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Teladoc (TDOC) Q3 Loss Lower Than Expected, View Revised
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Teladoc Inc.’s (TDOC - Free Report) third-quarter operating loss of 33 cents per share came in lower than the Zacks Consensus Estimate of a loss of 36 cents per share. In the year-ago quarter, the company had incurred a loss of 37 cents per share.
The company incurred loss in the quarter due to high operating expense, which completely offset revenue growth.
Total revenue during the quarter came in at $32.4 million, beating the Zacks Consensus Estimate of $32 million and improving 62% year over year. Revenues were within the company’s guided range of $32–$33 million.
Revenue from subscription access fees and visit fees was $27.8 million and $4.6 million, respectively, reflecting an increase of 63% and 55% year over year.
Total operating expenses were $45.5 million, 61.9% higher year over year. The increase was due to higher advertising, sales, technology and development, general and administrative and depreciation and amortization expenses.
Total visits of 202,566 surged 73% year over year. Total visits, however, came in below the company’s guided range of 205,000 to 215,000. Total membership was 17.1 million, reflecting an increase of 35% year over year.
Financial Position
Teldoc’s total assets were $313.3 million as of Sep 30, 2016, up from $229.7 million as of Dec 31, 2015.
Total cash, cash equivalents and marketable securities were $44 million at the end of the quarter, down from $55.1 million as of Dec 31, 2015.
Guidance
The company gave the following guidance for fourth-quarter 2016: • Revenue in the range of $36 million to $37 million. • EBITDA in the range of a loss of $11 million to a loss of $12 million. • Adjusted EBITDA in the range of a loss of $9 million to a loss of $10 million. • Membership of approximately 17.3 million to 17.5 million at Dec 31, 2016. • Total visits between 273,000 and 288,000. • Net loss per share, based on 46.1 million weighted average shares outstanding, between 34 cents and 36 cents.
For 2016 the company expects: • Revenue in the range of $122 million to $123 million. • EBITDA in the range of a loss of $64 million to a loss of $65 million. • Adjusted EBITDA in the range of a loss of $41 million to a loss of $42 million. • Membership of 17.3 million to 17.5 million at Dec 31, 2016. • Total visits between 915,000 and 930,000. • Net loss per share, based on 42.3 million weighted average shares outstanding, between $1.79 and $1.81.
Our Take
Notably, this was the sixth quarter as a publicly traded company for Teladoc, the first and largest telehealth provider in the nation. The company, which was founded in 2002, launched its IPO in Jun 2015.
Teladoc is renowned for clinical quality and patient satisfaction, which will enable it to maintain its leading position in the rapidly growing telemedicine industry. The company is seeing its business growing steadily with insurers and customers increasingly embracing telehealth. The third quarter of 2016 marked the fifteenth consecutive quarter in which the number of telehealth visits increased faster than its member base. This reflects a trend of rapidly increasing adoption of this service.
Rigel Pharmaceuticals, Inc. (RIGL - Free Report) has an Earnings ESP of +12.5% and carries a Zacks Rank #3. The company is expected to report third-quarter earnings results on Nov 1.
Cigna Corp. (CI - Free Report) has an Earnings ESP of +2.62% and carries a Zacks Rank #3. The company is expected to report third-quarter earnings results on Nov 3.
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Teladoc (TDOC) Q3 Loss Lower Than Expected, View Revised
Teladoc Inc.’s (TDOC - Free Report) third-quarter operating loss of 33 cents per share came in lower than the Zacks Consensus Estimate of a loss of 36 cents per share. In the year-ago quarter, the company had incurred a loss of 37 cents per share.
The company incurred loss in the quarter due to high operating expense, which completely offset revenue growth.
Total revenue during the quarter came in at $32.4 million, beating the Zacks Consensus Estimate of $32 million and improving 62% year over year. Revenues were within the company’s guided range of $32–$33 million.
Revenue from subscription access fees and visit fees was $27.8 million and $4.6 million, respectively, reflecting an increase of 63% and 55% year over year.
Total operating expenses were $45.5 million, 61.9% higher year over year. The increase was due to higher advertising, sales, technology and development, general and administrative and depreciation and amortization expenses.
Total visits of 202,566 surged 73% year over year. Total visits, however, came in below the company’s guided range of 205,000 to 215,000.
Total membership was 17.1 million, reflecting an increase of 35% year over year.
Financial Position
Teldoc’s total assets were $313.3 million as of Sep 30, 2016, up from $229.7 million as of Dec 31, 2015.
Total cash, cash equivalents and marketable securities were $44 million at the end of the quarter, down from $55.1 million as of Dec 31, 2015.
Guidance
The company gave the following guidance for fourth-quarter 2016:
• Revenue in the range of $36 million to $37 million.
• EBITDA in the range of a loss of $11 million to a loss of $12 million.
• Adjusted EBITDA in the range of a loss of $9 million to a loss of $10 million.
• Membership of approximately 17.3 million to 17.5 million at Dec 31, 2016.
• Total visits between 273,000 and 288,000.
• Net loss per share, based on 46.1 million weighted average shares outstanding, between 34 cents and 36 cents.
For 2016 the company expects:
• Revenue in the range of $122 million to $123 million.
• EBITDA in the range of a loss of $64 million to a loss of $65 million.
• Adjusted EBITDA in the range of a loss of $41 million to a loss of $42 million.
• Membership of 17.3 million to 17.5 million at Dec 31, 2016.
• Total visits between 915,000 and 930,000.
• Net loss per share, based on 42.3 million weighted average shares outstanding, between $1.79 and $1.81.
Our Take
Notably, this was the sixth quarter as a publicly traded company for Teladoc, the first and largest telehealth provider in the nation. The company, which was founded in 2002, launched its IPO in Jun 2015.
Teladoc is renowned for clinical quality and patient satisfaction, which will enable it to maintain its leading position in the rapidly growing telemedicine industry. The company is seeing its business growing steadily with insurers and customers increasingly embracing telehealth. The third quarter of 2016 marked the fifteenth consecutive quarter in which the number of telehealth visits increased faster than its member base. This reflects a trend of rapidly increasing adoption of this service.
TELADOC INC Price, Consensus and EPS Surprise
TELADOC INC Price, Consensus and EPS Surprise | TELADOC INC Quote
Zacks Rank and Other Stocks to Beat
Teladoc carries a Zacks Rank #3 (Hold).
Some other stocks in the healthcare space poised to beat earnings estimates this quarter are:
Tenet Healthcare Corp. (THC - Free Report) is expected to report third-quarter earnings results on Oct 31. It has an Earnings ESP of +26.32% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rigel Pharmaceuticals, Inc. (RIGL - Free Report) has an Earnings ESP of +12.5% and carries a Zacks Rank #3. The company is expected to report third-quarter earnings results on Nov 1.
Cigna Corp. (CI - Free Report) has an Earnings ESP of +2.62% and carries a Zacks Rank #3. The company is expected to report third-quarter earnings results on Nov 3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>