Teladoc revenue up 89% to $233M in 2017
- Teladoc reported strong Q4 2017 results with $77.1 million in revenue, up 106% from the same period a year ago. Total revenue for the year grew 89% to $233.3 million, according to an SEC filing.
- The Dallas-based company posted a net loss of $44.4 million for the final quarter of 2017 and $106.8 million for the year, both an increase in net loss over the previous year.
- On a Tuesday earnings call with investors, CEO Jason Gorevic noted especially high telehealth use due to the ongoing severe flu season. During peak days in January, Teladoc averaged 8,000 visits per day, one in five of which were flu-related.
Gorevic cited provisions in the recently approved two-year federal government spending bill that could lead to continued growth in telehealth use.
For example, the law allows sponsors of Medicare Advantage plans to include the cost of telehealth services in their yearly bids to CMS, starting in the 2020 plan year. It also expands Medicare reimbursement to certain ACOs that offer virtual care, as well as for remote monitoring of dialysis and remote diagnosis of stroke.
Teladoc previously announced the company exceeded 100% growth in the hospital and health system market in 2017. The telehealth vendor now supports more than 200 hospitals — more than twice the number at the start of 2017. Healthcare systems added last year include Mount Sinai in New York, Jefferson Health in Philadelphia and Mercy Health Network in Des Moines, Iowa.
According to a recent survey, three-fourths of healthcare organizations offered or planned to offer telehealth services in 2017. Of those with existing telehealth programs, more than half said they planned to grow their programs, including overseas.
Teladoc's U.S. paid membership increased 33% for the year to 23.2 million, while total visits neared 1.5 million, an increase of 54%. Paid visits as a percentage of total visits was 54%, down from 61% a year ago.
Adjusted EBITDA improved to $2.4 million in Q4 versus a loss of $8 million in the same period in 2016. For the full year, adjusted EBITDA also improved — to a loss of $12.5 million from a $39.7 million loss in 2016.
For 2018, Teladoc projects revenue in the $350 million to $360 million range, with adjusted EBITDA of $7 million to $10 million.