What happened

Shares of Teladoc Health (TDOC -2.40%) jumped this week after the telehealth company reported better-than-expected earnings before interest, taxes, depreciation, and amortization (EBITDA) for the second quarter.

While the company is still struggling on a number of levels, its Q2 results were enough to lift the beaten-down stock.

As of 1:16 p.m. ET Thursday, the stock was up 24.5% for the week.

So what

Revenue in the second quarter grew 10% to $652.4 million, edging past analysts' consensus expectation of $649.2 million. Growth was driven by an 11% increase in access fees to $575.7 million, while revenue from its "other" category grew by 4% to $76.7 million. Notably, its international revenue increased by 28% to $90.6 million. 

Its integrated care segment delivered just 5% growth to $360.1 million, while revenue from BetterHelp, which is focused on mental health, increased 18% to $292.4 million.

Investors seemed most pleased with the company's 54% increase in adjusted EBITDA to $72.2 million, a sign that Teladoc is doing a better job of bringing its costs in line with spending. Adjusted gross margin also improved from 69.2% to 70.8%. 

On a generally accepted accounting principles (GAAP) basis, the company posted an operating loss of $71.6 million with stock-based compensation accounting for $55.7 million of that spending. On the bottom line, it reported a loss of $0.40 per share, which essentially matched estimates for a loss of $0.41 per share. CEO Jason Gorevic called the results "strong."

"This performance is a direct result of introducing and expanding new products and services, investing in a robust innovation pipeline, controlling expenses, and vertically integrating care," said Gorevic.

Separately, the White House announced a new proposal that would make it easier for Americans to get affordable mental healthcare through their health insurance plans, which could benefit Teladoc, given its focus on mental health.

Now what

Looking ahead, Teladoc expects revenue of $650 million to $675 million in the third quarter, which would amount to 8.6% growth at the midpoint of the guidance range, in line with the consensus, and adjusted EBITDA of $72 million to $82 million.

For the year, it expects revenue of $2.6 billion to $2.675 billion, which would equate to 9.4% growth at the midpoint, and adjusted EBITDA of $300 million to $325 million.

Teladoc's growth rates still seem disappointing, as many had expected the company to disrupt the massive healthcare industry. However, with the stock down more than 90% from its peak, Teladoc's adjusted EBITDA improvement seems to be enough to encourage investors to bid it higher.