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Teladoc (TDOC) Q4 Loss Widens, Revenues Surpass Estimates

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Teladoc Health, Inc. (TDOC - Free Report) incurred fourth-quarter 2020 loss of 27 cents per share, wider than the Zacks Consensus Estimate of a loss of 25 cents.

Also, the reported figure is a penny wider than the year-ago quarter’s loss of 26 cents per share. This was primarily due to increase in expenses.

Strong Operating Performance

The company’s operating revenues of $383.3 million surpassed the Zacks Consensus Estimate by 0.8% and also surged 145% year over year. This upside can be attributed to a strong performance of its revenue components, namely access fees revenues and visit fee revenues.

Revenues from access fees (which comprised 82.4% of total revenues) soared 149% year over year to $316 million. Within this, access fees from the United States accounted for $282.8 million or 89% of total access fees (up 188% year over year) while international access fees made up for the remaining 11% or $33.1 million (up 15%).

Teladoc Health, Inc. Price, Consensus and EPS Surprise

Teladoc Health, Inc. Price, Consensus and EPS Surprise

Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote

The company generated $53.3 million in visit fee revenues from general and medical visits, which increased 80% year over year.

Adjusted gross margin gained 330 basis points (bps) year over year to 67.9%.

Total visits of 4.044 million skyrocketed 226% year over year, driven by a 158% and 67% rise in visits from U.S. and International segments, respectively.

Teladoc ended the quarter with U.S. paid membership of 51.8 million, up 41% year over year and  U.S. visit fee only access membership (up 10%).

Total expenses rose to $841.8 million, up 4.8 times, primarily due to general and administrative expenses, technology and development, cost of revenues, advertising and marketing, sales, acquisition and integration.

Adjusted EBITDA was $50.3 million for the fourth quarter, which soared 230.8% year over year.

Financial Update (as of Dec 31, 2020)

The company had $733.3 million in cash and cash equivalents, up 43% year over year.

Total debt was $1.4 million, which was up 213.3% year over year.

For 2020, net cash used in operating activities of $63.5 million compared unfavourably with $29.9 million for 2019.

First-Quarter Guidance

The company anticipates revenues between $445 million and $455 million while adjusted EBITDA is estimated to be $45-$48 million.

Total visits are expected in the range of 2.9-3.1 million. The company projects the total U.S. paid membership in the band of 51-52 million members. Visit-fee-only access is estimated to be available to 22-23 million individuals.

2021 Outlook

For first-quarter 2021, the company anticipates total revenues of $1.95-$2 billion and total adjusted EBITDA of $255-$275 million. It projects total visits between 12 million and 13 million. Total U.S. paid membership is expected in the range of 52-54 million members and visit fee only access is projected to be available to 22-23 million individuals including 2-3 million individuals on a temporary basis.

Performance of Other Players

Among other stocks in the same space, AMN Healthcare Services Inc. (AMN - Free Report) , Charles River Laboratories International, Inc. (CRL - Free Report) and Avantor, Inc. (AVTR - Free Report) beat the Zacks Consensus Estimate by 12.36%, 12.74% and 11.54%, respectively.

Zacks Rank

Teladoc currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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