Teladoc Health stock rose Tuesday after the virtual care company reported a 10% increase in revenue year-over-year to $652.4 million from $592.4 million in the prior year.
For Teladoc Health’s Integrated Care segment, revenue increased 5% year-over-year to $360.1 million, and for BetterHelp it increased 18% to $292.4 million in Q2 2023.
Revenue in the U.S. rose 8% to $561.8 million, while international revenue grew 28% to $90.6 million.
The company reported a net loss of $65.2 million, or $0.40 per share, for the second quarter of the year compared to a $3 billion loss in the same period last year.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 54% to $72.2 million compared to the second quarter of 2022 at $46.7 million, and the company reported an operating cash flow of $101.2 million and free cash flow of $64.6 million in Q2 2023.
The company now expects its full-year revenue as of Dec. 31 to range from $2.6 billion to $2.67 billion and its adjusted EBITDA to range from $300 million to $325 million.
“At the halfway point, we remain on track for our full-year enrollment targets, which is one of the factors giving us the confidence to raise the bottom end of our guidance range,” Jason Gorevic, Teladoc CEO, said during the company’s earnings call.
THE LARGER TREND
Teladoc Health stock rose amid the company’s release of its Q1 2023 earnings earlier this year, when it posted a revenue boost of $629.2 million, an 11% increase from $565.4 million in the first quarter of 2022, and a narrower loss in the first quarter.
Earlier this month, a federal judge dismissed a securities class-action lawsuit pertaining to Teladoc’s $18.5 billion merger with chronic care platform Livongo.
The suit, filed in 2022 by shareholder Jeremy Schneider on behalf of parties that purchased Teladoc shares between Feb. 2021 and July 2022, alleged the virtual care company’s representatives misled investors by downplaying the challenges it faced integrating Livongo. It also claimed the company made misleading statements and “artificially inflated the price of Teladoc’s stock” during those 17 months.
Last week, the company announced it had expanded its collaboration with Microsoft to integrate the tech giant’s AI solutions into its virtual care platform, thus allowing providers to automate clinical-documentation creation during virtual exams.
The company will integrate Microsoft Azure OpenAI Service, Azure Cognitive Services, and conversational and ambient clinical documentation solution Nuance Dragon Ambient eXperience (DAX) into Teladoc Health Solo.
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