Teladoc Health, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the TelDoc Health fourth quarter 2020 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during a session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to Mr. Patrick Feely, Vice President of Investor Relations. Please go ahead.

Thank you and good afternoon. Today, after the market closed, we issued a press release announcing our fourth quarter and full year 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 our first quarter and full year 2021 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 statements 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 FCC 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. 2020 was a transformational year for Teladoc Health and for the role of virtual care within the broader healthcare industry. We delivered needed healthcare to millions of consumers in the midst of the coronavirus pandemic and completed two significant acquisitions that together under Teladoc Health are defining a new category of whole person virtual care. Taken together, we dramatically accelerated our mission to empower all people everywhere to live their healthiest lives by transforming the healthcare experience. We delivered over $1 billion in revenue for the year, provided over 10.5 million virtual visits, and our licensed platform solution enabled an additional 3.9 million visits for our client's own clinicians pro forma for InTouch. We onboarded a record 15 million new paid members in 2020. And over the last 18 months, we've added 25 million paid members and 11 million members with BFO access. A remarkable result. During the fourth quarter, we saw broad-based strength across our business, which drove revenue of $383 million, an increase of 145% over the prior year, and organic growth of 79%, excluding the additions of InTouch Health and Livongo. The strength across our channels, products, and geographies, combined with a robust pipeline of new opportunities, gives us tremendous confidence in the near-term and long-term outlook for the business. As we enter a new year, we have never been better positioned to meet the increasingly sophisticated expectations of consumers, clients, and providers. We are heartened by the progress that has been made in delivery of the coronavirus vaccines and expect some return to normalcy coupled with strong continued demand for virtual care, well exceeding pre-pandemic levels. The strategic investments we made during 2020 to expand the breadth and depth of our capabilities have uniquely positioned us to serve the growing client and consumer demand for virtual care. and have accelerated our path to realizing our vision of becoming consumers' trusted destination for whole person health. The expansion of our capabilities in the hospital and health system market, including the acquisition of InTouch, positions us as the leader in that channel. Our enterprise solution enables the full suite of virtual care regardless of the consumer's needs across any location. Whether through one of our over 11,000 facility-based care locations or directly to the consumer's home via a mobile device, our platform enables our clients to provide virtual care for a broad spectrum of use cases, from high-acuity critical care in the ICU to post-discharge follow-up and urgent care visits. We see growing demand as health systems around the globe look for an enterprise-wide, secure, integrated virtual care solution. During the fourth quarter, we continued to make strong progress in bringing our platform solution to international markets with multiple new deals, including a new contract supporting critical care programs for a large network of hospitals in Germany. Our expanded capabilities in the management of chronic disease have uniquely positioned us to deliver on the promise of whole person care. The combination with Lubongo extends our leadership position and enhances our opportunity to redefine the future of virtual care, leveraging technology and data at unmatched scale to drive better outcomes and lower costs while delivering a better consumer experience. We have the capabilities to deliver and manage care virtually across the spectrum for consumers, ranging from wellness and prevention to coordination of care for people living with chronic conditions to high acuity for those dealing with critical illness. The combination is resonating in the marketplace, and we have signed multiple cross-sales since closing the Livongo transaction. We highlighted the GuideWell and Tyson Foods deals on our last earnings call, as well as a regional health plan cross sale last month. We have now signed over a dozen new cross sales since the close of the transaction, and the pipeline of new opportunities has more than doubled in just the past three months. The early indicators give me tremendous confidence that we will deliver on the revenue synergy that we highlighted when we announced the transaction. Our industry-leading breadth and depth of capabilities comes together to underpin our innovative virtual primary care offering, Teladoc Primary 360. Primary 360 is a full credit, differentiated, whole person solution that leverages our capabilities to provide and coordinate care using a team-based approach and brings together healthcare providers across multiple specialties. Primary 360 goes beyond just enabling virtual visits. Rather, it's a reimagining of the entire primary care experience, and it positions us to become the trusted healthcare destination for the consumer regardless of what they need for both their mental and physical health. The results of our first virtual primary care pilot launched during the second quarter of last year have been highly encouraging. We're seeing over 30% consumer engagement and incredibly high satisfaction with an NPS of over 90. Over 40% of hypertension and prehypertension diagnoses and over 25% of diabetes and prediabetes diagnoses made by our clinicians have been first-time diagnoses. This allows our clinicians and members to begin addressing the progression of disease and creates an opportunity for us to introduce the Livongo capabilities to those consumers early in their journey, which will ultimately drive better outcomes for consumers and lower the overall cost of care. Last month, we launched additional Primary 360 pilots with multiple new partners, and the amount of interest from new potential clients has been incredibly strong. We have a pipeline of well over 100 opportunities ranging from Fortune 1000 employers to large payers looking to partner on virtual first health plans. In fact, just last week we signed another new partnership with a very large employer expected to launch later this year.