The news: Teledoc reported $503 million in revenues in Q2—a 109% year-over-year jump. However, it reported a total net loss of $333.5 million for the first half of 2021—significantly higher than the $55.3 million net loss it reported in H1 2020. Despite losses, Teladoc’s visit numbers were up in Q2 21, peaking at 3.5 million—28% higher than Q2 20 (when the first wave of the pandemic hit).
Why it matters: What’s surprising is that telehealth investments are still rising while leading companies like Teladoc and Amwell are not yet profitable.
There was also an all-time high of 35 telehealth-related M&A deals in the second quarter of this year—40% of which were related to telemental health.
What’s next? Telehealth companies were able to capitalize on the pandemic’s tailwinds—but now they’ll have to navigate the uncertainties around how much public and private payers will reimburse patients for virtual care.
Telehealth vendors can safeguard their revenues by covering multiple bases in the digital health value chain.
And the stakes are raised even higher with competition heating up. Just last week, Amwell acquired a digital therapeutics company for mental health (SilverCloud) and an AI-driven care coordination firm (Conversa Health). And Big Tech is also vying for a slice of the telehealth market: On top of Walmart’s MeMD acquisition, Amazon Care is quietly expanding to employers across the US.