The relentless pursuit of better. March 2016

Transcription

1 The relentless pursuit f better March 2016

2 Safe Harbr Statement This presentatin cntains, and ur fficers may make, frward-lking statements that are based n ur management s beliefs and assumptins and n infrmatin currently available t management. These frward-lking statements include, withut limitatin, infrmatin cncerning pssible r assumed future results f peratins, including descriptins f ur business plan and strategies. These statements ften include wrds such as anticipate, expect, suggests, plan, believe, intend, estimates, targets, prjects, shuld, culd, wuld, may, will, frecast, and ther similar expressins. Frward-lking statements invlve knwn and unknwn risks, uncertainties and ther factrs that may cause ur actual results, perfrmance r achievements t be materially different frm any future results, perfrmance r achievements expressed r implied by the frward-lking statements. Frward-lking statements invlve knwn and unknwn risks, uncertainties and ther factrs that may cause ur actual results, perfrmance r achievements t be materially different frm any future results, perfrmance r achievements expressed r implied by the frward-lking statements. These statements are based n certain assumptins that we have made in light f ur experience in the industry and ur perceptin f histrical trends, current cnditins, expected future develpments and ther factrs we believe are apprpriate under the circumstances as f the date heref. These and ther imprtant factrs may cause ur actual results, perfrmance r achievements t differ materially frm thse expressed r implied by these frward-lking statements. Such risks and ther factrs that may impact management s beliefs and assumptins are mre particularly described in ur filings with the U.S. Securities and Exchange Cmmissin (the SEC ). As a result, we cannt guarantee future results, utcmes, levels f activity, perfrmance, develpments r achievements, and there can be n assurance that ur expectatins, intentins, anticipatins, beliefs r prjectins will result r be achieved r accmplished. The frward-lking statements in this presentatin are made nly as f the date heref. Except as required by law, we assume n bligatin t update these frward-lking statements, r t update the reasns actual results culd differ materially frm thse anticipated in the frward-lking statements, even if new infrmatin becmes available in the future. This presentatin als cntains estimates and ther statistical data made by independent parties and by us relating t market size and grwth and ther data abut ur industry. This data invlves a number f assumptins and limitatins, and yu are cautined nt t give undue weight t such estimates. This presentatin may include certain nn-gaap financial measures as defined by SEC rules. We believe that the presentatin f such nn-gaap financial measures enhance an investr s understanding f ur financial perfrmance. We use certain nn-gaap financial measures fr business planning purpses and in measuring ur perfrmance relative t that f ur cmpetitrs. 2 I Cpyright 2015 Teladc Inc.

3 Intrductins and Presenters Jasn Grevic President & CEO 6+ years CEO since June 2009 President f Empire BlueCrss BlueShield SVP and Chief Marketing and Prduct Officer at WellPint Directr f Service Strategy and ther rles at Oxfrd Health Plans General Manager f Business Messaging at Mail.cm Mark Hirschhrn EVP & CFO 3+ years CFO since Octber 2012 CFO f RCS/Media Mnitrs CFO f BT Radianz Vice President and Glbal Cntrller f RSL Cmmunicatins 3 I Cpyright 2015 Teladc Inc.

4 Cmpany Highlights First and Largest Telehealth Slutin (~70% Share) 1 Grwing Underpenetrated Market with an Estimated 548mm Annual Patient Visits & $29bn TAM 2 Disruptive Care Delivery Mdel with High Clinical Quality Delivering Significant, Measurable ROI Value fr All Cnstituents: Payr / Emplyer; Member / Emplyee & Prvider Attractive Business Mdel with Strng Revenue Grwth and Substantial Opprtunity t Scale (1) Share based n ttal telehealth 2015E visits. Depicts share nly amng tp fur players. Calculated by dividing Teladc 2015 ttal visits f 576K by the sum f all cmbined visits fr Teladc, MDLive, American Well and Dctr n Demand fr calendar year Visit cunts fr cmpetitrs represent management estimates. (2) Represents ambulatry care market ($17bn) and behaviral health market ($12bn). 4 I Cpyright 2015 Teladc Inc.

5 Teladc at a Glance Tremendus Revenue & Visit Grwth Revenue ($M) 98% Revenue CAGR 2013 t 2015 $20M $44M $78M $16M $26-$27M 6,000+ Ttal Clients 200+ Frtune 1000 Clients +40 Frtune 1000 Clients added since July IPO +25 Health Plan Clients Q1 '15 Q1 '16E +70% Grss Margins Membership (M) 14.5M-15M 12.2M 10.6M 8.1M 6.2M Q1 '15 Q1 '16E Visits (000s) 576K 127K 299K 110K 220K-230K Q4 '14 Q4 '15 5 I Cpyright 2015 Teladc Inc.

6 2015 Year End Update and 2016 Guidance Represents Cmpany estimates and frecasts Year End 2016 Full Year Guidance Revenue $77.4 millin (78% y--y grwth) $118 millin $122 millin (52% 58% y--y grwth) Membership 12.2 millin (51% y--y grwth) millin (35% 43% y--y grwth) Visits +576,000 (93% y--y grwth) 880, ,000 (53% 56% y--y grwth) 6 I Cpyright 2015 Teladc Inc.

7 Large and Under Penetrated Markets Ambulatry Care market Behaviral Health market 1.25 billin ambulatry care visits millin annual addressable visits 33% estimated treatable thrugh telehealth 2 78% estimated treatable thrugh telehealth 417 millin visits Up t $40 cst per telehealth visit 3 Current Telehealth Penetratin 131 millin visits ~$89 per telehealth visit 3 $17bn TAM $12bn TAM 4 Cntributin frm Behaviral Health market increases TAM t $29bn 7 I Cpyright 2015 Teladc Inc. 1 Accrding t a 2010 reprt frm the Centers fr Disease Cntrl and Preventin (CDC); includes visits in the United States per year, including thse at primary care ffices, hspital emergency rms, utpatient clinics and ther settings 2 33% based n Teladc's internal estimates / assessment f cnditins listed in the CDC reprt. Accrding t a Delitte reprt evisits: The 21 st Century Husecall, f the 600 millin annual visits t general practitiner ffices in the US and Canada, abut 50% are treatable thrugh telehealth; 3 Based n Teladc estimates fr average cst f a telehealth visit (des nt include PMPM fees r premium pricing fr new prducts) 4 Ttal Addressable visits frm AHRQ, 2012 reprt including nly utpatient prvider ffices; Addressable via Telehealth and $89 Weighted average price based n CDC reprt and methdlgy described in ftnte 1 and Oliver Wyman reprt

8 Industry and Teladc Maturity Industry is significantly underpenetrated with pprtunity fr lng-term, sustainable grwth. Industry Massively Underpenetrated Tday Teladc Prfitable Befre Industry Reaches Maturity Market less than 0.5% penetrated 1 417M Addressable Visits 2 Cntinue t Grw Membership Drive Utilizatin Leverage Operating Expenses (1) Based n prjectin fr 2015 virtual visits prvided by the American Telemedicine Assciatin. ATA s prjectin divided by Teladc s calculatin f 417M addressable visits. (2) Ambulatry visits nly. 8 I Cpyright 2015 Teladc Inc.

9 Telehealth Landscape # f Visits Market Share 1 Mde f Visit Mnetizatin Dc Netwrk 576k ~70% Chice f Vide r Phne Access Fee ( PEPM ) +3,100 MD, BH, Derm prfessinals 125k 150k ~15% Chice f Vide r Phne Access Fee ( PEPM ) r License Fee 2,300 MD, BH prfessinals 60k 80k ~10% Vide Only License r Other Fee MD, BH and dieticians <50k ~5% Vide Only Visit Fee Only 1,500 MD, Psych, and ther Teladc is larger than all tp three cmpetitrs cmbined ~5% f market 1 perates withut subscriptin / license fee 1 Share based n ttal telehealth 2015E visits. Depicts share nly amng tp fur players. Calculated by dividing Teladc 2015 ttal visits f 576K by the sum f all cmbined visits fr Teladc, MDLive, American Well and Dctr n Demand fr calendar year Visit cunts fr cmpetitrs represent management estimates. 9 I Cpyright 2015 Teladc Inc.

10 Value Creatin fr Clients Large vlumes and high prven savings per visit drive significant return n investment fr ur clients 576,000 Visits $388M Client Savings $77M Teladc Revenue $673 Savings per Visit 5:1 ROI fr Clients Nte: Savings per visit based n an independent study f a Teladc client representing ver 24,000 Teladc members as f December 31, The study was cnducted ver a perid f 24 mnths. 10 I Cpyright 2015 Teladc Inc.

11 Prduct Prtfli Overview Cmprehensive prduct prtfli serves key healthcare stakehlders General Medical Pediatrics Behaviral and Mental Health Dermatlgy Smking Cessatin Sexual Health Health Plans Emplyers Health Systems And Hspitals Cnsumers 11 I Cpyright 2015 Teladc Inc.

12 Sustainable Differentiatin Rbust capabilities and Access Fee (PEPM) investment deliver significant and measurable ROI t Clients. Netwrk structure + Invest Cnsumer ROI Access Fee Engagement (PEPM) & Clinical + Utilizatin = capabilities + Scalable and integrated technlgy 12 I Cpyright 2015 Teladc Inc.

13 Access Fee Investment Drives ROI Significant and cnsistent grwth in Access Fee Per Member (PEPM) funds greater grwth in Utilizatin. Access Fee Per Member ( PEPM ) 1 Utilizatin 1 ~34% PEPM CAGR $0.48 ~40% Utilizatin CAGR 5% $0.20 2% Utilizatin grwing faster than Access Fee per Member (PEPM) 1 Calculated n an LTM basis. PEPM calculated as ttal Access Fee Revenue during a twelve mnth perid divided by average number f Members during the same perid. Utilizatin calculated as ttal Visits during a twelve mnth perid divided by average number f Members during the same perid. 13 I Cpyright 2015 Teladc Inc.

14 Cntinuus Investment in Cnsumer Engagement Cnsumer engagement is a multi-year effrt. Cntinued investment f Access Fee drives year-ver-year increases in utilizatin. Utilizatin Case Study Small / Medium Emplyer Channel Visits Grwing Faster than Membership Driven by Access Fee Investment ~2x rate f utilizatin in 2013 accunt chrt vs. new 2015 accunt chrt Visits grew faster than Membership in every quarter 11%+ 9% <6% 2015 Chrt 2014 Chrt 2013 Chrt Three Year CAGR Utilizatin Increases with Lng Term Investment in Cnsumer Engagement 65%+ f Members have been with TDOC less than 3 years 14 I Cpyright 2015 Teladc Inc.

15 Serving Leading Custmers Over 6,000 clients including +200 Frtune 1000 cmpanies and +25 health plans, plus health systems and ther entities Emplyers Health Plans Health Systems 15 I Cpyright 2015 Teladc Inc.

16 January 2016 Client Wins 16 I Cpyright 2015 Teladc Inc.

17 Prvider Custmers 60+ Hspitals and Health Systems Representative Clients Value Prpsitin Better manage risk in an ACO mdel Imprve prvider-emplyed physician prductivity Expand their brands int their lcal markets Pst-discharge re-admissin avidance 17 I Cpyright 2015 Teladc Inc.

18 Teladc Grwth Strategies Expand Ftprint / Penetratin Expand Specialties Expand Scpe f Prducts & Services Expand Clinical Use Cases New Accunts & Channels Existing Health Plans In-Netwrk Referrals 2nd Opinin & Specialty Advice Platfrm-as-a- Service (Prvider) EHR Integratins Hme Care Pst Discharge and Readmissin Preventin Increase Utilizatin Direct t Cnsumer Gvernment payrs Diabetes, CVD New Cnsult Types Lab Testing Expansin Sleep Medicine Mbile Apps / Hubs Bimetric and Other Cnnected Devices At-Hme Tests Wellness / Screening Chrnic Care Caregiver 18 I Cpyright 2015 Teladc Inc.

19 Regulatry Landscape and IP Regulatry Envirnment During the last 18 mnths twenty states and the federal gvernment passed laws r rules favrable t telehealth. Mre are cming. Seven cnsecutive curt victries in Texas fr Teladc FTC is investigating TMB s cnduct cncerning telehealth We believe the TMB may adpt a new rule regarding crss cverage (Rule ). It is unclear whether the rule will apply t Teladc, but if it des, we will include it in ur federal lawsuit We are hpeful fr psitive actin during the 2017 Texas legislative sessin Intellectual Prperty Teladc has filed three petitins with the U.S. Patent Office seeking t invalidate patents held by a cmpetitr. Teladc believes the patents are clearly invalid and filed the petitins practively, withut any allegatin f infringement Patent Office decisins are expected during Q4 f 2016 and during 2017 In respnse t Teladc s Patent Office petitins, the cmpetitr filed an infringement lawsuit. Teladc has filed a mtin t dismiss, which is pending fr decisin 19 I Cpyright 2015 Teladc Inc.

20 Cmpany Highlights First and Largest Telehealth Slutin (~70% Share) 1 Grwing Underpenetrated Market with an Estimated 548mm Annual Patient Visits & $29bn TAM 2 Disruptive Care Delivery Mdel with High Clinical Quality Delivering Significant, Measurable ROI Value fr All Cnstituents: Payr / Emplyer; Member / Emplyee & Prvider Attractive Business Mdel with Strng Revenue Grwth and Substantial Opprtunity t Scale (1) Share based n ttal telehealth 2015E visits. Depicts share nly amng tp fur players. Calculated by dividing Teladc 2015 ttal visits f 576K by the sum f all cmbined visits fr Teladc, MDLive, American Well and Dctr n Demand fr calendar year Visit cunts fr cmpetitrs represent management estimates. (2) Represents ambulatry care market ($17bn) and behaviral health market ($12bn). 20 I Cpyright 2015 Teladc Inc.

21 21 I Cpyright 2015 Teladc Inc. APPENDIX

22 Simple, Cnvenient and Intuitive 1 REGISTER 2 3 REQUEST & CONNECT 4 5 VISIT & RESOLVE 22 I Cpyright 2015 Teladc Inc.

23 Phne is a Critical Cmpnent f Telehealth Cnsumers f All Ages Prefer Phne t Vide Yung Cnsumers Strngly Prefer Phne t Vide Prefer Phne t All Other Media Teladc ffers n-demand vide, web and phne t address all cnsumer needs Surce: itriage cnsumer survey, September questin survey made available t all active users n ios and Andrid between July 2015 and August Ages , 43% f respndents between 45 and 64 years f age years ld and yunger. 23 I Cpyright 2015 Teladc Inc.