Teladoc Health, Inc.

Good day and thank you for standing by. Welcome to Teladoc's second quarter 2021 earnings conference call. At this time, all participants' lines are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will 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 0. I would like to hand a call over to your speaker today, Mr. Patrick Feely, Vice President of Investor Relations.

Thank you and good afternoon. Today after the market closed, we issued a press release announcing our second quarter 2021 financial results. This press release and the accompanying slide presentation are 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 third 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 securities 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 on 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

Thank you, Patrick, and good afternoon, and thank you for joining us today. After the market closed, we reported another strong quarter marked by continued momentum across the business and robust demand for a broad suite of integrated whole-person virtual care. The broad-based strength across our portfolio drove revenue of $503 million in the second quarter, an increase of 109% over the prior year. including organic revenue growth of 41%, which excludes revenue from acquisitions completed over the past 12 months. The strong momentum across our channels and geographies gives us the confidence and visibility to increase our full year revenue guidance to $2.0 to $2.025 billion. As we've discussed previously, Teladoc's aim is to provide whole person virtual care. It's not enough to simply virtualize the current healthcare experience, simply putting a doctor on the screen. The healthcare system is already fragmented, and virtual care shouldn't simply mirror that problem. Instead, we need a single virtual solution that seamlessly takes care of all of a person's healthcare needs, redefines the consumer experience, and uses data to improve care at scale. At Teladoc Health, we're doing that now. and during the second quarter, we continue to demonstrate progress on achieving our goal of completely reimagining the healthcare experience. Our vision starts with engaging more consumers. During the second quarter, our global network of clinicians provided more than 3.5 million visits, an increase of 28% over the second quarter of last year when we were in the middle of the pandemic. This means that even as more people are being vaccinated and restrictions are lifting in many parts of the world, consumers and providers are increasingly relying on Teladoc Health's virtual care. We're now on track to provide more than 13.5 million visits for the year. The persistent strength in utilization has been driven by growth in visits related to non-infectious diseases and specialty care. As consumers are turning to our services for a broader array of conditions. During the second quarter, 80% of member visits in the B2B channel were related to non-infectious diseases versus approximately 50% in the pre-pandemic period. Demand for our mental health services remains especially robust as consumers and providers recognize the benefits of the virtual modality for mental health care. We're just starting to see the incidence of infectious diseases such as acute respiratory illness begin to trend up for the first time in nearly a year as the usage of PPE and social distancing has declined. This follows a period of historically low infectious disease transmission and gives us confidence in our second half outlook. Turning to chronic care, the number of members enrolled in the Livongo suite of products grew 45% year over year. to 715,000. Rather than focusing on one particular disease, our approach is to treat the whole person in an integrated manner, which is important given that over 40% of adults in the U.S. are living with multiple chronic conditions. As a result of this approach, we continue to drive significant growth in multi-program enrollment. Over 20% of our chronic care members are now enrolled in more than one program. up from 6% in the second quarter of last year. The growth in chronic care members combined with the greater number of individuals enrolled in multiple programs, such as members enrolled in both our diabetes and hypertension programs, resulted in a 60% year-over-year increase in the total number of chronic programs in which our members are enrolled. Most importantly, our services are driving better outcomes. For example, in a recent survey of over 2,000 consumers of our virtual mental health services, more than 90% of those who sought care experienced improvement, with nearly 40% experiencing a significant breakthrough during treatment. In the marketplace, our whole person approach to care continues to resonate as clients understand the value we deliver and are coming to us for our broad, integrated suite of services. I'm very proud to report that during the second quarter, we signed an expansive new agreement with HCSE, the fifth largest health insurer in the US. As part of this agreement, we will provide our suite of chronic care solutions across their commercial fully insured members in several markets and significantly expand our products offered to their ASO clients. Beginning in 2022, We will provide eligible HCSC members in fully insured plans with access to our diabetes and hypertension programs. This agreement also includes bringing our full suite of chronic care products to HCSC's ASO markets embedded into their wellbeing management and health advocacy solution offerings. We're honored to have earned the trust of HCSC and extremely excited about working together to empower more people living with chronic conditions. And we see tremendous opportunity to expand with HCSC in the future. Our vision to reimagine primary care also continues to gain traction. Our primary 360 product delivers a fully integrated solution of mental and physical health, leveraging technology and data, bringing together a full virtual care team for the consumer and integrating into the physical delivery system to get consumers the right care at the right time. During the second quarter, we signed several new deals to launch Primary 360. I'm pleased to report that just this week, we signed a significant Primary 360 contract with a national payer and we're in late stage discussions with several other health plans. As we turn to hospitals and health systems, It's evident that we are uniquely positioned to help them improve outcomes and reduce costs. During the second quarter, we signed multiple new chronic care agreements in the health system market, including a significant contract with a large Florida-based health system to bring our whole person diabetes and cardiovascular programs to their at-risk populations. Our pipeline in the health system market continues to grow. and we see further opportunities to expand these relationships as we deliver value for our clients and members. This represents a significant validation of our thesis that Teladoc Health's broad distribution would open up new channels for the Livongo chronic care solutions. In the international market during the second quarter, we signed an agreement to expand our relationship with Telefonica. The new partnership makes our telemedicine services available to more than 60 million customers of Vivo, Telefonica's Brazilian subsidiary and the leading telecom company in that country. This partnership allows Telefonica to provide more value to their customers and enables Teladoc to connect millions of consumers with the care and resources they need to stay healthy. Expanding on our international presence, Our differentiated global footprint allowed us to collaborate with Cigna International to support local populations in India during the recent humanitarian crisis. We worked with Cigna International to rapidly set up live clinical support for hundreds of thousands of individuals facing challenges in accessing the country's overwhelmed healthcare system. I'm extremely proud to say that we were able to quickly assist U.S. multinational corporations to meet the health needs of their employees in India during a time of great need. Earlier this month, we also announced a new partnership with Microsoft. We're working in conjunction with Microsoft to integrate our Solo platform for hospitals and health systems directly within Microsoft Teams. The combination will allow clinicians to access the Solo platform, including its virtual care workflows, data, and tools without having to leave the Teams environment. The combination of our clinical leadership and purpose-built medical-grade technology with Microsoft's communications architecture will enable us to deliver a seamless experience to providers and patients. The integration of Solo into Teams represents the first step in this partnership, and together we will look for further areas to develop and leverage technologies to improve the healthcare experience. We're making great progress on our roadmap for innovation. Earlier this month, we launched our first integrated Teladoc Livongo product, My Strength Complete, which combines care from Teladoc therapists and psychiatrists with the Livongo digital mental health capabilities to deliver a differentiated market-leading solution that provides personalized targeted care to individuals in a single comprehensive experience. The launch of My Strength Complete represents another example of the power of Teladoc's differentiated data and behavioral science capabilities to deliver clinically relevant insights that empower consumers and enable clinicians to deliver high quality care. Our ability to transform data into actionable insights allows us to provide a highly personalized experience and deliver longitudinal virtual care at scale, which positions us to realize our vision of becoming consumers' trusted destination for whole person health. We look forward to sharing more about our vision and growth strategy at our Investor Day later this year. With that, I'll turn the call over to Mala for a review of the second quarter as well as detailed guidance.