Teladoc Health, Inc. · NYSE:TDOC
Teladoc Health — 38th Annual J.P. Morgan Healthcare Conference (January 2020)
27 slides from Teladoc Health's conference presentation, Jan 13, 2020
Slide 1: 38th Annual J.P. Morgan Healthcare Conference
38th Annual J.P. Morgan Healthcare Conference January 13
Slide 2: Safe harbor
Safe harbor + This presentation contains, and our officers may make, “forward-looking” statements that are based on our management's beliefs and assumptions and on information currently available to management. These forward-looking statements include, without limitation, information concerning poss
Slide 3: Transforming how people access healthcare around the world
At Teladoc Health, we are transforming how people access healthcare around the world. We are creating a new kind of healthcare experience – one with greater convenience, outcomes, and value.
Slide 4: The Only Comprehensive Virtual Care Solution
The Only Comprehensive Virtual Care Solution Industry Leader with Differentiated Assets, Capabilities and Scale Global Leadership Position Across Channels Consistent Track Record of Delivering Strong Revenue Growth Compelling Financial Model
Slide 5: Boston, Toronto, Phoenix, Dallas, Melbourne
Boston Toronto Phoenix Dallas Melbourne
Slide 6: Industry leading differentiated assets and capabilities
Industry leading differentiated assets and capabilities Member engagement Multi-specialty physician networks Global distribution channels Comprehensive product offering Tech-enabled Scale driven ROI ops at scale Data & analytics Teladoc HEALTH © 2002-2020 Teladoc Health, Inc. All rights reserved.
Slide 7: Key Metrics YTD 3Q 2019
Key Metrics YTD 3Q 2019 4Q19 FY2019 Prior 4Q19 Prior FY2019 Key Metrics Expected Expected Guidance Guidance Visit Growth +63% Results Results Revenue Growth +34% Revenue $155-156m $149-153m $552-553m $546-550m Gross Margin 68% Visits >1.2m 1.0-1.2m >4.1m 3.9-4.1m Adj. EBITDA +119%
Slide 8: Revenue and visit growth
>60% >4,100,000 >60% $600 $552-553m CAGR CAGR $500 $418m 2,641,000 $400 1,464,000 $300 $233m 952,000 $200 $123m $100 $0 2016 2017 2018 2019E $12m -$5m -$34m -$52m 2016 2017 2018 YTD 3Q19
Slide 9: Strong demand across all channels
Strong demand across all channels RFP pipeline up ~10% y/y Bookings up ~30% y/y Larger average deal size
Slide 10: 10 11 12 13 14 2016-2017 2017-2018 2018-2019 2019-2020
39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 2016-2017 2017-2018 2018-2019 2019-2020
Slide 11: We play a central role in how medical care is accessed, enabled and delivered
We play a central role in how medical care is accessed, enabled and delivered * Consumer-centric, single access point to a full spectrum of integrated virtual care services Center of excellence * Uniquely able to: * Diagnose and treat * Use Teladoc Health or client provider networks @ * Navigate to
Slide 12: Source: 2019 J.P. Morgan Hospital Survey
43% 40% 32% 32% 23% 22% 19% 18% 14% 11% 11% 10% 8% Source: 2019 J.P. Morgan Hospital Survey
Slide 13: InTouch Health at a glance
~$80M ’19E Revenue (1) ~35% ’19E Revenue Growth(2) Mid-60’s Gross Margin ~70% Recurring Revenue(3) 30 of 50 Representative Clients Largest US Health Systems as Clients(4) #1 KLAS Rated Virtual Care Platform ’18 &‘19
Slide 14: InTouch Health diversified set of revenue streams
InTouch Health diversified set of revenue streams % of 2019 Contract Value) (Dy + Virtual care software “operating system” Onerehnelsrcem & network connectivity services 30% + Use-case specific software modules . 27% + User licenses + High and low acuity devices 30% . powered by InTouch Health softw
Slide 15: Provider-to-provider and consumer virtual care leadership
InTouch leadership position in critical, Provider Hospital to Provider Virtual Care ED Critical Ambulance Post-Acute Chronic Physician Office Teladoc leadership in Consumer Virtual Care Retail Clinic Pharmacy Everyday Care Worksite Home
Slide 16: Highly strategic acquisition enhances our vision
Highly strategic acquisition enhances our vision of becoming a single integrated source of virtual care across care settings Leadership at every healthcare eniry point Combines the leading consumer and facility-based virtual care platforms, furthering our goal to meet the patient at every front door
Slide 17: Teladoc Health
Teladoc Health Note: Competitor information represents Teladoc management estimates and other industry data.
Slide 18: The leading virtual care platform across channels
The leading virtual care platform across channels Employers + 40% of Fortune 500 * Thousands of small businesses, labor unions and employer coalitions Teladoc HEALTH Insurers + 50+ US health plan clients including commercial, Medicare and Medicaid populations Over 4 million annual visits ~$630m in a
Slide 19: Existing distribution channels and product cross-sell
✓ Existing distribution • Virtual primary care • Integrated, ✓ Health system channels intuitive consumer use cases ✓ Integrated experiences ✓ Product cross behavioral ✓ Insurer scope sell/upsell health solutions • Engagement of services science and ✓ Government ✓ Virtual Center surround sound ✓ In h
Slide 20: We continue to execute on our growth strategies
We continue execute on our growth strategies Expanded markets and use cases Multi-product growth Increased utilization New members Teladoc HEALTH © 2002-2020 Teladoc Health, Inc. All rights reserved. 20
Slide 21: 54m 32m 12m
54m 32m ✓ 23m 18m 12m ✓ 2015 2016 2017 2018 2019E ✓ ✓ o o o Source: US Kaiser Family Foundation, AIS
Slide 22: Utilization by cohort
1st Year Current Year (2019) 2.0x 1.7x 1.3x 1.1x 1.0x 1.0x 1.0x 1.0x 2018 Cohort 2017 Cohort 2016 Cohort 2015 Cohort (1) First year utilization measured as annualized utilization of first calendar year with eligibility. Current year utilization reflects annualized YTD 2019 through Dec 15th. Min. mem
Slide 23: Usage Case Study 2: Utilization following product additions
Usage Case Study2: Utilization following product additions 2.3X 1.6X 1.0X PEPM Prior to Product Add PEPM After Product Add 2017 2018 2019 (1) Represents average change in PEPM for 40+ employer clients lives adding product in 2019. (2) Represents large client that rolled our behavioral and dermatolog
Slide 24: High degree of visibility
High degree of visibility Gross margin strength Customer acquisition and engagement spending efficiency Operating efficiencies and leverage
Slide 25: Global leadership position across channels
Global leadership position across channels
Slide 26: Appendix
Appendix Teladoc. HEALTH © 2002-2020 Teladoc Health, Inc. All rights reserved. 26
Slide 27: Key terms and transaction structure
Key terms • Purchase price of approximately $600 million; consideration consisting of: • $150 million of cash • $450 million in Teladoc Health stock Transaction structure • Cash portion of consideration funded by cash on hand • Implied 5.4M TDOC shares issued to sellers (subject to customary lock-up
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