Teladoc Health (NYSE:TDOC) delivered tremendous revenue growth when it reported quarterly results in May. It was a different story for the company's bottom line, but investors weren't too concerned since Teladoc is still in an aggressive expansion mode.
The telemedicine leader announced its second-quarter results after the market closed on Wednesday. Here's a look at Teladoc's latest financial update.
What happened with Teladoc Health this quarter?
Subscription access fees generated more than 85% of total revenue in the second quarter. The company reported U.S. subscription revenue of $85.5 million, up 31% year over year. International subscription revenue in the second quarter totaled $25.7 million, a 75% increase from the prior-year period.
Teladoc also enjoyed solid growth in its visit-fee revenue. U.S. paid-visits revenue increased 28% year over year to $15.1 million, while U.S. visit-fee-only revenue jumped 31% to $3.5 million. Revenue for international paid visits soared 57% to $406,000.
The company's acquisition of Advance Medical made a huge difference in its second-quarter results. But even excluding this deal, Teladoc still grew revenue organically by 24% year over year.
The bottom line wasn't so rosy, though. The net loss widened in the second quarter, primarily due to higher cost of revenue and increased operating expenses. The company especially spent more on general and administrative functions, with these expenses jumping 47% year over year to $38.5 million.
On the other hand, Teladoc's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved from the prior-year period. The company reported adjusted EBITDA in the second quarter of $6.3 million, versus $2.7 million in the same quarter in 2018. Investors can't depend heavily on adjusted EBITDA to gauge how well Teladoc is performing financially, though, since the figure excludes the company's significant interest expense and acquisition-related costs, as well as adding back in the relatively high stock-based compensation expenses.
