In the past year, many companies Launch or Acquired telemedicine solutionTeladoc CEO Jason Gorevic dispelled concerns about competition during a recent earnings conference call, saying that the company is still winning customers and retaining them at a strong rate.
He attributed the company’s staying power to its accumulated extensive solutions.Last year, Teladoc initiated a series of digital health mergers. It acquired Livongo for $18.5 billion. This year, about 70% of the company’s bookings are used for multi-product sales.
“We won because we have a full range of products and services,” he said. “The truth is, what I want to say is that the point solution is really struggling at this point. If you look at our post pipeline, it is almost twice as large as last year.”
Teladoc reported revenue of $522 million in the third quarter, an increase of 81% over the previous year. It also reported 3.9 million visits, an increase of 37% from 2020.
Teladoc did not disclose how much of its growth came from direct-to-consumer visits or contracts with other companies, but Gorevic saw “significant growth in both areas.”
Chief Financial Officer Mala Murthy said that in particular, the company’s mental health visits through its direct-to-consumer and B2B channels have grown strongly. Mental health has always been a major driving force for telemedicine. Even before the pandemic.
However, the company’s paid memberships remained relatively stable, and the third quarter’s net loss expanded from 35.9 million US dollars to 84.3 million US dollars, partly because of the continued award of stock awards after the merger with Livongo.
After last year’s pandemic pushed virtual visits to an all-time high, Teladoc faced a high threshold. An important part of its future business will be its virtual primary care solution Primary360, which has become part of several telemedicine priority plans launched by payers this year.
Teladoc recently announced a partnership with CVS Health and Centene around this primary health care product. The company initially planned to price it as a per-member monthly model, similar to its other B2B contracts, but with a slightly higher price to reflect that primary care visits are usually more valuable than emergency care visits.
But in the long run, Teladoc is seeking to sign more value-based contracts with payers to compensate the company for providing better care.
“I do see that we are taking risks, and I think we will step in,” Gorevich said.
Photo Credit: Sorbet, Getty Images
