The telemedicine company saw revenues and visits rise, but so did its net loss.
Teladoc Health topped $130 million in total revenues during Q2 and named a new COO, according to its latest earnings released Wednesday afternoon.
Total revenues, which grew 38% year-over-year, were boosted by total visits growing 29% over the same period of time, highlighted by international paid visits increasing 57%.
The Purchase, New York-based company's total subscription access fees revenue also rose 39% during Q2.
While Teladoc's gross margin fell less than 3% year-over-year, its net loss grew to $29.3 million compared to $25.1 million in Q2 2018. The company's net loss per basic and diluted share remained flat at 0.41% per share.
Significantly, Teladoc posted a positive adjusted EBITDA of $6.3 million after reporting a $2.7 million negative adjusted EBITDA this time last year. The company's EBITDA worsened by just over $2 million to $12.1 million in Q2 as well.
"The second quarter punctuated a strong first half of the year for Teladoc Health. Our robust engagement science strategies have allowed us to capitalize on the macro tailwinds we’re seeing globally to drive solid results across all of our markets and clinical specialties," Jason Gorevic, CEO of Teladoc, said in a statement. "We built out our senior leadership team with two important additions during the quarter, and we made meaningful progress towards realizing the long-term benefits of our diversified growth strategy. The persistent strength in our visit volume and our accelerating sales pipeline serves as yet another affirmation of the broader acceptance and prevalence of virtual care in the healthcare system today."
Over the past two months, Teladoc has welcomed in new leadership talent, including CFO Mala Murthy from American Express, who spoke to HealthLeaders earlier this month about what drew her to the opportunities in the telemedicine sphere.
"What's not to love about being in virtual healthcare?" Murthy said. "It's a great time from the demographic tailwinds that [Teladoc has], the macroeconomic trends that we have, and this is an inflection point for the industry and for this space from a growth standpoint. As I talked to [CEO] Jason [Gorevic], I loved the culture and the tone he set with his leadership team."
On the same day that it released its Q2 earnings report, Teladoc also announced the hire of COO David Sides, formerly of Cerner Corp.
The company inched up its full-year guidance, expecting total revenues in the range of $538 million to $545 million, a smaller EBITDA loss between $39 million to $45 million, and a net loss per share projected between $1.52 and $1.60.
ADDITIONAL TELADOC Q2 EARNINGS REPORT HIGHLIGHTS:
- The company's percent of paid visits from U.S. paid membership grew by one third in Q2.
- Total visits for Q2 2019 were 908,000, topping company projections in the range of 775,000 to 875,000.
- For Q3, Teladoc is projecting a total revenue in the range of $135 million to $138 million.
For complete financial information, review Teladoc's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: Photo credit: KONSKIE, POLAND - December 01, 2018: Teladoc Health logo displayed on smartphone - Image / Editorial credit: Piotr Swat / Shutterstock.com