Teladoc Health posted $288.8 million in revenue for this year's third quarter, more than double the $138 million that the company posted during the same period in 2019.
The Purchase, N.Y.-based telehealth giant's growth was driven by revenue from both subscription access fees, up 90.2% year-over-year to $226.6 million, and visit fees, up 170.9% year-over-year to $51 million.
Teladoc reported more than 2.8 million visits for the quarter, more than triple the 928,000 visits it reported in 2019's third quarter and slightly more than last quarter's 2.75 million visits, despite recent reports indicating that telehealth visits have been declining since the spring as hospitals reopen for non-emergency care.
"We were pleased to see visit volumes increase sequentially, despite the COVID-driven volume we experienced in the second quarter," said Jason Gorevic, Teladoc's CEO, on a call with investment analysts Wednesday. "We continue to see strong evidence of sustained utilization increases for virtual care."
Teladoc also increased its full-year 2020 guidance, anticipating revenue to surpass $1 billion; in July, the company had said it expected its full-year revenue to be in the range of $980 million to $995 million. Teladoc expects visits for full-year 2020 to be in the range of 10.4 million to 10.6 million.
Despite its growth, the company is still not profitable.
Teladoc reported a sizeable net loss of $35.9 million, compared to net loss of $20.3 million posted in the year-ago quarter. The $35.9 million net loss includes $16 million in costs related to a pending merger with Livongo and $9.2 million in costs related to the company's recent acquisition of InTouch Health.
Since closing the InTouch acquisition in early July, the company has completed more than a dozen cross-selling agreements with health systems seeking enterprisewide telehealth tools, Gorevic said.
Teladoc's $18.5 billion merger with Livongo hasn't closed yet, but the companies have already signed their first commercial cross-selling agreement—a deal with GuideWell Mutual Holding Corp., the parent company of health insurer Florida Blue. GuideWell, a Teladoc customer, will make Livongo's diabetes program available to some Florida Blue members under the deal.
Gorevic said Teladoc and Livongo's teams are working together to create a "single access point" and "one unified interface for the client" for once their merger is complete.
The combined Teladoc-Livongo company will operate under the name Teladoc Health, maintain Teladoc's headquarters in Purchase, N.Y., and primarily be led by Teladoc's leadership team.
Livongo's CEO Zane Burke and President Dr. Jennifer Schneider, among other executives, will leave the combined company after the transaction closes, according to an announcement Teladoc filed with the Securities and Exchange Commission this month.
Also on Wednesday, Livongo—a digital health and chronic disease management company—posted $106.1 million revenue for the quarter, up 126.4% year-over-year, and reported having 1,402 clients, up 71.2% year-over-year. Livongo's business model involves working with health systems, health plans and employers as clients, which cover costs of program participation for individual members.
Livongo posted a net loss of $25.5 million, compared to $19.1 million in the year-ago quarter.
The Teladoc and Livongo teams are in the midst of discussing how a bundled service that includes components of both companies would be priced, but that hasn't been determined yet, said Mala Murthy, Teladoc's CFO, on Wednesday's call.
"We are just in the beginning stages of really doing deep integration planning," Murthy said. "Stay tuned in terms of how we will go sell this in the marketplace."