In an earnings report released this week from Teladoc Health, the telehealth giant reported an 81% year-over-year revenue growth in the third quarter to $522 million.
The company also pointed to what it called “significant new agreements” with CVS Health and Centene to provide its primary care offering, Primary360.
“By leveraging our unique combination of data, analytics, technology and dedicated healthcare professionals, we are driving growth across our business,” said Jason Gorevic, chief executive officer at Teladoc Health, in a statement.
WHY IT MATTERS
Financial experts characterized Teladoc’s third quarter as good, with revenue and visit numbers above previous estimate numbers.
“The healthcare market is moving towards a system of delivery that demands higher levels of consumer convenience, lower cost, and more effective outcomes,” said David Larsen, BTIG healthcare IT and digital health analyst, in a statement provided to Healthcare IT News.
“With the Livongo acquisition, TDOC has created a very thorough and effective ‘virtual care channel’ that in our view can be used as the first line of defense with respect to member and consumer healthcare spending,” said Larsen.
The company reported 3.9 million visits total in the third quarter, a 37% increase from the previous year. This jump was consistent with the 10.6 million total yearly visits so far, when compared with 7.6 million in the first nine months of 2020.
At the same time, Larsen noted U.S. membership totals – 52.5 million – as slightly behind consensus, and flagged the “lack of clarity” around 2022 membership expectations.
“We believe that investors want to know if there is another ‘growth surge’ that could potentially happen with the business and stock,” said Larsen.
“You will see us have a more meaningful sort of ambient presence in hospital settings.”
Teladoc CIO Claus Jensen
Teladoc reported $84.3 million in net loss for the third quarter of 2021, compared with $35.9 million for the third quarter of last year. For the fourth quarter, Teladoc expects its total revenue to be in the range of $536 to $546 million, with total visits between 3.9 and 4.9 million.
According to reports, Gorevic said the company plans to take on financial risk for its future offerings.
“The third quarter was notable in expanding relationships with a number of leading national health plans with the successful launch of our Primary360 offering which reimagines the primary care model and delivers increased access and engagement to members,” he said in a statement.
THE LARGER TREND
Teladoc’s chief innovation officer Claus Jensen said the company’s primary care service was “just the beginning” of the company’s healthcare integration plans.
“You will see us have a more meaningful sort of ambient presence in hospital settings,” Jensen told Healthcare IT News.
Still, Teladoc has struggled a bit with underperformance after the pandemic-driven spike in telehealth use. It reported a $133 million net loss last quarter, despite an increase in visits.
ON THE RECORD
“Our view is that prior to the pandemic, plans, doctors and hospitals viewed telehealth as a competing channel so there was some reluctance to encourage the usage of telehealth,” said Larsen, the financial analyst.
“However, with the pandemic physicians have now come to depend on telehealth to maintain revenues for their practices, doctors and hospitals are now far more comfortable actually using telehealth technology, and we believe that health-plans are still investing significantly into telehealth solutions in order to continue to expand access to care,” he added.
Kat Jercich is senior editor of Healthcare IT News.
Twitter: @kjercich
Email: [email protected]
Healthcare IT News is a HIMSS Media publication.
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