Teladoc(TDOC) - 2024 Q3 - Quarterly Report

Membership Growth - U.S. Integrated Care members increased by 3.7 million, or 4%, to 93.9 million at September 30, 2024, compared to the same period in 2023[125] - Chronic care program enrollment increased by 5% to 1.179 million at September 30, 2024, compared to 1.122 million at September 30, 2023[126] - The company believes that increasing membership is integral for continual innovation and enhancing member experiences[124] Financial Performance - Total revenue for Q3 2024 was $640.5 million, a decrease of$19.7 million or 3% compared to Q3 2023 revenue of $660.2 million[147] - Access fees revenue for Q3 2024 was$555.3 million, down $26.8 million or 5$582.1 million in Q3 2023[147] - Other revenue increased to $85.2 million in Q3 2024, up$7.1 million or 9% from $78.2 million in Q3 2023[147] - For the nine months ended September 30, 2024, total revenue was$1,929.1 million, a decrease of $12.8 million or 1$1,941.9 million in the same period of 2023[148] - Net loss for Q3 2024 was $33.3 million, a reduction of$23.8 million or 42% compared to a net loss of $57.1 million in Q3 2023[147] - Adjusted EBITDA for Q3 2024 was$83.3 million, a decrease of $5.5 million or 6$88.8 million in Q3 2023[147] Revenue Breakdown - International revenue for Q3 2024 increased by 15% to $104.3 million, while U.S. revenue decreased by 6$536.2 million compared to Q3 2023[147] - For the nine months ended September 30, 2024, other revenue was $257.0 million, an increase of$23.7 million or 10% from $233.3 million in the same period of 2023[148] - Integrated Care total revenues increased by$9.3 million, or 2%, to $383.7 million for the three months ended September 30, 2024, and increased by$53.8 million, or 5%, year-to-date to $1,138.2 million[168] - BetterHelp total revenues decreased by$29.0 million, or 10%, to $256.8 million for the three months ended September 30, 2024, primarily due to a 13$179.7 million, a decrease of $6.2 million or 3$186.0 million in Q3 2023[149] - Advertising and marketing expenses for Q3 2024 were $177.5 million, down$8.7 million or 5% from $186.2 million in Q3 2023[150] - Sales expenses decreased by$4.8 million, or 9%, to $47.5 million for the three months ended September 30, 2024, and decreased by$8.1 million, or 5%, year-to-date to $152.3 million[151] - Technology and development expenses decreased by$11.9 million, or 14%, to $72.4 million for the three months ended September 30, 2024, and decreased by$28.1 million, or 11%, year-to-date to $230.5 million[152] - Research and development costs were$22.4 million for the three months ended September 30, 2024, down from $31.8 million in the same period of 2023, and totaled$69.5 million year-to-date compared to $95.4 million in 2023[153] - General and administrative expenses decreased by$1.5 million, or 1%, to $114.2 million for the three months ended September 30, 2024, and decreased by$20.2 million, or 6%, year-to-date to $335.5 million[154] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was$207.8 million, a decrease from $219.9 million in the same period of 2023, primarily due to higher incentive compensation payments[177] - Total cash and cash equivalents as of September 30, 2024, amounted to$1,243.9 million, indicating sufficient liquidity to meet working capital and capital expenditure needs for at least the next 12 months[174] - Free cash flow for the nine months ended September 30, 2024, was $113.4 million, compared to$100.1 million for the same period in 2023, driven by decreases in capitalized expenditures and software development costs[181] - Cash used in investing activities was $94.4 million for the nine months ended September 30, 2024, down from$119.8 million in the same period of 2023, primarily related to capitalized software development costs[179] - Cash provided by financing activities for the nine months ended September 30, 2024, was $6.3 million, a decrease from$12.6 million in the same period of 2023, reflecting lower proceeds from the employee stock purchase plan[180] Impairment and Goodwill - A $790.0 million non-deductible, non-cash goodwill impairment charge was recorded for the three months ended June 30, 2024[134] - A non-cash goodwill impairment charge of$790.0 million was recorded for the nine months ended September 30, 2024[156] Interest and Debt - Interest income increased to $15.3 million for the three months ended September 30, 2024, compared to$12.6 million for the same period in 2023, driven by higher interest rate yields[164] - The company had outstanding convertible notes totaling $550.7 million due within the next 12 months as of September 30, 2024, and was in compliance with all debt covenants[175] - A 1$12 million in interest income generated from cash and cash equivalents over the next 12 months[182] Customer Concentration - Revenue from the five largest customers accounted for 31% of total Integrated Care segment revenue for the nine months ended September 30, 2024[186] Future Financing - The company may seek additional equity or debt financing in the future to fund working capital, capital expenditures, and acquisitions, which could affect its financial condition[174]