Teladoc Health, Inc. (TDOC) 35th Annual Piper Sandler Healthcare Conference (Transcript)

Summary of Teladoc Health, Inc. Conference Call Company Overview - Company: Teladoc Health, Inc. (NYSE: TDOC) - Industry: Digital Healthcare - Participants: Jason Gorevic (CEO), Jessica Tassan (Piper Sandler Analyst) - Key Metrics: Serves over 90 million DTC employer and payer lives Core Insights and Arguments U.S. Integrated Care Performance - Growth Rate: U.S. Integrated Care growth accelerated to 9.2% year-over-year in Q3 2023 [1] - Adjusted EBITDA: Significant beat on adjusted EBITDA guidance, with margins expanding from 10.5% in Q2 to 16.8% in Q3 [2] - Chronic Care Enrollment: Enrollment in chronic care programs increased by 13% year-over-year [2] - Bundled Services: Increased sales of bundled services led to better overall enrollment and higher revenue-per-member [3] Bundled vs. Provider-Based Care - Bundled Chronic Care: Offers multiple programs at a single price point, enhancing engagement and retention [5] - Provider-Based Care: Introduced initially in mental health, now expanded to diabetes, hypertension, and weight management, responding to market demand for GLP-1s [7][12] Retention and Engagement - Retention Rates: Improved retention rates observed with members engaging in multiple chronic care programs [10] - Engagement Statistics: Over one-in-three chronic care members are engaged with more than one program [6] Market Dynamics and GLP-1s - Cost Concerns: Employers express concerns over the rising costs of GLP-1 medications, prompting demand for comprehensive management solutions [14] - Behavior Change: Emphasis on the need for lifestyle changes alongside medication to ensure sustainable health outcomes [14] Future Outlook - Five-Year Vision: Anticipation that Teladoc will be recognized as a primary healthcare partner, akin to an "uber multi-specialty clinic" [32] - Margin Expansion: Continued focus on margin expansion while balancing top-line growth [33] Other Important Insights BetterHelp Segment - Revenue Growth: BetterHelp achieved 8% year-over-year revenue growth in Q3, with a projected 22.5% adjusted EBITDA margin in Q4 [34] - Ad Spend Strategy: Seasonal fluctuations in ad spend impact quarterly performance; annual performance is a better indicator of growth [36][39] - Customer Acquisition Costs: Improvement in customer acquisition costs noted, though still slightly worse than expectations [44] Bookings and Sales Strategy - Bookings Outlook: Expected bookings to be up 10% year-over-year, driven by strong chronic care and multi-product sales [46] - Land and Expand Strategy: Approximately 75% of sales come from existing clients, highlighting the effectiveness of the land and expand strategy [26] Investor Sentiment - Underappreciated Value: The installed base of 90 million members and the ability to sell additional services are seen as key strengths that investors may overlook [48] - Financial Performance: Frustration expressed over lack of recognition for improved bottom-line performance and margin expansion [49] This summary encapsulates the key points discussed during the Teladoc Health conference call, highlighting the company's performance, strategic initiatives, and future outlook in the digital healthcare industry.