Teladoc Health (TDOC) 29 Apr 202020 Q1 Earnings call transcript

Welcome to Teladoc Health’s First Quarter 2020 Earnings Conference Call and Webcast. At this all participants have been place on a listen-only mode, and the floor will be opened for your questions following managements prepared remarks. [Operator Instructions]

It is now my pleasure to turn the floor over to Patrick Feeley, Vice President of Investor Relations.

You may begin.

afternoon. good and you, Thank Today, after announcing a release we market first quarter closed, our issued XXXX press the financial results. is website. This of release available Investor the press Relations the teladochealth.com in section

are On to Officer; Mala our this Murthy, our Financial discuss results and Officer. call Chief Chief Jason the Executive Gorevic,

financial to discussing note will are that this by be measures During update a we certain that and outlook, question-and-answer also will forward call, Please we followed be will our non-GAAP an session. believe provide our prepared we between remarks evaluating posted reconciliations is the Teladoc GAAP the the important in Health’s in that and performance. these most on on our Details thereof measures to found release relationship can website. be non-GAAP measures press comparable

certain forward-looking made will Private statements call of the by that statements defined Litigation this be Reform Securities Act XXXX. during please Also, as note

risks, statements on to cause for actual are results subject forward-looking those Such or and from to could that other the call. materially expressed Health factors Teladoc uncertainties differ this implied

For statement and in are additional on SEC, the our our our of available all cautionary to filings with release website. our press please refer information, which

I to Jason. call turn over would to the like now

during everyone are to playing us team in supporting, opportunity they for time thank afternoon. and I caregivers need. this this around care want of and members Thanks, And thank all Patrick. the for start role critical you this taking our by joining to of the delivering world enabling,

living of willingness of passion commitment to their challenge to our team shared people, and their we just their committed behalf have quality values. The are I’ve to weeks of been At consistently by to clients last on demonstrated Day for the our the importance members. March Investor rise and values. those of our on spoke back our X, how taking members impressed several care

quarter After the work are workforce growth. in driven office Over a eased. beginning broad-based to continues XX%, our strong are across to Spain reported and first to momentum of return XXXX, Teladoc slowly members volume those in in the in and closed, countries market by from China visit although our business as home, the Health sharp of team acceleration revenue outperformance restrictions the

Total quarter year prior to over revenue $XXX grew XX% in the the approximately million.

result $XXX increased a services range. million the from revenue guidance and guidance, an our full-year significantly As we million clients raising our of to are to for demand relative prior representing of $XXX including over $XXX increase of million, consumers, forward

and increase playing role are COVID-XX in We a seen global existing new and of critical inquiries significant a from outbreak has both clients. during the potential

are turning clients during to new service Our need. products this our expand of new populations to time us and add offering to

outbreak Requests virtual a potential the solution. from COVID-XX access has clients as healthcare new of of comprehensive value to are the highlighted increasing

paid quarter in onboarded during And first onboarding the populations. X growth strongest membership the During new half members million over in second an new in alone, X anticipate we the government history. first members million U.S. across we X company million culminating commercial to quarter, the additional and

two our the the call physicians. growth demand onboarding network, platform number of enabled rapidly weeks physician the network. surgeon of than on new our been by ago, has the providers, the tremendous expanding update across licensed doubling to responded As thousands capacity including more business of by and We the of in of discussed part on our members team the remarkable our response our physicians

from meet as new capacity March the as investments onboarding. made members increased we us positioned the well process demand members of existing of are in the during have The in month the to

XX noteworthy quarter, million the representing the compared first nearly in months first million of particularly last visit This year. as the mark milestone first visits after Turning in quarter it the X total crossing to XXXX. to quarter quarter just of comes per XX% is visits, we crossed of a X growth new exceeded as as

the growth in visits the broad-based diverse visit healthcare and began, offering facilities meet our two during significantly and implemented step us strong, as product to first copays enabled and the and of experiencing Well, volume $X year We months mortar into were were closed. as of the COVID-XX. were across portfolio varied April brick accelerated throughout shelter-in-place, of patients needs up outbreak orders March has the

and dermatology growth the need reflecting diverse general specialist even significantly, increased faster including care behavioral has visit medical for for during challenging the time. nature has While care of demand accelerated health this

creates volume longitudinal through adoption particularly over help as of the visits multiple time, is generating encouraging which strong will the rest The health relationships increased visit it behavioral drive year.

the seen We first platform across coming over in with from increase also visits of an users. users time new XX% have

use This when since strong new more have use lasting a effect growth our extremely shows satisfaction that members on member it service are experience again. to will user utilization, and once much they levels likely are our

outpacing XXX%, year, growth of registrations care COVID-XX prior of driving member outbreak increased new the the Importantly, consumers. is over virtual awareness as among

to core and engagement significant it a to in our relationship. dynamic the engagement our reach Once an with efforts. that individual us, build of flywheel activation is feeds particularly member that is into as This it for team us increase opportunities actively important creates member registers at the

new more the will our engine utilization populations. into within These Teladoc serve growth the to that us are for Health the to we visit their future needs. continue healthcare engagement in as consumers drives material growth benefit turn currently growth activations of opportunities and And as experiencing

of accelerated faster virtual utilizers rates, in our We’re as increasingly we and also seeing rates user that expansion among the the historically than males have base. populations younger encouraging care. in years reach our cohorts to have lower an old demographic among XX range years overall growth been XX growth Visit of

to given health repeat BetterHelp depression profile us loneliness services. such Demand continue conditions high fear, and amplified benefit will of This for health the anxiety mental crisis. mental increased utilization is year also during by accelerating isolation, product, usage rapidly our as DXC are throughout as and the the

Provider And deliver to also is year. XX% We allow last activity BetterHelp care mental during just members need number will services throughout for the increased meet to record health us to mental months. increasing. BetterHelp of over applications added active a rest new provider provider the in interest the have growing the few increased health providers in This quarter. of the

Teladoc to reducing serving both Similar care their while health exposure physical to and COVID-XX groups. the technology plan the adoption and the patients, is physician on among country across hospitals for is increasing physicians. flexibility of patients and physician and the impact enabling accelerating continue consumer channels, hundreds The employer dramatically of platform the virtual capacity outbreak Health hospitals and groups

includes sell As becomes healthcare commercial well increased new jointly both agreement as delivery within have to seeing the technology platform virtual the provider Health mainstream Health transaction the demand from a our place Teladoc care the offering offering, InTouch in of we ahead are system, the for as platform. partners which combined This we closing.

in we gives the cross business. channels pipeline The leading for distribution this growth continues have new sales market signed are opportunities product us the for our and provider the now industry for seeing broad-based opportunity long-term offering confidence We new comprehensive grow. in of demand across our multiple offering to

the approach performance Before guidance, on path I provide full as to have a forward would turn guidance the quarterly as like Mala details outbreak I call the broader We withdrawn this the expected given of providing many and of to to that uncertainty companies on of few know economic make COVID to the the year. impact pandemic. both guidance over our comments well

today. much transparency provide as we it based felt guidance updated providing as we to know important what However, Therefore, we’re possible. on

assume guidance shelter-in-place significant few orders expire volume the $X eases are we currently course over are copays as begin million that the lifted. next and the in Our ranges experiencing visit surge to of months,

the from second of levels We level members. increased utilization the the to year and permanently at expect newly half we a our engine volumes activated settle consumer as and awareness to pre-COVID in of then engagement onboarded of impact applied higher benefit

As fall an that same with intensity in guidance ranges the include currently unknown, incremental are of the from virus not result virus level reemerging is do our of the current the in experiencing. increase path volume could we the

if result season, typical As should growth. the volume and revenue it virus in in with such, could visit fall, flu particularly higher-than-expected the were the in it return conjunction

number to be remains Finally, our the impact unemployment the this potential on it based of how capture individuals insured on But attempt of to guidance seen ranges outlook. macroeconomic unfolds. current the

an baseline for situation, with coming As provide this the change and is believe emerging you reasonable ranges our circumstances likely results. we in are to a XXXX but months, guidance weeks

quarter turn I’ll the as of review to that, detailed guidance. first financials as with call a Mala for XXXX And well over

The during part members collective impressive of like serve afternoon, you, to echo our and this Jason’s around the to time caregivers and has and world. on good of members Thank up comments response remarkable. step been I’d team need clients our the to Jason, willingness regarding the everyone.

resulted revenue million. versus subscription U.S. fee prior XX% quarter, fee access grew $XXX.X XX% the of the revenue year. million the million versus access year, and $XXX.X quarter million momentum start XX% first currencies of prior the the increased total demonstrating $XXX.X grew During the growth versus in subscription in on year, a FX quarter the The $X International currency million XX% $XX.X a strength foreign quarter. XX%. negative revenue of the dollar basis. impact constant was grew of subscription international accelerating Global to to for subscription revenue of in revenue

$XX.X million with consolidated comprised million, in prior the of fee of accelerating of in quarter, over from in by pandemic in revenue revenue up new utilization in individuals volume representing began fee back prior representing year, the quarter was prior experience of revenue, aided revenue in year’s as evolved. the notably to populations Visit part the as XXX% to XX% the Visit amongst XX.X% XXXX. we growth versus the utilization significantly. half part XX.X% $XX.X quarter growth increased driven the increased rapidly by from the year, added surge global in access for Revenue visit-fee-only over March

membership critical accelerating delivery and a health Turning by clients, providers. increased role of versus to the paid the U.S. up reflection year, the the virtual to last of and of membership XX% quarter adoption consumers care and XX million first access. members, care system within

a up prior million associated million of with As U.S. access. at the PMPM the $XX.X quarter, year with visit-fee-only the end was the members with not sequentially. stable includes visit-fee-only versus reminder, access Individuals first only membership does $X approximately and the paid include individuals and

volume volume visit million growth quarter, grew basis U.S. of last represents quarter. from exceeded in XX.X%, the annualized point rate prior X.X members to a Total the year. first which XX% XX% paid year’s utilization XXX versus representing rate in over visits, visits a increase X million the an Visit

XXXX. population the been quarter points first XXX impact the large the the during utilization first annualized quarter the onboarded of of basis would months, health plan up XX over Excluding have past XX.X%, over

compared year’s $X.XX was quarter to $X.XX the prior in in PMPM the quarter.

As dampening we PMPM expect effect we on large we a see discussed, new average when member health have plan to previously onboard populations.

over impact the health X the managed onboarded over plan months, Excluding late large PMPM quarter, the would $X.XX. include added the which XX care be past population in members million of Medicaid first

profit XX% year. or to quarter. by million as Gross percentage last million year’s in increased for prior first the compared $XXX.X first XX% was to compared to margin of Gross XX% $XX.X the the quarter quarter

the As incremental on outbreak our revenue gross as to investments the call and XX, April the in $X in made update as in million of response year-over-year fee robust capacity quarter the visit first visit discussed rapidly to in mix margin growth reflects expand well the physician during decline on quarter. business COVID-XX percentage

expense the for first XX% million compared quarter totaled XX% to Operating or XXXX. revenue in of quarter of the $XXX.X

revenue Excluding and were XX% amortization, expenses million in to operating stock last the compared quarterly quarter and or $XX.X compensation expenses, integration-related onetime acquisition noncash of adjusted such as of charges depreciation year. XX% first and

compared a the quarter million over increased the million basis to XXXX. $XX.X EBITDA $XX.X was year. in Adjusted XXX same first to including loss prior the period first quarter million million to quarter Adjusted to and acquisition-related EBITDA quarter for year’s onetime in a for the last X.X%. margin EBITDA, $XX.X compared expanded of costs, $X.X the compensation stock of points loss

ended compared a was in last quarter cash XXXX. short-term of a quarter loss quarter $XX.X to the net investments. the was $X.XX a net We first compared in for and the $XX.X loss million in $X.XX first loss million year. of million of net quarter basis, share in Our loss quarter to $XXX with of first the the our per On

of consists total notes. was outstanding Our of our which as XX debt million, March convertible two $XXX

quarter. near all Now the forward turning announced of second the end that to note expect InTouch until forward which closes, we the exclude will the guidance guidance. impact recently to acquisition the transaction Please continue of

of XX% quarter quarter. of the second XXXX, prior $XXX the to million million, $XXX we over expect to For growth year’s total of revenue XX% representing

in million an expect million paid add Medicaid members to with during managed of XX approximately to U.S. an the paid members large end X We care additional including U.S. quarter million the population million the to quarter, additional second X to XX members.

We to X basis also temporary on an quarter. million the second individuals X for during access a adding visit-fee-only anticipate million additional

to gaps of care and outbreak individuals between off are providing the in access million. during COVID-XX during certain total We roll We of X.X this clients temporary million and expect the year. of X.X anticipate quarter second the end current to the by bridge help those visits

and loss shares $X $X.XX share of based EBITDA second million the million, of in expect quarter $X.XX million $XX $XX and per a to net We adjusted a positive outstanding. range be million XX.X negative to to $X EBITDA between positive to on be million,

said, be in million from revenue our representing all now range million $XXX to the which the million, prior Jason growth organic. $XXX to XXXX, As year of to year, $XXX to again full XX% expect substantially over prior is range, the million for we up $XXX XX%

to paid U.S. XX XX end at million to growth access membership representing of million to XX total approximately million be members, year XXXX and members as compared least XX% over to individuals. expect available at We visit-fee-only

X to prior We to growth visits expect million between total year. XXX% over X million, be representing of total XX% approximately and visit the

half are of visit are experiencing in dollar anticipate moderate back requirements zero we volumes year. copay As the we the shelter-in-place the and to lifted, surgeon currently

Jason as prior do at anticipate than higher we visit will volumes level to the a persist COVID-XX discussed, Although outbreak. permanently

some will does experiencing. occur are a an with in outlook visit the which resulting the experts assume of currently second in are level not volume Our we incremental increase intensity of from fall predicting same surge COVID-XX,

growth EBITDA loss the midpoint. over EBITDA million of in of range $X in $XX $XX representing million of We to adjusted million XXX% an to at range positive expect $XX the and million,

The expected make growth. continue to significant us efficiencies, continued revenue EBITDA in growth improvement our while with conjunction reflects allowing in operating in focus on the investments still to significant

to from Given for and investments million weighted our to care of adoption year, awareness. expect to anticipated on increased future gross level share revenue the per opportunities, of loss increased $X.XX on continued Net per in and of of virtual the expected drive outperformance the a to increase capitalize based investment we consumer substantial remainder outstanding. growth range profit the loss share XX.X $X.XX is shares including

We consistent to expect cash flow from operations grow with adjusted EBITDA growth.

the turn back closing to will I that, call With Jason for remarks.

events need. care support responded recent crucial have for of in our front The us of members to Mala. Thanks, I’m been adoption virtual and our proud an how provided inflection this and greater. of ability time the opportunities never we’ve of in the point clients have and

continuing Our with leadership you forward throughout to diverse to positions distribution range market the look of share offerings to and the of us combined marketplace. year. with channels, uniquely product capabilities meet rapidly our increasing demands across the We all updates

the interest Health your story. thank always, continued you all Teladoc in As for

the And call with questions. open that Operator? for we’ll

Your you. Instructions] JPMorgan. from [Operator Gill Lisa first from come will Thank question

Your is open. line

week. Thanks post incremental very much Jason the detail and for last

So area I – about want you on focus just and that obviously just membership. to really it’s talked

for you members talked at As hearing areas. dig existing I we your million about when about from our customer wondering going lot built perhaps within talked new coming membership penetration number you said you mean, million your to something have clients talk into if about we customers of of want to are I the with One, to expectations platform. are layoffs those I’m a on anticipation Can have think you year brand this. been there’s you’re just unemployment, X assumptions rehired your full this the secondly, just or that what around people two guidance. today. that a into X base? touched about And you then some point. those incremental you that and on be

of So that as in well year about as than the having have back that we start thinking and off. think unemployment impact do we they’re the about XXXX. you’re conversations How more could the half as, furloughed the laid

Lisa. Thanks, Yes.

So as that really of us third million well and in populations it’s of latter course add coming who seen clients the new to quarter. quarter, of we members the first quarter. in on last a to onboard new the expanding we as the the of pipeline built persisted members expect the for over million existing the mix to those X sort the to has into that second the X quarter who first clients to has half as And are second began are first We’ve time. the

a existing and both it’s of combination new. So

we beyond With and respect due less get think therefore fact the that to in COBRA benefits benefits to other industries are employment. unemployment, kicks to the relative we affected that than extended

furloughed benefits. said, their you As employees frequently keep

addition in footprint the exchange as our expanding businesses. In to that, we well Medicaid with are as

think we from or in the those we still exchange retain some commercial Medicaid roles that to of will be roles. shift some managed able a to that’ll cases So members. But be

other client Mala, try managed the circulated case. won’t add And And of our anything care we’ve unemployment to to I expectations client in factored if are across the basis there’s be completely that a that the takes we’ve result, not to on looked clients a there. by especially don’t the puts economists. And understand that. you’d immune by we’re to in cases, know as Now, being unemployment. some and

are years today past. I Lisa in would that, diversified add, is The other also thing we than only significantly more

in context. terms mind the So, fuller that keep of just in

telehealth. everyone that is Well, last been finally years watch phenomenal onboard it’s And Jason, to the now around here congratulations. five Great. this

So you’ve do. able again, on to been what congratulations

Really Lisa. that. Thanks, appreciate

from comes Piper from Sandler. Wieland Your Sean next question

open. is line Your

Thank you and Hi. congrats.

of I What dig has otherwise. And changed like care. in the been you want had said this minute. have healthcare this look inflection it that trajectory we a pandemic So that that for just years where have in do this five long-term? terrible an think virtual on in Jason, wouldn’t you does goes to Where because

Yes.

there to fairly not areas look care. the interact. done to as true a have how and the among think way are major I that’s and for they’ve awareness where entire been have around to accessing how I for shift new a willingness just care adoption three changes. It’s across certainly forward, people of there virtual spectrum One, things And healthcare. significant happens been consumers generations of just sticky one. Healthcare

cases Second in is their to among a physicians methodology. had embracing and physicians hospital with moved respect some to actually delivery is of who among in In what was places systems high vigorously care. engaging what out as virtual satisfaction somewhat embracing but has in of virtual we’re terms virtual rates outlook reluctant And necessity, some seeing it care. care been tremendously were

care virtual health And all lastly, using who employers significant And viewing products. clinical and actually are increases multiproduct in our and broadly across seeing very of were plans sales specialties. now consumers we’re multiple among

three up say all inflection. So part those I end would that being factors of will

benefit tremendous and would if providers with difference I And look access virtual from They’re a five both be in care to for out for to that of we care positioned line And I one that. the global say for care. so just enable using opportunities that ubiquitous. obviously another see us years, how the technology care market. to deliver footprint bright to that will as a uniquely people well And be are opens sort as between our unlikely another. It’ll up methodology

Davis question from from SVB. next Your Stephanie comes

open. is line Your

the on in you congrats Thinking we walk business demand asset thank different scale. Could through at what a new Health, hospital market? growth the existing wins question. this in should acceleration us and and of think of how terms a a growth proxy about as both the you’re and the InTouch you your given bit InTouch in to you January, in about taking quarter buying my originally for looked guys, Hey than

Yes, absolutely. I’ll experience. talk about our

working InTouch team. closely We’re the with

onto details, that bit enable hospitals, little well a more transaction. you about with to of to do systems thousands that course, them experience. get essentially purpose that enabled looking and rapidly over it our technology and that them hospital the their speak able the both as give virtual And clinics their can country, up enabling could for existing sort their XX of detailed platform be treat saw clients And way, to for I the technology We built us in when financial stand as patients. of on-boarding to treat prospects we to workflows. immediately, and closing remotely. for providers we’ll patients new And a platform to is So physicians healthcare across us to respond of

a very where has Intouch seen from the used technology their similar demand was set of Health beginning.

first similarly, physician seen treated to in In an daily using treated who they’ve their patient. network. was that massive see to number transactions of piece fact, was on InTouch State have the the And demand distance technology patient from the being Washington and continued of in Hospital increases

that think is where And market the we unmatched what time an market rate. hitting is companies see so two its massively has increased solution the a I adoption you’ll at when bring the together

in I been have excited and And that we were we about years when look road, it incredibly to think now. back this several was the have January, know for down about the ecstatic us timing we then this it Obviously, we’re it so acquisition. didn’t We announced fortuitous coming. done world when

Daniels next from Blair. comes William from Your question Ryan

Your open. line is

one on for Thanks Jason, you. Yes. for the business momentum. and taking congratulations question all the

the crisis, novel probably of space. other a are beyond players like things seems is one that of in there’s entering the occurred Looking it that’s lot the

watching I from Microsoft and CNBC team commercial how doctors think Microsoft talking now. just saw using was about are this I

over kind of panning care lot long-term? in how out the the dynamic competitive a do getting of players you. and into other So space, with see Teams you Thank this non-healthcare Zoom and virtual

Thanks, Ryan. Yes.

healthcare party, certainly say, course, respect theirs among question with is who would dramatically dimensions. we to and I integrates in of differentiate for purpose changed is healthcare. world One, has I It care ourselves a think interested will no with there that the cetera. with for And different Teladoc conferencing designed roughly that clinical cases use InTouch – off-the-shelf video XXX using workflows use and an is It for is a cases, us. very new technology. have that’s systems. between Health. technology than our the a Those the adoption the or been Cisco number for not existing so that’s to years, virtual et are pretty We’ve technologies in that gone market bring for those built providers’ of Verizon against before solutions, technology the providing else. whether or anybody up of from

I And feel where are we so about good technology on footing.

is hospitals bring care. And completely and difference for critical of solution. in our network big physician technology is that that supplement And physicians care use their hospitals. very either networks with deliver meaningful virtual our actually we us. to is delivering or physician The the ability factor majority Second to a our success that to

cross-sell areas And the is of gives we’ve relative deals of world. our the that strength the ability horsepower. the presence seen providing and Health And InTouch these selling our to our finally fact, us ability already global InTouch close technology in to technology all team international around with one international of with provide that solutions sort to

convergence provide really as think that you to payers of our about So about And position. uniquely we’re providers, I and market feel good positioned the capability.

a ability to and add differentiation factor. volume high that’s has HIPAA also up is Compliant shown the our pretty crisis well important would I with the as scale levels, as through platform technology so

from question Close comes Richard next Canaccord from Genuity. Your

Your open. is line

going just opportunity? talk Mala, And little the you from that global what’s bit you results, a questions. the Jason would front? have bit or Yes. a about be international global looking that On at front, visit? little Just that can maybe a Thanks talked thought higher about the quarterly would growth I on for

Yes.

business we as negatively now. growth continued incredibly quarter and to have seen has internationally FX, see by mentioned our some seen Mala the strongest would international for perform a affected pipelined FX were that And never we yet. in we’ve but as that Our we well. strong right

rollout strong health, Canada the the add EU. of in suite expert contract historically many markets, nutrition in growth or we’ve we’ve been in to I don’t signed the services greater we heels really In on – so anything. Mala, full medical, if to we’re general with been with pipeline America especially emerge South And also UK services. know, of our seeing that other and fact, always which, a their you’d strong this just behavioral medical that in pandemic. membership, rates the markets, includes Life But

Nope.

think So all over working strong pipeline There grew on a place, is that, are we pretty currency we – I through. constant are methodically a that XX%. Richard it basis, in

Just requests like of we did big the state from internationally. U.S. We we real the a – saw in sort clients. had happened phenomenon same of

so And prospects growth about internationally. our confident pretty feel I

As we look ahead.

from Your Wells Fargo. Jamie next question comes from Stockton

Your is line open.

of all-you-can-eat bump my Thanks like volume from and good question. models. came quickly Hey, I the taking for evening. guess kind on of the PMPM, it seemed a visit amount decent

get durable just of get And step that we to start that Thanks. for year? do the it rest show you the about of see we QX. is timing to when in the way in or the up really the get paid we’re up, going you could talk if to you it, how If expect that maybe

to want that. you take Mala,

Yes.

the should over So up the step we next expect quarters, few to happen see Jamie.

the short it So will in be fairly term.

Jamie And direct-to-consumer mental as visits included remember is our from as well that the membership health. services better medical health both our

there together. both are in So those

Your Capital comes Dodge from Markets. Sean next question from RBC

line is open. Your

we risk once for like the out to individuals. are this of of to helped of we’re I some to lot on the can going utilization? driven employers this The course And doing by – Maybe be to though showing side of that longer you free remove pocket too, touched by subsidization use longer and bit the earlier. on person up Jason, a the been telehealth, afternoon. a them. pricing the conditioning, health to guess, people outbreak, get over there in things other accelerated utilization, but Good telehealth and outlook that of have it pandemic to expect term the a cost Thanks. implications a version plans for the have is there back to offices, term

don’t I so, Sean. think

I plans actions an unusual think and is recognized employers that that health and address to unusual others situation people it. took order this in

interesting very our across strong not of that growth what’s there’s real think I all just acceptances. we’re is, products, medical, seeing so general

guess our mental quarter the would our our tripled point to essentially quarter. we double visits calls And for dermatology reporting are BXB, health first not visit us to, visit but volumes. I volume, doubling full also Our and year I only outlook in

on in And call again, to of you confidence wave, relative if of very our does in cases COVID just So strong sort the the a utilization rates. post-COVID fall. to second prepared a anticipate will remarks we the not is the what said that very, echo

comes question Cowen. next from Charles Your Rhyee from

Your open. line is

a wanted think client, And you rate, it was probably for of sort drift where utilization about, think that, back you as new fall do back utilization utilization kind about sort of Do out like? you of store off this beyond? of of taking also of we sort thanks up back range underlying to I to the would you would XX% going I to Mala, still utilization what I – of to we Sean’s sales have rates jumping if back be about a of and of at or same might large was members we look lot of lower that and when sort XXXX care point the a of coming assume managed onboarding kind where we to expected kind kind Yes, but obviously think are which basis basis we little, as on, points, talked have XX% you almost sort underlying to think I expect question in. a we’ll said the be question. you go think think XXX

we – So appreciate appreciate why the it, asking I question. I Charles. I think you’re

I have lot – year. had we through of think rest in felt of we were giving the do we visibility a unusual this time. uncertain discussion And like that we and about to this guidance enough

We and higher our rates time members longer-term are to scores that. rates. of us satisfaction in stop first we’re in been for it’s very new short be service will give guidance confidence what’s that tremendous promoter relative using it going we I who the think utilization from the of terms and normal materially the than to net see the around the to feel strongly the that give past trying new

I do, not But rest things And we’ll continue continue the And to give to see utilization over year. guidance. longer-term as we’ll we the our we’re outlook. update definitely prepared of to unfold always, think as

George next from Bank. Deutsche Hill question from comes Your

Your line is open.

perspective? I’m you Hello, rates, the taking an to see little it want bit about a from opportunity kind it good work. to a like to I get spend in continued most the talked buck just Thanks like then Jason, your I kind for metrics guess, investment, talked think figure point? guess questions. where to and you of money on biggest that company what for investment trying guys. the I put kind here high-teens We making, of the from I’m are intrigued, bang do do afternoon to out at about planned utilization and you the this the an there’s sounds focus money for attractive of where opportunities perspective

One, from to long-term come I they to because significantly we we benefits new we back say more engagement, things. drive guess them few would users. drive users more where the and unique a And I platform George. awareness a it’s the have repeat become know and to obviously has opportunity invest, moment Thanks, that Yes. increased. get

So, lasting dividends. I you’ll in us dividends repeat invest those and think areas pay see that

– an the primary that We clinical an And you’ll acceptance seeing to in specialties in products care, are push know multiple And continue specialty of us anything I about multiple talked before our we in think And very good some we’ve say virtual that. fashion. think you’d in us see when integrated really invest for also see integrated to I we multiple and mean that invest see forward very, strength to then area. businesses. don’t that I Mala, add with there. continue if you’ll products

we’ll right. Day, go clear primary what just pretty put continue membership our Investor saying, we’ll said virtual during were care, We to technology investments platform, in in invest we’ll that. invest back in invest I’d Yes, into in marketing, to we

our had there talked we still about, investments capacity, as provider So against thesis I the lot Investor the of a is obviously our a hold. investments holds, of capacity, on thesis say expanding network have our still would rapidly Jason say is would I and we made Day that lot but

as excited acquisition. I the add is which would were we I And more guess InTouch about thing, just one I mentioned,

the is I think think you’ll greater And deal. see get us we is time even did right the invest heavily the return we we can in that area, because than when capitalize for it. to that that on

us So area. in to you’ll invest see that continue

Your next from Matthew with Baird. comes question Gillmor

line open. is Your

the sort are buyers it’s guys selling year, levels, characterize you for you thanks in sure are dates start discussion want about we’re And and I to activity do what of that hump, but start could then, of plans. doing. could health are thanks. different just X, the employers hopefully these now was Hey, the I’m COVID January Jason, for and of sooner? of over talk your season all of discussions hoping populations types or most quite these some sort for this

and your thanks for Matt the comments. question Yes,

broad-based So It’s about accelerated, the think everything has is add million selling all season has talk demand in year. little X/X/XX, up selling season. the first for And XX accelerated. we’ll still distribution in across that which to and in fact showing is XX our new the to a everything the the of products I but half reflected million of early members channels that

bookings very, deal our of over be a so you And half strong over continues in that QX XX% for year-over-year. to our multiproduct, little color, up average of very was us. Just to were bit them size QX give

of opportunities distribution across that’s multiple continue across see products true all So channels. larger our we and to

half again looks So little of second start like I look how pipeline for very into a but quantifying and think the early it them. the the year bodes we what forward X/X/XX to well for

Your from Credit next question Jailendra comes from Singh Suisse.

Your is line open.

everyone. thanks Hi,

was basis XXX of gross with target five provide points your revenue margin can EBITDA awareness and XX% you color expectations. about to respect if you implication next if years. target and talk XXX also expansion Telemedicine the long-term basis can of any to of your the of margin this and points XX% actually wondering long-term annual growth to I for increased And expectations adoption So on near-term over

the, you outlook So, handle that how to want everything’s do you characterize long-term changed? let now Mala, I’ll our

– would terms so let Yes. say Do first, saw moving our start as what you handle me there pieces so I Jailendra several want in of is, margin. in were to the gross first quarter you

there As about mind. keep to and margin, a we the gross of things in couple the think on the year dynamics of are rest

see talked say we to the eases. it relates will that that the year over I that to surge quarter in have year. surge as et would we to visits moderate also the the in and is, second have we continue expect first that of The over the will the as moderate included also will revenue the visit seen course cetera about shelter-in-place,

that to would And medium in see driving will at. group are margin we something the the on my for that have profit have growth. – I the continue can quite And we gross will that as medium I talked still expectation about focus growth we we talked have in say that quarter, would to we at looking gross XX%. we And you profit our gross say profit long-term. healthily to confidence the long-term, also mid-XXs gross in is about

all with continue comes and it we expectation to we is When basis continue points still the adjusted margin from is OpEx to margin will and holds. invest EBITDA basis marketing, that My and growth to to expansion. that other drive XXX about expectation in expansion we OpEx margin overall talked points of will adjusted revenue that so EBITDA keeping leverage my pace XXX

from Craig-Hallum Capital. comes Your next Hewitt from question Matt

Your line open. is

you the for questions. Thank afternoon. taking Good

situation. maybe job little adapting done tag phenomenal a to Just obviously a on that you’ve bit, to the

to were you’ve we dealt well. despite as and hiccups of – couple as a search. capabilities even able But are and those the physicians add You with there

that As previously platform, dollars we driven that at Thank your faster expand you’re assume to look you expectation margins other that expected? rate safe than you’ve about should you just you. markets has these this talked into converting the some them expanding of faster given and situation to into? adoption be newer telemedicine Or take is those that out it and a maybe to and wouldn’t gross

Yes.

So that’s right.

We do to will – have judiciously we we that make. are that investments need and attractive

And the needed that so invested my And we quarter. Jason the in quickly just talked to like we – that investments will be what crisis. expectation have. proved we We the first is through in we just about

it the ones, in in to whether U.S. right whether We at will look be it and make investments those medium internationally. the longer be the or term

attractive growth give my profile. that line support as expectation returns investments, is So the the make again, us margin us as do we’ll right top give both we’ll well and right those the

Steve comes Halper Your question from next Cantor. from

is Your open. line

expectations in where a bit, you the close and update I at about date of you’re can us just Hi. you know in at talked planning? of InTouch little and integration but where your terms terms the process on you’re in

process lot is is close fact good talked it a The There’s going that integration – quality quarter. of around planning. second be in integration We of a conversations to we it. near There the the integration happening there about expect our well the of no teams. are all the and still end expectations of change across

quarter we So by of end I of our close have will the update middle the confidence in the the that when we do. and we year will guidance second

comes Your Barclays. from Jonathan next Yong question from

line open. Your is

for thanks Hi, my taking question.

the it’s benefit So the forward telehealth give call in provide they could if pretty a I’m with discussed discussion it’s how may you curious on your much same that? benefit clear more first design talk But free ubiquitous moving one or design. two customers, curious discuss virtual push is they help become, a where towards – becoming have for to first telehealth just to visits given Thanks. more prevalent try

think Yes. Jonathan, you’re virtual become exactly and has that been look ubiquitous seeing multiple specialties. right across care it we’re I

healthcare. years have is care ago may been virtual urgent just care, virtual virtual So what now

going we’re on care out plan different benefits can of realize well the the have health and designs positive of as many I plans both to cost coming think see impact and this outcomes. as as health it employers

think primary example that. I care is virtual an of

co-pays I $X are think of another example that.

virtual just with encouraging I visits, doesn’t general it think medical. stop but

to include We’ve and of that virtual our have excellence mental to a been healthcare encourage that large interest and designs plans. you’ll excellence health get think programs of as virtual virtual center centers in of people excellence employers physically seen unable plan center see I for programs.

that to going see entire think the I spectrum. across So you’re

comes Your next Kevin from question UBS. Caliendo with

Your open. line is

seen thanks thinking for Kevin. guidance. great lot to on or regulatory about, that how returning Adam your of Medicare. ask backdrop particularly guidance; you the fee-for-service then were talk specifically, you on separately? that results course just on could back market? volumes about place more a and I Hi, This but are the you’re Congratulations in for color bit Medicare in the just maybe to little question. the being what type you’ve how about only how capitalizing or How about Noble is servicing Is those of year changes and wanted the made, for thinking over you’re there normal, the market – of it within and or in staying a obviously you’re changes

obviously regulatory to generally been in with a an there the conservative view – onset interesting it’s forecasting. the changes Yes, question this of because crisis. We take a have of lot

set conservative those that, we regulatory assumptions. we do environment include of so the And when in

assume these I changes of are others. some regulatory can’t that think more likely all we than persist. So And

our and outlook So they do. that assume forecasts don’t financial

had good dialogue a will set we changes not is positive have in to good that environment the something with very, We sort relationships of to can of continue on with on and have work that impact. there. very But data assumptions. regulators I regulatory provide regulatory a them rely where And

don’t So our we we don’t positive those development – in make sort there of assumptions. include

X.X to With Medicare do we population, Advantage. expect members respect quarter to to that. about add the In managed did members, we Medicare Medicare the continue Medicare million – first

do providers efforts. that business Medicare persists, would Medicare and would than health be will benefit that other an robust been for what – reimbursement think providers then seen there for and there technology a engaging if we’ve Medicare an platform of But We for use opportunity some our think there from our – serve most direct-to-consumer far by has continued us fee-for-service. hospital systems do pipeline fee-for-service, the thus to to isn’t that with we fee-for-service have members. We be aggregator and their we

conclude today. for conference This you call. out your are time participation. We will questions of for today’s Thank

You may disconnect. now