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Teladoc's (TDOC) Q1 Earnings Miss Estimates, Revenues Beat
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Teladoc Health, Inc. (TDOC - Free Report) incurred first-quarter 2020 loss of 40 cents per share, wider than the Zacks Consensus Estimate of a loss of 35 cents.
However, the reported figure was narrower than the year-ago quarter’s loss of 43 cents per share. This improvement was primarily led by strong revenue growth, stemming from higher demand for the company’s service offerings amid by the COVID-19-induced uncertainty.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
The company’s operating revenues of $180.8 million surpassed the Zacks Consensus Estimate by 0.07% and also rose 41% year over year. This upside can be attributed to the strong performance of its revenue components, namely subscription access fees and visit fees.
Revenues from subscription access fees (which comprised 76% of total revenues) increased 29% year over year to nearly $137 million. Within this, subscription fees from the United States accounted for $108 million or 79% of total access fees (up 33% year over year) while international subscription fees accounted for the remaining 21% or $29.1 million (up 17%).
The company generated $43.7 million in visit fee revenues from general and medical visits, soaring 93% year over year.
Gross margin declined 530 basis points year over year to 60%.
Total visits of 2.045 million were up 92% year over year on membership gains in U.S. visit fee (up 263%) as well as international visits (up 53%). Teladoc ended the quarter with U.S. paid membership of 1.386 million, up 93% year over year.
Total expenses in the quarter were $201.8 million, up 33.2% year over year, primarily led by higher marketing and advertising, technology and development, and general and administrative expenses. Adjusted EBITDA was $10.7 million for the quarter compared with $1.2 million in the prior-year period.
Financial Update
As of Mar 31, 2020, the company had $507.1 million in cash and short-term investment, down 1.2% from the level at 2019 end.
Total debt as of Mar 31, 2020 was $447.2 million, up 1.6% from the level as of Dec 31, 2019.
Second-Quarter Guidance
For the second quarter of 2020, the company expects total revenues of $215-$225 million and total adjusted EBITDA of $20-$24 million. It projects total visits between 2.3 million and 2.4 million. Net loss per share is expected to be 28-23 cents per share.
2020 Outlook
For the full year, the company expects revenues between $800 million and $825 million, and adjusted EBITDA between $70 million and $80 million. It projects the total U.S. paid membership to be at least 50 million while visit fee only access is estimated to be available to 19-20 million individuals. Total visits are expected to be 8-9 million and net loss per share is to be $1.13-$1.27.
Some other top-ranked stocks in the same space are Establishment Labs Holdings Inc. (ESTA - Free Report) , OpGen, Inc. (OPGN - Free Report) and PPD, Inc. , each carrying the same Zacks Rank as Teladoc.
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Teladoc's (TDOC) Q1 Earnings Miss Estimates, Revenues Beat
Teladoc Health, Inc. (TDOC - Free Report) incurred first-quarter 2020 loss of 40 cents per share, wider than the Zacks Consensus Estimate of a loss of 35 cents.
However, the reported figure was narrower than the year-ago quarter’s loss of 43 cents per share. This improvement was primarily led by strong revenue growth, stemming from higher demand for the company’s service offerings amid by the COVID-19-induced uncertainty.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote
Behind the Headlines
The company’s operating revenues of $180.8 million surpassed the Zacks Consensus Estimate by 0.07% and also rose 41% year over year. This upside can be attributed to the strong performance of its revenue components, namely subscription access fees and visit fees.
Revenues from subscription access fees (which comprised 76% of total revenues) increased 29% year over year to nearly $137 million. Within this, subscription fees from the United States accounted for $108 million or 79% of total access fees (up 33% year over year) while international subscription fees accounted for the remaining 21% or $29.1 million (up 17%).
The company generated $43.7 million in visit fee revenues from general and medical visits, soaring 93% year over year.
Gross margin declined 530 basis points year over year to 60%.
Total visits of 2.045 million were up 92% year over year on membership gains in U.S. visit fee (up 263%) as well as international visits (up 53%).
Teladoc ended the quarter with U.S. paid membership of 1.386 million, up 93% year over year.
Total expenses in the quarter were $201.8 million, up 33.2% year over year, primarily led by higher marketing and advertising, technology and development, and general and administrative expenses.
Adjusted EBITDA was $10.7 million for the quarter compared with $1.2 million in the prior-year period.
Financial Update
As of Mar 31, 2020, the company had $507.1 million in cash and short-term investment, down 1.2% from the level at 2019 end.
Total debt as of Mar 31, 2020 was $447.2 million, up 1.6% from the level as of Dec 31, 2019.
Second-Quarter Guidance
For the second quarter of 2020, the company expects total revenues of $215-$225 million and total adjusted EBITDA of $20-$24 million. It projects total visits between 2.3 million and 2.4 million. Net loss per share is expected to be 28-23 cents per share.
2020 Outlook
For the full year, the company expects revenues between $800 million and $825 million, and adjusted EBITDA between $70 million and $80 million. It projects the total U.S. paid membership to be at least 50 million while visit fee only access is estimated to be available to 19-20 million individuals.
Total visits are expected to be 8-9 million and net loss per share is to be $1.13-$1.27.
Zacks Rank and Other Stocks to Consider
Teladoc currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the same space are Establishment Labs Holdings Inc. (ESTA - Free Report) , OpGen, Inc. (OPGN - Free Report) and PPD, Inc. , each carrying the same Zacks Rank as Teladoc.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>