Teladoc Health (TDOC) 30 Oct 242024 Q3 Earnings call transcript

Hello, and welcome to the Teladoc Health Third Quarter 2024 Call. My name is Alex, and I will be coordinating the call today. [Operator Instructions] I'll now hand over to your host, Michael Minchak, Head of Investor Relations. Please go ahead.

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

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

refer call which the available turn are on For Chuck. on our would cautionary all of like with to please our to additional press information, filings statement our to SEC release and the our over now website. I

strengths as BetterHelp in first talented results position, would We're commentary. Mala including delivering the I Integrated more many quarter a EBITDA on Thanks, prior above and additional adjusted to potential. pleased full build will wrapped assets Mala, as my up thoughts our quarter, well and moment. upon, employees. on revenue scale, in detail to I company's good the Care some believe Mike, see with CEO. I as market and And the our to with provide our afternoon, guidance including business having in turning results share before line everyone. like revenue for membership

changes, thank forward. want they're our to making are to employees business the customers a their lot of to We for and serving move and how leaning dedication I in our

second see strengthen As position success. the I We've in The structure, rationalizing opportunities improving market we importance company needs. call, can addressing urgency, made our customers' execution. earlier have experienced quarter to for operational making the been impact also which the have ways the to performance progress including leadership underscore the I been and also this and with to business, priorities year, mentioned challenges streamlining manage long-term how pursue product a on business of the to our this regard. Changes lingering serve innovation in sharper and new accelerate focus, in

separately the for condition impact and our to as single that We we in our essential U.S. positive these refined from services, foundation dynamics ecosystem, at them proposition to a but and of and further seeing an and that care continued enhance we areas it's look under U.S. leadership managed areas U.S. our our to work directly and example, unlocking their value structure. We've prospective chronic more Integrated aligned previously management pressures business closely ability And visit value together needs. growth For includes of points customers. the medical and health broader including strategies us, more high from care. Through virtual and see leadership delivery ahead deliverables. position also capabilities, impacting current expecting shared deepening and investments There's we're broadened brought our generating turn, Care, combine These markets we and future. a cost effectiveness, This we're market, evolving in already greater clear efficiency are from other the see creating virtual impacts support serving. In potential. services. as I'm value of the confident the we're important we're these and actions trends also terms our in within evaluating stronger in our are the the touch clinical they're

direction core As a such, priority this in be terms will we're of investments and strategic making.

Integrated is International had in customers. to positioned services well and through momentum Canada. Our continues several Care important geographic added to in market penetration existing wins including gain expansion and markets, business We've strong and some

priority business. BetterHelp the an Promoter of challenges unmet become X need with people support greater by its Score to direct-to-consumer over to a BetterHelp, has Net addressing value therapy in growth further remain, profitability, per including over growth our serves and business year kind periods. agenda. initiatives largest line XX. consumer from our as With it prior current as business effectively and invest core Integrated and the With by our focus compared aimed revenues to We million International expect said, top to virtual Care balancing on when with evaluating running a respect well generating is at that of declining

track, stabilizing and progress Solid in coverage initiative with progress more internationally. select Capability towards provide with consumers access to a on exploratory will that ability begun made is an have being comment benefits. other is Mala to partners. in health moment. BetterHelp plans the growing and are the U.S. and their on milestones potential results also discussions on making

taken the focus me we're let second themes is approach forward. to this some highlight in improving business going with drive results. In quarter the on call, remains As being closing, around rallying a key and measured initiative, direct-to-consumer the mentioned primary I

it's the solutions that turn, in essential first is and of their objectives. to needs in customer complex customers our able consistently The We deliver understand be markets, demonstrate operate support value and centricity. unique evolving and to and

to drive scale intend more our greater a leverage and differentiation experience we providers. technology to deliver and Second, members further to and for integrated

with focus will objectives. realization technology spend our against overall and priorities business balance investments We key benefit

in our market. excellence clinical differentiate in core pillar Third, continue how solutions to the will and do we we a be what

has to product road that our X will bias serving on established in a a map We customers value. embracing on that track company we shareholder how customers inform and generate and and high-performance patients. And services our strong our of and action deliver record a long-term build all a and pursuit as and enable innovation, the driving further fourth, for culture, we results to we're already collaboration

are priorities in going of actions through and will support a already a We culture taking industry, lot as our and as outlined of an role changes future. We're areas earlier. in a these the I and critical company play shaping

move focused I'm progress gratified on Mala. that, we're ability quarter. making and with nd the strengthen out growth remain close we the also our investments unlock for future to with year by and overall potential. results making turn position it XXXX, over As to into and while financial performance our we'll I'll our the to

Chuck, good and Thank afternoon, you, everyone.

revenue million quarter X% year-over-year. consolidated of Third decreased $XXX

quarter of quarter XXXX. net share stock-based $X.XX pretax. intangibles of net EBITDA share in was to the Net of third $X.XX loss was third quarter million, per Third down loss amortization included the of adjusted acquired loss share share per a compensation year-over-year XX%. Consolidated $X.XX in third of the and in expense share quarter $X.XX per pretax $XX.X a per X% represented per margin and compared of

costs charge or Additionally, we termination as lease a $X.X opportunities. continue severance costs as to expense act efficiency per $X.XX well related quarter, to during we the recorded as million upon pretax share also

quarter on year-over-year a free over up in approximately on basis. million, the equivalents $X.X cash XX% cash sheet. cash was flow quarter with ended the Third We $XX balance billion and

our end segment Turning above of segment period year Care $XXX the over top was to increased our X.X% Integrated million results. guidance and revenue of prior the range.

large During the from resolution benefited prior XXX which revenue with points roughly growth. quarter, a a of billing we basis client, adjustment the to added period

Our Care million ended and at business $X.XX and enrollment quarter clients. members up Integrated volume. increased by as total X% quarter above end revenue segment slightly existing by up high of membership guidance X% both Care drove driven saw the visit additional program X.X enrollment million, range, was by in XX.X of Virtual visit from approximately and Care the end new with strong growth increasing year-over-year year-over-year sequentially. Chronic approximately sequentially, our U.S. membership million members

show momentum the Care teens continued with Integrated growth International revenue to a on operations basis. Our high constant currency strong in

success deliver quarter. member we $X.XX Integrated in and that U.S. are of down winning BXB third large verticals moving will per adjacent continued by opportunities revenue sequentially Care flat growth. Average into year's We was for believe new prior seeing $X.XX clients the versus

revenue this volume discussed, into and previously new per members cross-sell less our have driven those contribute expand as initially, opportunities we of member our land and onboarding medical visit products is see to we largely typically result over additional a although generate time. average amount sizable additional dynamic general product. These members As strategy to through customers mix in of a our

Adjusted XXXX. We of above as range as X% XX of basis margins to revenue previously basis XXXX. represented discussed some was EBITDA points was of adjustment adjusted saw the EBITDA Care XX%, over quarter Integrated quarter XX.X% benefit $XX from to quarter XX.X% margin the increase over favorability from adjusted timing. our an well approximately points of the OpEx third third million, growth well of guidance of and Third EBITDA XXX

to Turning the BetterHelp segment.

we of year. previously was $XXX revenue XX% million, quarter with prior the communicated. consistent Third had And baseline down the versus

and some approximately revenue users base stable, X% second and third users in the inefficient made refrain average member Average a XX% variability have quarter as paying in result the gross across again the from X% overall we at declined quarter the has paying deliberate there the was platform been down elevated versus were users year. versus channels, The by relatively prior to While in levels. Revenue added acquisition decision of to our decline cost third sequentially remained pursuing albeit growth. fewer quarter. customer declined a

per to over member user, stability with the positive momentum stable in and paying user of count have retention course fairly in XXXX. We early quarter. the some third the all Importantly, revenue started average rates slightly of been see signs churn

million coupled prior in million of a the count modestly down XXXX. end which the user basis EBITDA year the spend, at monthly and driving month June. BetterHelp versus in the the points user year the in $XX.X second from this of particular of above ad EBITDA and X.X% at adjusted stability end of $XX.X the quarter. Factors the additional includes million in at third in quarter, drive XXX quarter, decline As was decreased monthly that margin X.X% from the the of helped prior was the some with second Adjusted was account. markets $XX the September quarter down impact the return, lower favorable in approximately international the revenue of in

Now let to me turn guidance.

expect fourth the revenue be we quarter, For Integrated X.X%. flat to to up segment Care

EBITDA margin, the in make margin and fourth in had XX.XX% as Chuck XX.XX%. XQ adjusted quarter the We our well plan to reflects margin quarter between lower discussed as priorities earlier. to strong we incremental expect The third sequential investments advance

roughly XXX adjusted EBITDA point quarter. a drive these to expect basis headwind We the fourth incremental investments margin in to

date line in guidance and Based course in margin in fourth expected the revenue initial of year full to to midpoint which XX.X%, has the Care implies fourth to February. At outlook, adjusted of with Our XX.X% mid-single-digit be over this range on provided quarter approximately year performance remained midpoint XXXX. EBITDA to the XXXX with in Integrated would the and range, midpoint EBITDA growth the the be now dollars of unchanged in range, quarter is full versus the XXXX. of guidance up adjusted XX% our low

Care XX.X in year above expect guidance, XX.X with members. our raising guidance at now we U.S. In range coming million million the and Integrated to quarter end addition, are to third member

BetterHelp. For

the by encouraged the adjusted a full not the from second in segment points. standpoint, based set we or are fourth Therefore, for third quarter, X level are help we modeling year. EBITDA the following reinstating mentioned improved the factors revenue quarter, quarter we stability seen or the to in offer formal While on guidance

uncertainty, we stage. First, had the led this some this to has has although a significant election approach November, impact season at not as

additional However, area of an the holiday season uncertainty. does present

decline digits. had as acquisition the anticipate would down second Second, year-over-year second half the discussed low we in quarter current seen with customer costs a in third, the on We to the revenue call, have double expect at levels, fourth be remain we sequential the quarter we step-up quarter. And be quarter. in adjusted quarter generally margin sizable the EBITDA third while dollars and consistent third fourth the versus historically to

therefore, per the consolidated year, lead ad fourth share fourth We also net year formal or on step-up spend XXXX, revenue, the expect to fourth not have less adjusted business sequential BetterHelp. EBITDA. Based the quarter XXXX. will a we EBITDA, for loss in segment, while adjusted not And we international we or guidance flow in for incrementally the our this in much decision guidance back our offering from across the are would spend to smaller ad already reinstate U.S. decline free are, on for therefore, BetterHelp in far be full significant quarter quarter third been thus to investing cutting cash which

the ahead, to look the are we the some provide XXXX you we wanted trends that in As are outlook. business. color we seeing shaping on

First, selling and quarter, within the U.S. season our pipeline. the aggressively continue work we in Integrated to extends segment, the the fourth Care through

prior more developments. contribution existing to slightly than point Our prior from and with we retention rate and lower visit this XX%, volumes. but years. That due which remains versus will respect new plans broadly, to including tracking customers are membership market to in and backdrop health believe said, challenging it's increases a above we year, lead reflects various believe down Bookings the in

to revenue results we growth past segment growth, over Our next has year. years, International overall Integrated Care and predictable steady and strong outpacing the continue expect few business delivered

could That we fourth is Taken consistent the revenue together, growth year are the these full with growth. XXXX. XXXX of projecting quarter factors in of lead approximately range to

Turning margins. to

guidance margin strong XXXX Our expansion. implies

objectives We repositioning productivity have expect that aimed value year. We effectively adapt laid as initiatives Actions will important the enhance pricing as the core realized view products an as more for out for progress initiatives we business against and priorities position accrue require Virtual evolving our year benefits Chuck out support savings company with are we to and had to in aligned capabilities. These we investments and we we to incremental as the build client from execute XXXX and market making continue next taking long-term earlier. success business. benefits demand and against Care ongoing being to will our various help dynamics are strengthening at the and proposition strategic company cost

We sustainable, position expect into unlock deliver growth these the company and the to performance. opportunities future investments to improved ultimately

level levels. managing performance committed the appropriate Importantly, in endeavor maintain with XXXX we to business generally remain line adjusted and margins to XXXX, of EBITDA an to in

Next, acceptance, BetterHelp existing paying our business in in we due in comps acquisition continues to higher revenue XXXX elevated progress the we current faced in XXXX, of decline steady course to basis further levels. Traction to and our from various insurance fiscal a helping the enhancements quarter-over-quarter costs. We expect and leading year-over-year with to XXXX headwinds greater the initiatives, international ameliorate stability transition. business tough expansion incrementally, which contribute including in to in of be in on should resulting the remain product as from year. customer a existing and over business users course over

and won't focus managing in Our top line efficient base and going an prudently will user be stability ensure margin we forward. pursue the to on growth bottom our

allocation. Finally, wrap I thoughts on some to with capital quick up wanted

hand cash degree have that maturity. balance at to in high billion the We we convertible due of the bond a over and retiring on currently equivalents quarter. With $X.X on flexibility coming June cash the anticipate respect of end with in as sheet with third XXXX, of cash financial the

XXXX We believe strong I our business investments us flow back including to our and are targeted differentiate still that, position, the call provides position. to beyond, formulating in future. With optionality We Chuck. generation turn and will cash our strengthen and cash with outlook the position for

Mala. Thanks,

flow key Looking generation ahead, urgency opportunities we a and growth, and the priorities of long-term sheet position we drive success. Revenue advance of all strategy. company to profitability, strong will aspects make our moves move and evaluate higher balance performance continue cash to for with levels business our to maintaining are on as

up details Operator? progress to that, business months. With sharing on for open We we it the and in will our committed questions. shareholder forward I are success, creation. look ongoing value to further coming

of Barclays. today Instructions] first for comes [Operator from Stephanie question Davis Our

payer have is we how out? long contracting BetterHelp with transition, in that these hoping on dig take? And it clients of had have Integrated fee-for-service transition? back-end that early does planning a any Care, bit you payer was more transition little in you conversations how I relationships about lot just the will could the How do think a payer you're you given

for the Thanks question. Yes.

business want all, us importance think, a of I model. to consumer-oriented it first underscore on focus as just of our I the maintaining

the are have we stabilize very making focused on and profitability U.S. the business we business, think line and sure forth. of the the I managing top so

that consumers to to the that, progressing. that's for an make want underscored sure as just Many their I to initiative create coverage, needed internal With a respect to is target. benefit of the So are ability priority. that access are on capabilities

we We as as through are, have discussions as And partners to I quarter, last mentioned some health progress in to plans well as started already well doing advance with there. both internally that other that. select as the partnerships

measured we're being and we So initiative going a as very investments out again, that take that with to make yes, that's But and that along. that. methodical on that roll sure approach make progressing we're

Understood X that. just they're to lot you pushing We and ask disrupt on heard I came from and share guys in We've back a I to looking to because market have the saying doing lot clients on a you a Conference. virtual Integrated quick the Care. a And care. are Health follow-up, gain what but about players lives PMPM, see of continue

So I'd that. on love just what seeing kind you're and of navigating ground you're how the hear to

to X widely many And touch a adopted I look if virtual Well, at through others, I you companies has whether like it's just been brick-and-mortar. now. and would on. One, those think things few ours business services, people look, the have through whether access how

pretty So widely it's available.

deliver and that be think to terms membership that's grow. to is a with the to do at of in certain why And recognized important, and the And in right meeting frame, time of ability people requirements. within think our continue market. I one you the such that operate providers that's match. difficult see I though, that's to to that and we able match the things scale that's deploy

competitive it's that but we believe our space, value a understand that still remain proposition strong there. we So

fact we quarter I doing growth. the also that is was this this where members are would another add, are of we quarter Stephanie, at that membership the rate adding strong

have we and the to get land-and-expand these over sequentially. We is X.X added our lives ground time. members million fuel $X.X lives allows additional for products cross-sell fertile on That essentially essentially, million and it us strategy, which platform, and year-over-year our

question of Gill Lisa JPMorgan. next Our comes from

the really on just selling up XXXX some to that follow I the made of you on season. want comments

I couple the So to below quarter, similar as guidance. a expected think the would into 'XX, made be comments be XXXX growth you fourth think about revenue visibility X.X%, you is that Mala to flat today going you and which which have to your of total

So curious XX%, you've few historically. seen I'm One, but that's just retention things. a talked still what lower on you than about above

a to else being bit that So we expand about that on And your something opportunity? growth do then you lower. season? And selling you've XXXX around should and selling about Chronic losing expectation are there business where Is secondly, based that for little the what talked bookings is to? season? thus how membership Care? also about XXXX land seen when you then lastly, we Or about think thinking I specific think What's the far be

Yes. make have Well, jump I'll some comments in. and then Mala

of term most at the with in opportunities the levels have think, line out to year say all, in of strong. I that And know I can pretty channels I active in, settle out there first evaluating prior would playing in terms booking. Where say, the and the in of things a several that, think, we XXXX. point headwind expect going and speaking, very into that plan very is this I certainly would are the are tightening that as are their but that strategies will generally team continue space. through adjust the there, significant And have the belt seeing, close navigating to I as well, adept you health most we're changing in as would companies would some I to health there. is plans are pressure near the on say, market,

near rising but the ours, headwinds businesses medical pressures like that in other term costs, here. are also trends some terms there of might tailwinds the means sort in think of that be I for

I think where we're that's it. really mostly So seeing

would make the bookings I terms CCM pipeline most of our, least of at comment our other majority in of The are in and space. the

So I that comment well. as think with that Mala? carries over

Chronic sort of add our time a a clients. We what from Lisa, of selling say, all, continue would work are a you Integrated still Chuck. up what growth more bookings. trends mentioned of conversations the on little midst thus with the to set how a least that And just X% Care. I next preliminarily you Thanks, all is for are, I dynamics is, season, first preponderance of would Yes. revenue of of and to chop heavy It have for we at far? X.X% Care our other say perspective, overall our the does view in to I that so the and are would give part us to the seeing we in have year, we things. productive is the we couple wanted certainly

at levers. Those making, surgically, point we of every where Chuck are visit year. we thing extent visit we are for about revenue inclusive certainly I volume. pricing those about every Chuck's all, have bookings would we when is last is are seeing And So with you our Care. And with leadership grow certainly, we really Certainly, And think just we looking under matter. we say to growing the all use levers that it investments the the the value next enrollment, I'd revenue to is of increasing that greater levers we, driving are this think does revenue. those include more remind and when on and around growth leaning all And the trends other would made it of important. that are is Chronic includes the interaction seeing, certainly

of Our Sandler. Tassan Jessica from comes next Piper question

the aggressively and hoping coverage Do have landscape engage payers health generate then as want rates? I'm call payers just Teladoc developing? to fee-for-service intent for is just some just SG&A Advantage. And burden the a you'd BetterHelp. competitive nuances partner? on to Are network you just utilization you they to imagine around as for arrangement, I X in and spend because broad commercial out they needs behavioral question. to Thank extent Are that And the curious payer-sponsored about possible? would maybe Teladoc How fee-for-service was I virtual rates. understand between a negotiating Medicare to any

So you this should payer you as to migrate pay on all burden just how a model? the SG&A we about think

Yes. And again, strengths consumer-driven earlier is underscore their the I I'll where It's a are. a point has of BetterHelp to at going consumer. a made It's great business business the model. be It's where predominance there. been created

going focus engage is BetterHelp the is to trying that consumers most we those to wanting So be are of main how benefit explore here. What and access do do effectively we're to that. that with coverage, to do want

of angle identify how a So bit out. That's we're why can it it's those in where areas do a we're being of that we rolling so terms little challenge. very on can methodical we the different that.

capabilities in definitely bear. smart need the are And think, right bring a a in approaching that's develop way pretty to we it, we're there why internally other do capabilities methodical to I capabilities the work that. to way to the experience and with Now others that needed are to make

are So we are we -- the for primarily going I model but to direct-to-consumer about be it. a being think foreseeable future. methodical again, are And that we

just that now. certainly that The I what back-end the has methodically. Chuck approaching are the for capabilities are we would investments this, remarks referenced And and making is add, we in his Jessica, prepared way

making are payers. do we the with certainly we market, over the to methodically conversations having in progress that time. Seeing that going are We are

think We marketing about on for investments capabilities, are last and consumers relationships absolutely choice approach in, to our we the are and is way this, of This we take SG&A get point aside essentially consumers you to advantage for the I'll this advertising offer right? already BetterHelp more we BXB actually spending side. And the we about product. when leveraging us make another is, way the from think them the that have is platform a because to bring for spend in

to have it way. spend way leverage we us different as of So across marketing think for using it consumers the a a

Our next from question Cherny of Leerink comes Michael Partners.

about Chuck, Mala, in some stick just business I'll the one making growth. for with terms investments these you're talked repositioning here. of you of

are business trying leading to 'XX, As you but -- that period during think the you going about guidance to if or not the approach not. think how as of discussion, we are reinvesting, investments success where get want or the lack to about towards measurement into these investments signposts a see I'm the you're thereof to philosophical the making returns the you your and this long-term reposition judge are

Yes. Great question.

So capital to both the benefits And and timing allocation term. sure level leadership through second, with over think investments both we the against time. it the balancing X amount returns, long the every and near really we look year, exercise overall and expect and it at see investments our we as of the of the a right? will When extensive team a strategic detailed priorities, that to about making fairly does go things. One, aligns

sort process in his through the Chuck what priorities would about translate We we both and the going we talked remarks. Ultimately, are it are near And of metrics Mike, importantly, and planning operating the I it term longer at financial the look vis-a-vis speak going that term. looking of is that as both to say, into through prepared at will exercise CCM of will metrics, get So as recruitable and help we revenue translate conversion right? enrollment right? example. which that, with as do our conversion, this over how contract an gains these growth how how a in additional have do and improve also, We into clients, further base of time. greater engage broad from But us we feather investments does help

So are going planning that that's we the through. exercise

going us confidence that that usual a both all the of that, much we importantly, set But is what is metrics operating in financial this It the are is but more in I would yet. expect gives midst done outcomes. aren't will result the -- process in financial, planning to We that that what of of. is

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

there So over it with did on the more seasonal share any mostly we June. I to trend at user think user now know from that higher you there's some count, that helping metric drive in BetterHelp, can stable? count of see quarter? Was Or remain dynamics gives said Is stabilizing mentioned reversal And improvement with or Mala, I confidence was where in signs what adds? could show line some you the you on year-end, seeing of September any retention new color you else was you churn? continue kind that that anything see at then but

Yes. into of bit a double-click just Sean, little a that.

international are, we So making priority have of spoken we as a perspective. certainly one, from BetterHelp

is at getting a ad That driver quarter versus of spend the new vis-a-vis platform, September of additions the end driver user to talked internationally. stabilizing user June. We incremental the the is in in count have certainly about which us

operating churn, are We cetera, XXXX. it also retention, through metrics, the largely stable seeing gone remaining as et have be we whether

is investments it the growth user So the we really being adds helped is that that are new by making.

I just seen a because Now higher do QX in that have you seasonally all perspective quarter is we the where fourth just and X also seasonal spend thing typically would ad quarter. ad is remind from certainly spend the one modulate we our judiciously

we from the fourth do do back we as quarters as to our the in relatively will ad prior perspective. What we is say done this sorry, on ad ad our fourth in in deal spend prior remarks year have will we relative in we that disciplined the prepared not I pull third said quarter, that quarter we stay That been quarter, when QX elevated, with just because impact levels will in spend as certainly impact we quarters an sharply pattern versus So stable through we a but years. have gone count. on pull have year as the spend have next of back go year. through in typical at stabilization year is are assumption as as pricing at they And always, the on as that member spend stay the we again, see XQ, has next year, levels, we, see even some roll very year. through elevated at that as we we will go assuming we into also, we it next see an

of Sarah from comes question Cantor next Our James Fitzgerald.

the about of as you from I hoping pieces off with us the moving XQ. jumping point was few that help think could we a

spoke you we that with that So is an jumping in to how getting the is orders then out margins flat could election off of investment strategy of And election the guide on what point? just much a how all you ad of from year? to, us and spend benefit moving your clean maybe continue are quarter, pieces the spend in mix are pricing these help would forward? Should an about magnitude 'XX? something of basis a of influential shift XXX think And going what of points

details to happy Integrated this you we're -- that for are when come margins both how revenue I'm EBITDA would I full now. say have I in you guidance about next will to certainly look, for enough post some have XXXX we certainly that Care. And code with BetterHelp adjusted more leave year all ZIP year and as growth given we February. the think roll going I Sarah, through questions say we provide we will next expect of detailed it business answer a call. out for color for for given those we we to and would year at

can team, audio. [Technical Difficulty] hear Hi, receiving us? not speaker speaker you we're Hi, team, any

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Securities. of from Our for Truist comes next Jailendra Singh today question

in want I comment Or out up slightly you're calling And in, up cause offset trending you headwinds, trends close like visit favorable growth? to acceleration which down flat as in Integrated at comments season back volumes, you're you mix the of any year-over-year assumption pricing and point? like would for terms XXXX year? of product segment. seeing go the Does growth any to selling result those we comment, flat to there are some in related to that as about for built membership assume this that from is to but end to growth

Jailendra, all, first you Yes. hear of us? can

Yes. Yes, we can.

Okay. Great.

X-part So answer.

as on our are seeing, decline we in basis. is remarks, First in absolute a year-over-year a prepared said bookings we

at the As season this same the we selling to point stand point relative in last at -- about year.

pipeline Care all in still year, is aggressively that there much therefore, through convert in might an where time we pipeline and that growth are revenue are bookings. the all early left it least we intent important be bookings next thought for as our at as to to to Integrated year. show flavor of are our pursue and coming with to how We in continuing the said, Now you our the up some give would obviously also opportunities

been The in question second challenges It the true next that is visits. growth. flat we factored range absolutely right are membership are X.X% into And having, revenue your that of that now they've terms would the Care thing seeing and I in has visit to that both robust bookings in certainly in we Integrated say is we membership around the year. that factored increase for has up with are we seeing are seeing, been as

expect this we a Just visit visit to Care certainly -- revenue the fueled in you look I point and at we've has that, a -- integrated the as perspective next in. third put year, up well on solidly -- revenue, side, of by factored volume that's that as that the if gains the on membership year, from been had. would Integrated care final been And revenue on quarter certainly both to perspective a continue

next Richard from Close comes Canaccord. question of Our

Chuck, demand. with can there front called a new specific And also retention more Mala product evolving that out called Is out? sign or guess, to the the products about you anything on you to talk market you that improving business. I do need the improve bit little clients

specific Just there. curious, anything

Yes.

we is is, business I today. of what management and as remarks improving and of generating things speaking of that sure want in-house some about appropriate to that a make as One of we what today. And out. these well prepared my I lot we is we're point things are performance think would alluded there's of have out I to have investments few we've sold performance the these a in

we're visits and enrolling and activating So that activating chronic members. making sure that for are example, retaining management condition have, we broad appropriately the with we reach

doing performance our to even believe drive lot job. a and for and of do to to consistent going to on good that. right out There's we're performance recruitable ability now be of lot a us a I activate the things are strategies better improving we're do So we actually more that working there going forward, though even

the little product information a in to with there. I that, along activate client more are an certain enhancements together. the of strategies. of of are as some place value. There the more enabling I more up comments we're that that XXXX So of that. that of impactful I care depending It's visits put normal able we we also system, for to everyone focus, far more objectives visits coupled access of strategies again, time, be, terms That's already capabilities some journey, we well bit and we'll progress to to the around comment but sort their over think of they consistent how of features health the how with, in around and point I That at and and that's to adoption visits should as that. that plans and would area terms on not to they virtual to integrated more visits trying have we are over be do the make us that which part how of will creates say, in And back would in delivery I we allow in longer think against will broad product a is for see good start impactful the to work support. made more and valuable, I what time, do the activate system that think say those fashion earlier a building delivery make making line benefit are going get those be when that patient to make

the we've to even including there's close that bookings and think make not stopping XXXX things there, shared certainly and we're around we So as XXXX. many we're out things the on information retention, working with on, to I year, that we're sure focused certainly impact

question comes from Glen Jefferies. Santangelo next Our of

believe Chuck, guess sounds investments about is I season, maybe bit you're a when I little it mean Bookings the you just you've different. you kind are a doing this and is think And wonder clear you guess, of making on and positioning selling laid maybe to some some meaningfully will maybe elaborate a that sounds like to call, a Board lower, the out those bit retention mean, predecessor? Because now assets we broad-based meaningfully and what little understand and talk follow-up. trying little different investments the is as pretty have bit I of an operations. you're just some maybe of and it's I the right almost I'm and you lower. to like been just management these 'XX it your clearly issue but months. really not more senior board transition of me, strategy, can X It's what's year. I sort operational fix on some than for themes,

elaboration of would of be sort clarity any So helpful.

Yes. I'll give some examples. you

which first think performance. and you were what in impact timing the where the observations retention. innovation And area in of had we impacting earlier One I year, we on is were our happened an I coming know beyond had an

around give of the the But requirements, in at development, terms example. delivery When responsibilities solution and before. tangible I'll discussed been look you a you managing market that's So day-to-day product of click multiples And those you that, that separate were areas against X we parts pieces what had for of performance leaders. accountability down are when and delivering below all delivered. in of that

singular that result brought millions of structure. moves that a quarter. savings of come now under and and up generate our able have of We in We've our seen annual this sped effectiveness, results been a those you've to dollars through as

doing number are there regard. tangible that we of that are in So a things

of exist will talking to already but and they I've capabilities of enable don't business the today us we've company exist, take at they Some advantage about the sold. the that that didn't been

as effectiveness already for some a future. there's we that So better things think us I well results have position several in have done over of number that demonstrated last as months. the the our

Our next Cohen. question comes TD from of Charles Rhyee

utilization of to you're what terms about in sort of Integrated ask Care wanted seeing within the segment. I

look would is And that same-store on value-based that you looks you a members board? related the if and the the where driving what numbers trending? And like of for like coming up here you've platform how on progress arrangements, maybe can new I there. you total utilization simple maybe members to the of the math, maybe did the lot how over about think how a the basis sort is that that's more that year-over-year. Maybe have and penetration, just for down that of is extent in maybe clients been is to that it that is I in elaborate have percent guess, year past a just is a of much case, show if kind sort as of of talked then

Yes. sort it a couple address Charles, of pieces. different in of I'll

I fact the seeing take fully across engagement importantly, for and the member and all, a the to that of on visits on importantly, of strong let's number and question sort certainly about base. health a things, volume of revenue unfurl utilization business utilization, robust talk in your we visit utilization results right? First, the that And on the done are both is terms going of said strength certainly, done the are first talk seeing they a number visit say am we back in to PrimaryXXX. metric of seeing growth visit volumes when at revenue to little equally strong such are the what few So about over that you in accrues is, will accretive you as time have I visit past the that that both and the important. the is seeing you growth. And several have are the are side, pace because growth. bit of quarters. Certainly, we What we new it what us of And certainly metrics the growth impact adding we would seeing and yourself, mental members volume

seeing growth. certainly are into volume visit growth, turning that is visit revenue we and broad-based stronger So

us to in invest will in, for improve we Jailendra's an continue that business member and something we certainly -- engagement, answer to continue is that have now. growth said that continued -- the broader forward we my as something And to population I in certainly looking expect to I that see that. seeing So how I'm to across question, as are

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

be amount be evolving spend that annual of Teladoc the ways for to to there's right that, on spending XXXX. If you've an here some on talk some larger It's of what as outlined look you're then take today, about up has percent redirected? to question. be follow to want and step going to some X you're be in and basis? And continue being into be can your making of next $XXX maybe some million going a we the a than Just Teladoc spent of over, I -- capital to is to at investments the on to year assume $XXX going Is let's Obviously, get of the deployment is Glen's sense that's majority for back XQ, X? of the to trying today capitalized and going say, that of you Chuck. software, is development tech I peers. evolve million, how which would -- much your about you, going or

view are money Yes. already on that Thanks enough space. Well, that we question. spending my is for the

do both. We future. important time, we our I what we're looking doing rationalizing making over and imperatives the we've objectives it's several this capabilities that that pretty we can bring and that is, to to last capacity can do, So sure so and call, months down going up what spend can instantiate overall to we have over the aggressively aligned are be to been portfolio, free that to

an So area I would that's been agree with continued you that, focus. that's

in good the years Now spend. has that that I will made couple the last of progress managing company over say

would been efficiencies that's we in, company solid that's future? that's total create a mode deliver so we that. that's come performance T&D capacity the down. see for investments really And I both, with the and financial would you the think that us continue do that how is the do for do. can operating able we've we're make And which down. to mindset and And expect has create I to The come what

Our Anderson comes of from Elizabeth Evercore next ISI. question

more I Patel and maybe step technical the big something just you a XXX that Elizabeth Integrated we guys Anderson. then this of question. bit It out normalized as for G&A of saw around quarter. little investment of a Or portion baseline Sameer bit like is is view that point little pretty a This make Should to add from call there in basis the in looks more a on up Care? the perhaps in step-up?

Yes.

overall we is to one-off we this we we about you not In relative I the close Care think our our I put and would run as will expect would as paying certainly take Sameer, to expense growth, Integrated base say be comments, to across side. both made on prepared returns revenue onetime, say we our well XXXX perspective. Look, our -- as about around bottom talked we attention base plenty that from paying had a so that to the a investments as on quarter, that the attention is and comments the effectively, focus financial as across would the BetterHelp business fourth what and the as rate few line, that top continue company, both So of have a the the business. continuing something managing into expense to on side --

will So P&L the aspect that to of expense attention planning all processes, of line I our pay of our base our -- every we certainly across as base, expect items. we finish

you. Thank

We further will take no today. for questions

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

lines. your disconnect now may You