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Teladoc Inc. (TDOC - Free Report) reported fourth-quarter 2018 loss of 35 cents per share, in line with the Zacks Consensus Estimate. The reported figure was lower than the year-ago quarter’s loss of 50 cents per share and below the company’s own forecast range of a loss of 36 cents to 3 cents per share.
The decline in losses was supported by an increase in revenues partly offset by a rise in expenses.
Strong Operating Performance
The company’s revenues of $122.7 million surpassed the Zacks Consensus Estimate by 2.25% and soared 59% year over year.
Revenues from subscription access fees (which comprised 84% of total revenues) increased 57% year over year to $102.7 million. Within this, subscription fees from the United States accounted for $78.3 million or 76% of total access fees (up 41% year over year), while international subscription fees accounted for the remaining 24% or $24.4 million (up 145%).
The company generated $20 million in visit fee revenues from general and medical visits, representing an increase of 70% year over year.
Gross margins declined to 67.4% from 70.6% in the year-ago quarter as a result of an overall revenue mix shift of its virtual healthcare product offerings.
Total visits of 861,000 were up 86% year over year, due to membership gains in U.S. visit only fee and international visits.
U.S. paid membership of 22.8 million grew 16% year over year.
Total operating expenses in the quarter came in at $100.6 million, representing a surge of 27.3% year over year, primarily led by higher marketing and advertising, technology and development, and legal expenses.
Adjusted EBITDA came in at $5.8 million for the quarter, up 141.7% year over year.
Financial Update
As of Dec 31, 2018, the company had approximately $424 million in cash and short-term investment compared with $43 million as of Dec 31, 2017. The company’s total debt as of Dec 31, 2018 was $415 million, up 100% year over year.
Full-Year Highlight
The company reported total revenues of $417.9 million, up 79% year over year and above the company’s guided range of $414 million to $416 million. Net loss of $1.47 per share declined 24% year over year and was below the company’s guided range of loss of $1.48 and $1.50 per share.
Guidance Update
For the first quarter, the company expects total revenues of $126-$129 million and total adjusted EBITDA of $0-$2 million. The company projects total visits between 950,000 and 1050,000. Net loss per share, based on 70.8 million weighted average shares outstanding, is expected to range from a loss of 44 cents to a loss of 46 cents per share.
For full-year 2019, the company expects revenues between $535 million and $545 million and adjusted positive EBITDA between $25 million and $35 million. It projects total U.S. paid membership of approximately 27 million to 29 million, while visit fee only access will be available to approximately 9.8 million individuals. Total visits are expected in the band of 3.6-3.9 million and net loss per share, based on 71.9 million weighted average shares outstanding, is expected to range from $1.52 to $1.66.
Among the other players from the healthcare industry that have reported fourth-quarter earnings, the bottom line of Anthem, Inc. , Centene Corporation (CNC - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) beat the respective Zacks Consensus Estimate.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Teladoc (TDOC) Q4 Earnings Meet Estimates, Revenues Beat
Teladoc Inc. (TDOC - Free Report) reported fourth-quarter 2018 loss of 35 cents per share, in line with the Zacks Consensus Estimate. The reported figure was lower than the year-ago quarter’s loss of 50 cents per share and below the company’s own forecast range of a loss of 36 cents to 3 cents per share.
The decline in losses was supported by an increase in revenues partly offset by a rise in expenses.
Strong Operating Performance
The company’s revenues of $122.7 million surpassed the Zacks Consensus Estimate by 2.25% and soared 59% year over year.
Revenues from subscription access fees (which comprised 84% of total revenues) increased 57% year over year to $102.7 million. Within this, subscription fees from the United States accounted for $78.3 million or 76% of total access fees (up 41% year over year), while international subscription fees accounted for the remaining 24% or $24.4 million (up 145%).
The company generated $20 million in visit fee revenues from general and medical visits, representing an increase of 70% year over year.
Gross margins declined to 67.4% from 70.6% in the year-ago quarter as a result of an overall revenue mix shift of its virtual healthcare product offerings.
Total visits of 861,000 were up 86% year over year, due to membership gains in U.S. visit only fee and international visits.
U.S. paid membership of 22.8 million grew 16% year over year.
Total operating expenses in the quarter came in at $100.6 million, representing a surge of 27.3% year over year, primarily led by higher marketing and advertising, technology and development, and legal expenses.
Adjusted EBITDA came in at $5.8 million for the quarter, up 141.7% year over year.
Financial Update
As of Dec 31, 2018, the company had approximately $424 million in cash and short-term investment compared with $43 million as of Dec 31, 2017.
The company’s total debt as of Dec 31, 2018 was $415 million, up 100% year over year.
Full-Year Highlight
The company reported total revenues of $417.9 million, up 79% year over year and above the company’s guided range of $414 million to $416 million.
Net loss of $1.47 per share declined 24% year over year and was below the company’s guided range of loss of $1.48 and $1.50 per share.
Guidance Update
For the first quarter, the company expects total revenues of $126-$129 million and total adjusted EBITDA of $0-$2 million. The company projects total visits between 950,000 and 1050,000. Net loss per share, based on 70.8 million weighted average shares outstanding, is expected to range from a loss of 44 cents to a loss of 46 cents per share.
For full-year 2019, the company expects revenues between $535 million and $545 million and adjusted positive EBITDA between $25 million and $35 million. It projects total U.S. paid membership of approximately 27 million to 29 million, while visit fee only access will be available to approximately 9.8 million individuals. Total visits are expected in the band of 3.6-3.9 million and net loss per share, based on 71.9 million weighted average shares outstanding, is expected to range from $1.52 to $1.66.
Zacks Rank and Stocks to Consider
Teladoc carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other players from the healthcare industry that have reported fourth-quarter earnings, the bottom line of Anthem, Inc. , Centene Corporation (CNC - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) beat the respective Zacks Consensus Estimate.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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