Teladoc Health (NYSE: TDOC) Q1 2021 Earnings Highlights
Jason Gorevic, CEO:
“…We reported another quarter of outperformance across key financial and operational metrics, driven by broad-based momentum throughout the business.
The strength across our portfolio drove revenue of $454 million in the first quarter, an increase of 151% over the prior year, including organic revenue growth of 69% for legacy Teladoc.
As a result of the momentum demonstrated across our channels and geographies and the continued development of the pipeline of new and expanded opportunities, we are raising our full-year revenue guidance by $20 million to $1.97 billion to $2.02 billion for the year.
Turning to utilization. Our network of clinicians provided $3.2 million visits during the first quarter, representing more than 50% growth over the prior year’s quarter, despite historically weak flu season.
We continue to see significant strength in non-infectious disease and specialty visits with mental health volumes, in particular, driving growth in both B2B and DTC channels. We’re also finding that specialty growth is acting as a gateway into multi-service usage.
Our members who engage with specialty care are significantly more likely to utilize one of our other services. For example, members who had a specialty visit had 40% more general medical visits per member than those who use general medical alone. This is particularly encouraging given client trends toward multi product sales, with over 40% of our members now having access to more than one product.
Membership in the Livongo chronic care suite of products grew 66% over the prior year, as we added 62,000 new chronic care members in the quarter. And our share of wallet continues to expand as we gain deeper penetration within clients.
As a result, we’ve seen year-over-year revenue expansion within all of our top 10 chronic care accounts in the first quarter. Particularly encouraging is that over 15% of chronic care members are now enrolled in more than one program compared to less than 5% a year ago.
With over 40% of adults in the U.S. living with more than one chronic condition, the opportunity is significant. And we continue to execute on our whole-person care strategy to address the full spectrum of consumer health needs rather than just one particular disease.
Enrollment in chronic care programs as a percentage of recruitables remained strong throughout 2020 and into the first quarter. Enrollment rates are consistent with Livongo’s performance in recent years across the various books of business, which is a significant achievement given that we have been addressing meaningfully larger populations and in some cases, population types that are newer to us, such as government employee benefit programs, Medicare Advantage populations, and people with hypertension.
The strong enrollment performance is a direct result of our investments in data science, which has consistently led to greater consumer engagement across populations. As our differentiated and comprehensive product portfolio continues to resonate in the marketplace, we’re seeing significant traction in both expanding our offering within existing clients as well as adding new clients.
Earlier this month, we signed an extensive agreement to expand our relationship with a regional Blue Cross Blue Shield plan on the East Coast to offer our comprehensive whole-person virtual care solution to its members.
Beginning early next year, we will provide members access to our suite of products, including our virtual care solutions, and a full suite of digital chronic care solutions across diabetes, hypertension, diabetes prevention, and mental health. This deal is notable as it covers all of the plan’s commercial books of business and represents another significant competitive takeaway.
Moreover, it demonstrates the power of our broad and integrated suite of products and our proven ability to deliver industry-leading utilization and member engagement, which ultimately drives clinical and financial ROI for our clients.
In addition to a large pipeline of new and expansion opportunities, we continue to see opportunities for competitive takeaways, particularly in the health plan channel, as these clients look for enterprise platforms that can leverage technology and data at scale to deliver actionable insights.
We’re also seeing strong interest in our Primary360 offering from health plans, employers, and even hospitals and health systems. And our vision to reimagine the primary care experience is gaining traction in the market.
Our Primary360 pilots that launched earlier this year are progressing well and delivering encouraging results for clients and consumers, and we’ve already signed several additional deals expected to launch later this year.
Our comprehensive virtual care solution also continues to gain momentum in the international marketplace. During the quarter, we signed a strategic partnership with Generali Hong Kong, a leading insurance carrier in the region to offer our virtual care solutions to its members across Asia.
In Australia, we recently announced the partnership with MetLife to offer access to a customized platform across our comprehensive virtual care service to MetLife’s members in the region.
In the hospital and health system market, our industry leading enterprise platform solution continues to see strong demand around the world. In addition to new and expanded enterprise deals domestically, we reached multiple new agreements this quarter with health systems in Europe and Asia, as our strategy to take the InTouch capabilities to the international arena continues to pay dividends.
Similarly, the pipeline of opportunities to bring the Livongo suite of chronic care products to the provider market continues to grow, particularly among hospitals that are increasingly bearing risks through ACOs and their own health plans, and we’ve now signed several deals to bring our chronic care solutions to the health system market….”