Teladoc Health (TDOC -3.13%) delivered tremendous revenue growth when it reported quarterly results in May. It was a different story for the company's bottom line, but investors weren't too concerned since Teladoc is still in an aggressive expansion mode.
The telemedicine leader announced its second-quarter results after the market closed on Wednesday. Here's a look at Teladoc's latest financial update.
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Teladoc Health results: The raw numbers
| Metric |
Q2 2019 |
Q2 2018 |
Change |
|---|---|---|---|
|
Revenue |
$130.3 million | $94.6 million |
37.8% |
|
Net loss |
($29.3 million) | ($25.1 million) |
N/A |
|
Net loss per share |
($0.41) | ($0.40) |
N/A |
Data source: Teladoc Health. N/A = Not Applicable.
What happened with Teladoc Health this quarter?
Subscription access fees generated more than 85% of total revenue in the second quarter. The company reported U.S. subscription revenue of $85.5 million, up 31% year over year. International subscription revenue in the second quarter totaled $25.7 million, a 75% increase from the prior-year period.
Teladoc also enjoyed solid growth in its visit-fee revenue. U.S. paid-visits revenue increased 28% year over year to $15.1 million, while U.S. visit-fee-only revenue jumped 31% to $3.5 million. Revenue for international paid visits soared 57% to $406,000.
The company's acquisition of Advance Medical made a huge difference in its second-quarter results. But even excluding this deal, Teladoc still grew revenue organically by 24% year over year.
The bottom line wasn't so rosy, though. The net loss widened in the second quarter, primarily due to higher cost of revenue and increased operating expenses. The company especially spent more on general and administrative functions, with these expenses jumping 47% year over year to $38.5 million.
On the other hand, Teladoc's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved from the prior-year period. The company reported adjusted EBITDA in the second quarter of $6.3 million, versus $2.7 million in the same quarter in 2018. Investors can't depend heavily on adjusted EBITDA to gauge how well Teladoc is performing financially, though, since the figure excludes the company's significant interest expense and acquisition-related costs, as well as adding back in the relatively high stock-based compensation expenses.
What management had to say
CEO Jason Gorevic stated:
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. We built out our senior leadership team with two important additions during the quarter, and we made meaningful progress toward 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.
Looking forward
Teladoc Health anticipates that its third-quarter revenue will be between $135 million and $138 million. It expects a net loss per share in the quarter between $0.40 and $0.42.
The company also updated its full-year 2019 guidance. It now looks for total revenue between $538 million and $545 million, a narrowing of the range of $535 million to $545 million provided in its previous outlook. It also expects a full-year 2019 net loss per share between $1.52 and $1.60. The company previously projected a net loss per share between $1.52 and $1.66.
