Teladoc Health stock rose Wednesday night after the virtual care company posted a revenue boost and a narrower loss in the first quarter this year.

Teladoc reported revenue of $629.2 million, an 11% increase from $565.4 million in the first quarter of 2022.

Net loss was $69.2 million, or $0.42 per share, compared with $6.7 billion, or a loss of $41.58 per share, in Q1 last year. In 2022, Teladoc's Q1 earnings were dragged down by a $6.6 billion noncash goodwill impairment charge related to its acquisition of chronic care management company Livongo.

Adjusted earnings before interest, taxes, depreciation and amortization decreased to $52.8 million compared with $54.5 million in Q1 2022. 

Revenue for the virtual care giant's direct-to-consumer mental health division BetterHelp grew 21% year-over-year, while paying users increased 22% The company also noted revenue from its enterprise integrated care segment grew 5%.

"With a strong financial position, we are able to fund and invest in innovations and a world-class team of medical professionals as we support leading employers, health plans, hospital systems and governments around the world. We have solid momentum heading into the rest of the year as the market embraces Teladoc Health’s unified whole person care experience," CEO Jason Gorevic said in a statement. 

In the second quarter, Teladoc expects revenue between $635 million and $660 million, and net loss per share between $0.55 and $0.45. For the full year, the company projects revenue between $2.58 billion and $2.68 billion with a net loss per share $1.70 between $1.25.

THE LARGER TREND

Teladoc struggled financially last year, reporting a $13.7 billion net loss in 2022, driven by multiple noncash goodwill impairment charges. Early this year, the company laid off about 300 employees as part of a larger restructuring plan to reduce operating costs. 

The Federal Trade Commission also recently fined BetterHelp for allegedly sharing consumer data with third parties like Facebook and Snapchat for advertising purposes. BetterHelp said it had reached a settlement regarding old practices, and it admitted no wrongdoing. 

Last week, Teladoc announced it would expand its physician-based care programs for weight loss and prediabetes, including offering GLP-1 drugs.