Teladoc Health, Inc.

Summary

Teladoc Health, Inc. provides virtual healthcare services in the United States and internationally. The company offers a portfolio of services and solutions covering non-urgent, episodic, chronic, and complicated medical conditions, including diabetes, hypertension, chronic kidney disease, cancer, congestive heart failure, and mental health conditions. It offers a range of programs and services, including primary and specialty care telehealth solutions, chronic condition management, expert medical services, mental health solutions, and platform and program services. The company serves employers, health plans, hospitals and health systems, and insurance and financial services companies, as well as individual members. It offers its products and services under the Teladoc, Livongo, and BetterHelp brands. The company was formerly known as Teladoc, Inc. and changed its name to Teladoc Health, Inc. in August 2018. The company was incorporated in 2002 and is headquartered in Purchase, New York.

History of the company

Teladoc health was first established in 2002 in Dallas, Texas and became a nationally recognised company in 2005. It allowed patients to consult with licensed doctors online at any time, solving the, whilst also offering corporations a service of paying a monthly fee in order for their employees to access the service. By 2013 Teladoc had raised $100M in funding, going public in 2015. After that Teladoc kept expanding, acquiring Best Doctors (a consultation firm that provides second opinions and medical award listings) in 2017. It expanded rapidly in years 2017-2021, providing near real-time surveillance data during the COVID-19 pandemic and later that year launching a diabetes management service through Dexcom. In 2022, it also became the telehealth portal for Mayo Clinic Health System in Winconsin. Now Teladoc has over 5000 employees, 56 million members and over 12000 corporate clients.

Operations

What is the mission of the company?

Teladoc Health's motto is "Empowering all people everywhere". The vision of the company is that anyone, anywhere in the world should have access to the best possible healthcare, in a way that suits one individually, using smart data and continuously improving their technologies. Currently the main focuses of the company include primary care, chronic condition care and mental health care.

What are the main offerings of the company?

Teladoc health operates in the virtual healthcare segment, with offerings ranging from telemedicine to virtual mental health care, for individuals as well as for organizations

For individuals

The company offers various membership plans, some covered by insurance and some costs being an add-on.

Plan	Target Clientelle	Features
General medical	General public, both adults and children	care 24/7 for non-emergency conditions like cold & flu, sinus infections, allergies and more
Primary 360	Individuals taking their healthcare especially seriously and seeking a personalised approach	Primary care provider and care team coordinate routine care and wellness screenings, tailored approach to healthcare
Mental Health	People struggling with- or wishing to improve their mental health	Choosing a therapist, psychologist or psychiatrist tailored to one's needs and scheduling virtual sessions up to 7 days per week
Specialist & expert opinion	Niche diagnoses, second opinions and surgery advise	Detailed report from a medical specialist in the appropriate field
Wellness Care	General public wishing to improve their health	Nutrition advice, sexual health, tobacco cessation, joint care

For organizations

innovating technology for increased efficiency. The main focuses include:

• Configurable workflows, from the simple to the comprehensive, remove complexity and focus on care delivery.
• Integration with existing IT systems, including EMRs, reduces point solutions and total cost of ownership.
• Anywhere, anytime care extends reach and increases patient access, engagement and satisfaction.
• 24/7 proactive monitoring and technical support for patients and care teams keep systems running smoothly and ease the burden on IT

In practice, enabling bedside and virtual nurse collaboration, also called "inpatient virtual care" has lead to a 44% increase in patients discharged before noon in the virtual nursing unit, 20% faster discharge from virtual nursing unit compared to traditional nursing unit, alltogether resulting in 40% cost savings.

Employers

More than half of the Fortune 500 companies including SAP, American Heart Association and Hyatt use Teladoc Health's services to provide better benefits and healthcare for their employees.

The App

• Customers can use the app to access their medical history, as well as request visits just by a few finger taps
• 4 Apps, integrating with each other, each with a different purpose - Teladoc Health Patient, Teladoc Health Provider, Teladoc medical advice and Teladoc myStrength
• Available to download on Google Play and App Store
• For example, it was widely used by Ralph Lauren to aid employees in managing their chronic health conditions and mental health

Social responsibility and impact standing 2022

• 1 in 4 Americans have access to Teladoc Healthcare services
• $18M financial aid has been used to cover therapy costs for low-income individuals
• 57% members say that without the services they would have gone to an emergency room or urgent care center
• 50 million visits hit in 2022
• Incredibly high employee satisfaction at over 90%

Market

Total addressable market

The total addressable market in this case is the healthcare provision, the value being estimated at USD 1.6 Trillion.

Serviceable available market

Here the serviceable available market is defined as the global virtual healthcare market. This market is according to Grand View Research was USD 211.0 billion in 2022 and is expected to reach USD 245.3 billion in 2023.

Serviceable obtainable market

Here the serviceable obtainable market is defined as the US virtual healthcare market. This is currently valued at $5.6 billion.

Industry demand drivers

1. Increasing prevalence of cancer globally - as predicted by Cancer Research UK, by 2040 we will see a 54.9% increase in new cancer cases worldwide. This will put increased pressure on the healthcare industry and hence increase demand.
2. Shortages in healthcare facilities - according to WHO, by 2030 healthcare facilities will be short of 15 million qualified professionals, increasing the demand for virtual care.
3. Constantly developing technologies and AI - with technology, be it medtech or technology in general developing rapidly and that contributing to significant development of virtual healthcare, of course, there will be an increased demand for it.

Competition

Teladoc Health holds a 10.50% market share within the telehealth market in the US in 2023. It ranks as the 5th company by market share after Zoom, Cisco System and others, with a market penetration of 6.91%. Most hospitals have some sort of telehealth solutions in place, according to data from Definitive Healthcare’s HospitalView product, 65.53% of hospitals have a telemedicine solution installed.

Team

Leadership

Jason Gorevic - CEO and member of board of directors. He has been in this position since 2009 and is nationally recognised as a thought leader in the virtual healthcare industry.

Financials

Historic

Most recent quarter

In the second quarter of 2023, ending June 30th 2023, Teladoc Health's net loss totalled $65.2 million, $0.40 per share a 98% decrease from second quarter 2022 results. Net revenue grew 10% year-over year in second quarter, coming in at $652.4 million. The adjusted EBITDA was $72.155 million, 54% increase from 2022.

Most recent year

In FY ending 2022, cash flow from operating activities was $189.3 million, and free cash flow was $16.5 million respectively. The revenue increased by 18% since 2021, totalling at $2406.840 million.

Historic Financials

Year	2015	2016	2017	2018	2019	2020	2021	2022
Revenues ($' million)	77.384	123.157	233.279	417.907	553.307	1093.96	2033	2406
Net profits ($' million)	-58.020	-74.216	-106.782	-97.084	-98.864	-485.14	-429	-1365
Total assets ($' million)	229.737	303.670	824.391	1528.88	1602.83	17755.28	17735	4345.00
Employees	600	670	1231	2242	2400	4400	5100	5600

Financial statements

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