40,120       6,190  
Technology and development   27,699       2,559       54,425       4,663  
General and administrative   29,717       14,554       60,680       26,587  
Total stock-based compensation expense (1) $ 82,970     $ 21,928     $ 169,270     $ 40,243  

(1)   Excluding the amount capitalized related to internal software development projects.


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 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. We believe that these measures provide investors meaningful information to understand our results of operations and the ability to analyze financial and business trends on a period-to-period basis.

EBITDA consists of net loss before interest; other (income) expense, net, including foreign exchange gain or loss; taxes; depreciation and amortization; and loss on extinguishment of debt. Adjusted EBITDA consists of net loss before interest; other (income) expense, net, including foreign exchange gain or loss; taxes; depreciation and amortization; loss on extinguishment of debt; stock-based compensation; and acquisition, integration and transformation costs. We believe that making such adjustments provides investors meaningful information to understand our results of operations and the ability to analyze financial and business trends on a period-to-period basis.

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 taxes, net loss, net loss per share or any other performance measures derived in accordance with GAAP as measures of performance.

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 the significant interest expense on our debt;
  • EBITDA and adjusted EBITDA eliminate the impact of 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 (income) expense, 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, 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.

We have not reconciled EBITDA or adjusted EBITDA guidance to GAAP net income (loss) because we do not provide guidance on the individual reconciling items between EBITDA and adjusted EBITDA and GAAP net income (loss). This is due to the uncertainty as to timing, and the potential variability, of the individual reconciling items such as the tax impact of share-based compensation, the effect of which may be significant. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

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,
  2021      2020      2021      2020
Revenue $ 503,139       $ 241,030       $ 956,814       $ 421,829    
Cost of revenue (exclusive of depreciation and amortization, which is shown separately below)   (160,273 )       (90,780 )       (306,232 )       (163,162 )  
Depreciation and amortization of intangible assets   (1,240 )       (1,538 )       (5,354 )       (3,026 )  
Gross Profit   341,626         148,712         645,228         255,640    
Depreciation and amortization of intangible assets   1,240         1,538         5,354         3,026    
Adjusted gross profit $ 342,866       $ 150,250       $ 650,582       $ 258,667    
                       
Gross margin   67.9   %     61.7   %     67.4   %     60.6   %
Adjusted gross margin   68.1   %     62.3   %     68.0   %     61.3   %

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, unaudited)

                       
  Quarter Ended   Six Months Ended 
  June 30,   June 30,
  2021      2020      2021      2020
Net loss $ (133,819 )     $ (25,682 )     $ (333,468 )     $ (55,285 )  
Add:                      
Loss on extinguishment of debt   31,419         7,751         42,878         7,751    
Other (income) expense, net   (217 )       (111 )       (5,869 )       574    
Interest expense, net   20,473         13,262         42,598         21,880    
Income tax expense (benefit)   3,196         (2,399 )       90,235         (3,110 )  
Depreciation and amortization   51,341         9,893         100,000         19,603    
EBITDA   (27,607 )       2,714         (63,626 )       (8,587 )  
Stock-based compensation   82,970         21,928         169,270         40,243    
Acquisition, integration and transformation costs   11,421         1,627         17,744         5,291    
Adjusted EBITDA $ 66,784       $ 26,269       $ 123,388       $ 36,947    


Investors:

Patrick Feeley
914-265-7925
IR@teladochealth.com 

Media:
Chris Stenrud
860-491-8821
pr@teladochealth.com


Primary Logo

Source: Teladoc Health, Inc.

Get in touch today

Contact Teladoc Health Investor Relations