Teladoc, the First Online Consultation Company to File for IPO, Reports Revenue Surge and Over 10 Million Members

In late April, it was reported that telemedicine company Teladoc had filed for an IPO, although the initial filing information was not publicly disclosed. (Further reading:Will Teladoc Become the First Online Consultation Company to Go Public?) Last weekend, the company’s initial public draft of its S-1 filing was published on the U.S. Securities and Exchange Commission (SEC) website, disclosing a range of metrics, including financial performance and acquisition details from recent years.

Teladoc’s IPO application lists a placeholder fee of $100 million, but this figure is subject to change in the coming weeks as the filing is amended and information is updated.

Below is a summary of data regarding the initial application:

Revenue: In 2013, Teladoc generated $19.9 million in revenue and reported a net loss of $6 million; in 2014, it achieved $43.5 million in revenue with a net loss of $17 million; in the first quarter of 2015, the company announced business revenue of nearly $16.5 million and a net loss of $12.7 million.

Consultations: The company has gradually increased the volume of remote consultations to provide convenience for both patients and physicians. In 2013, the number of consultations on its platform exceeded 127,000; in 2014, it reached nearly 299,000; and in the first quarter of 2015 alone, the number had already attained 149,000.

Members: As of the end of 2013, Teladoc had 6.2 million members; by the end of 2014, its membership reached 8.1 million; and as of the first quarter of 2015, the number of members stood at 10.6 million.



Acquisitions: In recent years, Teladoc has completed three major acquisitions, with all financial details of these transactions disclosed in its S-1 filing. “In August 2013, the company acquired Consult A Doctor for $16.6 million in net cash; in May 2014, it acquired AmeriDoc for $17.2 million in net cash; and in January 2015, it completed the acquisition of BetterHelp, a direct-to-consumer behavioral health services provider. The consideration for the BetterHelp acquisition included $3.5 million in cash and a $1 million promissory note, with the company also agreeing to pay the sellers 15% of BetterHelp’s gross net revenue annually over the following three years.”

Customer: Teladoc has more than 4,000 clients and 10.6 million members. Clients include employers (many of which are Fortune 1000 companies), health plans, and health systems. Examples include: “Employers such as Accenture, Bank of America, General Mills, Pepsi, Shell, and T-Mobile; health plans such as Aetna, Amerigroup, Blue Shield of California, Centene, Highmark, and Universal American; and health systems such as HealthPartners, Henry Ford, Memorial Hermann, and Mount Sinai.” Although Home Depot is not considered one of Teladoc’s earliest clients, case studies describe the platform’s impact on Teladoc, with a few mentions in the documentation. No single client accounts for more than 10% of its revenue.

Employee: As of the end of the first quarter of 2015, Teladoc had 259 employees, including 51 technical developers and 81 marketing personnel.

“We have seen significant growth,” said Jason Gorevic, CEO of Teladoc, at a Boston event last year. “This year’s growth exceeded 100%. Yesterday, we conducted 1,200 telemedicine consultations, with an average response time of 11 minutes. Next year, we will handle more than 500,000 consultations. The data clearly shows that a massive wave is building, and I believe we are just at the beginning of this wave.”

Compiled by: Liu Nan; Edited by: Luo Xiaosou