Teladoc Health, Inc.

Welcome to Teladoc Health's first quarter 2020 earnings conference call and webcast. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following management's prepared remarks. If you would like to ask a question at that time, please press star 1 on your touchtone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing the pound key. We ask that you please pick up your handset for optimal sound quality. Lastly, if you should require operator assistance, please press star zero. It is now my pleasure to turn the floor over to Patrick Feely, Vice President of Investor Relations. You may begin.

Thank you, and good afternoon. Today, after the market closed, we issued a press release announcing our first quarter 2020 financial results. This press release is available in the Investor Relations section of the TeladocHealth.com website. On this call to discuss the results are Jason Gorovic, our Chief Executive Officer, and Mala Murthy, our Chief Financial Officer. During this call, we will also provide an update to our forward outlook and our prepared remarks will be followed by a question and answer session. Please note that we will be discussing certain non-GAAP financial measures that we believe are important in evaluating Teladoc Health's performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release that is posted on our website. Also, please note that certain statements made during this call will be forward-looking as defined by the Private Security Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the actual results for Teladoc Health to differ materially from those expressed or implied on this call. For additional information, please refer to our cautionary statement in our press release and our filings with the SEC, all of which are available on our website. I would now like to turn the call over to Jason.

Thanks Patrick, and thank you everyone for joining us this afternoon. I want to start by taking this opportunity to thank all of our team members and caregivers around the world for the critical role they are playing in supporting, enabling, and delivering care during this time of need. At our Investor Day back on March 5th, we spoke of the importance of our shared values. The last several weeks have demonstrated just how committed our team members are to living those values. I've been consistently impressed by their passion for taking care of people, their commitment to quality, and their willingness to rise to the challenge on behalf of our clients and members. Over 90% of our workforce continues to work from home, although our team members in China and Spain are slowly beginning to return to the office as restrictions in those countries are eased. After the market closed, Teladoc Health reported strong revenue outperformance in the first quarter of 2020. Driven by broad-based momentum across the business and a sharp acceleration in visit volume growth. Total revenue in the quarter grew 41% over the prior year to approximately $181 million. As a result of the increased demand for our services from clients and consumers, we are significantly raising forward guidance, including full-year revenue guidance of $800 to $825 million. representing an increase of over $100 million relative to our prior range. We are playing a critical role during the global outbreak of COVID-19 and have seen a significant increase in inquiries from both existing and new potential clients. Our clients are turning to us to expand our service offering to new populations and add new products during this time of need. Requests from new potential clients are increasing as the outbreak of COVID-19 has highlighted the value of access to a comprehensive virtual healthcare solution. During the first quarter alone, we onboarded over 6 million new paid members in the U.S. across government and commercial populations. And we anticipate onboarding an additional 6 to 7 million new members during the second quarter, culminating in the strongest first half membership growth in company history. As discussed on our business update call two weeks ago, the remarkable growth across our platform has been enabled by the tremendous response on the part of our team members and physicians. We responded to the surge in demand by rapidly expanding the capacity of our physician network, including the onboarding of thousands of new providers, More than doubling the number of licensed physicians in our network. The investments in capacity made during the month of March have positioned us to meet the increased demand from existing members as well as the new members we are in the process of onboarding. Turning to visits, we crossed a new milestone as total visits exceeded 2 million in the first quarter, representing growth of nearly 90% as compared to the first quarter of 2019. This is particularly noteworthy as it comes just 12 months after crossing the 1 million visit per quarter mark in the first quarter of last year. While the first two months of the year were strong, visit volume accelerated significantly throughout March and into April as shelter in place orders began, $0 copays were implemented, and brick and mortar facilities closed. We are experiencing broad-based growth in visits across the portfolio as our diverse product offering has enabled us to step up and meet the varied healthcare needs of patients during the outbreak of COVID-19. While general medical visit growth has increased significantly, demand for specialist care, including behavioral health and dermatology, has accelerated even faster, reflecting the diverse nature of the need for care during this challenging time. The increased behavioral health adoption is particularly encouraging as it creates strong longitudinal relationships generating multiple visits over time, which will help drive visit volume through the rest of the year. We have also seen an increase in new users across the platform, with over 60% of visits coming from first-time users. This new user growth will have a lasting effect on utilization since member satisfaction levels are extremely strong. and our experience shows that when members use our service once, they are much more likely to use it again. Importantly, new registrations increased 125% over the prior year, outpacing member growth as the outbreak of COVID-19 is driving awareness of virtual care among consumers. This significant increase in activation is particularly important to us as it feeds into the flywheel dynamic that is at the core of our member engagement efforts. Once an individual actively registers with us, it creates opportunities for our engagement team to reach that member and build a relationship. These engagement opportunities serve as the growth engine that drives visit growth and utilization within our populations. And the material growth and new activations we are currently experiencing will continue to benefit us into the future. as consumers turn to Teladoc Health for more of their healthcare needs. We're also seeing an encouraging demographic expansion in our user base. Visit growth rates among our younger cohorts in the range of 18 to 30 years old and among males have accelerated faster than the overall growth rates as we increasingly reach populations that have historically been lower utilizers of virtual care. Demand for our DTC mental health product, BetterHelp, is also rapidly accelerating as conditions such as anxiety and depression are amplified by fear, isolation, and loneliness during the crisis. This increased utilization will continue to benefit us throughout the year given the high repeat usage profile of mental health services. Provider interest in BetterHelp is also increasing. We added a record number of new active mental health providers during the quarter, and provider applications to deliver care to BetterHelp members have increased over 70% in just the last few months. This increased provider activity will allow us to meet the growing need for mental health services throughout the rest of the year. Similar to the impact on the health plan employer and consumer channels, The COVID-19 outbreak is accelerating the adoption of virtual care among hospitals and physician groups. The Teladoc Health technology platform is enabling hundreds of hospitals and physician groups across the country to continue serving their patients, increasing flexibility and capacity while dramatically reducing physical exposure for both patients and physicians. As virtual care becomes mainstream within the healthcare delivery system, We are seeing increased demand from new partners for our provider platform. This includes both the Teladoc Health technology platform as well as the InTouch Health offering, which, as you know, we have a commercial agreement in place to jointly sell the combined offering ahead of the transaction closing. We have now signed multiple new cross-sales, and the pipeline of new opportunities in the provider market for this industry-leading offering continues to grow. The broad-based demand we are seeing across distribution channels for our comprehensive product offering gives us confidence in the long-term growth opportunity for our business. Before I turn the call over to Mala to provide full details on quarterly performance and guidance, I would like to make a few comments on our approach to providing forward guidance this year. We know that many companies have withdrawn guidance given the uncertainty of both the expected path of the COVID outbreak as well as the broader economic impact of the pandemic. However, we felt it important to provide as much transparency as possible. Therefore, we are providing updated guidance based on what we know today. Our guidance ranges assume the significant surge in visit volume that we are currently experiencing eases over the course of the next few months as $0 copays begin to expire and shelter-in-place orders are lifted. We expect volumes to settle in the second half of the year at a permanently higher level of utilization than pre-COVID levels as we benefit from increased consumer awareness and the impact of our engagement engine applied to newly activated and onboarded members. As the current path of the virus is unknown, our guidance ranges do not include an incremental increase in volume that could result from the virus re-emerging in the fall with the same level of intensity we are currently experiencing. As such, should the virus return in the fall, particularly if it were in conjunction with the typical flu season, it could result in higher than expected visit volume and revenue growth. Finally, our guidance ranges attempt to capture the potential impact of unemployment on the number of insured individuals based on the current macroeconomic outlook, but it remains to be seen how this unfolds. As this is an emerging situation, circumstances are likely to change in the coming weeks and months, but we believe our guidance ranges provide you with a reasonable baseline for 2020 results. And with that, I'll turn the call over to Mala for a review of first quarter financials as well as detailed 2020 guidance.