8-K - TDOC - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OFTHE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) November 18,2021

Teladoc Health, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-37477	04-3705970
(State or other jurisdiction<br> of incorporation)	(Commission<br> File Number)	(I.R.S. Employer<br> Identification No.)
2 Manhattanville Road, Suite 203<br> Purchase, New York	10577
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(Address of Principal Executive Offices)	(Zip Code)

(203) 635-2002

Registrant’s telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	TDOC	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 7.01. Regulation FD.

As previously announced, on November 18, 2021, Teladoc Health, Inc. (the “Company”) will host an investor day (the “Investor Day”), beginning at 10:00 a.m. Eastern Time. A copy of the materials to be presented by the Company at the Investor Day is furnished herewith as Exhibit 99.1. There will be a live audio webcast of the Investor Day accessible via the Company’s Investor Relations website at http://ir.teladoc.com.

The information in this Item 7.01 and Exhibit 99.1 is furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Teladoc Health, Inc. slide presentation, dated November 18, 2021.
104	The cover page of this Current Report on Form 8-K formatted as Inline XBRL.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 18, 2021	TELADOC HEALTH, INC.
	By:	/s/ Adam C. Vandervoort
	Name:	Adam C. Vandervoort
	Title:	Chief Legal Officer

Exhibit 99.1

This presentation contains, and our officers may make, “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently<br>available to management. These forward-looking statements include, without limitation, information concerning possible or assumed future results of operations, including descriptions<br>of our business plan and strategies. These statements often include words such as ‘‘anticipate,’’ ‘‘expect,’’ ‘‘suggest,’’ ‘‘plan,’’ ‘‘believe,’’ ‘‘intend,’’ ‘‘estimate,’’ ‘‘target,’’ “outlook,”<br> ‘‘project,’’ ‘‘should,’’ ‘‘could,’’ ‘‘would,’’ ‘‘may,’’ ‘‘will,’’ ‘‘forecast,’’ and other similar expressions.<br>Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially<br>different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These statements are based on certain assumptions that we<br>have made in light of our experience in the industry and our perception of historical trends, current conditions, expected future developments, and other factors we believe are<br>appropriate under the circumstances as of the date hereof. These and other important factors may cause our actual results, performance, or achievements to differ materially from<br>those expressed or implied by these forward-looking statements. Such risks and other factors that may impact management’s beliefs and assumptions are more particularly described<br>in our filings with the U.S. Securities and Exchange Commission (the “SEC”), including under “Item 1A.—Risk Factors” in our Annual Report on Form 10-K for the year ended<br>December 31, 2020, and under similar headings in our subsequently filed Quarterly Reports on Form 10-Q, and could cause our results to differ materially from those expressed in<br>forward-looking statements. As a result, we cannot guarantee future results, outcomes, levels of activity, performance, developments, or achievements, and there can be no<br>assurance that our expectations, intentions, anticipations, beliefs, or projections will result or be achieved or accomplished. The forward-looking statements in this presentation are<br>made only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ<br>materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.<br>This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This<br>data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates.<br>This presentation may include certain non-GAAP financial measures as defined by SEC rules. We believe that the presentation of such non-GAAP financial measures enhances an<br>investor's understanding of our financial performance. We use certain non-GAAP financial measures for business planning purposes and in measuring our performance relative to<br>that of our competitors. For additional information regarding these non-GAAP financial measures, including reconciliations to the most directly comparable financial measure<br>calculated according to GAAP, refer to the appendix to this presentation. We have not reconciled Adjusted EBITDA guidance to U.S. GAAP net income (loss) because we do not<br>provide guidance on the individual reconciling items between Adjusted EBITDA and U.S. GAAP net income (loss) as a result of the uncertainty regarding, and the potential variability<br>of, the individual reconciling items, the effect of which may be significant. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding U.S. GAAP<br>measure is not available without unreasonable effort.
Our Vision for Whole-Person Care Jason Gorevic<br>Commercial Strategy Kelly Bliss<br>Delivering Whole-Person Care Dan Trencher<br>Pulling It All Together:<br>The Integrated Experience Donna Boyer<br>Product and Platform Enablement Claus Jensen,<br>PhD<br>Q&A<br>BetterHelp’s Playbook for Growth Alon Matas<br>Winning With Consumers:<br>The Forefront of Engagement<br>Stephany<br>Verstraete<br>Financial Outlook Mala Murthy<br>Closing Remarks and Q&A
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Our Vision for<br>Whole-Person Care<br>Jason Gorevic<br>4<br>Chief Executive Officer
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Member Story
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Virtual care industry leader in scale,<br>clinical breadth and outcomes<br>Differentiated combination of digital and<br>physician-led services and assets<br>Industry’s only complete whole-<br>person virtual care suite<br>Multi-channel network: leading<br>brand across payer + provider +<br>DTC, with global footprint<br>Durable business model with strong<br>financial performance<br>Uniquely positioned to deliver data-<br>driven stepped care, creating better<br>outcomes at lower cost
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transforming the healthcare experience<br>OUR MISSION<br>7
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WHO WE ARE<br>The global leader in<br>whole-person virtual care,
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9<br>1. Includes U.S. paid members and visit fee only access<br>2. Teladoc Health Medical Group<br>3. Includes Platform Enabled Sessions<br>4. Reflects net promoter score across Teladoc Health products and services<br>76M<br>Members1<br>12K+<br>Clients<br>60+<br>NPS4<br>10K<br>Providers2<br>18M+<br>Estimated 2021 Visits / Sessions3<br>#1<br>In App Downloads<br>#1<br>JD Power<br>800K<br>Connected Devices<br>2B<br>Data Points<br>5K<br>Employees
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Sources: Piper Sandler Dec 2020 Consumer Survey; KLAS Telehealth Performance 2020 report, McKinsey report, Teladoc company research<br>1. Telehealth claims volumes, compared to pre-Covid-19 levels (February 2020 = 1)<br>Market increasingly sees<br>virtual care as a first step for<br>healthcare<br>Consumers and clients<br>demand that virtual care<br>rises to the level of other<br>services…<br> …which requires a seamless<br>virtual care platform<br>delivering broad spectrum<br>of coordinated care<br>services<br>38X<br>growth in telehealth<br>usage since pre-pandemic1<br>of consumers say telehealth is<br>equal to or better than in-person<br>of consumers say they would<br>be interested in a virtual plan 60%<br>82%
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Chronic Care<br>Primary Care<br>Mental Health<br>Medicaid<br>Medicare<br>Dermatology<br>Hospital &<br>Health System Text-based<br>Mental Health Care<br>DTC Broker/SMB Market<br>B2B<br>Mental Health Care Caregiver<br>Expert Medical<br>Services<br>Device<br>Integration<br>Global Care<br>International<br>DTC Partner<br>Mental Health<br>Navigator<br>Back-<br>care<br>ML-Powered<br>Demand Planning<br>Chronic<br>Disease<br>Health<br>Assistant<br>Pediatrics<br>Canada<br>United<br>Kingdom<br>France<br>High Acuity<br>Telemedicine<br>Nutrition<br>Lab Testing<br>Virtual Medical<br>Care<br>Text/Chat<br>General Medical<br>Site-based<br>Telemedicine<br>Referrals / Navigation<br>2015 IPO<br>Market creator<br>2016 to 2020<br>Building the base and strong growth<br>2021 and beyond<br>Driving whole-person care<br>Stepped Care Mental Health<br>Diabetes & Hypertension<br>CKD<br>AI/ML Nudges<br>Device Integrations<br>Consultant Connect<br>International DTC<br>WHOLE-<br>PERSON<br>CARE<br>STRATEGY<br>Chronic Care<br>Virtual Medical Care<br>Mental Health Care<br>Primary360
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Evolution of<br>Products WHOLE-PERSON POINT SOLUTION<br>Evolution of<br>Business Model<br>FEE FOR SERVICE<br>VALUE/RISK BASED<br>PARTNER<br>VENDOR<br>Evolution of<br>Customer Relationship<br>AUDIO/VIDEO VISITS<br>INTEGRATED ECOSYSTEM PLATFORM<br>Evolution of<br>Technology & Connectivity<br>Today<br>Tomorrow<br>Yesterday
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Virtual Care<br>Competition<br>Today<br>Evolution of<br>Products<br>WHOLE<br>-<br>PERSON<br>POINT SOLUTION<br>Evolution of<br>Business Model<br>FEE FOR SERVICE VALUE/RISK BASED<br>PARTNER<br>VENDOR<br>Evolution of<br>Customer Relationship<br>AUDIO/VIDEO VISITS INTEGRATED ECOSYSTEM PLATFORM Evolution of<br>Technology & Connectivity<br>Today<br>Yesterday<br>Tomorrow
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Teladoc Health’s approach to<br>whole-person virtual care<br>addresses the shortcomings of<br>the physical delivery system.
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I have a<br>fever of<br>101.3<br>I need a<br>referral to a<br>cardiologist I want to easily<br>connect with my<br>doctor online<br>My doctor<br>told me to get<br>surgery—do I<br>need it?<br>I want a better<br>way to access<br>primary care<br>I want to lose<br>weight and have<br>more energy<br>My BP is out<br>of control… I<br>need help Stepped Care Model<br>Whole-Person Care that is Personalized, Convenient and Connected<br>15<br>I am stressed about<br>my relationship
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• Relationship-based, personalized<br>and longitudinal<br> • Better consumer experience<br> • Broad, integrated suite of virtual solutions<br> • Connected with physical delivery system<br> • Highly scalable platform<br> • Continuous monitoring, frequent<br>interactions and actionable insights<br> • Underpinned by robust data and analytics Distribution & engagement<br>Clinical expertise & experiences<br>Technology & data at scale<br>Chronic Care<br>Virtual Medical Care<br>Mental Health Care<br>WHOLE-<br>PERSON<br>CARE<br>STRATEGY<br>Accessed via multiple on-ramps
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Tech Enabled<br>Ops at Scale<br>Integrated Tech<br>Platform<br>Data Science,<br>AI, Constant<br>Learning<br>Surround Sound<br>Engagement<br>Innovative<br>Care Models<br>Value Added<br>Services<br>Client Provider<br>Enablement<br>Teladoc<br>Medical<br>Group<br>Powered by unified<br>technology, data and<br>platform capabilities<br>Multiple entry points to<br>ecosystem via complementary<br>and integrated clinical services<br>Extensive Teladoc network<br>and last mile physical<br>service partnerships<br>enable smart care<br>extensions DIGITAL<br>FRONT<br>DOOR
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Note: Competitor information represents assessment by Teladoc management based on internal analysis and estimates & other industry data.<br>Our Moat Teladoc<br>Health<br>Video<br>Conferencing<br>Platforms<br>CCM/MH<br>Point<br>Solutions<br>Traditional<br>Telehealth<br>Big<br>Tech<br>Hybrid<br>VPC<br>Players<br>National<br>Health<br>Plans<br>Clinical Expertise<br> & Experiences<br>One-to-many care delivery model <br>Whole-Person clinical scope<br>Best-in-class engagement, behavior change<br>Tech &<br>Data<br>Data and data science at scale<br>Purpose built virtual care platform<br>Distribution &<br>Engagement<br>Global leader across distribution channels<br>Leading, trusted consumer brands
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TDOC 2021E Revenue<br>McKinsey 2021 Market Revenue<br>TDOC Total Estimated Serviceable<br>Addressable Market (SAM)<br>TAM /<br>Total Health<br>Spending = 7%<br>Total US<br>healthcare<br>spending<br>$3.8T<br>Total US Healthcare<br>Spending<br>Sources: Company management estimates; McKinsey Telehealth: A quarter trillion-dollar post-COVID-19 reality? July 2021; CMS<br>$5.5B $5.5B<br>$2.0B<br>$261B<br>$140B<br>TDOC INCREMENTAL<br>PRIMARY CARE TAM<br>$121B<br>EXISTING<br>TDOC TAM
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Total<br>Market<br>New Members<br>Increased Revenue Per<br>Member<br>POWERED BY DIFFERENTIATING<br>ASSETS AND CAPABILITIES…<br>New<br>Clients<br>Covered Life<br>Penetration<br>at Clients<br>Product<br>Penetration<br>Engagement<br>/ Enrollment<br>Distribution<br> & Engagement<br>Clinical Expertise &<br>Experiences<br>Technology & Data<br>at Scale
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Note: Non-member covered lives for CCM/mS based on overlap analysis of CCM/mS membership and membership of other Teladoc programs, and typical eligibility and enrollment rates for CCM/mS programs<br>Source: AIS, Health Affairs<br>2021 estimated Teladoc covered lives vs. estimated 298M total U.S. insured lives (millions)<br> • Teladoc paid and visit-fee-<br>only members total ~76M<br>insured lives<br> • Additional ~16M insured<br>lives in populations with<br>access to Chronic Condition<br>Management (CCM) and/or<br>myStrength (mS) but not<br>other Teladoc programs<br> • ~63M additional lives in<br>existing clients not currently<br>covered for any Teladoc<br>programs<br>76<br>16<br>63<br>92<br>51<br>92M<br>~31% of insured<br>lives in the U.S.<br>have access to a<br>TDOC product<br>Current Teladoc “members”<br>Lives offered CCM/mS but<br>not enrolled<br>Potential new populations<br>within existing clients<br>Managed Care Organization<br>(MCO) lives outside existing<br>clients<br>Medicare & Medicaid Fee-<br>for-Service (FFS) lives
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Notes:<br>Abbreviations: CCM – Chronic Condition Management, D – Diabetes, PD – Prediabetes, HTN – Hypertension, WM – Weight Management<br> “Total eligible participants” determination: Total eligible based on expected clinical prevalence of underlying mental health needs for myStrength Complete, prevalence of targeted chronic conditions for CCM, and expected % of individuals without strong PCP relationship for Primary360<br> “Average total revenue per participating member per month determination: Expected total subscription and visit revenue denominated by total members participating in / enrolling in the product<br>Range of total revenue<br>per participating member<br>per month<br>$25-$40 $30-$40 $50-$110 $30-$65<br>Total revenue implied if 100% participation across 92M members $75B – $137B<br>Total revenue per member per month if 100% participation across 92M members $68 – $123<br>75<br>51 47<br>19<br>0<br>20<br>40<br>60<br>80<br>100<br>Primary360 myStrength Complete CCM - D, PD, or HTN CCM - WM<br>(excl. D-PD-HTN)<br>Total Potential Participants (Lives, Millions)<br>Estimated 92M lives with access to a Teladoc product today<br>92M
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1. Includes all global other B2B2C telemedicine services and telemedicine software and hardware licensing for providers<br>2. Excludes myStrength Complete and other legacy Livongo mental health products<br>% of 2021 expected<br>revenue<br>Target 2021-2024<br>CAGR<br>Virtual medical care (including primary care)1 ~35% 10-20%<br>Mental health care (B2B and DTC) ~40% 30-40%<br>Chronic condition care2 ~25% 25-35%<br>CONSOLIDATED GROWTH 25-30%
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Multiple levers to deliver<br>sustainable, long-term<br>growth and value<br>creation via our<br>integrated model<br>24 Teladoc Health, Inc Investor Day 2021<br>Target 2021-2024<br>Revenue CAGR 25-30%<br>FY 2022 Preliminary<br>Revenue Outlook ~$2.6B<br>FY 2024<br>Revenue Target >$4B
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25<br>Opportunity<br>Vision<br>Strategy<br>Capabilities
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Commercial Strategy<br>26<br>Kelly Bliss<br>President, U.S. Group Health
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CHANNEL PARTNERS B2B DIRECT CHANNEL DTC CHANNEL<br>Health plans<br> & government<br>Global insurers<br> & financial services Employers Hospitals & health<br>systems<br>Direct to<br>consumer<br> • Self Insured<br> • Fully Insured<br> • ACO<br> • Government Markets<br>(U.S. and Global)<br> • Life, P&C, disability,<br>group, specialty<br> • All sizes, all industries<br> • Fortune 500<br> • SMB<br> • Health systems<br> • Providers<br> • IDNs<br> • BetterHelp<br> • Partnerships with Telefonica<br>(Spain) and Vivo (Brazil)<br> >100 >150 >50% >11,000 Category leading virtual care<br>products for consumers<br>U.S. health<br>plan clients<br>global insurers &<br>financial services<br>firms<br>of Fortune<br>500<br>care<br>locations
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80%<br>of Employers believe<br>virtual care will have a<br>significant impact on<br>how care is delivered in<br>the future<br>Sources: Business Group on Health. 2021 Large Employers’ Health Care Strategy and Plan Design Survey. August 2020; Teladoc Health Client Satisfaction Survey, 2021<br>99%<br>of Employers intend to<br>maintain or increase<br>their level of<br>investment in virtual<br>care in the coming year<br>80%<br>of our Clients view<br>us as a strategic<br>partner vs. a vendor<br>20%<br>of our Clients believe<br>they have a well-<br>defined virtual care<br>strategy
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INCREASING VALUE OF VIRTUAL CARE<br>Early stages of developing virtual care strategy; testing use and viability of solutions and providers<br>Virtual care seen as a benefit to drive differentiation<br>D<br>eveloped<br>virtual care<br>strategy that recognizes differentiation and cost savings benefits<br>Offers a Virtual<br>-<br>First<br>Health<br>option with<br>embedded virtual medical care that connects virtual and in<br>-<br>person care<br>Virtual<br>-<br>First is core to<br>benefits strategy with widespread adoption and utilization of seamlessly integrated products and services<br>INCREASING LEVELS OF MATURITY
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Omni-Channel Sales Acceleration
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Clients Migrating<br>from Point Solutions<br>to Strategic Partners<br>Market-Defining<br>Partnerships<br>Cross-Sell Thesis<br>from Livongo Merger<br>Being Realized<br>Omni-Channel Sales Acceleration
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Gen Med Suite Chronic Condition<br>Management Suite Mental Health Care Primary Care<br>Commercial Fully<br>Insured<br>Commercial<br>Administrative<br>Services Only<br>Medicare Advantage<br>Managed Medicaid<br>Lines of Business<br>Products<br>Illustrative Coverage Map for an Existing Health Plan Partner Three opportunities to<br>achieve deeper penetration<br>within existing customers<br>Add Lines of Business<br>Sell additional products within<br>existing Lines of Business<br>Grow utilization via best-in-<br>class engagement and<br>enrollment mechanisms<br> > 50% > 50%<br> > 50% < 50% > 50% < 50%<br> > 50%<br> < 50%<br>Omni-Channel Sales Acceleration
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Health Plan<br>Carriers<br>Fully Insured<br>ACA Exchange<br>Benefit<br>Consultants<br>Direct to<br>Employer<br> • Partner with health plan<br>carriers to make P360<br>available to self-funded<br>employers nationally<br> • Assisting Exchange partners offer<br>new “Virtual-First” Benefit Designs<br>to attract members on the ACA<br>exchange<br> • Distribution agreements and<br>partnerships with leading Benefit<br>Consultants for unique Employer<br>focused offering<br> • Selling standardized model to<br>large/mid market self-insured<br>employer<br> • Unique features: claims-based<br>targeting, dedicated account<br>management, custom reporting<br>Omni-Channel Sales Acceleration
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1. For Diabetes<br>Partnership expansion across products<br>46,000 eligible lives<br>2019<br>Launched with<br>Livongo’s Diabetes solution<br>2021<br>Added General Medical, Nutrition,<br>Dermatology, Mental Health and Expert<br>Medical Opinions<br>2020<br>Supplemented with Hypertension<br>and Diabetes Prevention<br>Chronic Condition solutions<br>2022<br>Launching Primary360 and<br>additional Chronic Condition<br>bundles<br>Enrollment<br>31%<br>Client NPS<br>+71<br>Medical Cost Reduction1<br>19%<br>($91 Per Consumer Per Month Savings)<br>Diabetes ROI<br>1.9x<br>Expert Medical Opinions ROI<br>$1.25 : $1<br>Case Study: Leading National Retailer<br>Whole-Person Multi-Product Penetration
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Single Condition Account (Equivalent<br>Enrollment Rates) Multi-Product Account<br>6%<br>Diabetes<br>Eligibility 44%<br>Across Co-morbidities<br>$70 Per Participant Per Month<br>(PPPM) $951<br>~ $130K Annual Recurring Revenue<br>(ARR) ~ $527K<br>1. Pricing for Diabetes focused Chronic Care bundle; includes Mental Health and Weight Management solutions<br>Illustrative economics on Single Chronic Condition and Multi-Product Chronic Condition relationships<br>(Employer with 10,000 employees)<br>4.1x more Revenue from Multi-Product vs. Single Condition for illustrative<br>Chronic Condition-Mental Health Care integrated bundle<br>Whole-Person Multi-Product Penetration
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Broad Product<br>Portfolio Scale Strong Track<br>Record<br>Best-in-Class<br>Analytics<br>Breadth and depth of<br>virtual medical care, chronic<br>care and mental health care<br>solutions equipped to drive<br>value-aligned outcomes<br>Strong toehold into value-<br>based lines of business via<br>large footprint provides<br>competitive advantage<br>Size and strength of balance<br>sheet allows us to take on<br>outcome-focused contracts at<br>scale vs. competitors<br>Proven clinical quality and<br>medical cost outcomes<br>Unparalleled experience in<br>Telehealth (20 years) and<br>Chronic Condition<br>Management (8 years)<br>Largest cohort in CCM<br>(725k+) with 237.3M Blood<br>Glucose checks, 12.7M Blood<br>Pressure readings and 20.8M<br>Weight readings<br>Enables segmentation and<br>personalization to drive<br>results<br>Combination of clinical data<br>linked to claims data for<br>unique insights<br>Multiple peer-reviewed<br>publications on results and<br>outcomes<br>Value-Based Arrangements
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INCREMENTAL REVENUE POTENTIAL<br>Unlocks New Markets<br>Increases addressable market via<br>greater access to channels and deeper<br>penetration of existing lines of business<br>Grows Membership and<br>Revenue per User<br>Expansion as products are tailored to<br>members’ care needs and risk profiles<br>Extends Market<br>Leadership<br>Widens category lead by<br>demonstrating new paradigm of<br>virtual care that is value-aligned<br>Fee for Service Pay for Performance Partial Capitation Capitated Whole-<br>Person Care<br>Enrollment-based fees / access +<br>visit fees<br>Enhanced subscription model +<br>outcome-based fees<br>Percentage of fees at risk for<br>chronic care and virtual medical<br>care<br>Capitated payments for virtual<br>medical care, chronic condition<br>management and mental health<br>care services<br>LOW HIGH<br>Value-aligned for clients and members<br>Uniquely suited to deliver as market moves towards outcome-based arrangements<br>Value-Based Arrangements
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Clients Recognize the Value of Teladoc Health
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Proven global<br>presence at scale<br>C-Suite level<br>strategic<br>partnerships<br>industry-wide<br>Demonstrated<br>results for<br>clients<br>Commercial<br>agility<br>Operational<br>excellence and<br>integrity<br>Growth<br>39
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Key<br>Takeaways<br> • Global, multi-channel distribution network and client footprint<br>position Teladoc to capture market whitespace<br> • Proven ability to drive outcomes and cost savings positions us<br>to succeed in value-aligned arrangements, add new members<br>and expand revenue per member<br> • Confident in our ability to continue to lead the market as the<br>healthcare system evolves towards virtual-first and Whole-<br>Person strategies<br>40
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Delivering<br>Whole-Person Care<br>Dan Trencher<br>41<br>Senior Vice President, Corporate Strategy
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Chronic Care<br>Virtual Medical Care<br>Mental Health Care<br>WHOLE-PERSON<br>CARE<br>STRATEGY
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Sources: IBIS World Primary Care Doctors Industry in the US,2021; , KFF, Teladoc Health Commercial Claims Analysis, Annals of Family Medicine<br>1. Calculated $160B TAM = $250B Total US Primary Care Spend x 80% Virtualizable x 80% of working age adults without strong PCP relationship<br>$250B<br>$160B<br>$20B<br>Total U.S. Primary<br>Care Spend<br>TDOC Primary<br>Care TAM1<br>TDOC General<br>Medical TAM<br>4 out of 5<br>working age adults do not have a<br>strong relationship with a PCP<br>20-25%<br>potential savings if all Americans<br>had primary care relationship<br>1 out of 4<br>working age adults do not<br>have a PCP<br>Virtual<br>Medical<br>Care
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Unified, whole-person<br>experience<br>One virtual front door for a full<br>spectrum of needs - wellness,<br>condition management, mental<br>health care, specialty care and<br>beyond<br>Dedicated care team<br>A dedicated support team —PCP,<br>RN, MA, surrounds each member<br>with a ‘virtual practice’ to keep<br>member on track<br>Longitudinal care plans<br>A personalized care plan that flexes over<br>time, engages members in a longitudinal<br>relationship with their care team<br>Continuous guidance & support<br>24/7 access, ongoing guidance, unlimited messaging,<br>reminders and health nudges empowers members<br>and keeps them engaged<br>Navigation and coordination<br>with high-quality providers<br>Concierge-level service connects members to<br>in-network, high-quality specialty providers and additional<br>programs<br>Integrated data<br>enables care<br>continuity — virtually<br>and in-person<br>Data integration with Teladoc Health<br>programs, devices, claims,<br>community providers and existing<br>client services creates<br>comprehensive, actionable patient<br>views.<br>Last mile services<br>Set of devices, digital tools and healthcare<br>services that enable physical care to be<br>conveniently delivered at home<br>Virtual<br>Medical<br>Care
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Utilize combination of<br>in-home services and<br>brick & mortar<br>partnerships (e.g., retail<br>clinics) to deliver:<br>Vitals<br>Measure, monitor and record blood<br>pressure and heart rate from the home<br>Labs<br>At-home test kits and phlebotomy services<br>Prescriptions<br>Home delivery, mail order and retail options<br>Vaccinations<br>At-home common vaccinations +<br>via retail clinics<br>Imaging & Screenings<br>Preventive screenings through<br>trusted partners<br>Home<br>Lab<br>Pharmacy<br>Office<br>Clinic<br>Virtual<br>Medical<br>Care
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Percentages represent primary care patients who can benefit from indicated service, based on management analysis of single year of population claims data<br>Primary<br>Care<br>Patients<br>General Medical<br>Chronic Conditions<br>Mental Health Care<br>Nutrition<br>Expert Medical Services<br>Dermatology<br>59%<br>33%<br>31%<br>24%<br>27%<br>30%<br>Virtual<br>Medical<br>Care
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Source: internal company analysis<br>1. Includes high blood pressure, depression and tobacco usage<br> <1 Week<br>for new patient visits<br>nationwide<br>~25%<br>of those with Diabetes and Hypertension<br>were newly diagnosed1<br>10+<br>care team interactions<br>a year<br> >50%<br>of participants have used at least<br>one other Teladoc service<br> >95%<br>member satisfaction<br>90%+<br>clinical performance on<br>preventive screenings and<br>follow-ups (Depression,<br>Tobacco, BMI)<br>Virtual<br>Medical<br>Care
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TEXT-BASED TRADITIONAL<br>PURE-PLAY HYBRID Teladoc<br>On-Demand Care Needs<br>High Quality Longitudinal Care<br>In-Network Referrals and Coordinated Care<br>Highly Scalable Across Any Client Footprint<br>Clinical Mental Health Support<br>Robust Digital Chronic Condition Mgmt.<br>Network of Top Specialists for Clinical Support<br>All-in-one Member Facing Platform Providing<br>Superior Consumer Experience<br>Virtual<br>Medical<br>Care<br>Note: Competitor information represents assessment by Teladoc management based on internal analysis and estimates & other industry data.
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Mental Health Care:<br>Delivering a Winning<br>Model for Enterprise<br>Clients<br>49
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#1<br>Driver of<br>Disability5<br>$1T+<br>Global Economic<br>Productivity Impact4<br>receive<br>no care2<br>Addressable U.S. Virtual<br>Mental Health TAM<br>Diabetes +<br>Hypertension +<br>Mental Health<br>22x<br>No Chronic<br>Conditions<br>6x<br>Diabetes<br>5x<br>Mental<br>Health<br>Annual Direct<br>Medical Costs Per Person3<br>6-7x<br>12x Inpatient<br>Hospitalizations<br>Office Visits<br>Indirect Costs<br>1. Company management estimates<br>2. WHO: https://www.who.int/teams/mental-health-and-substance-use/promotion-prevention/mental-health-in-the-workplace<br>3. Internal company analysis<br>4. https://www.nimh.nih.gov/health/statistics/mental-illness<br>5. https://www.cdc.gov/genomics/resources/diseases/mental.htm - for ages 15-44<br>Mental<br>Health<br>Care
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Intelligent personalization drives stepped care<br>Full spectrum of mental health care covers needs<br>across entire population<br>Iterate<br>3<br>Assess<br>1<br>Plan<br>2<br>Primary<br>Care<br>Chronic Care<br>Virtual Medical Care<br>Mental Health Care<br>WHOLE-<br>PERSON<br>CARE<br>STRATEGY<br>of consumers prefer a single unified experience for management of mental and physical health1 78%<br>1. Teladoc Mental Health Survey, May 2021<br>Mental<br>Health<br>Care
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Structured digital courses<br>Recommended digital content<br>In-the-moment tools (including crisis referrals)<br>Digital Programs<br>Telecoaching<br>Crisis outreach<br>Engagement guidance<br>Remote Care<br>Remote<br>Licensed Care<br>Telepsychiatry<br>Teletherapy<br>Lower clinical visit costs<br>Greater access<br>Visit replacement<br>ER Avoidance<br>Engagement<br>Visit avoidance<br>Preventive care<br>CLIENT VALUE<br>Employee Productivity<br>Mental<br>Health<br>Care<br>34%<br>1. Teladoc analysis of patient reported symptoms after 4th visit
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Transforming<br>Chronic Care Through<br>an Integrated<br>Data-Driven Experience<br>53
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Source for chart: Internal company analysis data<br>1. CDC - https://www.cdc.gov/chronicdisease/tools/infographics.htm<br>2. Internal company analysis<br>6 of 10 $47B 40% Americans living with two or<br>more chronic conditions1<br>TAM from only<br>Diabetes and Hypertension<br>Americans with chronic<br>conditions1<br>DYSLIPIDEMIA<br>HYPERTENSION<br>DIABETES<br>PREDIABETES<br>WEIGHT<br>MENTAL<br>HEALTH Annual cost<br>per person<br>3 2 Number of<br>conditions 0<br>No<br>conditions<br>Hypertension<br>only<br>Diabetes<br>only<br>Prediabetes +<br>Mental Health<br>Diabetes +<br>Hypertension<br>Diabetes +<br>Hypertension +<br>Mental Health<br>$1,600 $4,700 $6,600<br>$9,100 $10,300<br>$18,100<br>$34,800<br>Prediabetes<br>only<br>1<br>Chronic<br>Care<br>2
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1. Offered through myStrength Complete programs<br>Diabetes<br>solution<br>Prediabetes<br>solution<br>Cardiovascular<br>solution<br>Target population<br>(anchor condition)<br>People with diabetes People with prediabetes People with hypertension<br>Additional areas<br>of support<br>(based on individual<br>member need)<br> • Hypertension<br> • Dyslipidemia<br> • Weight Management<br> • Mental Health1<br> • Hypertension<br> • Dyslipidemia<br> • Weight Management<br> • Mental Health1<br> • Dyslipidemia<br> • Weight Management<br> • Mental Health1<br>Differentiators<br>Effortless Data<br>Collection<br>Apps and cellular devices<br>per conditions covered<br>Personalized Health<br>Signals<br>Lifestyle change, medication<br>adherence, emotional support<br>Human-Centered<br>Approach<br>Digital, expert coaching and<br>physician support adapts to<br>Member needs<br>Proven Outcomes and<br>ROI<br>Measurable sustained clinical<br>improvements, claims,<br>savings<br>Chronic<br>Care
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Medical adherence<br>Behavior tracking<br>Biometrics<br>Remote Monitoring<br>Acute outreach<br>Telecoaching<br>Nudges and action plans<br>Coaching<br>Licensed Care<br>Specialty referral<br>Medication optimization<br>Care navigation<br>Increase access<br>Improve condition<br>management<br>ER Avoidance<br>Optimize utilization of<br>licensed care<br>Engagement<br>Population management<br>Self-management<br>Education<br>CLIENT VALUE<br>$87<br>Chronic<br>Care<br>Labs and screenings<br>$195<br>Source: Internal company analysis of client claims data
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Chronic<br>Care<br>Product Innovation New Conditions Expanded Markets<br>and Use Cases<br> • Chronic Care Complete stepped care<br>model<br> • Continuous Glucose Monitoring<br>integration<br> • Labs, Rx management<br> • Device expansion<br> • Gaps in Care / HEDIS<br> • Continuous RPM<br> • CKD, Heart Failure<br> • Potential new conditions – e.g.<br>o MSK<br>o Respiratory<br>o Cancer<br> • Hospitals & Health Systems for<br>Chronic Patient Management, Post-<br>Acute, Hospital @ Home<br> • International / National Health<br>Systems
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• Three key components of our Whole-Person strategy –<br>Virtual Medical Care, Chronic Care Management and<br>Mental Health Care<br> • Each addresses large markets with differentiated offerings,<br>is underpinned by data, data science and personalization<br>and drives proven outcomes and ROI<br> • Medical conditions do not occur in isolation – our broad,<br>integrated solutions reinforce each other to drive broader<br>engagement<br> • Teladoc is the only company that can deliver integrated<br>primary care across the care continuum at scale<br>Key<br>Takeaways<br>58
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Pulling It All Together:<br>The Integrated<br>Experience<br>Donna Boyer<br>59<br>Chief Product Officer
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• Bringing together Virtual Medical Care, Mental Health Care<br>and Chronic Care in one easy, integrated consumer<br>experience<br> • Data science and behavioral science are woven in<br>throughout the experience to create a personalized<br>experience that drives relevancy, trust and ongoing<br>engagement<br> • Within this Whole-Person experience, stepped care<br>matches members to the right intervention at the right time,<br>whether it’s digital content, remote monitoring, coaching or<br>licensed care<br>Key<br>Takeaways<br>60
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Product and Platform<br>Enablement<br>Claus Jensen, PhD<br>61<br>Chief Innovation Officer
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To solve a new category of problem,<br>we uniquely fuse<br> •<br> •<br> •<br> •<br>Behavioral<br>Science<br>Clinical<br>Science<br>Logistics<br>Science<br>Technology<br>Science
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Behavioral<br>Science<br>Clinical<br>Science<br>Logistics<br>Science<br>Technology<br>Science<br>We have an unparalleled team<br>delivering on this promise
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Rx Data<br>Clinical & Coaching<br>Interactions<br>Self-Reported<br>Health Data<br>Claims<br>Data<br>Non-Clinical<br>Interactions<br>Public Data<br>Exchanges<br>Lifetime<br>Clinical<br>Truth<br>Lab Results<br>Eligibility Data<br>Device<br>readings<br>The scale and scope of the data<br> ✓ >2 billion health & engagement data points of<br>which >60% are proprietary<br> ✓ Thousands of digital and virtual interactions<br>for a single individual<br>The complexity of the problem<br> ✓ Connect every data point without being given<br>a definitive individual ID<br> ✓ Apply deep clinical and data science<br>expertise to understand the data<br> ✓ Synthesize clinically meaningful data<br>interpretations for decision support<br>Clinical<br>Science
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(Very Rich)<br>Diverse Data<br>Sources<br>Actionable<br>Insight<br>Measurable<br>Outcomes<br>Member and<br>Clinician<br>Decisions<br>Applied Health Signal Examples<br>Referral to Mental Health or Chronic Condition Management program<br>Sophisticated matching of patients and appropriate providers<br>Referral to expert (Teladoc Health network)<br>Propensity to take a specific action (including step-care level to<br>propose)<br>Research target: likely magnitude of positive health impact<br>Research target: predicted risk of a chronic condition<br>22 Million Nudges + 1 Million Clinical Signals delivered<br>Lifetime Clinical Truth<br>Behavioral<br>Science
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Clinician<br>Health<br>Consumer<br>Client<br>Global ID<br>Data Fabric<br>Differentiated value through<br> • Selective solutions clients want to<br>buy<br> • Integrated capabilities care teams<br>need<br> • Services and experiences consumers<br>want to use<br>Technology<br>Science
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Clients<br>Teladoc Health<br>(& Partner) Assets<br>Members<br>Clinical<br>Services<br>Technology<br>Services<br>Access and freedom of choice<br>Client Assets<br>Powered by Teladoc Health<br>Products and eligibility (per client)<br>Integration, APIs and SDKs (per client)<br>Referral management (per client)<br>Monitoring devices (per person)<br>Family and care givers (per person)<br>Appointments, medications and labs (per person)<br>Care Teams<br>Credentialing and licensing (per network)<br>Queue management (per visit type)<br>Hardware device management (per locale)<br>Logistics<br>Science
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Changing<br>Consumer Behavior<br>Managing Clinical<br>Resources at Scale<br>Addressing<br> “The Last Mile”<br> • Unified Consumer experience<br> • Chronic Conditions and<br>Mental Health Complete<br> • Primary360<br> • Analytically driven<br>engagement<br> • Virtual waiting room<br>management<br> • Device fleet management<br> • Analytically driven triage<br> • Integrated provider networks<br> • Expert access and steerage<br> • Unified Clinician experience<br> • Lab and Med Management<br> • Remote patient monitoring<br> • At-home care integration<br>Examples
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Accelerate Value-Based Whole-Person Care<br> • Expansion of value-based deal execution and management<br> • Maintaining clinical program quality and expanding clinical product differentiation<br> • Expand integrated provider network capabilities that enable client providers on our platform<br>Create Unique Value in Primary Care<br> • P360 products and capabilities<br> • Screenings and Specialty Care Access as integral parts of care plans<br> •‘Last-mile’ integration, remote monitoring and at-home care<br>Deploy Integration Platforms<br> • Consumer Global ID and Global Profile<br> • Omni-channel integrated consumer apps<br> • Unified Data Fabric driving data integration and sharing<br>Create seamless member experiences and<br>data-sharing<br>Build a unique primary care platform that<br>drives referrals and holistic care plans<br>Extend clinical & logistical science<br>differentiation and efficacy<br>Unlock new and under-penetrated markets<br>Expand Total Addressable Market<br> • International deployment of CCM and MH products<br> • Medicare Advantage adaption of products (multi-year)<br> • Health Systems as member enrollment channels
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Virtual Medical<br>Care General Medical virtual visits Primary360 Full ‘last-mile’ integration<br>Mental Health<br>Care Mental health care virtual visits MyStrength Complete Chronic and Mental Complete<br>Chronic Care Individual chronic condition<br>programs<br>Step-care chronic condition<br>management Chronic and Mental Complete<br>PHASE 3<br>NextGen Whole-Person<br>PHASE 2<br>Market Acceleration<br>PHASE 1<br>Early Days<br>Value per person increasing dramatically
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• The right vision and approach to define and deliver the “next<br>normal” whole-person care model<br> • Best fully integrated team across the five sciences needed<br> • Already well down the path to a single fully integrated<br>platform and experience<br> • Uniquely positioned to deliver cohesively the different<br>capabilities desired by health plans, employers, health<br>systems, clinicians and consumers<br> • Best at-scale logistics in virtual care<br> • We know how to execute and make it all real<br> • We will continue to lead, driving opportunity and growth<br>Key<br>Takeaways<br>71
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Q&A<br>72
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BetterHelp’s<br>Playbook for Growth<br>Alon Matas<br>President, BetterHelp<br>73
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Monthly paying consumers is number of consumers who paid for therapy in a month, shown here by EOY figures. Therapists providing services is the number of licensed therapists who provided services through the platform in a calendar year timeframe.<br>Competitors’ data is derived from public disclosures, credit card payments data sources, and Company’s estimates.<br>Monthly Consumers Paying for Therapy<br> -<br> 50,000<br> 100,000<br> 150,000<br> 200,000<br> 250,000<br> 300,000<br> 350,000<br> 400,000<br>2017 2018 2019 2020 2021 (E)<br>Competitor #1<br>Competitor #2
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0<br>5,000<br>10,000<br>15,000<br>20,000<br>25,000<br>Competitor #1<br>Competitor #2<br>Monthly Consumers Paying for Therapy Therapists Who Provided Services in 2021<br> -<br> 50,000<br> 100,000<br> 150,000<br> 200,000<br> 250,000<br> 300,000<br> 350,000<br> 400,000<br>2017 2018 2019 2020 2021 (E)<br>Competitor #1<br>Competitor #2<br>Monthly paying consumers is number of consumers who paid for therapy in a month, shown here by EOY figures. Therapists providing services is the number of licensed therapists who provided services through the platform in a calendar year timeframe.<br>Competitors’ data is derived from public disclosures, credit card payments data sources, and Company’s estimates.
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Data<br>Science<br>Stamoulos, C., Trepanier, L., Bourkas, S., Bradley, S., Stelmaszczyk, K., Schwartzman, D., & Drapeau, M. (2016). Psychologists’ perceptions of the importance of common factors in psychotherapy for successful treatment outcomes. Journal of Psychotherapy Integration, 26(3), 300–317.<br>therapist-member<br>interactions<br>(unparalleled to any other platform)<br>150M+<br>20K+<br>active providers<br>(7X larger than closest competitor)
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D. Zimmermann, Therapist Effects on Attrition in Psychotherapy Outpatients https://link.springer.com/book/10.1007/978-3-658-08385-4#toc<br>86%<br>of our members continue<br>after their first session<br>(compared to industry standard of 80% or less)<br>79%<br>of our revenue is generated by<br>members who use BetterHelp for<br>three months or longer<br>~100K<br>people in 2021 returned after<br>pausing their membership
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2021 is an estimated extrapolation from payment and retention data of January to October<br>Revenue generated from a member in the first 12 months after joining<br>1.0x<br>1.1x<br>1.4x<br>1.6x<br>1.9x<br>2017 2018 2019 2020 2021
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Revenue / Advertising Customer Acquisition Cost (CAC) Ratio<br>0<br>0.5<br>1<br>1.5<br>2<br>2.5<br>3<br>2017 2018 2019 2020 2021 (E)
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Users who browsed BetterHelp.com or Regain.us and didn’t come from paid media<br>Each source<br> <25%<br>of members<br>Member acquisition sources<br>Top-of-mind<br>brand for online<br>therapy<br>Over 20M<br>ORGANIC<br>unique visitors<br>in 2021
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Member LTV<br>that gets better<br>with scale<br>(data insights, network,<br>innovation)<br>Advertising ROI<br>that gets better<br>with scale<br>(data, efficiency,<br>economies of scale,<br>brand recognition)
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https://www.nami.org/Support-Education/Publications-Reports/Public-Policy-Reports/Out-of-Network-Out-of-Pocket-Out-of-Options-The/Mental_Health_Parity2016.pdf<br>https://www.camft.org/Portals/0/PDFs/Demographic-surveys/2017/ClinicalSurvey.pdf?ver=2019-07-10-103433-993<br>42% 32% 48%
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Paying members from<br>100+<br>countries<br>Therapy provided in<br>26<br>languages<br>International sessions grew<br> >5X<br>in 24 months<br> >$100M<br>of revenue expected from non-<br>U.S. consumers in FY2021<br>85
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regardless of employment and<br>insurance<br>$45M<br>18 non-profit organizations<br>2,500 free months of therapy<br>thousands of volunteers<br>and frontliners<br>therapists<br>from underrepresented communities
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• Rapidly growing revenue and strong margins<br> • Undisputed leadership position<br> • Using scale to scale further<br> • Enormous untapped market that keeps expanding<br> • Equitable access with social impact<br>Key<br>Takeaways<br>87
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Winning With<br>Consumers:<br>The Forefront of<br>Engagement<br>Stephany Verstraete<br>88<br>Chief Marketing & Engagement Officer
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Early Adopters Early Mainstream<br># of Consumers<br>Late Mainstream<br>Accelerated<br>Mental Health Care<br>Urgent Care
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Early Adopters Early Mainstream<br># of Consumers<br>Late Mainstream<br>Mental Health Care<br>Urgent Care<br>Expanding<br>WHOLE-PERSON VIRTUAL CARE USAGE
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Deepening<br>Consumer<br>Relationships<br>91
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Multi-Service<br>1:1 Engagement lifecycle management<br>Personalized<br>engagement communications<br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br><br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br><br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br><br>Ongoing<br>Activity<br>ACTIVATION<br>AWARENESS &<br>REGISTRATION<br>REACTIVATE<br>LAPSED INACTIVITY<br>1st<br>Use<br>New service<br>path<br>ONBOARDING<br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br>
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Whole-Person Care<br>1:1 Engagement lifecycle management<br>Personalized<br>engagement communications<br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br><br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br><br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br><br>Ongoing<br>Activity<br>ACTIVATION<br>AWARENESS &<br>REGISTRATION<br>REACTIVATE<br>LAPSED INACTIVITY<br>1st<br>Use<br>New service<br>path<br>ONBOARDING<br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br>
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P360<br>1:1 Engagement lifecycle management<br>Personalized<br>engagement communications<br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br><br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br><br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br><br>Ongoing<br>Activity<br>ACTIVATION<br>AWARENESS &<br>REGISTRATION<br>REACTIVATE<br>LAPSED INACTIVITY<br>1st<br>Use<br>New service<br>path<br>ONBOARDING<br>Member<br>registers<br>WELCOME JOURNEY<br>Trigger:Registration<br>Goal:Get Members excited about their<br>Welcome Kit and provide shipping tracking<br>ACTIVATION JOURNEY<br>Trigger: Welcome Kit delivery<br>Goal:Drive first device use<br>1st device<br>use<br>Ongoing<br>activity<br>Email<br>Direct Mail<br>Text Message<br>Phone Call<br>FINAL<br>OUTREACH<br>Trigger: One month<br>prior to lapse<br>Goal:<br>Drive re-engagement INACTIVITY JOURNEY<br>Trigger: 10 days of inactivity<br>Goal:Drive re-engagement<br>ONBOARDING<br>JOURNEY<br>Trigger:First device use<br>Goal:Drive program<br>onboarding and habit<br>formation<br><br>
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Better reach<br>Qualified targeting for value-based contracts<br>Better experience<br>24% increase in engagement from at-risk population<br>Better yield<br>50% increase in visit requests amongst registered<br>telehealth members<br>Better cost efficiency<br>23% lower advertising cost in seasonal direct mail<br>Clinical<br>Interactions<br>3rd Party<br>Data<br>Engagement<br>Actions<br>Proprietary<br>Health Data
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Teladoc proprietary data<br>1. Represents all actions between members and Teladoc assets digital and human<br> •<br> •<br> •<br>484M<br> >14M<br>HEALTH<br>INTERACTIONS<br>VISITS<br>590M<br>TOTAL<br>INTERACTIONS1
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1. Teladoc Brand Study– June 2021<br>Consumer Insights Overview1<br>Consumers with<br>chronic conditions<br> & mental health<br>care needs say<br>Teladoc brand is<br>well positioned to<br>meet broad<br>spectrum of<br>healthcare needs<br>Unlocking the Potential of<br>Virtual<br>PRIMARY<br>CARE<br>MULTI-<br>SERVICE<br>USAGE<br> &<br>Effective,<br>trusted care<br>top driver of<br>usage;<br>whitespace here<br>as no brand<br>owns this<br>Access to<br>Teladoc medical,<br>mental health &<br>chronic care<br>management<br>services key<br>differentiators
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1. Google Ads, Piwik/Internal/SimilarWeb<br>2. Teladoc Brand Study– September 2021<br>3. Teladoc Brand Study– June 2021<br>#1 Awareness1<br>2 of 3 years<br>Number One<br>93%<br>Of Teladoc users attribute<br>Teladoc as a provider that<br>can take care of a variety<br>of healthcare needs<br>97%<br>Of users are confident in<br>Teladoc’s ability to resolve<br>their issues<br> ✓ Brand searches<br> ✓ Web traffic<br> ✓ Telehealth users in<br>past six months<br>#1 Permission2<br>Consumers Associate3 Teladoc with<br>Satisfaction #1<br> ✓ Support for chronic conditions<br> ✓ Speak to pediatrician<br> ✓ Expert medical advice for highly<br>complex conditions<br> ✓ Speak to dietician<br> ✓ Non-emergency conditions<br> ✓ Speak to specialist<br> ✓ Speak to physician for skin issues<br> ✓ Speak to mental health care<br>specialist<br> ✓ Get prescriptions filled
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• New consumer normal: pandemic fundamentally<br>changed consumers’ awareness & expectations<br> • Virtual care adoption maturity is in early stage of<br>expansion<br> • Well on our way to deepening relationships with all<br>populations<br> • Uniquely positioned to win with consumers in whole<br>person care<br> ✓ Unmatched experience<br> ✓ Differentiated capabilities<br> ✓ Trusted brand<br> ✓ Proven track record<br>Key<br>Takeaways<br>99
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Financial Outlook<br>Mala Murthy<br>100<br>Chief Financial Officer
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$13<br>$32<br>$127<br>$263<br> $-<br> $100<br> $200<br> $300<br>2018 2019 2020 2021E<br>1. FY21 AEBITDA guidance of $260-265m includes an estimated $20M temporary benefit from lower amortization expense related to Livongo merger purchase accounting adjustments<br>2. 2021E figures are midpoint of guidance ranges where applicable. 2021 PMPM represents 3Q21 actual<br>3. Based on the reported Q3-21 figure<br>22.8<br>36.7<br>51.8 53.0 9.5<br>19.3<br>21.3 23.5<br>$0.00<br>$1.00<br>$2.00<br>$3.00<br>0<br>25<br>50<br>75<br>100<br>2018 2019 2020 2021E $0<br>$750<br>$1,500<br>$2,250<br>2018 2019 2020 2021E<br>69% CAGR<br>Total revenue ($M) Total membership (M) vs. paid member PMPM<br>Adjusted EBITDA (AEBITDA) ($M) Operating cash flow ($M)<br>2018<br>($5)<br>$30<br>($54)<br>$111<br>-$100<br>$0<br>$100<br>$200<br>2019 2020 2021 YTD3<br>$201<br>Paid members Visit fee-only members Access fee revenue PMPM
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$2.02B<br>FY21 GUIDE<br>69%<br>3 YEAR<br>CAGR<br>FY18,<br>$418M<br>FY19,<br>$553M<br>FY20,<br>$1,094M<br>FY21<br>FY22<br>FY23<br>FY24
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~$2.6B<br>(~29% YoY) FY22<br>PRELIMINARY OUTLOOK<br>67%<br>3 YEAR<br>CAGR<br>FY18,<br>$418M<br>FY19,<br>$553M<br>FY20,<br>$1,094M<br>FY21<br>FY22<br>FY23<br>FY24<br>$2.02B<br>FY21 GUIDE
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30-40%<br>FY20 – FY23 CAGR<br>(pro forma for<br>Livongo)<br>FY18,<br>$418M<br>FY19,<br>$553M<br>FY20,<br>$1,094M<br>FY21<br>FY22<br>FY23<br>FY24<br>$2.02B<br>FY21 GUIDE<br>~$2.6B<br>FY22 OUTLOOK
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25-30%<br>FY21 – FY24 3 YEAR<br>CAGR<br>FY18,<br>$418M<br>FY19,<br>$553M<br>FY20,<br>$1,094M<br>FY21<br>FY22<br>FY23<br>FY24<br>$2.02B<br>FY21 GUIDE<br>~$2.6B<br>FY22 OUTLOOK<br> >$4B<br>FY24 TARGET
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1. Includes all global other B2B2C telemedicine services and telemedicine software and hardware licensing for providers<br>2. Excludes MyStrength Complete and other legacy Livongo mental health products<br>% of 2021 expected<br>revenue<br>Target 2021-2024<br>CAGR<br>Virtual medical care (including primary care)1 ~35% 10-20%<br>Mental health care (B2B and DTC) ~40% 30-40%<br>Chronic condition care2 ~25% 25-35%<br>CONSOLIDATED GROWTH 25-30%
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Note: Non-member covered lives for CCM/mS based on overlap analysis of CCM/mS membership and membership of other Teladoc programs, and typical<br>eligibility and enrollment rates for CCM/mS programs<br>Source: AIS, Health Affairs<br>2021 estimated Teladoc covered lives vs.<br>estimated 298M total U.S. insured lives (millions)<br>total lives with access<br>to a TDOC product<br> <1%<br>22%<br>35%<br>4%<br>20%<br>2%<br>21%<br> <1%<br>82%<br>0% 50%<br>myStrength Complete<br>Legacy myStrength<br>Mental Health telemedicine<br>CCM - Weight Management<br>CCM - Hypertension<br>CCM - Prediabetes<br>CCM - Diabetes<br>Primary360<br>Legacy telemedicine excl. MH<br>Product penetration: % of 92M Teladoc<br>lives with product access<br>Current Teladoc “members” Lives offered CCM/mS but not enrolled<br>MCO lives outside existing clients Potential new populations within<br>existing clients<br>Medicare & Medicaid FFS lives<br>92M 76<br>16<br>63<br>92<br>51
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25-30%<br>3-Year CAGR<br>(2021-2024)<br>MORE MEMBERS<br>1-5% per<br>annum<br>Significant opportunity<br>to add lives within<br>existing client base and<br>in new clients<br>MORE REVENUE PER MEMBER<br>~25% per annum<br>Primary care, mental health care and chronic<br>care products are under-penetrated in<br>covered lives<br>New enrollees are highly accretive to total<br>PMPM – for every 100K new enrollees1:<br>Primary360 myStrength Complete CCM<br>~+$0.07 ~+$0.04 ~+$0.15<br>Every 500 bps BetterHelp revenue growth adds<br>~$0.06 to overall PMPM<br>1. PMPM impacts shown assume 100K new enrollees for each product come from current membership base
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1. For the following visit-based Teladoc products: General Medical, Mental Health Care, Expert Medical, Dermatology, Nutrition, Primary Care<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>2016 2017 2018 2019 2020 2021<br>1 2 3 4+<br>More than 40% of telehealth members have access<br>to multiple products1 compared to <10% in 2017<br>More than 20% of chronic care members are enrolled in<br>multiple programs compared to <3% in 2019<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>2019 2020 2021<br>1 2 3+
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1. FY21 AEBITDA guidance of $260-265m includes an estimated $20M temporary benefit from lower amortization expense related to Livongo merger purchase accounting adjustments<br>2. 2021E figures are midpoint of guidance ranges where applicable.<br>$13 $32<br>$127<br>$263<br>3.2%<br>5.8%<br>11.6%<br>13.0%<br>0%<br>5%<br>10%<br>15%<br>$0<br>$100<br>$200<br>$300<br>2018 2019 2020 2021E<br>AEBITDA AEBITDA Margin %<br>$201<br>AEBITDA margin expansion target:<br> • 100 to 150 bps of annual AEBITDA margin<br>expansion, while continuing to make significant<br>investments across key capabilities<br> • FY22 is absorbing ~75 bps headwind related to<br>$20M1 roll-off of purchase accounting adjustments<br>Expected drivers of AEBITDA margin<br>expansion:<br> • Revenue scaling<br> • Operating leverage on SG&A enabled by business<br>optimization and integration initiatives
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• Unified user experience<br> • Integrated data platform<br> • Launch Chronic Care Complete<br> •“Last mile” service integration<br>(e.g. labs, prescriptions)<br> • Successful launches of new<br>products, including myStrength<br>Complete & P360<br> • Bring Chronic care and myStrength<br>Complete into international markets<br> • New chronic care programs<br> • Actuarial analytics & predictive<br>modeling<br> • Risk stratification<br> • Care & case management
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LIQUIDITY<br>(All figures in $M)<br>Cash & marketable securities $826.4<br>DEBT<br>Maturity Rate Outstanding<br>Convertible notes 2025 5/15/2025 1.4% $0.9<br>Livongo-issued notes 2025 6/1/2025 0.9% $550<br>Convertible notes 2027 6/1/2027 1.3% $1,000<br>Total 1.1% $1,550.9<br>Net debt $724.5<br>LIQUIDITY HIGHLIGHTS<br> • Strong YoY growth in operating<br>cash flow of $111M YTD 2021<br> • Cash and marketable securities<br>of $826.4M and cash flow to<br>help fund growth<br> • Convertible notes mature over<br>longer-term with well-timed<br>intervals
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Senior leadership<br>diversity supports<br>our focus on equity<br>and inclusion<br>37%<br>24%<br>Taking care of people<br> • Increasing equitable access by reducing barriers to care<br> • Established the Institute of Patient Safety and Quality in Virtual Care<br> • Serve as a lifeline for “healthcare deserts”<br> • Deliver inclusive care in line with our culturally and linguistically appropriate<br>service policy<br>Bending the healthcare cost curve by keeping society healthy<br> • Reliable support for chronic diseases and mental health care needs where<br>patients may not seek treatment<br> • Leverage data to drive actionable insights to empower people on their<br>healthcare journey<br>Building trust & operating with responsibility<br> • HITRUST CSF certified for our information security programs<br> • Focus on diverse, equitable & inclusive workplace<br>To further advance<br>diversity we<br> • Launched an equity<br>pay study<br>to identify and<br>address any gaps<br> • Expanded<br>our Business<br>Resource Group<br>initiative,<br>a foundational<br>element of our DE&I<br>ecosystem<br>Female<br>Asian, Hispanic, or<br>Latino, Black<br>or African<br>American,<br>or Other
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Key<br>Takeaways<br> • Demonstrated history of meeting or exceeding financial<br>targets<br> • Comprehensive virtual care product portfolio and scale<br>create compelling financial model, with foundation for<br>sustained growth and margin expansion<br> • Growth next three years driven by significant<br>expansion of revenue per member from growing<br>Primary Care, Chronic Care and Mental Health Care<br>platforms<br> • Continued AEBITDA margin expansion and cash flow<br>generation will fund continued investment in growth &<br>operational excellence
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115<br>Opportunity<br>Vision<br>Strategy<br>Capabilities<br>Execution
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Jason Gorevic<br>Chief Executive Officer<br>Kelly Bliss<br>President,<br>U.S. Group Health<br>Dan Trencher<br>Senior Vice President of<br>Corporate Development<br>Jason Gorevic is chief executive officer and a member of<br>Teladoc Health's board of directors. Since taking the<br>reins in 2009, he has led Teladoc Health to its position<br>today as the world leader in virtual care, achieving<br>significant growth in revenue, membership, and<br>telehealth utilization. Under his leadership the company<br>has established a proven track record of successfully<br>shaping the market and driving healthcare transformation<br>by executing on the strategic vision, delivering award-<br>winning innovation, and effectively integrating each<br>corporate acquisition.<br>Nationally recognized as a thought leader and trailblazer<br>in the virtual delivery of healthcare, Mr. Gorevic is fueled<br>by a passion for improving healthcare outcomes and<br>providing universal access to care. His extensive career<br>in healthcare began at Oxford Health, and he has also<br>held executive leadership roles at WellPoint, Inc. (now<br>Anthem, Inc.) and Empire BlueCross BlueShield.<br>He holds a Bachelor of Arts in International Relations<br>from the University of Pennsylvania.<br>Kelly Bliss is president of U.S. Group Health. She oversees<br>sales, client management, and client and commercial<br>operations for the business.<br>Ms. Bliss has strong expertise in creating cohesive client-<br>focused organizations. Most recently, she held the position<br>of chief client officer at Teladoc Health. Under her<br>leadership, client services achieved record growth and<br>retention through a focus on delivering value and a best-in-<br>class experience to our clients. Ms. Bliss also built and<br>managed high-functioning, global teams at companies<br>such as Best Doctors and InterSystems. At Best Doctors,<br>she served as chief of staff, leading the organization’s key<br>strategic growth initiatives until the eventual acquisition by<br>Teladoc Health in 2017.<br>Ms. Bliss was recognized as one of the Top 25 Women<br>Leaders in Healthcare Software of 2020 by The Healthcare<br>Technology Report and serves as executive sponsor for<br>the Teladoc Health Women’s Network. She holds a<br>bachelor’s degree in industrial psychology from Nichols<br>College.<br>Dan Trencher leads corporate strategy for Teladoc Health<br>and is responsible for developing the organization’s long-<br>term strategic vision. Under his direction, his team ensures<br>the alignment of short-and long-range plans, strategic<br>investment roadmaps and channel-level strategies and<br>objectives. Previously, Mr. Trencher led product and<br>strategy for Teladoc Health, ensuring the delivery of<br>innovative commercial products and market-leading<br>experiences.<br>Mr. Trencher brings a breadth of experience in the<br>healthcare industry, including hands-on product and<br>operational expertise from a wide array of healthcare<br>customer segments. Prior to Teladoc Health, Mr. Trencher<br>held leadership roles at WellPoint (now Anthem, Inc.) and<br>WellChoice, Inc., developing and managing growth<br>initiatives across the healthcare value chain, ranging from<br>providers to disease management and wellness programs to<br>health information technology.<br>Mr. Trencher holds a bachelor’s degree in economics from<br>the University of Pennsylvania and a Master of Business<br>Administration degree from the University of Chicago.
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Donna Boyer leads product management and design<br>for Teladoc Health, responsible for the delivery of<br>market-leading healthcare technology and best-in-class<br>consumer experiences.<br>Ms. Boyer’s transition to healthcare comes after 25<br>years of experience leading product innovation in high-<br>growth companies in emerging industries. Prior to<br>Teladoc Health, Ms. Boyer led Product at Stitch Fix,<br>where she oversaw the company’s first Product<br>organization, rapidly accelerating customer<br>engagement and introducing new revenue streams.<br>Prior to that she was responsible for the hosting<br>platform at Airbnb and led personalization platforms<br>globally at Yahoo.<br>Ms. Boyer holds a B.A. in Economics from Swarthmore<br>College. She is passionate about increasing diversity in<br>technology organizations and serves on the Board of<br>Directors of Girls in Tech and Enterprise for Youth.<br>Claus Jensen leads technology and innovation at Teladoc<br>Health. Under his direction, the research and development<br>team applies product innovation, data science,<br>technological expertise and clinical excellence to transform<br>how people access and experience healthcare around the<br>world.<br>Dr. Jensen brings 20 years of experience leading digital<br>transformation at enterprise healthcare and technology<br>organizations. Prior to Teladoc Health, Dr. Jensen served<br>as chief digital and technology officer at the Memorial<br>Sloan Kettering (MSK) cancer center, where he oversaw<br>the integration of data and technology resources that<br>enabled MSK to meet critical care and research objectives.<br>Previously, he was chief technology officer of CVS Health-<br>Aetna, and also held leadership roles at Danske Bank and<br>IBM.<br>Dr. Jensen holds a bachelor’s degree in mathematics and<br>a PhD in computer science from Aarhus University,<br>Denmark. He has authored numerous publications and<br>holds 14 patents covering integration, APIs and<br>transformation.<br>Alon Matas is the president of BetterHelp, the direct-to-<br>consumer mental health service by Teladoc Health. He is<br>responsible for strategic direction, business growth,<br>service operations, partnerships and product development.<br>Mr. Matas brings 20 years of experience in starting and<br>scaling consumer ventures that touch the lives of millions<br>of people around the globe. He founded BetterHelp after<br>realizing how connecting with a professional therapist can<br>be difficult, expensive and inaccessible. Under his<br>direction, BetterHelp has grown to become the world’s<br>largest online counseling platform.<br>Mr. Matas joined Teladoc Health with the BetterHelp<br>acquisition in 2015. Prior to founding BetterHelp, he<br>founded MemoryOf and Billy.com. Before embarking on<br>his entrepreneurial career, Mr. Matas was leading product<br>development and strategy for startups, enterprises and the<br>Israeli Defense Forces. He is also an advocate for the<br>integration of people with special needs in technology<br>companies.<br>Donna Boyer<br>Chief Product Officer<br>Claus Jensen<br>Chief Innovation Officer<br>Alon Matas<br>President, BetterHelp
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Stephany Verstraete leads Teladoc Health’s global<br>marketing and communications efforts, driving the<br>growth of member adoption and utilization through best-<br>in-class channel engagement strategies and consumer<br>relationship management. She is also responsible for<br>the market positioning of Teladoc Health’s brand and<br>growing the product portfolio.<br>Ms. Verstraete’s career has been dedicated to driving<br>consumer behavior change in new and emerging<br>industries, with a proven track record of building digital<br>brands and growing high-performing global teams. She<br>has held marketing leadership roles at high-profile<br>brands including Match.com, Expedia, Kraft, and Frito-<br>Lay. Her transition to the healthcare industry came<br>when she served as chief marketing officer at Truveris.<br>Ms. Verstraete holds an International Master of<br>Business Administration from York University and an<br>Honors Bachelor of Economics from Queen's University<br>in Canada.<br>Mala Murthy leads Teladoc Health’s global finance<br>organization, including accounting, financial planning &<br>analysis (FP&A) and investor relations. With a focus on<br>assuring shareholder value, Ms. Murthy is a seasoned leader<br>with a proven track record of driving balanced top-and-bottom-<br>line growth.<br>She brings a passion for developing & implementing<br>strategies that drive both short-term and long-term value,<br>acquired from extensive financial management experience in<br>diverse industries. Ms. Murthy has successfully supported<br>substantial acquisitions and overseen the development of<br>capital structure and liquidity strategies.<br>Prior to joining Teladoc Health she held several senior<br>executive positions at American Express, most recently as<br>chief financial officer of the Global Commercial Services<br>segment. There she led strategic investment decisions and<br>P+L stewardship for the segment. She also previously served<br>in various leadership positions with Pepsico, leading high<br>growth business units.<br>Ms. Murthy holds a bachelor’s degree in computer science<br>and engineering from Jadavpur University in India, an MBA<br>from the India Institute of Management, and a master’s<br>degree in public and private management from Yale School of<br>Management.<br>Stephany Verstraete<br>Chief Marketing & Engagement<br>Officer<br>Mala Murthy<br>Chief Financial Officer
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Year Ended December 31<br>2018 2019 2020<br>Net loss $ (97,084) $ (98,864) $ (485,136)<br>Add:<br>Loss on extinguishment of debt 0 0 9,077<br>Interest expense, net 26,112 29,013 60,495<br>Income tax benefit 118 (10,591) (90,857)<br>Depreciation and amortization expense 35,602 38,952 69,495<br>EBITDA (35,252) (41,490) (436,926)<br>Stock-based compensation 43,769 66,702 475,531<br>Gain on sale (5,500) 0 0<br>Acquisition, integration and transformation costs 10,391 6,620 88,236<br>AEBITDA $ 13,408 $ 31,832 $ 126,841
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• EBITDA consists of net loss before interest; foreign exchange gain or loss; income taxes; depreciation and amortization; and loss on extinguishment of debt. Adjusted EBITDA (“AEBITDA”)<br>consists of net loss before interest; foreign exchange gain or loss; income taxes; depreciation and amortization; loss on extinguishment of debt; stock-based compensation; gain on sale; and<br>acquisition, integration and transformation costs. We believe that making such adjustments provides investors meaningful information to understand our results of operations and the ability to<br>analyze financial and business trends on a period-to-period basis.<br> • We believe the above financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms EBITDA and adjusted<br>EBITDA may vary from that of others in our industry. Neither EBITDA nor adjusted EBITDA should be considered as an alternative to net loss before taxes, net loss, net loss per share or any<br>other performance measures derived in accordance with GAAP.<br> • EBITDA and adjusted EBITDA have important limitations as analytical tools and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP.<br>Some of these limitations are:<br> • EBITDA and adjusted EBITDA do not reflect the significant interest expense on our debt;<br> • EBITDA and adjusted EBITDA eliminate the impact of income taxes on our results of operations;<br> • EBITDA and adjusted EBITDA do not reflect the loss on extinguishment of debt;<br> • Adjusted EBITDA does not reflect gain on sale;<br> • Adjusted EBITDA does not reflect the significant acquisition, integration and transformation costs. Acquisition, integration and transformation costs include investment banking, financing,<br>legal, accounting, consultancy, integration, fair value changes related to contingent consideration and certain other transaction costs related to mergers and acquisitions. It also includes<br>costs related to certain business transformation initiatives focused on integrating and optimizing various operations and systems, including upgrading our customer relationship<br>management (CRM) and enterprise resource planning (ERP) systems. These transformation cost adjustments made to our results do not represent normal, operating expenses<br>necessary to operate the business but rather, incremental costs incurred in connection with our acquisition and integration activities;<br> • Adjusted EBITDA does not reflect the significant non-cash stock compensation expense which should be viewed as a component of recurring operating costs; and<br> • other companies in our industry may calculate EBITDA and adjusted EBITDA differently than we do, limiting the usefulness of these measures as comparative measures.<br> • In addition, although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted gross profit,<br>adjusted gross margin, EBITDA and adjusted EBITDA do not reflect any expenditures for such replacements.<br> • We compensate for these limitations by using EBITDA and adjusted EBITDA along with other comparative tools, together with GAAP measurements, to assist in the evaluation of operating<br>performance. Such GAAP measurements include net loss, net loss per share and other performance measures.<br> • In evaluating these financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in this presentation. Our presentation of EBITDA and adjusted<br>EBITDA should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.
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