Strong enrollment growth, subscription fees push Teladoc revenue to $68.7M in Q3
- Teladoc’s revenue increased 112% to $68.7 million in the third quarter of 2017, buoyed by strong enrollment growth. The telehealth vendor now expects full-year revenue in the $231 million to $233 million range.
- Enrollment for the period increased 33% to 22.6 million, putting the New York-based company on track to enroll up to 23 million members this year, according to Teladoc’s third-quarter filing.
- Revenue from monthly subscription access fees totaled $59.8 million, or about 87% of the overall revenue. The figure includes $19.8 million from Teladoc’s acquisition of Best Doctors.
Teladoc also reported higher utilization of its platform, logging 306,000 virtual visits in the quarter — an increase of 51%.
Despite strong performance, investment in growth activities put a drain on earnings. Net loss grew to $31.3 million, or 55 cents per share, up from $29.8 million last year. Net loss for the year is expected to be between $1.56 and $1.58 per share, higher than earlier estimates of $1.52 to $1.55 per share.
Teladoc also announced the appointment of Peter McClennan, president of the firm’s Best Doctors division, to lead global commercial operations. The newly created position reports directly to Teladoc CEO Jason Gorevic.
Teladoc signed a definitive agreement to acquire the Boston-based medical consultation firm in June. The $440 million deal closed in mid-July. The merger added Best Doctors network of 50,000 specialists to Teladoc’s 3,100 physicians and therapists. It also brought new analytics, cognitive computing and patient-centric capabilities to Teladoc’s platform.
The health IT landscape is changing, and as companies change with it, earnings numbers can be volatile. Athenahealth recently announced a 10% revenue growth for the third quarter but also said it is reducing its workforce by 9% amid restructuring. Teladoc will also continue to make changes like the Best Doctors acquisition to find its best place in the market.