Teladoc's virtual visits reach 3M during Q4 as revenue grows to $383M

Teladoc's 2020 revenue reached $1.1 billion as virtual care visits continued to soar.

The telehealth giant reported it delivered 10.6 million virtual visits last year, up 156% from 2019. The company's U.S. paid membership hit 51.8 million, up about 41% from 36.7 million users in 2019.

Teladoc, one of the nation's top telehealth providers, reported 3 million total virtual visits during the fourth quarter, up 139% from 1.2 million visits in the fourth quarter of 2019.

Fourth-quarter revenue came to $383 million, up 145% from $156 million in the same period in 2019.

"2020 was a transformational year for Teladoc Health and for the role of virtual care within the broader healthcare industry," Teladoc CEO Jason Gorevic said during a fourth-quarter and full-year 2020 earnings call Wednesday.

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"We delivered needed healthcare to millions of consumers in the midst of the coronavirus pandemic and completed two significant acquisitions that together, under Teladoc Health, are defining a new category of whole person virtual care. Taken together, we dramatically accelerated our mission to empower all people everywhere to live their healthiest lives by transforming the healthcare experience," he said.

Teladoc completed its massive $18.5 billion acquisition of Livongo in October, and, combined with its acquisition of InTouch Health last year, the company's value proposition in the marketplace is only getting stronger, he said.

"As virtual care shifted to become a consumer expectation in 2020, Teladoc Health not only met the rapidly growing demand, but we transformed our company to define a new category of whole-person virtual care,” Gorevic said. “By accelerating our mission to transform the health care experience, we exceeded our fourth-quarter and full-year 2020 expectations and see strong momentum across our global business in 2021 as the market embraces the breadth and depth of our unique capabilities.”

The company's fourth-quarter revenue beat Wall Street estimates of $378 million for the quarter.

Earnings per share in the quarter came to a loss of 27 cents, which missed the Wall Street estimate of a loss per share of 24 cents.

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The company onboarded a record 15 million new paid members in 2020. And, over the last 18 months, Teladoc added 25 million paid members and 11 million members with BFO access.

Teladoc is making significant investments to integrate its products and services following the Livongo deal, Gorevic said. "We see a tremendous opportunity for a new integrated behavioral health product that combines the capabilities of both Livongo and Teladoc. This innovative offering will pair the highly scalable, personalized self-directed digital care programs of Livongo's myStrength platform with access to the expertise and convenience of Teladoc's virtual network of clinicians. With this integrated offering, we will create a new digital front door to behavioral healthcare, further breaking down barriers to mental health by allowing consumers to find the right care at the right time, increasing access and improving outcomes," he said.

Out of its $383 million quarterly revenue, revenue from subscription access fees came to $283 million, up 188% from the prior year's quarter, while total visit-fee revenue increased 80% to $53 million.

Total international revenue of $34 million grew 16% versus the prior year. 

However, the company grew its sizable net losses during the quarter due to $58 million in transaction costs related to the Livongo deal.

Growth in specialty visits has been particularly strong, led by growth in behavioral health, which experienced visit growth of over 500% in 2020 as the growth in visits accelerated throughout the course of the year, the company reported.

Teladoc reported a loss of $394 million in the fourth quarter, which grew from a net loss of $19 million during the same quarter a year ago. Net loss was $485 million for full-year 2020 compared to $99 million for full-year 2019.

Teladoc Chief Financial Officer Mala Murthy said the company expects full-year 2021 revenue to be in the range of $1.95 billion to $2 billion, representing growth of 78% to 83% over the prior year.

"Our confidence in that strong revenue growth is underpinned by first, continued growth in utilization, particularly among noninfectious disease-related visits such as hypertension, lower back pain, anxiety and depression. During the fourth quarter, approximately 75% of our volume was related to noninfectious diseases, up from 50% in the fourth quarter of last year as our visit mix continues to diversify, a trend that has continued into the new year," Murthy said.

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"We've also seen tremendous growth in new registrations over the past year with newly registered individuals growing at twice the rate of new member additions," she said.

First-quarter 2021 total revenue is expected to be in the range of $445 million to $455 million, and total U.S. paid membership should be in the range of 51 million to 52 million members.

Total visits are expected to reach between 2.9 million and 3.1 million.

Murthy said total revenue for full-year 2021 will be in the range of $1.95 billion to $2 billion. Total U.S. paid membership is expected to rise to 52 million to 54 million members.

Teladoc expects visits to increase to between 12 million and 13 million, Murthy said.