Teladoc reported a 17 percent revenue increase to $611 million in the third quarter, up from $522 million in 2021.
In its third-quarter 2022 earnings report posted Oct. 26, Teladoc reported that its revenue growth and earnings were "above the high end of expectations," according to Jason Gorevic, CEO of Teladoc Health.
BetterHelp, the company's direct-to-consumer mental health brand, was the biggest driver of that growth as revenue rose 35 percent compared to 2021.
In addition to revenue growth, Teladoc also reported significant cost savings.
Adjusted earnings before interest, taxes, depreciation and amortization during the third quarter came to $51.2 million, compared to $67.4 million the company had in 2021.
"We're leaning more into digital interactions with consumers as well as virtual group therapy sessions, which is a more efficient way of interacting with the consumer and improves the gross margins. It actually has the other effect of actually depressing our visit volume. So we actually see fewer visits. Fewer visits in the BetterHelp business is actually good, because it improves our gross margin and enables us to serve more people with fewer professional resources," said Mr. Gorevic during Teladoc's earnings call.
Last quarter, the company reported a $3 billion impairment charge and had a net loss in the first half of the year of $9.78 billion that dragged down its second-quarter earnings.