Virtual Health Company Teladoc’s 1Q Earnings Show Coronavirus Revenue Boost As It Eyes Sustaining Users

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Virtual health company Teladoc beat revenue expectations with $180.8 million but fell short when it came to losses per share at 5 cents more than what analysts expected

Teladoc, which went public in 2015, has yet to turn a profit. The company posted a net loss of $29.6 million in the first quarter, compared to a $30.2 million loss in the same period last year. This came out to a net loss of $0.40 on a per share basis, while analyst expectations were a $0.

“What impresses us the most is the breadth of demand that [Teladoc] is seeing as well as the increased awareness of telehealth in general. This suggests a possible sustainable evolution towards virtual care ,” Hooker wrote in a research note. It wasn’t just urgent and primary care that fueled the increase in visits, Gorevic said. “[D]emand for specialist care, including behavioral health and dermatology has accelerated even faster, reflecting the diverse nature of the need for care during this challenging time,” Gorevic said.

Telemedicine providers have been moving into the behavioral space, which has the benefit of a longer-term relationship between provider and patient with multiple visits over a period of time. In 2015, Teladoc acquired BetterHelp, which offers online mental health services. Gorevic said demand for direct-to-consumer mental health services was “rapidly accelerating” as users seek to treat anxiety and depression stemming from the pandemic and extended isolation.

 

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