Teladoc Health (TDOC) 22 Feb 232022 Q4 Earnings call transcript

Good afternoon, and thank you for attending today's Teladoc Fourth Quarter 2022 Earnings Conference Call. My name is Daniel, and I will be the moderator for today's call. [Operator Instructions].

It is now my pleasure to pass the conference over to our host, Patrick Feeley, Head of Investor Relations. Patrick, the floor is yours.

afternoon. good and you, Thank Today, after announcing financial a release we market fourth quarter closed, our XXXX issued and press the full results. year available section release slide press the on are the This Investor the of and Relations teladochealth.com website. presentation accompanying

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

be During we provide also year will this a followed full prepared by and outlook, our our XXXX question-and-answer session. call, remarks first will quarter and

that discussing the thereof be comparable are certain website. non-GAAP we'll we that press measures Health's on believe and can in financial Details measures note the our in relationship release Teladoc evaluating reconciliations Please found GAAP measures most important is non-GAAP that on these be to performance. the between posted

statements to this forward-looking during other this note uncertainties Also, expressed differ Act call the Securities materially certain or subject please from as those factors statements could for XXXX. the on Litigation that are risks, to be of statements Private call. actual Health Reform by implied results defined cause Teladoc and that forward-looking will Such made

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

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

help Patrick. we'll reflects guidance, our pleased bottom-line reporting speak and undoubtedly you, a XXXX year. better approach us. to afternoon, challenging and results will our joining Good finish balanced to I'm Thank which was what to and we're to our share afternoon, growth, progress. quarter track This for thanks that to strong fourth a Today, changes top you providing

continue guidance continues high quarter underlying grew solid brief Overall, full revenue revenue range. the recap let's challenging a Fourth perform near demonstrated ability positive year. growth. year First, and of momentum, business $XXX with macro to end million, consolidated our despite environment, by year-over-year our with of quarter the XX% driving more to a past our to start

For $X.X grew XX% to the than revenue full more billion. year, total

the quarter. of Fourth for provided quarter EBITDA the consolidated October, in adjusted a with upon expectation increase $XX was delivering significant in margin in outlook we line million our

with our while BetterHelp which target. in business, of on quarter, delivering the year-over-year the pleased fourth profitability We're grew performance our XX%

excited login we're now seeing for our chronic and remain care, in the platform, app. whole health accessible PrimaryXXX, about which also account person We through integrated momentum mental single a our new and all unified includes

person as care growth platform pleased I'm deliver first services our depth and market-leading Looking our breadth and whole for of virtual to strong healthcare any The very position our XXXX with our journey. and provides progress is of the a beyond, on expansion. making and products vision of our virtual on we and leadership mission step continue realize to clear. in care portfolio

consolidation. as new At shift mind, point we to Top results. increasingly demonstrated clients toward vendor of on platforms. is same seeing fiscal digital solutions hear begin away from a year focused from We multiproduct growing desire virtual the we're and clients integrated, time, the and our

believe we will the at been of to market. proven breadth expand forefront has the and our and curve, product that in outcomes position and offering Health maintain Teladoc our the us scale, adoption of enable

case to the as demand while a uncertainty a in healthcare, access persist. outcomes, economic for likely ongoing growth overall as regard environment that market cost promise macro and solutions is is with healthy challenging well This remains there rates. better lowering the the to While of moderation particularly

going which operate, us at the as the larger forward. focus operating environment expect and margin now should an we to Given increased you growth well efficiency current balance scale with as on

current the cost the reflect to Part growth structure of the of that rates business. rightsizing approach is

some teams. integrated still while innings. in tough upon care allowing some which to As to us on optimize a will of organization, offering year enable layoffs cost the effectively the regarding our This the includes build early ways efficiency such, in diligently decisions of structure virtual with the working and been improve the management beginning team restructuring to market has the us restructuring that remains

reflected our XXXX our are QX healthcare in pursuing and within and industry. we will actions to adoption we mean to does outlook. These not care's continue approach more the care stop across This year will underpenetrated, the remains industry leadership full Virtual relentlessly position. and invest increased growth expand that role virtual balanced of

more priorities in whole solutions products, consumer offering, primarily today, management U.S. over XX primary in when care of person our than to health health X individuals employers care chronic our platform now plans. and that of more access XX% our and million And BetterHelp are strategic utilizing with suite virtual through suite mental has product. population continued Over chronic remain XX% of of and products. growth our Access services, is I available enrollees solutions, at our our of of X the to than our key relationships care look care our Our PrimaryXXX, chronic including our suite brand. to

X year, are access have to received unlikely over of over to any care many services. provided million not healthcare individuals our all, whom offering with BetterHelp for at mental Our the if past

specialties on XX. with Score across platform and scale a is interactions over and Our expand. unrivaled breadth a gives the XX digital unmatched That over year which enabled experience foundation billion to an million strong in industry us and last health X.X consumer and Promoter Net visits over

several over profitability referenced pursue balanced approach way we line expanding the sustainable and still as achieving will while ago, more a I moment With focused with the attractive more next toward margins top of we rates. in the GAAP goal years, growth a growth march our consistently

today. this approach in XXXX reflected more balanced see our guidance You

XX%. year the XXXX, year-over-year $X.XXX to full $X.XX billion growth For revenue expect we to representing of of X% billion,

to EBITDA We $XXX XX% adjusted million of representing million, $XXX growth expect of to XX%.

we some results business are the way release, in the notice going press changes the also managing report of that our forward. way today's You'll we in reflective

the BetterHelp time past our rapidly appropriate felt it As has years, also we the up this for disclosure provide is increased direct-to-consumer few brand to over scaled business.

BetterHelp, Health such, of employers, direct-to-consumer will in through including results domestically moment, services X performance see both including providers, distribution plans channel. Care, which As segments. primarily consists the internationally; sold now our health health and a guidance primarily some we're our through X Integrated about channels assumptions which thinking Mala segments. Teladoc and our BXB along sold of of discuss business and between distribution these will consists you mental additional underpinning our how reported

in this helpful Hopefully, you'll modeling find the going new disclosure forward. business

company strategically both remains Let positioned me financially. the by and strongly end saying,

to integrated from a a And positive multiproduct perspective, the continues flow to Our sheet. marketplace. maintain and vision we deliver provides resonate our in competitors financial Health whole-person care Teladoc balance virtual to invest financial generate the is continue are and cash strong strategy ability clear expansion This significant for many us in with of of our facing leadership our a when to time differentiator the stress. a smaller position and at free

With that, I'll a fourth to forward guidance. our turn for of and the over Mala review quarter call the

Thank you, afternoon, everyone. good and Jason,

moment to want reporting for turn I Before discuss a the I structure. results to the to new our quarter, take

you segment you help On metrics quarters press find release segments: Teladoc and now in in your noted, new along Page will Integrated BetterHelp. today's are results release, Jason Health the to Care and from will that X modeling. we of prior As see X reporting the X

total membership become member types virtual to fee and between chronic-care these more access suite our move enrollees. distinction models across believe and combines diverse Care more revenue revenue and the towards segment, as is EBITDA, products time bundled U.S. the have adjusted the We are as whole in and distribution our Integrated only we addition with person over the arrangements. members meaningful our less becoming paid to channels. value-based we program of prior visit categories For BXB of This reporting of members,

Revenue Care per revenue U.S. total member Integrated U.S. reported Care membership. by Integrated segment divided represents

of program providing our more enrollment revenue enrollment, We program in which represents which enrolled. to actively programs number We in are we continue members. growth also drive of the enrollment our as chronic-care believe total care among are is members total reflective multiprogram chronic

services adjusted are the EBITDA, total we addition For the average BetterHelp reporting segment, the users, revenue number monthly BetterHelp represents which of during in to the users of paying period. and

results. to Turning

XX% consolidated the and the $XX represents outlook a million increased direct-to-consumer reflection have a with in During seasonality October in sequentially, year-over-year we million as throughout $XX of adjusted provided advertising the the line Fourth we EBITDA in discussed million. was $XXX of quarter, quarter primarily XXXX. to fourth spend revenue increase business

end growth U.S. members to Chronic in added Telemedicine high were over XX XX to revenue Care year-over-year end by the of members. for Integrated range Integrated Care the sequentially X% representing $XXX quarter, with guidance driven the increased and Management quarter, the product U.S. prior million members. million members exceeded total X.X million prior XX.X Care million segment which the and year, million growth X.X XX.X primarily million our to revenue. million X% of in Paid year-over-year year

Total program prior quarter, exceeded quarter. X in during Chronic prior growth fourth our The over year's Care in fourth enrollment million programs X was the the individuals over quarter, year's enrolled programs XX% number of an XXX,XXX the fourth of total representing XX% of Care quarter. Chronic increase the of

of the segment U.S. year. impact quarter of fourth Average course per year's members the $X.XX onboarded was to member of Care the due over $X.XX prior revenue new down the Integrated over

X% per quarter. the U.S. over prior the third have member Excluding year's $X.XX new Revenue U.S. versus member by the year, the would per additions dilutive member increased the impact over over sequentially of increased of revenue quarter. course

grew million, was expanded and the growth Fourth G&A points EBITDA expense. quarter Integrated from over adjusted basis $XX.X primarily by year-over-year XXX while Adjusted to Care revenue margins growth to EBITDA XX.X%. leverage driven XX% segment

billion, and grew million the driven expense. revenue $XXX full by X% X% segment primarily year, increased integrated EBITDA adjusted technology to $X.X declined to development For

increased of the expanded margin spend, the prior on to growth fourth year-over-year quarter BetterHelp discussed million large XX% primarily revenue to This EBITDA by in in BetterHelp advertising segment's part adjusted to Sequentially, adjusted EBITDA XX we've expansion $XXX by points BetterHelp million, was percentage driven as the year-over-year in $XX.X quarter. XX.X%. calls. seasonality margin grew XX% driven membership. in

EBITDA BetterHelp market the last XX% representing year, billion. segment full $XXX margin a grew $X Adjusted XX.X%, reflection the to For advertising of of year. X% million revenue discussed declined a to headwinds

the was expense fourth net loss per per the share share. or billion of share loss the in quarter share, $X.X $X.XX to noncash and includes $XX.XX loss quarter compensation a of of share of $X.XX goodwill compared Net in XXXX. per per $X.XX fourth of impairment intangibles net of quarter amortization a fourth charge stock-based Consolidated $XX.XX acquired share in per per

the the The our or has business and going noncash charge market no guidance goodwill in rate growth today lower environment, multiples. position financial including including overall write-off on conditions, of impact financial and reflects is ability overall forward. impairment decreased market operating reflected goodwill the in to This our invest our

quarter During and and on generated $XX the the fourth the in investments sheet. balance of ended respectively. cash company year $XX with million and $XXX the flow million, free cash full year, We million short-term

guidance. turning Now forward to

year to BetterHelp outlook contemplates growth the segment. X% single-digit Care billion to to range revenue For to XXXX, in to This of low XX%. representing revenue our billion segment, $X.XX mid-teen full expect we the be revenue growth double-digit percentage in growth Integrated of our $X.XXX percentage and mid- high in

expect We U.S. XX of members. Care to membership million Integrated total XX segment million

Integrated We an Consolidated adjusted the $XXX the flat for EBITDA adjusted XX XXX the the in million to to growth midpoint. up for basis at XXX year-over-year of range of of basis BetterHelp to and of or XX% assumes full Care $XXX million segment. the expect year be margin increase consolidated points points EBITDA for segment, guidance to

capitalized generate EBITDA free costs. by $XXX least development in at million software and an driven XXXX, growth to adjusted of expect expected cash both the in decline flow We in

quarter XXXX, year-over-year. first to of million the growth of to million, $XXX expect For of we X% $XXX representing revenue XX%

We million. to $XX EBITDA expect of million adjusted $XX

consolidated segment, for quarter BetterHelp growth low- and mid- revenue high-teens Care segment. revenue contemplates growth to to First guidance for Integrated the mid-single-digit the

XX Total Integrated increase expected to U.S. million is membership Care XX to segment members. to million

of you Integrated in the than due seasonality. slightly It's first seasonality typical to the segment margins Care higher BetterHelp in quarter segment to expect be margins the important to dynamic BetterHelp business. We remind margin

back XXXX, margin advertising of As the the slower we results the half holiday see quarter of strongest during lower year BetterHelp. and discussed the typically for season. in This in the throughout seasonal quarter fourth the we have quarter fourth in drives customer spend acquisition

up and and It year the as spend acquisition growth sequential in funnel first also margins seasonally the advertising of results ramped customer weakest quarter the is in the rebuild.

XXXX. the guidance for first As such, over the and our quarter expect low the course consistent to of point BetterHelp be assumes the year margin margins, progression we of

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

Thanks, Mala.

Q&A, annual few corporate issued weeks I ago. a report to go also wanted responsibility our third Before to we to attention call we your social

back our The colleagues a delivering work where our of the tremendous more take XX% past from community deploying source covers hours, cooperation Telehealth the had Ukraine our While volunteer we've devices a to report for year, an mission-driven, all of range areas of wide in World to X,XXX XX,XXX initiative. as is giving as year the fact seriously is XX members autonomous that delivering telehealth impact than than more the to with last pride. in

grateful I'm for taking report. check again encourage once colleagues you I to care our We're and to value. about out corporate of demonstrating my people, core the passionate

questions. With your that, we're happy to Operator? take

Instructions] [Operator

line of question from comes Daniels Our the first Blair. Ryan William of

in on But Ryan presentation for expectations when longer growth outlined term, BetterHelp Daniels. know user looks more like it This guidance you’re pretty I’m it base your you deck, I comes within the significantly. on curious based Jack segment. for is not fourth your users giving specifically year-over-year quarter BetterHelp the the increased to on

on kind rates? So time? much as if longer-term have And you expect just revenue expectations That any growth you BetterHelp do be total to would percent of over of appreciated. contribute a more

Yes.

you question. for thank So the

give position not outlook to XXXX. a any beyond We’re in

XXX% detail you point, in the the a don’t XXXX. it for years business. to the plenty have Look, think well hyper grew – this past over the this We few $X you’re BetterHelp of seen billion over business and given has at is business hopefully, growth few we type in going that in years. disclosure to of be – how it I see to it’s BetterHelp return expect where over past

But runway remains we do a for this there think, importantly, that long market. growth in

virtual aren’t still the and about are a addressed therapy, lot think other costs and places. in getting of it’s issues on you underpenetrated If structural access

this business tailwinds very the for still So strong. are

bit to in margin important other drive – a is, to remarks improvement. thing we remarks, his slower said year are grow Jason a note little this The making as prepared choice and

have talked the XXX improvement of in to about margin business. We basis XXX points this

thing in is last in in there advantage our this revenue. frankly, a say of just is And scale I’d this to competitors BetterHelp more advantage the to most total add than, scale a lot business, revenue this then annual lot business. of of is still It’s incremental year and likely there’s generate take of

with comes from of question The Lisa line next the Gill JPMorgan.

X around an progressing start comment is how going whole Just things. the with really you made forward want said business value-based to Mala, and you interesting person bundles.

to question how do what my for How that's about So me that for profit? Jason. Can work you think about and to revenue value-based will talk you're what means we XXXX? bundles seeing and

we And Can of points my improvement like margin at maybe what it's that that should then are specific to midpoint it things that will by as secondly, some beyond 'XX the Is things the are talk and just about Is the margins think basis maybe math, 'XX? given. improvement? about key talked you you've potentially drivers Like margin the think impact the or about in like we the realignment you XXX to some are the business? what of mix? of Mala, what it about the of that

outcomes, Yes. especially being some combination on the There's us looking large X And of health also but no bending Thanks, In take us. Lisa. bundles cases, cost based based that, can from are services of provide arrangements clinical they employers form multiproduct curve question being value-based of the the value-based them. to are plans, or many on arrangements. increasingly of for

plays up well I look components year, us. think, and to with interest if deals is that, the at year-over-year. I the Xx about plans last really And value-based And back health so from

we Our our in our significantly solutions, fortunate points driving that clear, for return clients, it's engage with better consumers members, position them. where arrangements. well with a outcomes lends outcomes products. significant itself engaging But care of that in are engaging on more driving investment our more also than when and solution, our who are X of are a true X obviously XX% we're of chronic for chronic proof clinical to where care value-based And than are we're now

X:X average, On diabetes program on of return clients. our investment for delivers a our

hypertensive, cost we're themselves PPPM driving value-based For clients those significantly really $XX again, aligning avoidance our well who meaning to those arrangements. are and with us XXX lend systolic, in so over

the really your if from the for it's progression, margin improvement, Lisa, A&M. around as G&A. get expense if question, the better and think and second First to development well key we then, And of think you about if Integrated productivity factors, about our A&M, think I More you down will margin about leverage bring about yield, it health it's improving a leverage I'd few Care, technology right? broadly, as the our is,

very of layoff. took earlier As know, doing year terms in you difficult we some a decisions this

are you about the efficiency. around internally, as think our efficiencies is if are estate in in costs, so It's measures And also And our controlling taking about we real things driving it we consolidation. structure. driving such G&A

excellence our We of et the now, have rightsize rate base of business. growth of the essentially cetera, to all to centers that relative cost

question of comes Jailendra Truist Singh from Securities. next The

moving First, from Mala. health for a benefit XXXX? to multiproduct how about you quick And recent solutions. talked much clarification your digital your willing you my quantify the for does demand away guidance restructuring to Jason, question, from platform main assume the increasing, Are point employees comment,

solutions to you that you would there that you As are partner? certain to or respond approach to your And into demand? of plan where buy like how across expand offerings, do like build, areas look terms solutions or to and in

thing individuals by count guidance, have believe are of or we'll we completed of of the you the growing actions taken, the significant So transparency would first growth We've And I quarter. for clear, the cost during restructuring And expense the To the of And quarter. we XXXX. Jailendra. first all the XXX this We've it given these it's reduced add taking in investment in the first that reflective on is they current our both we is approximately moderate fully did. that it and growth majority X%, year will rate a pace incorporated enough has been head period and order. business. quarter only during that be to take over structure follows our we full of

and us innings. organization early relatively allowing us of will improve still the continue while to still allow market. in to It That's in the efficiency the importantly, innovate to

with your sales, pipeline and dominates about And that last our to bookings. question bookings. respect multiproduct multiproduct Jailendra, XX% no both question year our of there's About that, bookings our were

We continue to see that.

also I it's acts success reflected in which product, multiple and as PrimaryXXX the services. for products a hub other of our clinical think

traction. product in Our And 'XX probably although a to get off versus base, the from triple small PrimaryXXX we'll PrimaryXXX continues revenue 'XX. significant it's

add to So if of of we'll if clinical as care products and services services, product PrimaryXXX you our about continued look products care that our the you primary are that additional and spectrum, are will. to full complementary as portfolio think clinical and capabilities chronic both sort expansion well existing

buy, investments build, whether build respect and at to continue b, the In terms market; We those. versus deciding we're to with going partner those we'll or speed to of look to look on opportunistically return market. buy a, financial both, across

out cost the think I is are significantly money. out the and to been and raise current of environment are as go As documented, there other struggling of capital companies a in have who well higher number has there financial companies

internal staying pace closely that, attuned of we're not We're stopping to but our innovation.

which and and all single our see the consumer our and experience clinical launch so and us example, relatively easily additional for single for services of a interface deploy to products And a with and One capabilities. you enables rapidly of products provides app, that,

from of of Securities. The next comes SVB line Stephanie question the Davis

been primary virtual growth So hearing about you care. I've lot market outside of of a guys for

folks for virtual So activity model risk, you're wins for be move of year? there's helpful these person you're or last whole as RFP urgent should to through would as to What And versus charging the if walk How recently incremental the all that some it? cannibalization view PrimaryXXX. if care? we versus seeing just basics care for

Thanks, Yes. Stephanie.

said, expect mentioned excited in in very the As about I revenue we're PrimaryXXX. in I saw 'XX. growth triple the we 'XX we that

thousand and several rapidly. already care We it's visits have year, this completed primary growing

don't visits We know, the will that and rich deliver, in the did in and between X XXx primary XXXX somewhere opportunities. is pipeline in with I we care 'XX

very good we feel are. I where So about

cannibalization, different of general our of terms products a incorporates cannibalization our is are PrimaryXXX we really that's purposes. see by our In and medical One They longitudinal services. and of relationship product. really very don't holistic services serving multiple really

acute episodic is nature. in other and more The much

provide more But of than what's solutions disease X the health for Teladoc that half I to with our our to is come likely person with chronic PXXX mental engage think that our care. are with members of And members solutions Over are our solutions. really combination chronic service care really PrimaryXXX encouraging care of Xx our us our together whole services, using and chronic see product. we including as PrimaryXXX that

in the I all driving Promoter for not Scores opportunities of expansion lastly, with our existing PXXX product, is opportunities but is providing which us, new think also clients. for Net XXs only that

over become a certainly early is years to we to time, going potential do next momentum seeing, Integrated over Yes. pace have impact The much particular. growth very larger of care. the certainly on based adoption the several I'll it But on portion an segment are we The Care virtual the of the in the has in is thing business. innings for we are primary the think, add

double-digit growth, of can anything prevent call rates? would So benefiting that out taking from PrimaryXXX, of revenues you million with with revenue to for that $XXX your It's a growth on comment is your a from dollars. how we the BetterHelp You've to base there incremental in bridge tripling ending those tripling line guidance? got PrimaryXXX,

Care we've segment. off given is of over 'XX, very growth indication consistent I as segment Integrated saying BetterHelp about the in both a year, and as the small we think PrimaryXXX were of that Stephanie, an rates the which well base remember, the last course Well, of

can those given overall bring look So together is. you 'XX we've to at the what for guidance I think

of Instructions] The next Close. question from comes the line [Operator Richard

a more what about Mala, XX can little expecting? improvements. guess, you're margins, to you you're bit seeing base what and talk the flat I Integrated

maybe XXXX beyond business? detail in the little a in Just maybe bit expansion this more opportunities

Yes.

will say, here's leverage about So what if as would grow you revenue in Integrated base drive our we continues expense I our the think segment, and Care scale. to

you and If it as that growth business. elements more across on growth the business think much about Integrated in press then it's chronic the of segment. are, care, PrimaryXXX, about in what you'll But as Care essentially business hospital see we think of release the health have in side, mental including talked and our BXB and about, our health telemedicine the system what's

of this the Because you Integrated diversity segment. think again, is just opportunities the important X sorry, these international, -- if So a right? all across last of growth is I'm global and of Care

if number think you and of across revenue the revenue, all will growth So these, about again, one. progression opportunities from the driving scaling margin come

our this it about, in will whether and just and more to development expect continue future in drive talked much we are in to costs technology efficient two, And going And expense we've to that do T&D that expect expenses being be year. as number we in leverage segment, -- years. we expense,

to we to innings, fact said, investing, in business we still leverage early but there. I be as drive And are that as well. SG&A in clear, given are the do expect in We still the the

progression the margin drive Care the So Integrated that segment. the will it's in of those combination

The Deutsche George next Hill of Bank. from question comes

George. for on Maxine It's

contracting from and -- model you pure terms membership the to more and do how change has initiatives of support you us model. versus do pace Your Can now a employed the contracted where ratio some changing saving gradually provider And to been this hiring of of providers? cost restructuring on color in how a you are hybrid give model growth?

Yes.

So the we're process. in

of of versus We process that but out taken are haven't are being visits employed contractor independent given shifting. total we by in physicians, the a percentage the

is we an products and will I physicians. of us to all proven employed model. integration What productivity that with physician of our ultimately think by physician we've north can to we employed of being drive Promoter better you now when consumer Scores that actually visit our of at XX% taken volume clinical higher see go Net equal greater do

We'll more the some physicians and because never of episodic as, get medical, be And that also relationships longitudinal visits, PrimaryXXX. -- both for as efficiency and point. to frontier not prudent, course, our employed we at well are get beyond our more, wouldn't you it's for moving more XXX%, more general in to

I wouldn't more it OpEx we the you model, we nonclinical our that point the oriented staffing physician to talked around year. when at that around not did this transition really of restructuring was beginning That around about our and was our staff.

question next comes Piper from Jessica Tassan Sandler. of The

XXXX Jason, just of the number you the type what's and I if relative could kind hoping was in course us behavioral revenue And just remind navigation that's care the So level sales the multiproduct us you square presented? flattish per with of Care offering? average could or help increase then U.S. Integrated PrimaryXXX to member secondarily, over just of the 'XX you XQ in care that embedded

remember, the if remarks, you think per So said members about what we prepared is revenue of in XXXX, onboarded about flattish. Again, lot in member and if talk and there is we that. new a of you our -- you dilutive Jess, a impact

If growth growth was it X% about members. last about X% year, in you the to in a membership think

impact. a is dilutive So there

translated normalize a you of it sequentially. and we $X.XX X% about did member for see basis, about revenue year-over-year we that as impact, If increase per an in increase to said, on

again, increases revenue actually components is systems in in think impact in is member. the the it's increases are per about we and that in and different per elements what hospital enrollment, the increases revenue you if and it our that being included of of growth business. utilization. in revenue is point the member, It visit seeing The our growth And that in health

components it is per different and overall drive the we growth in of increase that, the that will As said, revenue segment revenue member.

as And standard to -- then with to management. full access as takes services. with health client XX care, offering not every primary bundle for medication mental respect health well that along our our standard delivers be tends mental said PrimaryXXX is or for Having to virtual psychiatry of that, PrimaryXXX, therapy

And same so of caution every takes while that just the client bundle product is -- that every services. our lead you I offering, not

The next question comes from of Daniel the line of Citi. Grosslight

all? the you has talk the seems of with you we and guys your I'm benefits clinics integrate managers us virtual how changed care, important. has around As strategy hear become and you physical same Can if at it thing. sure in-person integration virtual to like care integration increasingly remind primary

Daniel, thanks question. Yes, for the

concentric is for I deliver of care think longitudinal circles. all including and the what manner. the in about care chronic consumer center it health, the At in we along virtually a terms dimensions, holistic primary X of mental can of sort

ring second is what around in can the delivered The home. be

we're or and the so the can home. and into delivered whether in the that be And care helping that's care in facilitate diagnostic home, actual of more testing home more, to driving care delivery

I with the someone referred. then physical the third create system needs question into brick-and-mortar behind -- I that, clients to referrals be can work delivery so we that the that's you your a scalable ring you is is most of sometimes into don't own do really is brick-and-mortar, that want do I highly And to when into And referral always our think delivery to don't And facilities. The -- that efficient to model. system. strive refer think the own

be own time the making clinical are -- fill capacity on brick-and-mortar cost referral best it outcomes in beds for I the making in And impact business rather own to can provide I'd first some care. cases, the and fill we greatest of highest sure and the your incentives perverse think that rather the your of

Fargo. comes question of from next Wells The Stan Berenshteyn

asked, any a helpful. pretty coming contracts care. And segment are nobody I XXXX was year next for over wondering, appreciate up color enrollment is care very year visibility BetterHelp, or can on of chronic on additional since for the those maybe if the chronic two? I'm your that on what in just you big Maybe renewal? comment

done would high for I our our we So say, as we into very planning, we chronic always detailed have contracts. a care of degree XXXX, do have as visibility

Care guidance, segment expect we including about reasonably on been -- chronic have much Importantly, revenue Integrated to care. set we in have from how your the as prudent

would So that the I that say is of we have level high. visibility

up to over point year. significant any wouldn't of this contracts I course the are that And

The the of next comes Draper Sandy question line Guggenheim. from of

on Sandy. This for Mitchell is

quick you underlying any are about from of Just you sales And impact a cycle? ones. thinking macro environment recent impact to the few job cuts? are the your customers How seeing also, membership on

the Yes. second X first I'll take first. X -- the

balanced, be question, to haven't because We on an haven't really some from really well in commercial that of exchange as very the we seen cognizant We're attuned membership as an participate going that. cases, might on in impact segments seen always labor our but segments. the I'm the segments, the we're impact. In market. we anything Medicaid

really So seeing sometimes insulated flow we're because significant any from impact. the a X we're see other, not but to we

With oriented of BetterHelp the respect to the it more factored that to the segment the around buying into given in and uncertainty. behavior, the over certainly, outlook we're of year. the macroeconomic sensitivity this attuned our consumer, And course we've

the stop down slowing process, together. the has necessarily BXB decision-making the of it all sometimes in effect think segment, or buying the process it doesn't but I really

value. we I rise the buyer of environment. to anything, believe think it that kind where most if an getting we top in And on they're the the that focuses

The Anderson next of Evercore. Elizabeth question from comes

spend? in therapy trend? I on an your update then bit how us you macro wondering if BetterHelp. to are us seeing environment continuing And how give and sort also you little the Like a on to retention those year to the versus detail give any and was ago seeing could group of sessions ad are are more -- change any changes Could compared you a

Yes.

those -- really underlying about of So If no I think in metrics. changes any

Difficulty] [Technical

difficulties. we back moments. technical moment, few The be are One team will in management experiencing a

is team Teladoc back. The

resume. now may You

cetera. offices. we to apologize. of your having on up do would year the et our finish remained steady in I what operating exited the have just retention, But this issues Sorry, be are Elizabeth, LTV, think We we underlying have if they about it question, business, is year metrics into the BetterHelp network say you as churn, whether

seen far ad stability terms in also have pricing. thus of we And

that monitor But of Now factors certainly we've all last seen far, And have market. obviously, as a year, essentially we are many swing of the of stability is talked in BetterHelp in that X to we continuing thus that. about degree business.

for Thank conclude with participating. we call. And today's will that, you

disconnect. now may You