Teladoc Health, Inc. · NYSE:TDOC
Teladoc Health — Investor Day (November 2021)
121 slides from Teladoc Health's investor day presentation, Nov 18, 2021
Slide 1: 2021 Investor Day
Teladoc. HEALTH 2021 Investor Day November 18, 2021 OOOCCO0O0 OO0O0C000 OOO0000 OO00000 OOO0000 OOO0O000 OOO0CC0O0
Slide 2: Forward-looking statements
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 possible or assume
Slide 3: Agenda
Our Vision for Whole-Person Care Jason Gorevic Q&A Commercial Strategy Kelly Bliss BetterHelp’s Playbook for Growth Alon Matas Winning With Consumers: Stephany Delivering Whole-Person Care Dan Trencher Verstraete The Forefront of Engagement Pulling It All Together: Donna Boyer Financial Outlook Mala
Slide 4: Our Vision for Whole-Person Care
Our Vision for Whole-Person Care Jason Gorevic Chief Executive Officer 4
Slide 5: Member Story
Member Story
Slide 6: Industry's only complete whole-person virtual care suite
Virtual care industry leader in scale, Industry’s only complete whole- clinical breadth and outcomes person virtual care suite Differentiated combination of digital and Multi-channel network: leading physician-led services and assets brand across payer + provider + DTC, with global footprint Uniquel
Slide 7: Our mission: transforming the healthcare experience
OUR MISSION transforming the healthcare experience 7
Slide 8: The global leader in whole-person virtual care
WHO WE ARE The global leader in whole-person virtual care,
Slide 9: Key company statistics
76M 10K 800K Members1 Providers2 Connected Devices 12K+ 18M+ 2B Clients Estimated 2021 Visits / Sessions3 Data Points 60+ #1 #1 5K NPS4 In App Downloads JD Power Employees 1. Includes U.S. paid members and visit fee only access 2. Teladoc Health Medical Group 3. Includes Platform Enabled Sessions 4.
Slide 10: Market increasingly sees virtual care as a first step
Market increasingly sees virtual care as a first step for healthcare Consumers and clients 38X 82% of consumers say telehealth is equal to or better than in-person demand that virtual care rises to the level of other growth in telehealth usage since pre-pandemic1 services… …which requires a seamless
Slide 11: 2015 IPO to 2021 and beyond
Mental Health Mental Health Care Text/Chat Stepped Care Mental Health General Medical Virtual Medical Chronic Care Chronic Care Primary360 Care Diabetes & Hypertension WHOLE- PERSON Pediatrics Lab Testing CKD CARE High Acuity STRATEGY Chronic Telemedicine Device Integrations Disease Nutrition Mental
Slide 12: Evolution of customer relationship, products and business model
AUDIO/VIDEO VISITS Evolution of INTEGRATED ECOSYSTEM PLATFORM Technology & Connectivity WHOLE-PERSON PARTNER Customer Relationship Tomorrow Evolution of Evolution of Products Today POINT SOLUTION VENDOR Yesterday Evolution of Business Model FEE FOR SERVICE VALUE/RISK BASED
Slide 13: Evolution versus virtual care competition
AUDIO/VIDEO VISITS Evolution of INTEGRATED ECOSYSTEM PLATFORM Technology & Connectivity WHOLE-PERSON PARTNER Customer Relationship Tomorrow Evolution of Evolution of Products Today Virtual Care Competition POINT SOLUTION Today VENDOR Yesterday Evolution of Business Model FEE FOR SERVICE VALUE/RISK B
Slide 14: Approach to whole-person virtual care
Teladoc Health’s approach to whole-person virtual care addresses the shortcomings of the physical delivery system.
Slide 15: Whole-person care: personalized, convenient and connected
Whole-Person Care that is Personalized, Convenient and Connected My BP is out I want to lose of control… I weight and have Stepped Care Model need help more energy I need a referral to a cardiologist I want to easily connect with my doctor online I want a better My doctor way to access told me to ge
Slide 16: Accessed via multiple on-ramps
Accessed via multiple on-ramps Mental Health Care • Relationship-based, personalized and longitudinal Chronic Care • Better consumer experience WHOLE- • Broad, integrated suite of virtual solutions PERSON CARE STRATEGY • Connected with physical delivery system • Highly scalable platform Virtual Medi
Slide 17: Digital front door
Integrated Tech Tech Enabled Platform Ops at Scale Multiple entry points to ecosystem via complementary and integrated clinical services Teladoc Client Provider Medical Enablement Data Science, Group AI, Constant Learning Extensive Teladoc network and last mile physical Value Added service partnersh
Slide 18: Our moat
Teladoc Video CCM/MH Traditional Big Hybrid National Our Moat Conferencing Point Telehealth Tech VPC Health Health Platforms Solutions Players Plans One-to-many care delivery model Clinical Expertise Whole-Person clinical scope & Experiences Best-in-class engagement, behavior change Data and data
Slide 19: TAM and serviceable addressable market
TAM / Total US $261B Total Health healthcare Spending = 7% spending $121B $3.8T $140B EXISTING TDOC TAM TDOC INCREMENTAL PRIMARY CARE TAM $5.5B $5.5B Total US Healthcare Spending $2.0B TDOC 2021E Revenue McKinsey 2021 Market Revenue TDOC Total Estimated Serviceable Addressable Market (SAM) Sources:
Slide 20: Growth drivers: members and revenue per member
Engagement / Enrollment New Members Product Penetration Covered Life Penetration at Clients Increased Revenue Per New Member Total Clients Market POWERED BY DIFFERENTIATING Distribution Clinical Expertise & Technology & Data ASSETS AND CAPABILITIES… & Engagement Experiences at Scale
Slide 21: Teladoc covered lives vs. total U.S. insured lives
2021 estimated Teladoc covered lives vs. estimated 298M total U.S. insured lives (millions) • Teladoc paid and visit-fee- only members total ~76M insured lives 92M Current Teladoc “members” • Additional ~16M insured 51 ~31% of insured Lives offered CCM/mS but lives in populations with 76 lives in th
Slide 22: Total potential participants and revenue per member
Total Potential Participants (Lives, Millions) 100 Estimated 92M lives with access to a Teladoc product today 92M 80 60 40 75 51 47 20 19 0 Primary360 myStrength Complete CCM - D, PD, or HTN CCM - WM (excl. D-PD-HTN) Range of total revenue per participating member $25-$40 $30-$40 $50-$110 $30-$65 pe
Slide 23: Growth targets by business line
% of 2021 expected Target 2021-2024 revenue CAGR Virtual medical care (including primary care)1 ~35% 10-20% Mental health care (B2B and DTC) ~40% 30-40% Chronic condition care2 ~25% 25-35% CONSOLIDATED GROWTH 25-30% 1. Includes all global other B2B2C telemedicine services and telemedicine software a
Slide 24: Revenue outlook and 2024 target
Multiple levers to deliver sustainable, long-term Target 2021-2024 growth and value Revenue CAGR 25-30% creation via our integrated model FY 2022 Preliminary Revenue Outlook ~$2.6B FY 2024 Revenue Target >$4B Teladoc Health, Inc Investor Day 2021 24
Slide 25: Opportunity, Vision, Strategy, Capabilities
Opportunity Vision Strategy Capabilities 25
Slide 26: Commercial Strategy
Commercial Strategy Kelly Bliss President, U.S. Group Health 26
Slide 27: Distribution channels and clients
CHANNEL PARTNERS B2B DIRECT CHANNEL DTC CHANNEL Health plans Global insurers Employers Hospitals & health Direct to & government & financial services systems consumer • Self Insured • Life, P&C, disability, • All sizes, all industries • Health systems • BetterHelp • Fully Insured group, specialty •
Slide 28: Employer and client views on virtual care
80% 99% 80% 20% of Employers believe of Employers intend to of our Clients view of our Clients believe virtual care will have a maintain or increase us as a strategic they have a well- significant impact on their level of partner vs. a vendor defined virtual care how care is delivered in the future
Slide 29: Increasing value of virtual care
INCREASING VALUE OF VIRTUAL CARE Virtual-First is core to benefits strategy with Offers a Virtual-First widespread adoption and Health option with utilization of seamlessly embedded virtual integrated products and Developed virtual care services medical care that strategy that recognizes connects vi
Slide 30: Omni-Channel Sales Acceleration
Omni-Channel Sales Acceleration
Slide 31: Omni-channel sales acceleration levers
Omni-Channel Sales Acceleration Cross-Sell Thesis Clients Migrating Market-Defining from Livongo Merger from Point Solutions Partnerships Being Realized
Slide 32: Deeper penetration within existing customers
Omni-Channel Sales Acceleration Three opportunities to Illustrative Coverage Map for an Existing Health Plan Partner achieve deeper penetration within existing customers Products Chronic Condition Gen Med Suite Mental Health Care Primary Care Management Suite Lines of Business Add Lines of Business
Slide 33: Primary360 distribution channels
Omni-Channel Sales Acceleration Health Plan Fully Insured Benefit Direct to Carriers ACA Exchange Consultants Employer • Partner with health plan • Assisting Exchange partners offer • Distribution agreements and • Selling standardized model to carriers to make P360 new “Virtual-First” Benefit Design
Slide 34: Case study: leading national retailer
Whole-Person Multi-Product Penetration Partnership expansion across products Case Study: Leading National Retailer 46,000 eligible lives 2019 2021 Launched with Added General Medical, Nutrition, Livongo’s Diabetes solution Dermatology, Mental Health and Expert Medical Opinions 2020 2022 Supplemented
Slide 35: Multi-product vs. single condition account economics
Whole-Person Multi-Product Penetration Illustrative economics on Single Chronic Condition and Multi-Product Chronic Condition relationships (Employer with 10,000 employees) (Equivalent Single Condition Account Enrollment Rates) Multi-Product Account 6% Eligibility 44% Diabetes Across Co-morbidities
Slide 36: Value-based arrangements
Value-Based Arrangements Broad Product Strong Track Best-in-Class Scale Portfolio Record Analytics Breadth and depth of Strong toehold into value- Proven clinical quality and Enables segmentation and virtual medical care, chronic based lines of business via medical cost outcomes personalization to d
Slide 37: Moving toward outcome-based arrangements
Value-Based Arrangements Uniquely suited to deliver as market moves towards outcome-based arrangements LOW INCREMENTAL REVENUE POTENTIAL HIGH Capitated Whole- Fee for Service Pay for Performance Partial Capitation Person Care Enrollment-based fees / access + Enhanced subscription model + Percentage
Slide 38: Clients recognize the value of Teladoc Health
Clients Recognize the Value of Teladoc Health
Slide 39: Client partnership strengths
Operational Proven global excellence and presence at scale integrity Growth Demonstrated Commercial results for agility clients C-Suite level strategic partnerships industry-wide 39
Slide 40: Key Takeaways
• Global, multi-channel distribution network and client footprint position Teladoc to capture market whitespace • Proven ability to drive outcomes and cost savings positions us Key to succeed in value-aligned arrangements, add new members and expand revenue per member Takeaways • Confident in our ab
Slide 41: Delivering Whole-Person Care
Delivering Whole-Person Care Dan Trencher Senior Vice President, Corporate Strategy 41
Slide 42: Whole-person care strategy
Mental Health Care Chronic Care WHOLE-PERSON CARE STRATEGY Virtual Medical Care
Slide 43: Virtual medical care primary care TAM
Virtual Medical Care Total U.S. Primary 1 out of 4 $250B Care Spend working age adults do not have a PCP 4 out of 5 TDOC Primary working age adults do not have a $160B Care TAM1 strong relationship with a PCP 20-25% TDOC General $20B Medical TAM potential savings if all Americans had primary care re
Slide 44: Continuity of care, virtually
Virtual Medical Care Dedicated care team Longitudinal care plans A dedicated support team —PCP, A personalized care plan that flexes over RN, MA, surrounds each member Integrated data time, engages members in a longitudinal with a ‘virtual practice’ to keep enables care relationship with their care
Slide 45: In-home services and brick and mortar last mile
Virtual Medical Care Lab Vitals Measure, monitor and record blood pressure and heart rate from the home Labs At-home test kits and phlebotomy services Clinic Prescriptions Home Home delivery, mail order and retail options Utilize combination of in-home services and Vaccinations brick & mortar At-hom
Slide 46: Primary care patients who can benefit from services
Virtual Medical Care General Medical Nutrition 59% 24% Chronic Conditions Expert Medical Services 33% 27% Primary Care Patients Mental Health Care Dermatology 31% 30% Percentages represent primary care patients who can benefit from indicated service, based on management analysis of single year of po
Slide 47: Primary care engagement and satisfaction metrics
Virtual Medical Care <1 Week >50% ~25% for new patient visits of participants have used at least of those with Diabetes and Hypertension nationwide one other Teladoc service were newly diagnosed1 10+ 90%+ >95% care team interactions clinical performance on member satisfaction a year preventive scree
Slide 48: Teladoc vs. traditional, text-based and hybrid players
Virtual Medical Care TRADITIONAL TEXT-BASED PURE-PLAY HYBRID Teladoc On-Demand Care Needs High Quality Longitudinal Care In-Network Referrals and Coordinated Care Highly Scalable Across Any Client Footprint Clinical Mental Health Support Robust Digital Chronic Condition Mgmt. Network of Top Speciali
Slide 49: Mental Health Care: A Winning Model for Enterprise Clients
Mental Health Care: Delivering a Winning Model for Enterprise Clients 49
Slide 50: Addressable U.S. virtual mental health TAM
Mental Health Care Addressable U.S. Virtual Annual Direct Mental Health TAM Medical Costs Per Person3 Indirect Costs receive no care2 Inpatient Hospitalizations 12x 22x #1 Driver of Disability5 Office Visits 6-7x 5x 6x $1T+ Global Economic No Chronic Mental Diabetes Diabetes + Productivity Impact4 C
Slide 51: Mental health care stepped care
Mental Health Care 1 2 3 Mental Health Care Assess Plan Iterate Intelligent personalization drives stepped care Chronic Care WHOLE- PERSON CARE STRATEGY Virtual Medical Care Full spectrum of mental health care covers needs Primary across entire population Care 78% of consumers prefer a single unifie
Slide 52: Mental health client value
Mental Health Care CLIENT VALUE Telepsychiatry Lower clinical visit costs Remote Licensed Care Teletherapy Greater access Telecoaching Visit replacement Remote Care Crisis outreach ER Avoidance Engagement guidance Engagement Structured digital courses Visit avoidance Digital Programs Recommended dig
Slide 53: Transforming Chronic Care Through an Integrated Experience
Transforming Chronic Care Through an Integrated Data-Driven Experience 53
Slide 54: Chronic conditions and cost TAM
Chronic Care Diabetes + Hypertension + Mental Health DIABETES $34,800 Diabetes + Hypertension HYPERTENSION Prediabetes + Mental Health WEIGHT Diabetes $18,100 Hypertension only Prediabetes No only $10,300 conditions only $9,100 MENTAL $6,600 Annual cost $4,700 HEALTH per person $1,600 DYSLIPIDEMIA P
Slide 55: Chronic care solutions: diabetes, prediabetes, cardiovascular
Chronic Care Diabetes Prediabetes Cardiovascular solution solution solution Target population People with diabetes People with prediabetes People with hypertension (anchor condition) Additional areas • Hypertension • Hypertension • Dyslipidemia of support • Dyslipidemia • Dyslipidemia • Weight Manag
Slide 56: Chronic care client value
Chronic Care CLIENT VALUE Care navigation Specialty referral Increase access Licensed Care Medication optimization Improve condition management Labs and screenings Acute outreach ER Avoidance Optimize utilization of Coaching Telecoaching licensed care Nudges and action plans Engagement Medical adher
Slide 57: Product innovation and expanded markets
Chronic Care Expanded Markets Product Innovation New Conditions and Use Cases • Chronic Care Complete stepped care • CKD, Heart Failure • Hospitals & Health Systems for model Chronic Patient Management, Post- • Potential new conditions – e.g. Acute, Hospital @ Home • Continuous Glucose Monitoring in
Slide 58: Key Takeaways
• Three key components of our Whole-Person strategy – Virtual Medical Care, Chronic Care Management and Mental Health Care • Each addresses large markets with differentiated offerings, is underpinned by data, data science and personalization Key and drives proven outcomes and ROI Takeaways • Medical
Slide 59: Pulling It All Together: The Integrated Experience
Pulling It All Together: The Integrated Experience Donna Boyer Chief Product Officer 59
Slide 60: Key Takeaways
• Bringing together Virtual Medical Care, Mental Health Care and Chronic Care in one easy, integrated consumer experience • Data science and behavioral science are woven in Key throughout the experience to create a personalized experience that drives relevancy, trust and ongoing Takeaways engagement
Slide 61: Product and Platform Enablement
Product and Platform Enablement Claus Jensen, PhD Chief Innovation Officer 61
Slide 62: Fusing five sciences to solve a new category of problem
To solve a new category of problem, we uniquely fuse Clinical Science • • Behavioral Logistics Science Science • Technology Science •
Slide 63: An unparalleled team across the sciences
We have an unparalleled team Clinical delivering on this promise Science Behavioral Logistics Science Science Technology Science
Slide 64: Scale and scope of data
Clinical Science Self-Reported Clinical & Coaching Health Data The scale and scope of the data Interactions ✓ >2 billion health & engagement data points of which >60% are proprietary Public Data ✓ Thousands of digital and virtual interactions Claims Exchanges for a single individual Data Lifetime Cl
Slide 65: Behavioral science and health signals
Behavioral Science Lifetime Clinical Truth Applied Health Signal Examples Member and Referral to Mental Health or Chronic Condition Management program (Very Rich) Diverse Data Clinician Sources Decisions Sophisticated matching of patients and appropriate providers Referral to expert (Teladoc Health
Slide 66: Technology science: differentiated value
Technology Science Health Consumer Differentiated value through • Selective solutions clients want to Global ID buy Clinician Data Fabric • Integrated capabilities care teams need • Services and experiences consumers want to use Client
Slide 67: Logistics science
Logistics Science Access and freedom of choice Products and eligibility (per client) Clients Integration, APIs and SDKs (per client) Referral management (per client) Clinical Client Assets Credentialing and licensing (per network) Services Care Teams Queue management (per visit type) Technology Hard
Slide 68: Addressing the last mile
Examples Changing Managing Clinical Addressing Consumer Behavior Resources at Scale “The Last Mile” • Unified Consumer experience • Virtual waiting room • Unified Clinician experience • Chronic Conditions and management • Lab and Med Management Mental Health Complete • Device fleet management • Remo
Slide 69: Platform priorities
Expand Total Addressable Market • International deployment of CCM and MH products Unlock new and under-penetrated markets • Medicare Advantage adaption of products (multi-year) • Health Systems as member enrollment channels Deploy Integration Platforms • Consumer Global ID and Global Profile Create
Slide 70: Value per person increasing dramatically
PHASE 1 PHASE 2 PHASE 3 Early Days Market Acceleration NextGen Whole-Person Virtual Medical General Medical virtual visits Primary360 Full ‘last-mile’ integration Care Mental Health Mental health care virtual visits MyStrength Complete Chronic and Mental Complete Care Individual chronic condition St
Slide 71: Key Takeaways
• The right vision and approach to define and deliver the “next normal” whole-person care model • Best fully integrated team across the five sciences needed • Already well down the path to a single fully integrated platform and experience Key • Uniquely positioned to deliver cohesively the different
Slide 72: Q&A
— Q&A Teladoc. HEALTH
Slide 73: BetterHelp's Playbook for Growth
BetterHelp’s Playbook for Growth Alon Matas President, BetterHelp 73
Slide 74: Monthly consumers paying for therapy
Monthly Consumers Paying for Therapy 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 Competitor #1 Competitor #2 - 2017 2018 2019 2020 2021 (E) Monthly paying consumers is number of consumers who paid for therapy in a month, shown here by EOY figures. Therapists providing services is
Slide 75: Paying consumers and therapists vs. competitors
Monthly Consumers Paying for Therapy Therapists Who Provided Services in 2021 400,000 25,000 350,000 20,000 300,000 250,000 15,000 200,000 150,000 10,000 100,000 5,000 50,000 Competitor #1 Competitor #1 Competitor #2 Competitor #2 - 2017 2018 2019 2020 2021 (E) 0 Monthly paying consumers is number o
Slide 76: Provider network and data science
20K+ active providers (7X larger than closest competitor) Data Science 150M+ therapist-member interactions (unparalleled to any other platform) Stamoulos, C., Trepanier, L., Bourkas, S., Bradley, S., Stelmaszczyk, K., Schwartzman, D., & Drapeau, M. (2016). Psychologists’ perceptions of the importanc
Slide 77: Innovation that expands the offering and value
Innovation that Expands the Offering and the Value Journal 9ee {dural Suggestion My es yrs (Deserted Shae} (See Abetter day “Today | woke up feeling move hopetu about the future. All week, ve been folowing a routine where portize exercise, meditation, and getting a good right’ slp, Teladoc HEALTH Se
Slide 78: Member retention
86% 79% ~100K of our members continue of our revenue is generated by people in 2021 returned after after their first session members who use BetterHelp for pausing their membership (compared to industry standard of 80% or less) three months or longer D. Zimmermann, Therapist Effects on Attrition in
Slide 79: Revenue from a member in first 12 months
Revenue generated from a member in the first 12 months after joining 1.9x 1.6x 1.4x 1.1x 1.0x 2017 2018 2019 2020 2021 2021 is an estimated extrapolation from payment and retention data of January to October
Slide 80: Revenue to advertising CAC ratio
Revenue / Advertising Customer Acquisition Cost (CAC) Ratio 3 2.5 2 1.5 1 0.5 0 2017 2018 2019 2020 2021 (E)
Slide 81: Organic member acquisition
Member acquisition sources Over 20M Each source Top-of-mind ORGANIC brand for online <25% therapy unique visitors in 2021 of members Users who browsed BetterHelp.com or Regain.us and didn’t come from paid media
Slide 82: Member LTV that gets better with scale
Advertising ROI Member LTV that gets better that gets better with scale with scale (efficiency, economies (data insights, network, of scale, brand innovation) recognition)
Slide 83: Market access and parity statistics
32% 42% 48% https://www.nami.org/Support-Education/Publications-Reports/Public-Policy-Reports/Out-of-Network-Out-of-Pocket-Out-of-Options-The/Mental_Health_Parity2016.pdf https://www.camft.org/Portals/0/PDFs/Demographic-surveys/2017/ClinicalSurvey.pdf?ver=2019-07-10-103433-993
Slide 84: Market expansion: targeting the male audience
Market Expansion: Targeting the Male Audience +362” men in two years Teladoc HEALTH Teladoc Health, Inc Investor Day 2021
Slide 85: International expansion
Paying members from International sessions grew 100+ >5X countries in 24 months Therapy provided in 26 >$100M languages of revenue expected from non- U.S. consumers in FY2021 85
Slide 86: Equitable access and social impact
regardless of employment and insurance $45M 18 non-profit organizations 2,500 free months of therapy thousands of volunteers and frontliners therapists from underrepresented communities
Slide 87: Key Takeaways
• Rapidly growing revenue and strong margins • Undisputed leadership position Key • Using scale to scale further Takeaways • Enormous untapped market that keeps expanding • Equitable access with social impact 87
Slide 88: Winning With Consumers: The Forefront of Engagement
Winning With Consumers: The Forefront of Engagement Stephany Verstraete Chief Marketing & Engagement Officer 88
Slide 89: Consumer adoption curve: accelerated
Accelerated Urgent Care Mental Health Care # of Consumers Early Adopters Early Mainstream Late Mainstream
Slide 90: Consumer adoption curve: expanding
Expanding WHOLE-PERSON VIRTUAL CARE USAGE Urgent Care Mental Health Care # of Consumers Early Adopters Early Mainstream Late Mainstream
Slide 91: Deepening Consumer Relationships
Deepening Consumer Relationships 91
Slide 92: Multi-service engagement lifecycle
Personalized engagement communications Multi-Service 1:1 Engagement lifecycle management AWARENESS & 1st ONBOARDING Ongoing REGISTRATION Use Activity WELCOME JOURNEY Member REACTIVATE 1st device ONBOARDING ACTIVATION Member INACTIVITY registers WELCOME LAPSED JOURNEY Trigger: Registration 1st device
Slide 93: Whole-person care engagement lifecycle
Personalized engagement communications Whole-Person Care 1:1 Engagement lifecycle management AWARENESS & 1st ONBOARDING Ongoing REGISTRATION Use Activity WELCOME JOURNEY Member REACTIVATE 1st device ONBOARDING ACTIVATION Member INACTIVITY registers WELCOME LAPSED JOURNEY Trigger: Registration 1st de
Slide 94: P360 engagement lifecycle
Personalized engagement communications P360 1:1 Engagement lifecycle management AWARENESS & 1st ONBOARDING Ongoing REGISTRATION Use Activity WELCOME JOURNEY Member REACTIVATE 1st device ONBOARDING ACTIVATION Member INACTIVITY registers WELCOME LAPSED JOURNEY Trigger: Registration 1st device ONBOARDI
Slide 95: Better reach, experience and yield
Better reach Qualified targeting for value-based contracts Clinical Proprietary Better experience Interactions Health Data 24% increase in engagement from at-risk population Better yield 50% increase in visit requests amongst registered telehealth members 3rd Party Engagement Better cost efficiency
Slide 96: Total interactions
TOTAL INTERACTIONS1 590M • • HEALTH INTERACTIONS • 484M VISITS >14M Teladoc proprietary data 1. Represents all actions between members and Teladoc assets digital and human
Slide 97: Unlocking the potential of virtual primary care
Unlocking the Potential of Consumer Insights Overview1 Virtual PRIMARY CARE Effective, Access to Consumers with trusted care Teladoc medical, chronic conditions top driver of mental health & & mental health & usage; chronic care care needs say whitespace here management Teladoc brand is MULTI- as no
Slide 98: Brand awareness, satisfaction and permission
Consumers Associate3 Teladoc with #1 Awareness 1 #1 Permission 2 ✓ Support for chronic conditions ✓ Brand searches ✓ Speak to pediatrician ✓ Web traffic 93% ✓ Telehealth users in Of Teladoc users attribute ✓ Expert medical advice for highly Teladoc as a provider that complex conditions past six mont
Slide 99: Key Takeaways
• New consumer normal: pandemic fundamentally changed consumers’ awareness & expectations • Virtual care adoption maturity is in early stage of expansion • Well on our way to deepening relationships with all Key populations Takeaways • Uniquely positioned to win with consumers in whole person care ✓
Slide 100: Financial Outlook
Financial Outlook Mala Murthy Chief Financial Officer 100
Slide 101: Historical financial performance
Total revenue ($M) Total membership (M) vs. paid member PMPM $2,250 100 $3.00 69% CAGR 75 $1,500 23.5 $2.00 21.3 50 19.3 $1.00 $750 9.5 53.0 25 51.8 36.7 22.8 0 $0.00 $0 2018 2019 2020 2021E 2018 2019 2020 2021E Paid members Visit fee-only members Access fee revenue PMPM Adjusted EBITDA (AEBITDA) ($
Slide 102: Revenue growth since 2018
FY24 FY23 FY22 $2.02B FY21 GUIDE FY21 69% FY20, 3 YEAR $1,094M CAGR FY19, FY18, $553M $418M
Slide 103: FY2022 preliminary revenue outlook
FY24 FY23 ~$2.6B (~29% YoY) FY22 PRELIMINARY OUTLOOK FY22 FY21 67% $2.02B 3 YEAR CAGR FY21 GUIDE FY20, $1,094M FY19, FY18, $553M $418M
Slide 104: FY20-FY23 pro forma CAGR
FY24 FY23 FY22 30-40% FY20 – FY23 CAGR (pro forma for Livongo) FY21 ~$2.6B FY22 OUTLOOK $2.02B FY21 GUIDE FY20, $1,094M FY19, FY18, $553M $418M
Slide 105: FY2024 revenue target
>$4B FY24 TARGET FY24 FY23 25-30% FY21 – FY24 3 YEAR CAGR FY22 FY21 ~$2.6B FY22 OUTLOOK $2.02B FY21 GUIDE FY20, $1,094M FY19, FY18, $553M $418M
Slide 106: Consolidated growth by business line
% of 2021 expected Target 2021-2024 revenue CAGR Virtual medical care (including primary care)1 ~35% 10-20% Mental health care (B2B and DTC) ~40% 30-40% Chronic condition care2 ~25% 25-35% CONSOLIDATED GROWTH 25-30% 1. Includes all global other B2B2C telemedicine services and telemedicine software a
Slide 107: Covered lives and product penetration
2021 estimated Teladoc covered lives vs. Product penetration: % of 92M Teladoc estimated 298M total U.S. insured lives (millions) lives with product access Legacy telemedicine excl. MH 82% 51 Primary360 <1% 76 92M CCM - Diabetes 21% total lives with access to a TDOC product CCM - Prediabetes 2% 16 C
Slide 108: Revenue per member and member growth drivers
MORE REVENUE PER MEMBER MORE MEMBERS ~25% per annum 1-5% per Primary care, mental health care and chronic annum 25-30% care products are under-penetrated in 3-Year CAGR covered lives Significant opportunity to add lives within (2021-2024) New enrollees are highly accretive to total existing client b
Slide 109: Multi-product access and enrollment
More than 40% of telehealth members have access More than 20% of chronic care members are enrolled in to multiple products1 compared to <10% in 2017 multiple programs compared to <3% in 2019 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 2016 2017 2018 2019 2020 2021 2019 2020 2021 1 2 3 4+ 1 2 3+
Slide 110: AEBITDA margin expansion target
AEBITDA margin expansion target: $300 15% 13.0% • 100 to 150 bps of annual AEBITDA margin 11.6% $263 expansion, while continuing to make significant $201 investments across key capabilities $200 10% • FY22 is absorbing ~75 bps headwind related to 5.8% $20M1 roll-off of purchase accounting adjustment
Slide 111: Integration and product priorities
• Unified user experience • Successful launches of new • Actuarial analytics & predictive products, including myStrength modeling • Integrated data platform Complete & P360 • Risk stratification • Launch Chronic Care Complete • Bring Chronic care and myStrength Complete into international markets •
Slide 112: Liquidity and debt
LIQUIDITY (All figures in $M) LIQUIDITY HIGHLIGHTS Cash & marketable securities $826.4 • Strong YoY growth in operating cash flow of $111M YTD 2021 DEBT • Cash and marketable securities Maturity Rate Outstanding of $826.4M and cash flow to Convertible notes 2025 5/15/2025 1.4% $0.9 help fund growth
Slide 113: Taking care of people and diversity
Taking care of people To further advance Senior leadership • Increasing equitable access by reducing barriers to care diversity supports diversity we our focus on equity • Established the Institute of Patient Safety and Quality in Virtual Care and inclusion • Launched an equity pay study • Serve as
Slide 114: Key Takeaways
• Demonstrated history of meeting or exceeding financial targets • Comprehensive virtual care product portfolio and scale create compelling financial model, with foundation for sustained growth and margin expansion Key • Growth next three years driven by significant Takeaways expansion of revenue pe
Slide 115: Opportunity, Vision, Strategy, Capabilities, Execution
Opportunity Vision Strategy Capabilities Execution 115
Slide 116: Appendix
Appendix Teladoc HEALTH Teladoc Health, Inc Investor Day 2021 116
Slide 117: Presenter biographies: Gorevic, Bliss, Trencher
Kelly Bliss Dan Trencher Jason Gorevic President, Senior Vice President of Chief Executive Officer U.S. Group Health Corporate Development Jason Gorevic is chief executive officer and a member of Kelly Bliss is president of U.S. Group Health. She oversees Dan Trencher leads corporate strategy for Te
Slide 118: Presenter biographies: Boyer, Jensen, Matas
Donna Boyer Claus Jensen Alon Matas Chief Product Officer Chief Innovation Officer President, BetterHelp Donna Boyer leads product management and design Claus Jensen leads technology and innovation at Teladoc Alon Matas is the president of BetterHelp, the direct-to- for Teladoc Health, responsible f
Slide 119: Presenter biographies: Verstraete, Murthy
Stephany Verstraete Mala Murthy Chief Marketing & Engagement Chief Financial Officer Officer Stephany Verstraete leads Teladoc Health’s global Mala Murthy leads Teladoc Health’s global finance marketing and communications efforts, driving the organization, including accounting, financial planning &
Slide 120: Net loss to AEBITDA reconciliation
Year Ended December 31 2018 2019 2020 Net loss $ (97,084) $ (98,864) $ (485,136) Add: Loss on extinguishment of debt 0 0 9,077 Interest expense, net 26,112 29,013 60,495 Income tax benefit 118 (10,591) (90,857) Depreciation and amortization expense 35,602 38,952 69,495 EBITDA (35,252) (41,490) (436,
Slide 121: EBITDA and Adjusted EBITDA definitions
• EBITDA consists of net loss before interest; foreign exchange gain or loss; income taxes; depreciation and amortization; and loss on extinguishment of debt. Adjusted EBITDA (“AEBITDA”) consists of net loss before interest; foreign exchange gain or loss; income taxes; depreciation and amortization;