Fueled by the sudden and acute increase in the need for its services during the coronavirus pandemic, Teladoc Health (TDOC -2.05%) has experienced a surge in revenue over the past several months. This was one major takeaway from the company's second-quarter 2020 results, which were published on Wednesday.
The remote healthcare services provider boosted its revenue by 85% on a year-over-year basis to $241.0 million. This was on the back of total patient visits that rocketed 203% higher to 2.8 million. That business growth didn't filter down to the bottom line in the form of a net profit, though; the company lost $25.7 million ($0.34 per share). That was, however, a narrowing from Q2 2019, when it lost $29.3 million.
The results topped analysts' average estimate for revenue, which had been $220.5 million, but those prognosticators had been expecting a per-share net loss of just $0.23.
In its earnings release, Teladoc said that the shift toward telemedicine isn't only a temporary one because of the coronavirus threat. "[W]e are also seeing sustained demand in areas that are no longer considered hotspots," said CEO Jason Gorevic. "In some states where the curve has flattened, we are still seeing twice as many patient visits as last year."
The company proffered guidance for both the current quarter and the entirety of 2020. For the year, it believes revenue will land in the $980 million to $995 million range, with an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $6 million to $13 million. It did not provide a forecast for net profit/loss.
For 2021, Teladoc offered a preliminary revenue growth estimate of 30% to 40%. No other forecasts were given for next year.