(Reuters) – Teladoc Health’s shares rose nearly 7% in premarket trade on Wednesday after the telehealth operator beat Wall Street expectations for second-quarter revenue, aided by its mental health platform.
Revenue in the company’s BetterHelp mental health operations jumped 18%, while its integrated care platform, which provides various services like primary care and chronic healthcare services, saw 5% revenue growth.
“(Teladoc) continues to be well-positioned as the industry leader, and though it may take time to see meaningful new client growth, it is encouraging the company can continue to grow within existing clients,” TD Cowen analyst Charles Rhyee said in a note.
The telehealth firm reported a 10% increase in overall revenue to $652.4 million for the quarter, beating the average analyst estimate of $649.2 million, according to Refinitiv data.
The company’s integrated care operations saw more patients using their digital diabetes prevention program, Teladoc CEO Jason Gorevic said on a post-earnings conference call late Tuesday.
“Consumer demand has proven resilient through the first half of the year even with the financial pressures that many households are facing,” Gorevic said.
The company also raised the low end of its 2023 revenue forecast to $2.60 billion from $2.58 billion, while maintaining its top end at $2.68 billion.
As of last close, the company’s shares were trading at 1.4 times analysts’ predictions of its sales over the next 12 months, compared to 3.2 times for GoodRx Holdings and 12.3 times for Doximity.
(Reporting by Leroy Leo in Bengaluru; Editing by Maju Samuel)
