Shares of Teladoc Health (TDOC -3.54%) fell 6% on Thursday, following the release of the telehealth leader's first-quarter results.
Teladoc's revenue surged by 41% year over year, to $180.8 million. The gains were driven by a 29% rise in subscription revenue and a 93% surge in visit-fee revenue.
Notably, Teladoc saw its total paid membership in the U.S soar 60.8% to 43 million. People are also using its telehealth services more often; the total number of visits to its platform jumped 92%.
"In the first quarter of 2020 alone, Teladoc Health delivered 2 million medical visits to people around the world, while simultaneously expanding access to millions of new members," CEO Jason Gorevic said in a press release. "As our clients and consumers have turned to us during these unprecedented times, our proven ability to meet their needs has elevated our global leadership role and accelerated our impact on the healthcare system overall."
Investors, however, appear to be focusing on Teladoc's net loss per share, which, at $0.40, was larger than the $0.35 loss Wall Street was expecting.
After Teladoc's incredible gains in 2020 (its stock had more than doubled prior to its earnings release), it's understandable that some investors decided to take some profits off the table. But long-term investors might want to hold on to their shares, as Teladoc is still early in its growth cycle.