Teladoc Health continues its strong upward trend during its second fiscal quarter, with CEO Jason Gorevic informing investors yesterday that the company had outperformed “all key financial and operation metrics.”
Similar to the first quarter, the telehealth company is touting massive year-over-year (YoY) growth in revenue, visit volume and new registrations, as well as the acquisition of several large clients.
This increase in demand for telehealth services is persistent across states that were hit early by COVID-19 and those now experiencing spikes, Gorevic noted. Paired with stabilizing utilization rates and the growing number of brick-and-mortar care providers reopening their doors, the CEO said he’s confident that the country has gained a long-term appreciation for virtual care.
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“I recently shared the virtual stage with U.S. HHS Secretary Alex Azar,” Gorevic said during the earnings call, “and when asked about virtual care Secretary Azar said, ‘I think we’d have a revolution if anyone tried to go backwards on telemedicine. This is now an embedded part of our health care system.’
“I don’t think I could have said it any better. The pandemic has accelerated the widespread adoption of virtual care, and I’m confident there’s no going back.”
Higher than expected losses per share fueled a minor hit to Teladoc’s stock during after-hours trading and at open, although those have since been erased by increasing demand in the last few hours. The company’s ticker price has skyrocketed around 160% since the start of 2020.
YoY revenue grew 85% to $241 million in Q2, while total visits rose 203% YoY to 2.76 million. The company now boasts 51.5 total paid memberships, up 92% YoY. EBITDA and adjusted EBITDA were $2.7 million and $26.3 million, respectively.
Annualized utilization for the quarter was 22% (after excluding large health plan populations onboarded during the last 12 months).
Net loss for the quarter was $25.7 million, compared to $29.3 million at this time last year and $29.6 million in Q1 2020. This yielded a net loss per diluted share that came to $0.34, which included $0.10 tied to a convertible debt offering in May.
Of note, the quarter also saw InTouch Health fully rolled into Teladoc on July 1. News of the acquisition broke back in January.
ON THE RECORD
“Even as we continue to battle the coronavirus in the U.S. and other hard-hit countries, we are also seeing sustained demand in areas that are no longer considered hotspots. In some states where the curve has flattened, we are still seeing twice as many patient visits as last year,” Gorevic said in a statement accompanying the Q2 results. “While COVID-19 has accelerated the virtual care needs of consumers and providers alike, our broad based momentum in 2020 and beyond is rooted in the satisfaction and trust our partners have in our ability to transform the healthcare experience.”
Teladoc’s Q3 expectations include total revenue in the range of $275 million to $285 million. Total visits are projected to be between 2.5 million and 2.7 million, while net loss per share should fall within $0.35 and $0.30.
The company expanded the scale of its full-year forecast and now predicts $980 million to $995 million in total revenue. Total visits are slated to land between 9.8 million and 10.3 million, with net loss per share expected to be between $1.45 and $1.36.
Teladoc also offered a preliminary outlook on 2021, saying that it expects 30% to 40% revenue growth in the coming year.
Teladoc’s latest numbers are an escalation of trends kicked off by the global COVID-19 pandemic. While a February earnings call suggested a modest revenue bump and whispers of an emerging disease, the April update was dominated by “remarkable growth” and new demand that led the company to add thousands of new providers to its physician network.