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Teladoc Health, Inc. (TDOC - Free Report) incurred third-quarter 2020 loss of 13 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents.
Moreover, the reported figure was narrower than the year-ago quarter’s loss of 39 cents per share. This was primarily due to strong revenue growth, courtesy of constant uptick in member visits across the company’s commercial channels.
Shares of Teladoc have lost 13.4% in the last two trading days.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
The company’s operating revenues of $289 million surpassed the Zacks Consensus Estimate by 2.6% and more than doubled year over year. This upside can be attributed to strong performance of its revenue components, namely access fees revenue and visit fee revenue.
Revenues from access fees (which comprised 78.5% of total revenues) soared 90% year over year to $226.6 million. Within this, access fees from the United States accounted for $194.6 million or 85.9% of total access fees (up 111% year over year) while international access fees made up for the remaining 14.1% or $32 million (up 18%).
The company generated $51 million in visit fee revenue from general and medical visits, which increased to nearly three-fold year over year.
Adjusted gross margin declined 530 basis points (bps) year over year to 63.7%.
Total visits of 2.835 million increased to more than three-fold year over year on membership gains in total visits from U.S. paid membership (up 242%), U.S. visit fee (up 318%) and international visits (up 83%).
Teladoc ended the quarter with U.S. paid membership of 51.5 million, which improved 47% year over year.
Total expenses in the quarter were $308.5 million, up 95.4% year over year, primarily due to higher advertising and marketing, sales, technology and development, legal and regulatory, acquisition and integration related costs, and general and administrative expenses, depreciation and amortization.
Adjusted EBITDA was $39.5 million for the third quarter, which increased to more than four-fold year over year.
Financial Update
As of Sep 30, 2020, the company had $1.2 billion in cash and cash equivalents, which more than doubled from the level at 2019 end.
Total debt as of Sep 30, 2020 was $953.5 million, which more than doubled from the level as of Dec 31, 2019.
Net cash provided by operating activities came in at $61.4 million for the first nine months of 2020, which increased to more than five-fold year over year.
Fourth-Quarter Guidance
For fourth-quarter 2020, the company anticipates total revenues of $294-$304 million and total adjusted EBITDA of $21-$24 million. It projects total visits between 2.8 million and 3 million. Net loss per share is expected to be 33-36 cents per share.
2020 Outlook Raised
For the full year, the company anticipates revenues between $1.005 billion and $1.015 billion, higher than the earlier provided guidance of $980-$995 million. Adjusted EBITDA is estimated to be $97-$100 million, higher than the earlier provided guidance of $85-$92 million.
Total visits are expected in the range of 10.4-10.6 million, higher than the earlier provided guidance of 9.8-10.3 million. Net loss per share is estimated between $1.32 and $1.36, narrower than the previously provided guidance of $1.36-$1.45.
It projects the total U.S. paid membership to be in the band of 50-51 million members. Visit-fee-only access is estimated to be available to 21-22 million individuals.
Of the medical sector players that have reported third-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate for earnings.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Teladoc (TDOC) Q3 Earnings Beat Estimates, Hikes '20 Guidance
Teladoc Health, Inc. (TDOC - Free Report) incurred third-quarter 2020 loss of 13 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents.
Moreover, the reported figure was narrower than the year-ago quarter’s loss of 39 cents per share. This was primarily due to strong revenue growth, courtesy of constant uptick in member visits across the company’s commercial channels.
Shares of Teladoc have lost 13.4% in the last two trading days.
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 $289 million surpassed the Zacks Consensus Estimate by 2.6% and more than doubled year over year. This upside can be attributed to strong performance of its revenue components, namely access fees revenue and visit fee revenue.
Revenues from access fees (which comprised 78.5% of total revenues) soared 90% year over year to $226.6 million. Within this, access fees from the United States accounted for $194.6 million or 85.9% of total access fees (up 111% year over year) while international access fees made up for the remaining 14.1% or $32 million (up 18%).
The company generated $51 million in visit fee revenue from general and medical visits, which increased to nearly three-fold year over year.
Adjusted gross margin declined 530 basis points (bps) year over year to 63.7%.
Total visits of 2.835 million increased to more than three-fold year over year on membership gains in total visits from U.S. paid membership (up 242%), U.S. visit fee (up 318%) and international visits (up 83%).
Teladoc ended the quarter with U.S. paid membership of 51.5 million, which improved 47% year over year.
Total expenses in the quarter were $308.5 million, up 95.4% year over year, primarily due to higher advertising and marketing, sales, technology and development, legal and regulatory, acquisition and integration related costs, and general and administrative expenses, depreciation and amortization.
Adjusted EBITDA was $39.5 million for the third quarter, which increased to more than four-fold year over year.
Financial Update
As of Sep 30, 2020, the company had $1.2 billion in cash and cash equivalents, which more than doubled from the level at 2019 end.
Total debt as of Sep 30, 2020 was $953.5 million, which more than doubled from the level as of Dec 31, 2019.
Net cash provided by operating activities came in at $61.4 million for the first nine months of 2020, which increased to more than five-fold year over year.
Fourth-Quarter Guidance
For fourth-quarter 2020, the company anticipates total revenues of $294-$304 million and total adjusted EBITDA of $21-$24 million. It projects total visits between 2.8 million and 3 million. Net loss per share is expected to be 33-36 cents per share.
2020 Outlook Raised
For the full year, the company anticipates revenues between $1.005 billion and $1.015 billion, higher than the earlier provided guidance of $980-$995 million. Adjusted EBITDA is estimated to be $97-$100 million, higher than the earlier provided guidance of $85-$92 million.
Total visits are expected in the range of 10.4-10.6 million, higher than the earlier provided guidance of 9.8-10.3 million. Net loss per share is estimated between $1.32 and $1.36, narrower than the previously provided guidance of $1.36-$1.45.
It projects the total U.S. paid membership to be in the band of 50-51 million members. Visit-fee-only access is estimated to be available to 21-22 million individuals.
Zacks Rank
Teladoc carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that have reported third-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate for earnings.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>