Teladoc Health, Inc.

Hello, and welcome to the Teladoc Health Third Quarter 2024 Earnings Call. My name is Alex, and I'll be coordinating the call today. If you'd like to ask a question once the presentation has finished, please press star, followed by one on your telephone keypad. I'll now hand it over to your host, Michael Minchuk, Head of Investor Relations. Please go ahead.

Thank you, and good afternoon. Today, after the market closed, we issued a press release announcing our Third Quarter 2024 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 Chuck DeVita, Chief Executive Officer, and Mala Murthy, Chief Financial Officer. During this call, we will also discuss our 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 Chuck.

Thanks, Mike, and good afternoon, everyone. We're pleased with our results for the quarter, including delivering integrated care revenue, adjusted EBITDA, and membership above guidance, as well as better help revenue in line with prior commentary. Mala will provide more detail on our results in a moment, And before turning to Mala, I would like to share some additional thoughts on the business having wrapped up my first full quarter as CEO. I believe in our potential. I see many strengths to build upon, including the company's market position and scale, assets, and talented employees. We're making a lot of changes, and I want to thank our employees for their dedication to serving our customers and how they're leaning in to move the business forward. As I mentioned in the second quarter call, I also see opportunities to strengthen performance and position the company for long-term success. We've been addressing this with urgency, including streamlining our leadership structure, rationalizing priorities, and improving execution. The operational challenges experienced earlier in the year, which can have a lingering impact on the business, underscore the importance of making progress in this regard. Changes have also been made to how we manage the business to sharpen market focus, accelerate product innovation, and pursue new ways to serve our customers' needs. For example, in U.S. integrated care, we brought together areas previously managed separately and combined them directly under a single business leadership structure. We've also broadened our clinical delivery capabilities, refined shared services, and more closely aligned investments and deliverables. There's more work ahead of us, but we're already seeing positive impacts in terms of efficiency and effectiveness, and I'm confident that we're creating a stronger foundation for the future. These actions are also important as we look at the dynamics within the markets we're serving. In the US market, it's clear that continued high medical cost trends and other pressures are impacting our current and prospective customers. And in turn, they're evaluating their strategies and expecting more value from the broader healthcare ecosystem, including from virtual care. Through our leadership position in the US, we see an ability to further enhance our value proposition to support these evolving needs. This includes generating greater value from our virtual visits and touch points and deepening the impact of our chronic condition management services. We see these areas as essential to unlocking our growth potential. As such, this will be a core priority in terms of strategic direction and investments we're making. Our international integrated care business is well positioned and continues to gain strong momentum through geographic expansion, in market penetration, and added services to existing customers. We've had some important wins in several markets, including in Canada. We expect to further invest in our international integrated care business as a core priority as well to support our growth agenda. With respect to BetterHelp, our current focus is on running it effectively by balancing top line growth with profitability and evaluating initiatives aimed at generating greater value from the business. BetterHelp has become the largest directed consumer virtual therapy business of its kind by addressing an unmet need and serves over 1 million people per year and with a consumer net promoter score of over 70. With that said, challenges remain, including declining revenues when compared to prior periods. Solid progress is being made towards stabilizing results in the U.S. and growing internationally. Mala will comment more on that in a moment. BetterHelp is also making progress on an initiative to provide consumers with the ability to access their coverage benefits. Capability milestones are on track and exploratory discussions have begun with select health plans and other potential partners. As I mentioned in the second quarter call, a measured approach is being taken with this initiative and the primary focus remains on improving direct-to-consumer results. In closing, let me highlight some key themes we're rallying around to drive the business going forward. The first is customer centricity. We operate in complex and evolving markets and it's essential to understand the unique needs of our customers and in turn, be able to consistently deliver solutions that demonstrate value and support their objectives. Second, we intend to further leverage technology to drive greater scale and differentiation and to deliver a more integrated experience for our members and providers. We will focus our technology investments against key business priorities and balance overall spend with benefit realization objectives. Third, clinical excellence will continue to be a core pillar in what we do and how we differentiate our solutions in the market. We will build on a strong track record that we already established as a company to further inform our product roadmap and how we enable and deliver services and generate results for our customers and patients. And fourth, we're embracing a high-performance culture, one that has a bias to action, on collaboration, and on innovation, all in the pursuit of serving our customers and driving long-term shareholder value. We're going through a lot of changes as a company and as an industry, and culture will play a critical role in shaping our future. We're already taking actions in support of these areas and the priorities I outlined earlier. As we close out the year and move into 2025, we'll remain focused on our financial performance while also making investments to strengthen our position and ability to unlock future growth potential. I'm gratified by the progress we're making and with our overall results for the quarter, And with that, I'll turn it over to Marla.