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Teladoc (TDOC) Up 1.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Teladoc (TDOC - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Teladoc due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Teladoc’s Q1 Earnings Miss Estimates, Revenues Beat
Teladoc Health, Inc. 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 19.76% due to these changes.
VGM Scores
At this time, Teladoc has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Teladoc has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Teladoc (TDOC) Up 1.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Teladoc (TDOC - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Teladoc due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Teladoc’s Q1 Earnings Miss Estimates, Revenues Beat
Teladoc Health, Inc. 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 19.76% due to these changes.
VGM Scores
At this time, Teladoc has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Teladoc has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.