Teladoc noted that millennials are, “showing a greater sustained propensity to use digital health than other generations.”

Courtesy of Teladoc

Teladoc Health stock dropped in after-hours trading Wednesday after the company reported a wider first-quarter net loss than Wall Street expected.

The virtual healthcare provider reported net loss of $199.6 million, or $1.31 a share. Wall Street’s consensus estimate called for a net loss of 54 cents a share, according to FactSet. Revenue came in at $453.7 million, edging out estimates at $451.9 million. U.S. paid memberships hit 51.5 million, up from 43 million a year ago.

Teladoc Health (ticker: TDOC) stock was down 4.8% on the numbers, to $177.33. Though the company saw a surge in growth amid the pandemic, shares were recently up only about 6.4% from a year ago. The stock sold off in mid- to late February and early March after the company signaled it didn’t expect much membership growth in 2021.

The company maintained its full-year outlook for U.S. paid memberships of 52 million to 54 million but raised its full-year revenue outlook to a range of $1.97 billion to $2.02 billion, up from a prior range of $1.95 billion to $2 billion.

“Consumers are embracing our whole-person virtual care offerings, engaging with multiple products and coming to us for more of their health needs,” CEO Jason Gorevic said in the earnings release.

Teladoc also pointed to positive consumer trends, noting that millennials are, “showing a greater sustained propensity to use digital health than other generations.”

Write to Connor Smith at connor.smith@barrons.com

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