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Teladoc (TDOC) Down 19.8% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Teladoc (TDOC - Free Report) . Shares have lost about 19.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Teladoc due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Teladoc Q4 Loss Widens, Revenues Surpass Estimates
Teladoc Health 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%).
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, U.S. visit fee only access (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 cash in operating activities of $63.5 million compared 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -272.79% due to these changes.
VGM Scores
At this time, Teladoc has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Teladoc has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Teladoc (TDOC) Down 19.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Teladoc (TDOC - Free Report) . Shares have lost about 19.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Teladoc due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Teladoc Q4 Loss Widens, Revenues Surpass Estimates
Teladoc Health 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%).
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, U.S. visit fee only access (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 cash in operating activities of $63.5 million compared 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -272.79% due to these changes.
VGM Scores
At this time, Teladoc has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Teladoc has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.