Segments

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segments

Segments

ASC Subtopic 280-10, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s Chief Executive Officer is the CODM and is responsible for reviewing financial information presented on a segment basis for purposes of making operating decisions and assessing financial performance.

The CODM measures and evaluates segments based on segment operating revenues together with Adjusted EBITDA. The Company excludes the following items from segment Adjusted EBITDA: provision for income taxes; other income, net; interest income; interest expense; depreciation and amortization; goodwill impairment; loss on extinguishment of debt; stock-based compensation; restructuring costs; and acquisition, integration and transformation charges. Although these amounts are excluded from segment Adjusted EBITDA, they are included in reported consolidated net loss and are included in the reconciliation that follows.

The Company’s computation of segment Adjusted EBITDA may not be comparable to other similarly titled metrics computed by other companies because all companies do not calculate segment Adjusted EBITDA in the same fashion.

Operating revenues and expenses directly associated with each segment are included in determining its operating results. Other expenses that are not directly attributable to a particular segment are based upon allocation methodologies, including the following: revenue, headcount, time and other relevant usage measures, and/or a combination of such.

The Company has two reportable segments: Teladoc Health Integrated Care and BetterHelp. The Integrated Care segment includes a suite of global virtual medical services including general medical, expert medical services, specialty medical, chronic condition management, mental health, and enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment includes virtual mental health and other wellness services provided on a global basis which are predominantly marketed and sold on a direct-to-consumer basis. Other reflects certain revenues and charges not related to ongoing segment operations.

The CODM does not review any information regarding total assets on a segment basis. Segments do not record intersegment revenues, and, accordingly, there is none to be reported. The accounting policies for segment reporting are the same as for the Company as a whole.

The following table presents revenues by segment (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Teladoc Health Integrated Care	$	360,050	$	341,599	$	710,022	$	673,983
BetterHelp	292,356		247,314		571,628		477,488
Other (1)	0		3,466		0		6,258
Total Consolidated Revenue	$	652,406	$	592,379	$	1,281,650	$	1,157,729

The following table presents Adjusted EBITDA by segment (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Teladoc Health Integrated Care	$	37,968	$	29,320	$	73,095	$	52,587
BetterHelp	34,187		20,022		51,825		50,120
Other (1)	0		(2,631)		0		(1,499)
Total Consolidated Adjusted EBITDA	$	72,155	$	46,711	$	124,920	$	101,208

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(1)Other reflects certain revenues and expenses not related to ongoing segment operations.

The following table presents a reconciliation of segment Adjusted EBITDA to consolidated GAAP income before income taxes (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Teladoc Health Integrated Care	$	37,968	$	29,320	$	73,095	$	52,587
BetterHelp	34,187		20,022		51,825		50,120
Other	0		(2,631)		0		(1,499)
Total consolidated Adjusted EBITDA	72,155		46,711		124,920		101,208
Adjustments to reconcile to GAAP net loss
Goodwill impairment	0		(3,030,000)		0		(9,630,000)
Interest income	11,558		1,225		20,469		1,389
Interest expense	(5,835)		(5,562)		(11,098)		(11,206)
Other income (expense), net	(207)		(1,760)		4,700		(1,036)
Depreciation and amortization	(75,465)		(59,371)		(145,248)		(118,304)
Stock-based compensation	(55,725)		(51,000)		(101,763)		(111,436)
Acquisition, integration, and transformation costs	(5,080)		(2,892)		(11,024)		(7,399)
Restructuring costs	(7,530)		0		(15,632)		0
Loss before provision for income taxes	(66,129)		(3,102,649)		(134,676)		(9,776,784)
Provision for income taxes	952		1,188		271		800
Net loss	$	(65,177)	$	(3,101,461)	$	(134,405)	$	(9,775,984)

Geographic data for long-lived assets (representing property, plant and equipment) were as follows (in thousands):

	As of June 30, 2023		As of December 31, 2022
United States	$	26,342	$	25,935
Other	4,050		3,706
Total long-lived assets	$	30,392	$	29,641