Teladoc

Business

Teladoc provides access to board-certified, state-licensed physicians 24 hours a day for non-emergency medical issues such as allergies, bronchitis, pink eye, sinus problems, and ear infection via audio-video technology for consultations regarding medical advice, diagnoses and basic prescription medications. The company bills itself as a telehealth provider due to its function of facilitating "remote house calls by primary care doctors". However, United States Department of Health and Human Services states that the term telehealth covers a broader range including "non-clinical services, such as provider training, administrative meetings, and continuing medical education" and that the term telemedicine means "remote clinical services". Its competitors include PlushCare, American Well, MDLIVE Inc., Doctor On Demand, and Carena.

History

Teladoc is the oldest and largest telemedicine company in the country and was launched in 2002 in Dallas, Texas. It was founded by Dr. Byron Brooks, a former NASA flight surgeon, and serial entrepreneur Michael Gorton. Teladoc launched nationally in 2005 at the Consumer Directed Health Care Conference, in Chicago, Illinois. By the end of 2007, it had attracted about 1 million members, including large employers who provided it to their employees as a health benefit. Jason Gorevic was named CEO in 2009 and currently holds the role and sits on the company’s board of directors. He has led the company through tremendous growth, increasing revenue nearly twentyfold and driving Teladoc to its position today as the leading and fastest growing telemedicine firm in the United States.

As of 2015, Teladoc became the only telemedicine company to be publicly traded on the New York Stock Exchange. In December 2016, the American Hospital Association exclusively endorsed Teladoc's telehealth technology platform. Teladoc now operates its full suite of services 24 hours a day, 365 days a year, by web, phone, or mobile app in 48 of the 50 states.

IPO

In September 2014, the company held a series F round of venture capital funding for $50 million which raised its venture backing to over $100 million and its market valuation to over $300 million. Some of its earlier funding rounds included $9 million in December 2009, $4 million in January 2011, $18.6 million in September 2011, and $15 million in September 2013. On April 29, 2015, the company submitted preliminary confidential IPO paperwork, and on May 29, 2015 it publicly filed for its IPO. On July 1, 2015, the company went public with a New York Stock Exchange-listed IPO at $19 per share, which gave the company a market capitalization of $758 million and an enterprise value of $620 million. The initial response to the IPO was good: shares surged 50% on the opening day to close at $28.50, after opening at $29.90 and trading as high as $31.90.

Metrics

On the eve of its July 1 IPO, the company was billed as the first and largest telehealth platform in the United States. The number of visits facilitated in 2014 was 299,000 and 149,000 during the first quarter of 2015. The company had 8.1 million members in 2014 and 10.6 by the end of the first quarter of 2015. By the end of the first quarter of 2015, the company has 4000 clients including 160 of the Fortune 1000 companies.

Acquisitions

The company has made three acquisitions: Consult A Doctor for $16.6 million cash in August 2013; AmeriDoc for $17.2 million in May 2014; and BetterHelp for $3.5 million in cash and a $1.0 million promissory note in January 2015. Most recently, the company announced and closed the acquisition of HealthiestYou in July 2016. Stat Health Services, Inc. (StatDoc) for $30.1 million, $13.3 million of cash and $16.8 million of Teladoc common stock (or 1,051,033 shares), net of cash acquired in June 2015 ; and HealthiestYou for $45 million in cash and 6.96 million shares of Teladoc’s common stock in June 2016.