Newly public telehealth service provider Teladoc saw substantial increases in revenue, membership and patient encounters during the second quarter, but also saw its financial losses widen prior to its initial public offering, the company reported late Wednesday.
Teladoc reported a net loss of nearly $17.1 million for the three months ended June 30. That is more than five times greater than the $3.2 million lost posted in the same period in 2014. For the first half of 2015, Teladoc lost $29.8 million, compared to $5.5 million a year earlier.
Still, company executives are upbeat. “We saw strong performance during our first quarter as a public company. Our revenue was up substantially and we experienced significant growth in both our membership base and in our number of visits,” CEO Jason Gorevic said.
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Indeed, revenues grew by 78 percent during the quarter, to $18.3 million. For the first half, sales increased by 77 percent, to $34.8 million.
Teladoc reported handling 125,322 remote patient visits last quarter, slightly more than double the total of 61,379 in the same period a year earlier. Membership grew 48 percent, to 11.5 million people, from the prior year’s 7.8 million.
The outlook for the rest of 2015 sounds bleak, but Teladoc seems to be looking to the long term. The company said to expect pre-tax losses for the full year to be in the range of $50 million to $52 million, with slower revenue growth in the third quarter than in the second, and possibly a lower number of patient visits this quarter.
However, Teladoc is particularly bullish on behavioral health. The telehealth provider said that a new president of Teladoc Behavioral Health, Julian Cohen, started Aug. 3. Cohen had been CEO and president of Breakthrough Behavioral, a tele-mental health provider that was sold to MDLive last year.
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“Teladoc provides an unmatched platform to deliver remote counseling to the millions of Americans in need of better access to behavioral healthcare,” Cohen said Wednesday.
Teladoc, based in Purchase, N.Y., had its IPO July 1, one day after second quarter ended. As the company disclosed in its IPO registration, it has never been profitable.
The company had $15.4 million cash on hand as of June 30, down sharply from $46.4 million at the end of 2014, though the IPO raised as much as $156.75 million.
Teladoc stock continues to perform well. Shares closed Wednesday at $28.51 and topped $31 in intraday trading Thursday. The IPO was priced at $19 per share.
Photo: New York Stock Exchange
