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Teladoc Health (TDOC) Surpasses Estimates in Q1 Earnings
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Teladoc Health, Inc. (TDOC - Free Report) reported first-quarter 2019 loss of 43 cents per share, narrower than the Zacks Consensus Estimate of loss of 44 cents per share.
The reported figure was wider than the year-ago quarter’s loss of 39 cents per share but narrower than the guided range of a loss of 44 to 46 cents per share.
The loss can be attributed to higher operating expenses than revenues.
The company’s revenues of $128.6 million surpassed the Zacks Consensus Estimate by 0.34% and soared 43% year over year.
Revenues from subscription access fees (which comprised 82% of total revenues) increased 48% year over year to $106 million. Within this, subscription fees from the United States accounted for $81 million or 76% of total access fees (up 33% year over year), while international subscription fees accounted for the remaining 28% or $25 million (up 133%).
The company generated $22.6 million in visit fee revenues from general and medical visits, representing an increase of 26% year over year. Gross margin declined to 65.3% from 70% in the year-ago quarter as a result of an overall revenue mix shift of its virtual healthcare offerings.
Total visits of 1,063,000 were up 75% year over year, due to membership gains in U.S. visit only fee and international visits.
U.S. paid membership of 26.7 million grew 28.2% year over year.
Total operating expenses in the quarter came in at $106.8 million, representing a surge of 30% year over year, primarily led by higher marketing and advertising, technology and development, and legal expenses.
Adjusted EBITDA came in at $1.2 million for the quarter, compared with an adjusted EBIDTA loss of $1.4 million in the year-ago quarter.
Financial Update
As of Mar 31, 2019, the company had approximately $434 million in cash and short-term investment, up 2.4% from 2018 end level.
Total debt as of Mar 31, 2019 was $421 million, up 1.4% from Dec 31, 2018 levels.
Guidance Update
For the second quarter, the company expects total revenues of $128-$131 million and total adjusted EBITDA of $5-$7 million. The company projects total visits between 775,000 and 875,000. Net loss per share, based on 72.4 million weighted average shares outstanding, is expected to range from a loss of 42 to 44 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 10 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 first-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 by 2.9%, 5.3% and 3.6%, respectively.
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 Health (TDOC) Surpasses Estimates in Q1 Earnings
Teladoc Health, Inc. (TDOC - Free Report) reported first-quarter 2019 loss of 43 cents per share, narrower than the Zacks Consensus Estimate of loss of 44 cents per share.
The reported figure was wider than the year-ago quarter’s loss of 39 cents per share but narrower than the guided range of a loss of 44 to 46 cents per share.
The loss can be attributed to higher operating expenses than revenues.
Teladoc, Inc. Price, Consensus and EPS Surprise
Teladoc, Inc. Price, Consensus and EPS Surprise | Teladoc, Inc. Quote
Strong Operating Performance
The company’s revenues of $128.6 million surpassed the Zacks Consensus Estimate by 0.34% and soared 43% year over year.
Revenues from subscription access fees (which comprised 82% of total revenues) increased 48% year over year to $106 million. Within this, subscription fees from the United States accounted for $81 million or 76% of total access fees (up 33% year over year), while international subscription fees accounted for the remaining 28% or $25 million (up 133%).
The company generated $22.6 million in visit fee revenues from general and medical visits, representing an increase of 26% year over year.
Gross margin declined to 65.3% from 70% in the year-ago quarter as a result of an overall revenue mix shift of its virtual healthcare offerings.
Total visits of 1,063,000 were up 75% year over year, due to membership gains in U.S. visit only fee and international visits.
U.S. paid membership of 26.7 million grew 28.2% year over year.
Total operating expenses in the quarter came in at $106.8 million, representing a surge of 30% year over year, primarily led by higher marketing and advertising, technology and development, and legal expenses.
Adjusted EBITDA came in at $1.2 million for the quarter, compared with an adjusted EBIDTA loss of $1.4 million in the year-ago quarter.
Financial Update
As of Mar 31, 2019, the company had approximately $434 million in cash and short-term investment, up 2.4% from 2018 end level.
Total debt as of Mar 31, 2019 was $421 million, up 1.4% from Dec 31, 2018 levels.
Guidance Update
For the second quarter, the company expects total revenues of $128-$131 million and total adjusted EBITDA of $5-$7 million. The company projects total visits between 775,000 and 875,000. Net loss per share, based on 72.4 million weighted average shares outstanding, is expected to range from a loss of 42 to 44 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 10 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 first-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 by 2.9%, 5.3% and 3.6%, respectively.
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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