The Purchase, New York-based telemedicine company's net loss fell by $3 million year-over-year.
Teladoc Health saw its total revenues rise for yet another quartering, nearly reaching $138 million, but also benefited from a reduction in its net loss, according to its latest earnings report released Wednesday afternoon.
Revenues increased 24% year-over-year, boosted by a 27% increase in U.S. subscription access fees revenues and a 25% increase in visit fee revenues from U.S. paid visits. Additionally, the company overcame a 30% decline in international paid visit revenues, which slipped below $400 million for Q3.
In an important development, the Purchase, New York-based telemedicine company saw its net loss shrink from $23.3 million in Q3 2018 to $20.3 million in Q3 2019.
Similarly, the company's net loss per diluted share was $0.28, an improvement on the net loss of $0.34 per year this time last year.
The positive earnings report sent Teladoc's stock higher during the early morning session, trading up more than 9.5%.
"The third quarter marked a continuation of Teladoc Health’s very strong momentum from the first half of the year, as we delivered at the high end of our growth expectations and made progress on our path to profitability" Jason Gorevic, CEO of Teladoc, said in a statement. "As we close out the year, we are confident in our positive momentum and are raising revenue and visit guidance for the full year. Our results serve as yet another affirmation of the expanding role of virtual care globally, and our proven ability to execute at scale."
Despite the positive turnaround in its net loss, Teladoc's EBITDA was negative for Q3, down to $10.3 million, though its adjusted EBITDA improved by $2.7 million to $9 million.
Teladoc also topped 1 million total visits during the quarter, a 45% increase year-over-year.
The company bolstered its full-year guidance, projecting total revenues between $546 million to $550 million and a net loss per share between $1.49 and $1.43.
However, the company projects its EBITDA loss between $41 million to $45 million, above its previous expectations of a loss in the range of $39 million to $45 million.
ADDITIONAL TELADOC Q3 EARNINGS REPORT HIGHLIGHTS:
- The company's percent of paid visits from U.S. paid membership grew by 42%.
- To end the year, Teladoc is projecting total visits in the range of 3.9 million to 4.1 million.
- Additionally, the company is expecting total U.S. paid membership to reach 35 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: KONSKIE, POLAND - December 01, 2018: Teladoc Health logo displayed on smartphone - Image / Editorial credit: Piotr Swat / Shutterstock.com