Teladoc's new IPO plans shoot for $137 million

By Aditi Pai
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TeladocVideoVisitDallas, Texas-based video visits company Teladoc has updated its IPO filing, which now discloses that the company plans to raise $119 million in its IPO, if it is priced at the high end of its range. Teladoc will price its shares between $15 and $17. Its underwriters could raise up to an additional nearly $18 million, making for an IPO valued at as much as $136.9 million.

The company plans to sell 7 million shares, but they granted the underwriters an option, for a period of 30 days, to purchase up to an additional 1,050,000 shares of common stock.

After deducting estimated underwriting discounts and commissions as well as estimated offering expenses that Teladoc is paying, the company estimates that the net proceed from the sale of shares will be $100 million. This is based on an assumed initial public offering price of $16 per share, the midpoint of the price range. 

News first broke about Teladoc's IPO in late April, but the initial filing was private. In June, the first public draft of its S-1 filing was published to the SEC’s site, revealing a bevy metrics about the private company, including its financial performance to date and details surrounding the acquisitions it has made in the past few years.

Teladoc posted a net loss of $6 million on topline revenues of $19.9 million in 2013, and a net loss of $17 million on topline revenues of $43.5 million in 2014. For the first three months of 2015, Teladoc posted revenues of nearly $16.5 million and a net loss of $12.7 million.

The company has steadily ramped up the number of remote visits it has facilitated between patients and physicians. In 2013 its platform had facilitated more than 127,000; 2014 saw almost 299,000 visits. The company conducted 149,000 visits during the first quarter of 2015.

Its member count was at 6.2 million by the end of 2013, 8.1 million by year-end 2014, and 10.6 million members by the end of Q1 2015.

Shortly after Teladoc published its first public draft of the filing, the company disclosed that they had acquired Scottsdale, Arizona-based Stat Health Services, which offers the online doctor visit service Stat Doctors. At the time, they wrote that they expected to acquire the company for $30.5 million, comprised of $13.7 million of cash and $16.8 million of stock.

That same day, American Well filed a suit against Teladoc for alleged patent infringement. American Well’s lawsuit, filed today in Massachusetts District Court, alleges that Teladoc’s technology platform willingly infringes on a 2007 American Well patent. The suit asks for triple damages plus court fees, as well as an injunction against Teladoc continuing to do business.