Teladoc Health (TDOC) 26 Apr 232023 Q1 Earnings call transcript

Hello, and welcome to the Teladoc Health Q1 2023 Earnings Conference Call. My name is Alex, and I'll be coordinating the call today. [Operator Instructions]

I'll now hand over to your host, Patrick Feeley, Head of Investor Relations to begin. Please go ahead.

afternoon. good and you, Thank Today, after announcing a release we market first quarter closed, our issued XXXX press the financial results. and Relations teladochealth.com This on release the presentation slide press are the Investor section website. the of accompanying available On Chief Murthy, Officer; Gorevic, are Executive to this Officer. and discuss call Financial results Jason the Chief Mala

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

call believe uncertainties statements forward-looking be non-GAAP note between that in that other are be please we'll by expressed release call. the Act is press we made as discussing measures defined measures Litigation Please can this Details these relationship reconciliations from in this materially risks, GAAP Private and Also, Such could or to of Health important note certain the XXXX. Teladoc results certain the financial those implied posted to statements performance. that and during the on subject measures Health's most on for forward-looking Securities evaluating Teladoc comparable the Reform website. actual found to thereof that be factors differ cause are will statements on non-GAAP that our

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

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

results, the we'll of and we've few adjusted in key Today, the the a to financial meeting the of Patrick. speak our for start quarter. to the raising Good or quarter's pleased guidance, key EBITDA revenue of us. of year. report the we're strong a the all end guidance progress and our months first you, year Thank made afternoon, in some of thanks the exceeding and to first I'm reflection operating across and business, strong joining low

was above a range. in XX% our of to the revenue which guidance with QX of high the brief year-over-year start $XXX let's by grew million, end First, recap quarter. Consolidated

of our million, Our EBITDA $XX.X adjusted consolidated was guidance. the end high also exceeding

segment as the quality, resonates strong XX% health continued our in marketplace. direct-to-consumer member Our offered growth the driven mental to new demand service in by BetterHelp year-over-year expectations. see grew revenue QX, convenience Segment affordability our by in and and first outperforming the quarter

Customer year-to-date, acquisition guidance remained trends products. quarter. growth pull-through of to Mala our stable discuss Integrated pleased solid at of end suite to quarter. Care see care schedule. our chronic portfolio. our of weakest drive in the to grew in resulting is ahead whole in In BXB have the in margin sequential the start the improvement in but was shortly, person solid particular, up our member more expectation seasonally in segment, year strong high is care what off Care detail for business feel revenue This helped confident margin And and will we continued consistent Integrated balanced BetterHelp our our enrollment a expansion across X% in XXXX. expectations. with of $XXX interest ramping margin to million, segment new a strong strong we're relatively In recruitment also throughout course again typically the

in confidence the the level BetterHelp of trends of segments. Year-to-date both Care rest in our outlook Integrated increased the have year and for the

virtual significant on virtual the with focused And I’m primary During care, position our XXX, offering. advancing our we’ve remained made. care expanding person we’ve quarter, the leadership primary including in progress whole pleased

examples. Allow me highlight to three key

multi-product for integrated higher quarter. already app during new utilization. been engagement including migrated significant began considerable and we the rolling This out effort, and a seeing has we’re results I’m pleased First, our that positive populations,

early. it’s Well, very still

from primary our optimistic helping experience our their across better chronic of members to in whole health integrated this fully care manage programs care. about potential the We’re person impact of suite

The landscape leveraging demonstrating and outcomes evolve, technology accessibility for our the to ongoing better efforts quality to As members. app engagement committed healthcare drive with innovation care for the we remain in investing results a to our early and improve to to our are of new testament members. continues our

announced added more we the or management the study chronic significant in our improvement diabetes, of care underlying person Next, when other are that care. of benefits those chronic a whole study results programs. one of The of a in our clinical experienced programs one standalone new weight or who conditions enrolled they shows individuals proving hypertension, initially

offering. is represent time These another come a focused And why the data points demonstrated of at reminder person on marketplace our increasingly when they whole in investing we’re outcomes.

these health expanded programs. condition validate benefit person programs plans, to from For employers chronic whole the access of and results standalone

last physician based care efforts programs for and we our to with Teladoc forward and took a will our care counseling, care in tools developed step nutrition access in Finally, behavioral to coaching, pre-diabetes. Distinct healthcare, integrated capabilities provider our personalized of as provide our digital whole solutions members health introduction to collaboration existing science, person week, drug another management. management have our the clients new broad-based enrollees plans programs, who such and mental prescription from and leverage will weight with

track, when to will programs downstream GLP-Xs costs. believe such that ability members the We prescribe includes access appropriate. to members. complications new for important uncontrolled clinically physicians chronic medications improving as for related conditions outcomes with developments and is These get to key This on help back reducing

a comes that patient relationship that to access not enough a medication care a care the patient is conjunction journey. plan therapies when to customized longitudinal as and critical also health care built-in It’s with their through are these alone and team provider of to manage providing safety. help provided part a it model outcomes includes However, broader

provider-based diabetes, our integrated digital will of and be These channels mental hypertension. Health’s the year. Teladoc programs health provider build employer the and in and management weight in programs plan health, starting success to later of follow based on pre-diabetes programs offered clients existing our programs this launch digital and

now support that weight we’re addresses and programs pre-diabetes, for members virtual condition all scope digital these comprehensive the programs, of our offering needs. and that key management the across our full ensuring receive of addition their chronic integrated the With programs

the importance quality proud for in understand of be the we’re to of while We this high at space. care, our innovation reducing And clients. forefront costs delivering

to achieve programs provider-based our to the improving leverage a are care technology our outcomes. new Our to testament commitment ways to exploring health and and of innovation members better

than digital venture importance space, healthcare system created months. uncertainty of environment Let strong a facing me many the companies past saying never combined has the position strained financial few a in by that financial evident The constraints. the funding more disruption been lot resulting banking end in a has with over significant backed in the of

generating continuing positive contrast, invest while In cash at quality all providing innovation Teladoc to Health, solutions, flow. healthcare free in we’re high while

Over months, million flow. $XXX we’ve cash XX cash generated the operating flow and in free last in nearly million over $XX

nearly to clients on important and as in free of sheet expect the in seeking are strength times over flow million is cash $XXX have uncertainty. cash advantage emerging million balance $XXX of deliver of as quality another We XXXX. Financial

In generate conclusion, drive competitive our margins we in business remain focused efficiencies on and creating the advantage value. expanding to while

our position, while enable that and leadership us strong advance our We’re delivering results. will confident to execution strategy

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

and you, Thank good everyone. afternoon, Jason,

consolidated quarter year-over-year to increased First $XXX XX% revenue million.

million, a While margin of representing X.X%. EBITDA $XX.X first quarter adjusted was

membership and by primarily expense financial was The stronger growth, driven revenue, outperformance care chronic quarter improved product control. first BetterHelp

segment relatively to the to Integrated increased results. growth revenue Turning Care in year-over-year $XXX across the quarter X% portfolio. segment million with balanced

strong margins expense with an in XXX XX%. to quarter, helped quarter Integrated outperformance combined control. million, basis care chronic better margin during point $XX.X which expansion guidance driven line representing gross enrollment First margins bottom by Care the over drive was relative stronger program to adjusted and largely EBITDA The results first was

Care Chronic of end XX% representing $X.XX the was quarter, program enrollment Total year-over-year. first the growth at of million

year-over-year Integrated year, over Care and $XX.X million $X.X prior to members. members sequentially X% million million the U.S. $X.X growth Total grew representing

Care revenue large the XX the mix the quarter of U.S. Integrated of was year's months. first populations added due prior $X.XX impact telemedicine Average last member new to down over a $X.XX per over

to the of over last impact a Excluding population would by on XX low the increased digit the months, course have year-over-year mid-single basis per revenue new of member onboardings percentage.

by to and cost. customer driven increased stable acquisition year-over-year BetterHelp in First million, XX% segment membership quarter revenue $XXX growth

First quarter million, margin a X.X%. representing was BetterHelp $XX.X EBITDA of adjusted

last up following As ramps several marketing quarter first holiday the the quarters, the typically discussed over quarter fourth extends as is quarter season. the weakest seasonally

continue quarter-over-quarter throughout margin expect we point As Jason such, low be the of we XXXX. the segment to mentioned, consistent as margins. the quarter progression BetterHelp the first to expect improvement for year course And of

$X.X million first in related Net quarter to $X.XX Consolidated was $X.XX of loss to share, loss the first per first loss net quarter share share in per charges per in a restructuring includes of net severance. the share quarter of XXXX. the $XX.XX per primarily or compared

and per share of compensation of Stock-based share. per expense amortization acquired $X.XX intangible of $X.XX

was million of outflow net During the first of net million a cash quarter first flow quarter, a $XX the compared of XXXX. outflow in $XX to free

the with the in on quarter quarter. short-term balance $XXX reminder, million and a our the is first weakest As ended seasonally cash We quarter investments flow cash sheet.

to Now guidance. forward turning

billion full be billion, of year XX%. to growth of X% representing end, an to For $XX at to the increase we XXXX, in million revenue $X.XXX low revenue the of the range now $X.XXX expect

change in million digit digit Care includes our segment. growth double XX of This low single to is to members. percentage million teen year guidance no outlook BetterHelp in segment. Care to XX our our Integrated U.S. full growth Integrated There percentage and high mid segment mid to membership

the $XXX to consolidated XX% expect $XXX in year full range the to We million adjusted EBITDA growth to be million, or of XX%. of for

for XXX assume Care segment. points points of an continues margin to Integrated for adjusted to points Consolidated to XX of guidance and BetterHelp basis increase basis XXX the up year-over-year EBITDA basis segment the flat

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

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

to million We expect million $XX quarter. of adjusted the for $XX EBITDA second

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

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

We to than higher segment margins second quarter. the segment slightly margin Integrated Care expect be BetterHelp in

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

closing, and to continued providing our updates strong start forward with we the year. XXXX Thanks, to Mala. on look throughout progress In very I'm pleased the

it that, questions. up we'll open With Operator? for

today Lisa Lisa, Morgan. comes question Instructions] [Operator line go Please from first for Gill you. open. your J.P. of is ahead. Thank now Our

chronic other you I start the programs. about and Maybe the the about much. season? early One, you just you you're early Great. Thanks just and going Can start it Jason, maybe the season; about about around is of asking things understand. you're think we loss and selling the that GLP-Xs the too integration two, of year. gets So And thinking really talk recent announcement very back for to as half what in sign-ups? the weight the made is to programs two XXXX. just want selling back starting to with into what talked expectation just about for half initial XXXX the seeing things how

the asking appreciate too least you never about it's selling question. soon Lisa, early I I'll season. indications. give the to start the at

strong, in for expectations to quarter running far First of and line the ahead our so was year. we're slightly

the lead XX% sales value portfolio and of materially think the position talk year. the and year breadth good I the obviously, pipeline. our vendor testament the solutions versus continued about the that those that's pipeline, over market to a I represent We If last as how stage much same how at position as same the of in about a quarter, time year for frequently our pipeline trend – of last a a deals looking we're to integrated and I to and first in are that's is market. product relative really late-stage whole-person multiproduct bookings think because, consolidation the highlight up well is late-stage most developed really that think the the of big the in or of

the season. this health an continued that about weight is of And programs with prediabetes hypertension diabetes the all mental provider-based course, with we're to out we is So based With program, I'll although, early the full started and the example with in continuing we've together been management digital season, overall, provider-based programs. our on of sort care development which selling the that And of excited solutions, path of our make feel really care. weight which – it assets care, that provider caveat management respect and and care integrated good of provider-based to on, of us brought care we a about the team. portfolio our then course, rounds the now featuring and where our with is cardiometabolic

our selling Certainly, of been So only gotten in now talking we back will we've year care in that or of the for it's into it we're week or but a X/X/XX. include actively that taking the as market market the about this half we're really market really in the the we two it. haven't members been

kind too what year. is have it's on the have revenue it in expect half soon tell XXXX. in of of will an year the that to say So What to don't I this a for selling on impact the back material season will impact we

you. Thank

Thank you.

next question Sandy go line ahead. your Our Guggenheim. Draper Please comes of now from Sandy, open. is

Thanks very much.

mean that, flow, going leverage. you're Mala, cash doesn't cash to end looking greater coming dollars less you've Thanks I'm the question of reiteration here. operationally because flow the financial that's integrated quarter, statement. probably a flow R&D? going it or back to of about for software this allow trying on what's just going the generating it's that's come up was start in the year. the statement I'm I that R&D spending income to And just But very the matter think thinking that you're on free that about Just, guidance obviously the mechanics gotten cash Appreciate to first think free much. Does when platform. maybe the at capitalized from on to the

level talking Yes, that we few have an R&D. thank past the Sandy, for of for question. have spend is What the been at you on been elevated we quarters about

of app that in last they about talked time highlighted R&D. our integrated of of brings which One programs some the important see Jason consumer can have the App, the all launch the to. investments together access the have that that of so all is services We actually

look the for And the App. I absolute early our contributing pleased is would with That what I would year, time, our going I spend, our being R&D. onshore programs, But also and of One And it's we therefore offshore. about you said the year. just as have read spend to say I efficiency judicious think R&D our would overall efficiency this we see overall – we Sandy, that is, say we we hiring, year-over-year spend, other is spend R&D at on something to not are to both the including would last very are down thing and as expect levels CapEx is to point our our about people that

those are drivers of dynamics of our cash So the the CapEx within free flow.

Great, thank you very much.

Thank you.

Daniels Our next William of question Blair. comes from Ryan

line go Your Please is now ahead. open.

is just BetterHelp you space you of how This quick and the side? over if consolidation Jack do on for I'm curious competitive late? update on seeing kind any any what Daniels. environment, to just the as guys. us of BetterHelp noticed yield Ryan Hi, then DTC you has and or DTC kind you've just experienced. marketing it competitive a dynamics that BXB for when trended on entrants follow-up, of the comes year, remind both Senft of then Thanks. have have as within just given any Can the And side in you're if the the seeing new and front updates the environment the vast amount past you're what

trends the that Sure. seeing acquisition quarter market advertising line can are the anything little first I in respect expectations spend. I'll And a bit customer to to environment, to if miss. the with add in stable that lean Mala enabled start, and advertising our with first and more color the we're there's With in continue us through then quarter.

year. of of we the course, Of the benefit will over the that course see

environment the and I the has than specifically and environment see and back the spend if change in. And you competitive sort think wouldn't would advertising advertising coming overall. competitors it in acquisition. of in pulling cost been But – We entrants more don't see past. new significant environment, impact might in then a yield of of a see terms our it some you were, we In to customer an competitive the it's I say other the competitive that on

with stable data in expectations, the is So trends I view the of competitive line and there that supports think, landscape. our the those and fact our

of would the a I other little And only add, bit Yes. thing color. add to just

acquisitions If the higher remaining the dynamics you we being so our course out our far this quarter revenue. ahead expectations, customer cost look at of driving XQ as and stable allowed the deploy driving member of revenue Jack, capital and bit of that’s pointed actually effectively acquisitions stability, to year, the a better little us over of more

with first base about the And BetterHelp. where in revenue ending are strong good we with that feel a quarter we

as course, ad also dynamics consumers – direct-to-consumer the space. of of will through how we we out dynamics and have you year. feeling about are the course it play space the if that the that ad is year before, It about business, the over Now, out is of the about as think pointed go in spend the that

guys. Thanks, Awesome.

Thank you.

now comes next line ahead. Davis open. Please Our Stephanie Stephanie, from of is SVB. go question your

and for Hey guys, the congrats thanks on questions. the quarter taking

And we thinking maybe guidance held is pre-diabetes this loss from So Mala, things as impact comp, perspective, the to stack. potential meaningfully a XQ the range? few baked that Can you’ve a off baking in stable and a upside help love this wave despite any for guidance a mainly upside? well. from where what’s in then but slower especially understand weight all XQ two us guidance full in still to you The years year reflects or easier about on this following product from XQ growth are I’d Jason, one’s effectively

Yes.

season. course on we right year, impact. – I [ph], over to we As It at the guys out – last won’t But nothing in weight will It’s would there minutes and out accruing revenue out that update early a starts to to very we came moments few expect a the X/X/XXXX announcement any the clear. just really pointed selling play week. accordingly, of Stephanie, It’s is impact with any be loss. Jason will material the is it the it’s impact expect it the when for you XXXX not ago,

Integrated is of that in I In think would into start we beat the I about segment. had guidance the it, as dynamics terms what Care it segment enrollment. how are as you care and chronic on in Integrated early decompose it say of in the well a as beat XQ the and segment, about The we on had think we XQ BetterHelp the thinking Care if

We have care expected seen curves We’ve nice over time, start have We’ve faster ramps a past a job to a talked to than that the some nice we enrollment. chronic faster. in little outperformance enrollment XQ. bit the of and about in slightly done in gotten up how getting

guidance And in so of rest is right? the early XQ as that the assumes forward ultimate higher I think than that result something the and rest rates of year, that little I enrollment quarters, our in bit of a about enrollment – start essentially a pull the will are of

start. of with BetterHelp, out So as candidly, are that as On an performance. think early pleased I we just QX the pointed

guidance, the had the the of guidance. – more We the with guidance assumes impact gave Remember end XXXX end bottom the of guidance, of we when unfavorability that achievability the we top things the XXXX or in are end a drive and talked deterioration the bottom the comfortable yield. guidance our incrementally our about of

modest will in there yield ad spend. favorability that be of assumes end top The

perform us And of rest year. continue just to that prudent we this can the it level the for assume wouldn’t so those dynamics be throughout continue, at to

XQ thinking XQ – of you of how the the then of So so about context it sort and the we feel that gives in rest year. are drove the what beat a and that’s for

so Incredibly much. Thank you helpful.

Thank you.

question Our comes from next Singh Truist. from Jailendra

now is ahead. line open. Your go Please

actually have Thank you’re follow-up your better care existing the talked versus particular percentage any business of offerings chronic you, I multiple penetration business in provide enrollment past in know I and can about of figure disclosing favorable And any your thanks qualitative you are about for in I not members enrollment than trends care taking want coming chronic utilizing the like see membership around new maybe chronic comment did programs further color this unique terms quarter? on into or you my questions. base? anymore, think but member to expectations. programs in in Mala care trends we and enrollment, what

Yes.

about are well XX% Code the about think sequential that care, I in we of And Jailendra, chronic improvement. if trends seeing as percentage ZIP utilizing improvement as that it both year-over-year multiple So is significant chronic programs a that is care the plus. the are as in think

before, And success said the proof again, as for quarters past we’ve for multi-product have in having right, that the many we the one is of been points bookings.

over And consistently over Jason as have trended the XQs about, talked last bookings. just in XX%. We over in quarters many XX% multi-product

positive proof the having a it’s benefit of bookings. multi-product So of

we as are growth I that. won’t that on of growth terms as that we we unique out seeing get is, definitely enrollment well. internally. been metric. In as is program given but a said that seeing that won’t comment And say we I obviously track obviously What enrollees we increase we some year-over-year is time, than billables nice XX%, out have will are the in of in unique the unique last increase something that We’ve That will I billables. basis. specific say reported seeing a more something in

lot. Thanks Great. a

Thank you.

Our next comes Citi. of Grosslight question Daniel from

Please line ahead. open. Your now is go

business. margin. that Hi, I that given curious, just taking care enrollment. guidance full you’re outperformance would the earlier Care thanks than the for contribution chronic for segment Integrated constant, margin assume the question. those to the have I’m with the to keeping relatively in want expected members high overall stick while I year relatively

expected full Is earlier it the else there is or enrollment through just I’m missing should something flow year. an that here? conservatism for than So that

Yes.

bit margins, the look you you a – at just color. me let give if little Integrated segment I Care So of

that enrollment the the up of gains expect rest fact ago, start, as about in are that year, what expectations it First, those seeing XQ you faster. it, the I it the early have is we Therefore, are minutes – so an if in think said are we is the few think we we a means and ramping expectations of for we the continue. we

I enrollment given the relatively remain of say quarters fact do again, early it rest the still is believe in that our for baked unchanged. the for curves at is year. us would So would moment, in of have the expectations I And in prudent year. say those are to will this terms I the assumptions in it

amount it easy step a how that we rest I So XQ one, think XQ relatively relative in has in to that And comments, If is translate the last margins? have significant for does – comp into year. Care one, about R&D it last Integrated XQ, Care is reason spend to year, Integrated up margins two the year, compared in margins did some XXXX. the of of

year. volume And the in of of some in is, elevated a QX respiratory also did second spike last we in have amount incentives, we have because did terms provider spend of

easy So we last comp relatively XQ look to margins compared the year’s at it’s year, this a XQ.

the And so the really of I through about about we as careful would how go year. think we that rest be

utilization. that’s Integrated about spending margins. by new – the is year what through the half all if Care And year, Integrated think you see as driven before, about enrollment that, for client Care in stronger it’s said talked a the remind typically second Having and should I ahead onboarding you that is we’ve expect for to seasonally margin how what I of ramps would

spend, costs quarters should marketing in engagement up of spend in margin therefore, and go it we the you first the course looking the having year, revenue beginning of at the year, the half higher as think as year, So through year. over the progression a the of ramps be in but the of the of

Makes sense. color. for Thanks the

you. Thank

Close Please comes Richard Our line ahead. question next now Richard, go from your open. of Canaccord. is

thanks question. the Great. for

about I – we wondering programs? talk the do On margins you there is how bit about how you And of digital. little programs revenue compared a in the was to if notable those a could think uplift those think only programs, based provider

Yes, I think, for the thanks Richard, question.

richer the reasons. the clinical think yes the savings. result, clients our it’s to with I drive the and increase the a is And greater consumers. the revenue can the clinically, drive two therefore for answer to engagement more we program for going that outcomes as One,

to is So translate the greater economics comes I want just all looking that at of we’re us. together pharmaceuticals. in that out companies not What unlike of market, to to some opportunity clear revenue the for be other

prescribe prescription if greater example, consumers of a driving itself. if the therefore outcomes the our taking prescribes we for greater the Rather, or savings actual our among So from pre-diabetes revenue not member. greater we’re program, our for one we’re from member medication physicians GLP-X or for in revenue the and engagement clinical and

And digital. margins of those offerings compared only to

we through talk are have. I as a across – I said different margins. the us I’ve to as the little would very we for go we disciplined the too before, think as We into pricing. conversations say, Richard, Listen, we it’s soon about – we sell the pricing and about market

even the up into can As have from over way you gross margins past held and tell our the year XQ.

gross manage, the hold discipline we our can You in we margins. are see that demonstrating the we way

would launch, we as I talk as we to little a definitely early for will relevant. meaningfully and as about sell we it’s market So gross margins provide us updates say, in

I our last is last health we term think best year middle the or behind of sort longer mental the confidence in and provider-based care point year. launched proof margins of

there, any We example. degradation haven’t seen for

care. rollout we the continued provider-based of margins So drive be to to additional we’ll with that strong continue able along believe

much. very Okay. Thank you

you. Thank

Sandler. is from from Our Please next go your Piper Tassan now Jessica line question open. comes Jessica, ahead.

Hi. Thank good you guys for results. taking the congrats question the on and

I said of XXXX. think course you clarify, wanted quarter-over-quarter to margin throughout just consistent So the I Mala, improvement

retention markedly XXXX? retention so, in guys to that that the talk kind in relative improve mean levels? quarter you do business. second about And Thanks. was the you of we’re fourth margin the bit And improve they the that hoping marketing half fourth of rates those just Did to I does and So little a to not might quarter? BetterHelp expecting large pullback if then what ramp see did

Yes.

levels retention stable. seeing are we So

the to that efficiently I about we overall that acquisitions. would word dynamics would pricing mind terms deploy towards of business, effectively So Jess, app seeing is to and operating are for whether if say, capital say, the metrics the I our member and the is stable, comes think you in BetterHelp be essentially allowing more us it

churn stable. fact that member is The

So that that suggest terms prior from in seeing of nothing dynamics of are there the is quarters. business departure notable the a we would

very sequentially, BetterHelp is in see every through our we we for to clear, go quarter. the remarks as as prepared expect be do to margins Just what we the improving year through said we year go

the that before, that we are that ad talked would the developed first seeing as pricing say the clearly been of reason And year we have us. trends back last in year. in half last confidence have is, of behind in since stable more I quarter the issues about We’ve

making so also a – there’s choice And we are so that.

choice in We growth a of balancing revenue year making this with terms profitability. are also

operate have, to market. the frankly what the And And BetterHelp we to we we business levers that are a the have we the $X in the channel at do in seeing over in with on in few scale last than pull is ability revenue year. billion more response diversity

seeing the we includes, is did and be in that we through our dynamics to deploy quarter-by-quarter, very way, we improvement we our the say remarks our A&M, margins expect of in see dollars to So what the dollars the deploy are deploy A&M, the what market. And in clear, our year. the we we do by how

at ad expect and your the in expensive would we last reflecting more part of year. question, to answer of the see Which, to quarter lower that the fourth a time market advertising spend so –

relative – more year, the fourth seasonality said we spend. think the year was So to quarter typical we last as I last

Thank you.

Thank you.

question next from RBC Markets. comes of Sean Our Capital Dodge

open. now is go ahead. line Please Your

on just QX you staying marketing Yes, Maybe said a bit thanks. little BetterHelp, more you planned. spent on than

at As in we revenue? time some the think see the spend you begin some and Typically, the the again, the than cost are some year. are BetterHelp gravitating begin grew some [indiscernible] options just in over there? already And of there the teams quarter, see lower factors like sequentially, users we for remainder guess, is monthly some capture seasonal faster about there growth if of BetterHelp And there there you to revenue. around extra of you the when to you when pull the QX? from then I I starting of how between kind this curious, play or to kind long spending benefits lead did look of was more through at

with ad XX respect is question XX it’s to your of relative revenue, lag days the sorry, BetterHelp part spend days. first in Yes, the between and to to,

of of that the And see so QX. end tail of benefit we the did some in

you the half take Do true. to question? So that’s that second certainly of want

XQ the are you XQ. of other pull that the year about you essentially is ramping typically things expected is recall, because in for ad the pricing therefore distracted seeing expensive. gave are margin the more dynamic that on spending perspective significantly ad also be point in we the essentially because to And ad our for we time a guidance, is way result lowest less to when you we spend. marketing. that. saw if of by is our in So efficient typically a the back BetterHelp and had said of from – spend XQ We we seasonally have talked we us Consumers quite we spend What are also

seeing up the to on until we through members through So you the consumers, ad the quarter. what right coming as is are spend the including quarter, essentially have the platform end ramped of quarter,

the as and I through ago will think minutes the revenue so year, the the from of is that go which we continue QX why if capture made comment few And you a about them, rest and that et our gives confidence as through performed have has we us quarter about incremental revenue point that above XQ go the the we expectations exit for acquisitions QX, cetera. that had member the in

great. that’s you. Thank Okay.

Thank you.

Our of next question comes America. Allen from Bank Lutz of

Your line ahead. now is go Please open.

one more taking the sort the has that Does or the for inflation. BetterHelp. broadly, Jason, remain the I on for Thanks of the over questions. acquisition just There cuts guess so, consumer for been job costs year has past a I unchanged And board. rest the been then one assume Mala through the guess lot for of guidance year? around

because months that it. grow to over are Thanks. any today been ago, has changes anything the able curious with changed nicely I’m consumer time versus six curious, you’ve ago, seeing months Just just through you period? if three

Allen. thanks Yes, We’ll in take order. it

deterioration spend, we we low full have range growth modest you we you the talked year, the that it’s end see assumes the to we for that we are some reason for range at the growth the about, for And In see ad have improvement assuming at have we some have. that That’s take want terms – for of yields. revenue essentially in part? what mid-teens, as to low the given the end Jason, do second will we high in will yields.

Yes.

forces significant about haven’t I respect down in are We seen the maybe a previously the We’ve that consumer think with consumer. fact talked to competing there change behavior.

one expense. the can consumer $XXX is hand, pinched a cuts then or monthly to job subscription if roughly feeling On certainly a be due significant inflation the

healthcare is kinds has paid other healthcare reasons consumer XX% of the the all the need expensive of by alternative. in market. the those in mental been On situations increase therapy mental mental BetterHelp and for pocket of hand, a out for less kinds and cases health of many Historically,

actually And $XXX is makes month out for a so of pocket therapy significantly fact more that paying traditional expensive attractive. that BetterHelp at than the offering less

essentially the haven’t we I So those as result, neutral. in as are And think change significant behavior. netting seen out a consumer

very Got much. Thank it. you

you. Thank

Please ahead. Charles, Our now from open. next Cowen. line your Rhyee Charles go is question from comes TD

what for way you Hi, of can this PMPM based is And us care On a Lucas any enrollment the product? PrimaryXXX to also can contribution us give on care the chronic increase give be provider you currently? then think Thanks. would sense program, your versus about Charles.

Yes. Understood.

with in based increases for pre-diabetes. at PMPMs significant We’re to the not management respect care provider looking and weight program

testing in and in across results we’re able ultimately entire the And more the clinical to engagement we’ll be drives our certainly suite We’re so, better very share that. that. consumer. for better market that the cardiometabolic value for increased and strongly that buyer early outcomes But feel and we the of improvement

the the was what Sorry, question? part of second

about Just that expected on how it to and quarter. you is PrimaryXXX today tripling go, last contribution talked

want that? get kind update of an Just on to

Yes.

PrimaryXXX. making very We’re progress we’re with with pleased the

great those In at that’s with demonstration their in open market who clients. the products the outperforming seeing the a clients great of PrimaryXXX enrollment periods. have a we’re our of partnership fact, our And sign core and

We’re to a also year PXXX. pleased also relative revenue small from see this And we increase but the in it’s what step Obviously, we’re to XXXX. saw meaningful it’s a off base, of PXXX from that of XX% as seen who a visits from see are years. members well continue as the we haven’t about the from satisfaction great in seeing two consumers members past to up provider

that our we feel beyond, XXXX contribution. out and more good meaningful be And to and more a the look again, very of we So to about revenue. into expect continue as we part

time, Due we’ll you. today. to for further Thank questions no take

today’s So Thank you for call. all that conference concludes joining.

lines. may You now disconnect your