Teladoc Health, Inc. · NYSE:TDOC
Teladoc Health — Investor Presentation (September 2016)
23 slides from Teladoc Health's investor presentation, September 2016
Slide 1: The relentless pursuit of better
The relentless pursuit of better September 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 concern
Slide 3: Introductions and Presenters
Introductions and Presenters Jason Gorevic Mark Hirschhorn President & CEO EVP & CFO 7 years 4 years • CEO since June 2009 • CFO since October 2012 • President of Empire BlueCross • CFO of RCS/Media Monitors BlueShield • CFO of BT Radianz • SVP and Chief Marketing and • Vice President and Global Pro
Slide 4: Company Highlights
Company Highlights First and Largest Telehealth Solution (~70% Share) (1) Growing Underpenetrated Market with an Estimated 548mm Annual Patient Visits & $29bn TAM (2) Attractive Business Model with Strong Revenue Growth and Substantial Opportunity to Scale Company and Telehealth Industry at a Positi
Slide 5: Teladoc at a Glance
Teladoc at a Glance Tremendous Revenue & Visit Growth Revenue ($M) $121-$124M 98% Revenue CAGR $78M $26.5M 2013 to 2015 $44M $18.3M $20M 2013 2014 2015 2016E Q2 '15 Q2 '16 6,000+ +70% Gross Margins Total Clients Membership (M) 17.0 – 17.5M 200+ Fortune 1000 Clients 12.2M 15.4M 11.5M +45 Fortune 1000
Slide 6: Teladoc acquires Healthiest You
Teladoc acquires Healthiest You for 6.96 million shares and $45 million cash A Healthcare Solution That Appeals to a Significantly Wider Customer Base HealthiestYou Other Revenue Revenue Revenue Teladoc Other Other Product sold through brokers Customers with <1,000 Employees NOTE: Illustrative examp
Slide 7: 2015 Performance and 2016 Guidance
2015 Performance and 2016 Guidance Represents Company estimates and forecasts 2015 Year End 2016 Full Year Guidance $77.4 million $121 million – $124 million Revenue (78% y-o-y growth) 56% – 60% y-o-y growth) 12.2 million 17 million – 17.5 million Membership (51% y-o-y growth) (39% – 43% y-o-y growt
Slide 8: Large and Under Penetrated Markets
Large and Under Penetrated Markets Ambulatory Care market Behavioral Health market 1.25 billion ambulatory care visits (1) 168 million annual addressable visits 33% 78% estimated treatable through telehealth (2) estimated treatable through telehealth 417 million visits 131 million visits Current Up
Slide 9: Industry and Teladoc Maturity
Industry and Teladoc Maturity Industry is significantly underpenetrated with opportunity for long-term, sustainable growth Significant Unmet Need Teladoc – Established / Proven Service Provider Profitable Before Industry Reaches Maturity Market less than 0.5% Continue to Grow Membership penetrated (
Slide 10: Teladoc and the Telehealth Sector have Reached an Inflection Point
Teladoc and the Telehealth Sector have Reached an Inflection Point Sector evolution highlights Teladoc’s differentiation and overall opportunity Customers talking – employees and members NOW requesting telehealth Gone Viral services Competition Limitations of competitors’ business model now evident
Slide 11: Telehealth Landscape
Telehealth Landscape # of Doc Market Share (1) Mode of Visit Monetization Visits Network Choice of Video Access Fee +3,100 576k ~70% or Phone (“PEPM”) MD, BH, Derm professionals 125k – Choice of Video Access Fee (“PEPM”) or 2,300 ~15% or Phone MD, BH 150k License Fee professionals 60k – ~10% Video O
Slide 12: Competitive Positioning
Competitive Positioning 0.5% Current Penetration Critical mass of doctor pool in respective 5% 2015 70% Total Size State PLUS technology Addressable Market (1) 10% Telemedicine Visits (2) Matters platform = proper response time 99.5% 15% Solution immediately works – no need for employed doctors or p
Slide 13: Product Portfolio Overview
Product Portfolio Overview Comprehensive product portfolio serves key healthcare stakeholders Behavioral General Smoking Sexual Pediatrics and Mental Dermatology Medical Cessation Health Health Health Plans Employers Health Systems Consumers And Hospitals Bundled solutions platform more attractive t
Slide 14: Value Creation for Clients
Value Creation for Clients Large volumes and high proven savings per visit drive significant return on investment for our clients 576,000 Visits $388M $77M Client Savings Teladoc Revenue $673 Savings per Visit 5:1 ROI for Clients Note: Savings per visit based on an independent study of a Teladoc cli
Slide 15: Sustainable Differentiation
Sustainable Differentiation Robust capabilities and Access Fee (PEPM) investment deliver significant and measurable ROI to customers Network structure + Invest Access Fee Consumer Engagement ROI (PEPM) & Clinical capabilities + Utilization = + Scalable and integrated technology 15 I Copyright 2016 T
Slide 16: Access Fee Investment Drives ROI
Access Fee Investment Drives ROI Significant and consistent growth in Access Fee Per Member (PEPM) funds greater growth in utilization Access Fee Per Member (“PEPM”) (1) Utilization (1) Target PEPM: 25% $5 – $7 (2) Utilization ~34% TDOC~40% 5% $0.48 PEPM Utilization CAGR CAGR $0.20 2% 2013 2014 2015
Slide 17: Continuous Investment in Consumer Engagement
Continuous Investment in Consumer Engagement Consumer engagement is a multi-year effort. Continued investment of Access Fee drives year-over-year increases in utilization Utilization Case Study Visits Growing Faster than Membership Small / Medium Employer Channel Driven by Access Fee Investment ~2x
Slide 18: Serving Leading Customers
Serving Leading Customers Over 6,000 clients including +200 Fortune 1000 companies and +25 health plans, plus health systems and other entities Employers Health Plans Health Systems Significant Unaddressed Base: Employers <1,000 employees representing >50% U.S. workforce, mainly served by brokers 18
Slide 19: Select 2016 Client Wins
Select 2016 Client Wins 19 I Copyright 2016 Teladoc Inc.
Slide 20: Provider Customers
Provider Customers 60+ Hospitals and Health Systems Representative Clients Value Proposition • Better manage risk in an ACO model • Improve provider-employed physician productivity • Expand their brands into their local markets • Post-discharge re-admission avoidance Teladoc platform algorithm defer
Slide 21: Teladoc Growth Strategies
Teladoc Growth Strategies Expand Expand Scope of Expand Expand Clinical Footprint / Products & Specialties Use Cases Penetration Services oo New NewAccounts Accounts&& o In-Network o Platform-as-a- Platform-as-a- o Home Care Channels Channels Referrals Service (Provider) Service (Provider) o Post Di
Slide 22: Regulatory and IP
Regulatory and IP Regulatory Environment • During the last 18 months, twenty states and the federal government passed laws or rules favorable to telehealth, including Ohio, Indiana, Missouri, Michigan, Iowa, Connecticut, Louisiana, Virginia, South Carolina, Delaware, West Virginia and Alaska. • In A
Slide 23: Company Highlights
Company Highlights First and Largest Telehealth Solution (~70% Share) (1) Growing Underpenetrated Market with an Estimated 548mm Annual Patient Visits & $29bn TAM (2) Attractive Business Model with Strong Revenue Growth and Substantial Opportunity to Scale Company and Telehealth Industry at a Positi
Teladoc Health — Investor Presentation (September 2016) on 6ix