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Teladoc (TDOC) Q1 Loss Lower Than Expected, '17 View Intact

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Teladoc Inc.’s (TDOC - Free Report) first-quarter 2017 operating loss of 30 cents per share came in narrower than the Zacks Consensus Estimate of a loss of 33 cents per share. In the year-ago quarter, the company had incurred a loss of 40 cents per share.

Total revenue during the quarter came in at $42.9 million, above the Zacks Consensus Estimate of $42 million and up 60% year over year. Revenues were above the high end of the company’s guided range of $41.5–$42.5 million.

Revenue from subscription access fees and visit fees was $34.3 million and $8.6 million, respectively, reflecting an increase of 66% and 39% year over year. The increase in subscription fees reflects overall membership expansion and contributions from HealthiestYou.

Total operating expenses were $45.6 million, 51% higher year over year. The increase was due to increased expenditure on advertising, marketing and sales.
Adjusted EBITDA narrowed to a loss of $9.1 million from a loss of $11.9 million, in the year-ago quarter, and came in better than the company’s guided range of a loss of $10 million to $11 million.

Total visits of 384,839 surged 60% year over year. Total visits came within the company’s guided range of 375,000 to 385,000.

Total membership was 20.1 million, reflecting an increase of 34% year over year. It also came within the company’s guided range of 20 million to 20.5 million.

Financial Position

Teldoc’s total assets were approximately $414 million as of Mar 31, 2017, up from $303.7 million as of Dec 31, 2016.

Total cash, cash equivalents and marketable securities were $36 million as of Mar 31, 2017, up from $15.8 million as of Dec 31, 2016.

Guidance     

For the second quarter of 2017, the company currently expects total revenue between $44 million and $45 million, EBITDA loss between $10.5 million and $11.5 million and adjusted EBITDA loss between $6 million and $7 million. Teladoc also projects total membership of approximately 20 million to 21.5 million, total visits between 290,000 and 310,000 and net loss per share based on 54.5 million weighted average shares outstanding of 26 cents to 28 cents.

The company reiterated its full-year 2017 guidance provided during the fourth-quarter earnings release. It continues to expect total revenue between $180 million and $185 million, EBITDA loss between $31 million and $34 million and adjusted EBITDA loss between $19.5 million and $22.5 million. The company targets adjusted EBITDA of a break-even in the fourth quarter of this year and total membership of approximately 21.5 million to 23 million. Total visits between 1.4 million and 1.45 million and net loss per share based on 54.2 million weighted average shares outstanding of 85 cents to 91 cents are expected for full year 2017.

Recent Developments

The company’s newly signed clients are Dullards, Bear and Paychex. It also signed agreements with multi-care health system comprising seven hospitals in Washington, WellSpan Health system comprising six hospitals in Central Pennsylvania, and expanded relationship with the Mount Sinai Health system in New York. These have joined the Teladoc platform and either went live recently or will be implemented over the next few months.

Zacks Rank and Other Stocks

Teladoc carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other stocks in the healthcare space that beat earnings estimates this quarter are UnitedHealth Group Inc. (UNH - Free Report) , Aetna Inc. and Humana Inc. (HUM - Free Report) .

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