Teladoc Health, Inc. (NYSE:TDOC) Q3 2023 Earnings Call Transcript

Jason Gorevic: Yes. I would describe, Elizabeth, thanks for the question. I would describe the pricing environment as stable. With respect to the members that we just onboarded in Integrated Care, it’s really more of a revenue per member than a pricing question because we have to activate those members to drive visit revenue. The subscription revenue stays stable over time, but visit revenue tends to ramp. That’s not really a pricing question. It’s more of an activation and engagement question. And then, of course, we always look for land and expand opportunities so that we can increase our revenue per member. So when I think about pricing, I think of it as an apples-to-apples basis for either a single product or a bundle of products from one year to the next, and we’re seeing it pretty stable.

With respect to BetterHelp, we’re always experimenting with pricing across markets. But overall, pricing hasn’t changed in a notable way. I think if you’re looking at revenue divided by user count, any small change you’re seeing period-to-period is primarily a reflection of mix, including the growth of the other line item, which is mostly a DTC sleep asset, that’s small, but growing faster. And really importantly, when you’re looking at revenue in a quarter versus membership, there’s quite a bit of impact or there’s impact within a quarter of the timing of when members come on and then start paying for the program and/or roll off of the program. So overall, I would say, pricing has remained pretty stable in that market.

Operator: Thank you for your question. The next question is from the line of Sean Dodge with RBC Capital. Your line is now open.

Sean Dodge: Thanks. Good afternoon. Jason, you kind of alluded to it a bit in earlier response, but just on BetterHelp, with the resumption of student loan payments on October 1st. Is there any updates you can provide on what you’re seeing at least thus far into October? Any potential impact that’s having on new adds or churn or any kind of discernible change in customer behavior? I mean just, I guess, in general, around BetterHelp?

Jason Gorevic: We haven’t seen anything in the data that suggests that, that’s had an impact. Churn has been stable. We haven’t seen significant notable change, nor are we assuming any significant change in churn in our guidance. So I would say, no, we haven’t seen really any impact of that.

Operator: Thank you for your question. That will conclude the conference call. Thank you for your participation. You may now disconnect your lines.