What happened
Shares of Teladoc (TDOC -2.40%) were up more than 22% as of 11:25 a.m. on Wednesday after the company announced second-quarter earnings. The virtual healthcare provider's stock is up more than 18% so far this year.
So what
Teladoc's second-quarter revenue rose 10% year over year to $652.4 million, but perhaps more importantly, it significantly cut its losses. On the bottom line, the company reported a loss of $0.41 per share compared to a loss of $19.22 per share in the same period a year ago. Notably, its steep loss in Q2 2022 included a non-cash goodwill impairment charge of $3.03 billion.
Several areas helped push revenue higher. The company made 12% more year over year from access fee revenue, and international revenue was up 23%.
The biggest reason for the improvement on the bottom line (other than the absence of last year's impairment charge) was that Teladoc substantially reduced its office space footprint.
Now what
Management further spurred investors' optimism with its guidance for the third quarter and the year. Teladoc says it expects Q3 revenue of between $650 million and $675 million, up from the $611.4 million it reported in Q3 2022. It also said it expected a third-quarter loss of between $0.50 per share and $0.40 per share, compared to a loss of $0.45 per share in the third quarter a year ago.
For 2023, Teladoc now says it expects revenue of between $2.6 billion and $2.675 billion, compared to the range of $2.575 billion and $2.675 billion that it offered at the time of its first-quarter earnings release. It also said it expects an annual loss of between $1.60 per share and $1.25 per share, an improvement from its previously forecast loss of between $1.70 per share and $1.25 per share.
