Teladoc Health posted $241 million in revenue for this year’s second quarter, up 85% from $130.3 million posted in the same period last year.
The telemedicine giant beat its own revenue guidance for the quarter, as telemedicine use soared amid the COVID-19 pandemic. In April, Teladoc had said it expected its revenue for the second quarter to be in the range of $215 million to $225 million.
The company reported a sizeable net loss of $25.7 million, compared to net loss of $29.3 million posted in the year-ago quarter.
But Teladoc officials expect the company’s growth to continue, updating full-year 2020 guidance by roughly $170 million.
“The pandemic has accelerated the widespread adoption of virtual care,” said Jason Gorevic, Teladoc’s CEO, on a call with investment analysts Wednesday. “I’m confident there’s no going back.”
In the first half of 2020, Teladoc has onboarded nearly 15 million new paid U.S. members, he said.
Teladoc posted $182.2 million in subscription fees revenue, up 63.8% year-over-year, and $58.9 million in visit fees revenue, up 209.25%.
Visits hit 2.8 million, up 203.4% from 908,000 in 2019’s second quarter.
Gorevic acknowledged that telemedicine utilization has eased since April as hospitals and states have begun to reopen, mirroring other recent research.
However, utilization has since “stabilized” at a level about 40% higher than before the COVID-19 pandemic, he said.
“While we’re certainly seeing pandemic-related demand, long-term sustainable tailwinds are evident,” Gorevic said.
Gorevic expressed optimism that Medicare telemedicine flexibilities pushed through during the COVID-19 public health emergency will become permanent, citing several recent proposed bills and comments from HHS officials.
“People have realized the benefit that virtual care can have,” he said. “I think it’s really here to stay, in terms of Medicare reimbursement.”
The healthcare provider market is an expected growth area for the company, helped by Teladoc’s recent acquisition of InTouch Health, a telemedicine company that primarily serves providers.
Gorevic said that Teladoc and InTouch Health already serve 60 of the top 100 hospitals, but there’s room to expand those agreements.
“We’re barely penetrated in terms of the use cases (and) the number of physicians who are on the platform,” he said. “We’re really just scratching the surface in the hospital and health system space.”
Teladoc adjusted its revenue expectations for the full 2020 year for the second time, now indicating it expects to see between $980 million to $995 million in revenue, up from the $800 million to $825 million it had included in the company’s guidance issued in April. The updated guidance includes earnings from InTouch Health, as the acquisition closed July 1, noted Mala Murthy, Teladoc’s CFO.
She added that the updated guidance doesn’t include a possible increase in visit volumes if a second wave of COVID-19 cases emerges later this year.
Teladoc also issued guidance for full-year 2021.
Gorevic said company officials expect to see year-over-year revenue growth in the range of 30% to 40% for 2021, citing the current “momentum and demand” for Teladoc’s services.