Teladoc Health, Inc.

Good afternoon, and thank you for attending today's Teladoc Health fourth quarter 21 earnings call. My name is Sam, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask your question, please press star one on your telephone keypad. At this time, I would now like to pass the conference over to our host, Patrick Feely, head of investor relations. Patrick, please proceed.

Thank you. Good afternoon. Today, after the market closed, we issued a press release announcing our fourth quarter and full year 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, Chief Executive Officer, and Mala Murthy, Chief Financial Officer. During this call, we will also provide our first quarter and full year 2022 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.

Thanks, Patrick. Good afternoon, everyone, and thank you for joining us. 2021 marked another record year for Teladoc Health. in terms of both financial performance as well as the impact we are having on our members' lives. We launched our next generation mental health product, My Strength Complete, combining the best of Livongo and Teladot capabilities and announced significant new deals for our virtual primary care product, Primary 360. In the direct-to-consumer market, our BetterHelp product posted another year of record growth, exceeding $700 million in global revenue. We exited 2021 with significant sales momentum, with fourth quarter bookings showing strong growth both sequentially and over the prior year. Notably, multi-product sales represented 80% of full year bookings. For the fourth quarter, Teladoc Health posted another strong quarter of financial performance. As we continue to deepen member relationships and increase the care delivered to consumers, The broad-based strength across the business drove revenue of $554 million in the fourth quarter, representing an increase of 45% over the prior year, including organic growth of 32%. Our vision is to become the first stop in the consumer healthcare journey, regardless of need, by delivering whole-person care to meet the complex needs of our members, from physical to mental, acute to episodic, and chronic to complex. To advance this vision, we continue to focus on our key strategic priorities that we believe underpin the next phase of significant growth for our company. Those priorities include expanding adoption of our integrated virtual primary care product, Primary 360, expanding our mental health services to meet growing demand, and enhancing our chronic care capabilities in order to be even more impactful for clients and members. Importantly, we will continue to build upon the integrated Teladoc experience that unifies all our products and services, making it easier for patients, care providers, and clients to realize the full value of our whole person approach. Primary 360, our virtual primary care product, enables Teladoc to become the front door to the healthcare system for our members. We believe our unmatched depth and breadth of capabilities positions the company as the global leader in whole person virtual care. While it remains early, I am very pleased with the enrollment and engagement we're seeing in Primary 360 so far. I was just reviewing data from one of our partners that recently launched a virtual first plan supported by our Primary 360 product. And the number of people choosing the plan has significantly exceeded our initial forecasts. 75% of the members who have enrolled in that plan are entirely new to that insurer. So primary 360 is clearly proving to be a differentiating factor in the marketplace for our health plan clients. Virtual first plan offerings are increasingly being viewed as strategic necessities among insurers. And as the leader in the space with the most robust and comprehensive offering, we're well positioned to partner with those plans. We now have over 50 clients live on Primary 360, including several Fortune 500 employers, and our pipeline of opportunities continues to build. Our Primary 360 offering is resonating in the employer market due not only to the breadth and depth of our product, but because of our ability to scale and integrate with an employer's benefit design. Large employers need a virtual primary care offering that can both serve an employee base spread across geographies and integrate with multiple insurance plans, since large employers typically offer plans from more than one insurance carrier. We're uniquely positioned to be that partner given our track record of working across multiple national and regional payers. We expect to launch Primary 360 with several new clients over the course of the year across channels, including a newly signed partnership to launch a virtual first health plan with a large provider sponsored organization in the Midwest. This integrated health system deal is notable as we beat out an incumbent telemedicine provider in the process, demonstrating the power of our industry leading suite of services. It also demonstrates progress against our strategy to bring our entire suite of products across all of our channels, including health systems. In chronic care, the number of individuals enrolled in our suite of solutions grew 22% year over year to 729,000 at the end of the fourth quarter. Over 40% of adults in the U.S. are living with multiple chronic conditions. And as you've heard me say in the past, individuals don't view themselves as just a person with a chronic disease. They view themselves as a person who needs help accessing care and managing their entire health. Importantly, our approach of focusing on the whole person as opposed to a single condition continues to pay off. The percentage of chronic care members enrolled in more than one program has doubled over the prior year, resulting in total chronic care program enrollment growth of over 30%. Last week, we announced the launch of our new Chronic Care Complete product line, which incorporates data-driven outreach to connect enrollees in our chronic care programs with Teladoc physicians. This will, for example, enable us to leverage the Teladoc physician network based on real-time data to better engage with chronic care members who may be struggling to control their disease and provide services such as adjusting care plans or optimizing medications. Chronic Care Complete will allow us to leverage our data capabilities, including the billions of data points we've collected to date. to make intelligent interventions drive better outcomes for our members and lower costs for our clients. This integration of our telemedicine capabilities, our digital chronic care management programs, and our robust data capabilities represents the latest example of our integrated stepped care approach and follows on the heels of the launch of our My Strength Complete mental health offering last year. Mental health remains another key priority for us and an area where we continue to see tremendous demand for care. In the direct-to-consumer channel, our BetterHelp brand continues to drive significant growth, both in the U.S. and international markets. In the B2B channel, our new flagship My Strength Complete product, which offers both digital capabilities and virtual interactions, is gaining momentum. We find that since mental health is a longitudinal relationship where members typically have several visits with their therapist or psychiatrist, it acts like a gateway for other Teladoc services. And we also find that our members who utilize mental health combined with another Teladoc service, such as general medical or dermatology, generate revenue that's 20 to 60% higher on average than those who utilize mental health services alone. So not only does multi-service usage enable better access to care and drive cost savings for our clients, but it also enables us to efficiently drive higher engagement and revenue growth. Before I turn the call over to Mala to discuss our results and financial guidance in more detail, I want to talk briefly about our outlook for 2022. For the full year, we expect revenue to be in the range of $2.55 to $2.65 billion, representing growth of 25% to 30%. Our expectations for strong growth are a result of the broad-based momentum we continue to see across our suite of products and services and across geographies. We have over 90 million total individuals with access to the Teladoc platform today. and we see a significant opportunity for long-term growth by expanding our relationships and going deeper with our existing clients and members as we execute against our key strategic priorities across primary care, mental health, and chronic care solutions. With that, I'll turn the call over to Mala for a review of fourth quarter as well as detailed 22 guidance.