Shares of Teladoc Health (TDOC 2.25%) are rising sharply in response to the company's third-quarter earnings call. Investors happy with the results pushed the stock 8% higher as of 12:47 p.m. EDT on Thursday.
Over the past year, the number of well-funded telehealth service providers has exploded. Today's glowing third-quarter earnings report suggests they aren't much of a threat to the industry leader.
Revenue soared 81% year over year to $522 million. The number of visits facilitated during the third quarter grew 37% year over year.
Teladoc didn't raise the top end of its full-year revenue outlook, but the company did tighten up the expected range. Now the company expects revenue to land between $2.015 billion and $2.025 billion in 2021.
Teladoc Health lost $84.3 million during the third quarter, according to generally accepted accounting principles (GAAP). Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose sharply to $67.4 million from $39.5 million last year.
Teladoc Health also announced new agreements with Centene and CVS Health to provide Primary360, Teladoc Health's new, comprehensive primary-care service.
An impressive 725,000 patients were enrolled in at least one chronic-care service at the end of the third quarter. That was 31% more than during the prior-year period, and there was a lot of cross-selling. The number of chronic-care members enrolled in more than one program tripled year over year to 24%.
With multiple new competitors offering telehealth services, staying on top is going to be extra challenging. Luckily, the company's acquisition of chronic care specialist Livongo last October is positioning Teladoc Health for long-term growth.