Teladoc reported a strong second quarter, coming off its acquisition of Advance Medical. The company reported $94.6 million in revenue, with $6.2 million of that coming from Advance. That constitutes 112 percent year-over—year growth for the telemedicine company. The company saw 533,000 total visits in the quarter and 22.5 million paid US members.
“We’re now 60 days into the integration of Advance Medical and I couldn’t be happier with our progress,” Gorevic said on the call. “We’re ahead of schedule on the integration of our U.S. businesses and have made significant strides with respect to the integration of people, clients, and processes. Very importantly, we’re seeing strong demand from our U.S. clients for Global Care On Demand, which provides virtual care seamlessly around the world. … We’ve also made excellent progress in Europe, where we’re focused on orienting our respective clients to the full scope of services available from the combined organization, and the reception has been extremely strong.”
In the wake of big acquisitions like Advance Medical and Best Doctors, Teladoc’s project now is to figure out how all its pieces best work together. One aspect of that is a re-brand of all services under the name Teladoc Health.
“The company's award-winning member experience brands — Advance Medical, Best Doctors, Better Health, Healthiest You, and Teladoc — will unify under this new corporate name,” Gorevic said on the call. “Under a single corporate brand we will realize benefits of our scale, maximize our corporate reputation around the world, and strengthen our market clarity and differentiation by clearly reflecting our position as the global leader in virtual care. This will allow us to go to market as a unified corporate brand offering multiple service bundles, which can include all or some of the legacy brands.”
The company had good and bad news from the federal government on the quarter. On the negative side, the Department of Defense’s TRICARE program slowed a planned rollout of Teladoc’s offering.
“While we were fully prepared for the full launch and in fact we did launch a small portion of the relationship in the second quarter, the government has decided on a slower rollout strategy than originally communicated,” Gorevic said. “They’re moving forward with us rolling out the service in a focused geography and we expect that this will lead to the previously anticipated larger national rollout in 2019. Fortunately, strength in other parts of our business offset any potential impact of the TRICARE delay, which speaks to the diversification of our revenue streams.”
On the other hand, Gorevic applauded CMS’s move toward fee-for-service coverage for telemedicine, though he noted that it’s not likely to have a huge direct impact on Teladoc. Instead, he said it will “provider more wind in the sales” for the company’s provider-focused business.