July 27 (Reuters) - Teladoc Inc on Tuesday reported just a 1% rise in its membership - the lowest since the telehealth service provider went public in 2015 - as vaccine rollouts and easing COVID-19 related restrictions dampened demand for virtual healthcare.
Shares of Teladoc fell as much as 8.5% in after-hours trading after the company also reported a much bigger-than-expected loss.
As the COVID-19 pandemic resulted in patients seeking alternatives to in-person hospital visits, telehealth companies saw a surge in demand for their services. But, analysts predicted that as more Americans get vaccinated, usage of virtual care services will likely decline.
The company’s lowest membership addition was previously 16% in the fourth quarter of 2018.
Still, the company maintained its earlier forecast of U.S. paid membership to be in the range of 52 million to 54 million in 2021.
The company also raised its full-year revenue forecast to between $2 billion and $2.03 billion, from $1.98 billion to $2.02 billion, citing more visits for non-infectious diseases and specialty care. Analysts’ expectation stood at $2.01 billion.
Virtual healthcare visits rose to 28% in the second quarter.
Total revenue for the quarter more than doubled to $503.14 million, beating the average analyst estimate of $500.63 million, according to IBES data from Refinitiv.
However, the company’s net loss of 86 cents was bugger than estimates of 56 cents, partly due to higher expenses related to its recently completed acquisition of Livongo.