We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Teladoc (TDOC) Down 4.7% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Teladoc (TDOC - Free Report) . Shares have lost about 4.7% 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 Health Q2 Loss Wider Than Expected, Worsen Y/Y
Teladoc Health reported second-quarter 2021 loss of 86 cents per share, wider than the Zacks Consensus Estimate of 59 cents. The bottom line also worsened from the year-ago loss of 34 cents per share. Higher expense associated with Livongo stock awards dragged earnings.
The company’s operating revenues of $503.2 million (came within the management’s expected range of $495-$505 million) surpassed the Zacks Consensus Estimate by 0.3% and also surged 109% year over year.
Revenue upside was owing to higher access fees (comprising 86% of total revenues in the quarter), which soared 138% year over year to $434 million. Within this, access fees of $350.1 million from the United States, which made up 91% of the total access fees, grew 161% year over year while international access fees were up 24%, accounting for the remaining 9% or $37.4 million.
The increase in access fee revenues as a percentage of total revenues is primarily owing to the acquisition of Livongo and InTouch Health, both of which generate the majority of their revenues from subscription access fees.
The company generated $59.3 million of visit fee revenues from general and medical visits, which increased 1% year over year. Adjusted gross margin expanded 580 basis points year over year to 68.1%, primarily attributable to the higher gross margin profile associated with Livongo revenues.
Total visits of 3.51 million (higher than the projection of 3.2-3.4 million) rose 28% year over year, driven by a 32% and 5% increase in visits from the United States and International segments, respectively.
Teladoc ended the quarter with U.S. paid membership of 52 million, up 1% year over year and U.S. visit fee only access membership of 22 million (up 1%).
Total expenses rose to $582.1 million, up 134.5%, primarily due to general and administrative expenses, technology and development, cost of revenues, advertising and marketing, sales, acquisition and integration.
Adjusted EBITDA was $66.8 million, soaring 2.5 times higher than $26.3 million in the year-ago quarter. The metric surpassed management’s estimated range of $61-$64 million.
Strong Financial Update (as of Jun 30, 2021)
The company had $783.7 million as cash and cash equivalents, up 6.9% year over year.
Total debt was $1.20 million, down 13% from the December 2020-end level.
Higher Cash Generated by Business
During the first six months, net cash provided by operating activities of $34.2 million compared with cash generated of $29.2 million in the first six months of 2020.
Revised Third-Quarter Guidance
The company expects third-quarter revenues between $510 million and $520 million, net loss between 78 cents and 68 cents a share and adjusted EBITDA in the range of $60-$65 million.
Total visits are expected in the range of 3.4-3.6 million while total U.S. paid membership is envisioned in the band of 52-53 million members. Visit-fee-only access is estimated to be approximately 22 million individuals. Net loss per share, based on 159.8 million weighted average shares outstanding, is anticipated between 78 cents and 68 cents.
Updated 2021 Outlook
The company raised its guidance for revenues and visits for the second time this year. The telehealth provider anticipates total revenues of $2-$2.025 billion (up from the previous estimate of $1.97-$2.02 billion). Total adjusted EBITDA is estimated to be $255-$275 million.
The company projects total visits between 13.5 million and 14 million (compared with the 12.5-13.5 million range anticipated earlier). Total U.S. paid membership is expected in the range of 52-54 million members and visit fee only access is projected to be approximately 22 million individuals. Net loss per share, based on 157.4 million weighted average shares outstanding, is predicted between $3.60 and $3.35.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -22.61% due to these changes.
VGM Scores
Currently, Teladoc has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Teladoc (TDOC) Down 4.7% 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 4.7% 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 Health Q2 Loss Wider Than Expected, Worsen Y/Y
Teladoc Health reported second-quarter 2021 loss of 86 cents per share, wider than the Zacks Consensus Estimate of 59 cents. The bottom line also worsened from the year-ago loss of 34 cents per share. Higher expense associated with Livongo stock awards dragged earnings.
The company’s operating revenues of $503.2 million (came within the management’s expected range of $495-$505 million) surpassed the Zacks Consensus Estimate by 0.3% and also surged 109% year over year.
Revenue upside was owing to higher access fees (comprising 86% of total revenues in the quarter), which soared 138% year over year to $434 million. Within this, access fees of $350.1 million from the United States, which made up 91% of the total access fees, grew 161% year over year while international access fees were up 24%, accounting for the remaining 9% or $37.4 million.
The increase in access fee revenues as a percentage of total revenues is primarily owing to the acquisition of Livongo and InTouch Health, both of which generate the majority of their revenues from subscription access fees.
The company generated $59.3 million of visit fee revenues from general and medical visits, which increased 1% year over year.
Adjusted gross margin expanded 580 basis points year over year to 68.1%, primarily attributable to the higher gross margin profile associated with Livongo revenues.
Total visits of 3.51 million (higher than the projection of 3.2-3.4 million) rose 28% year over year, driven by a 32% and 5% increase in visits from the United States and International segments, respectively.
Teladoc ended the quarter with U.S. paid membership of 52 million, up 1% year over year and U.S. visit fee only access membership of 22 million (up 1%).
Total expenses rose to $582.1 million, up 134.5%, primarily due to general and administrative expenses, technology and development, cost of revenues, advertising and marketing, sales, acquisition and integration.
Adjusted EBITDA was $66.8 million, soaring 2.5 times higher than $26.3 million in the year-ago quarter. The metric surpassed management’s estimated range of $61-$64 million.
Strong Financial Update (as of Jun 30, 2021)
The company had $783.7 million as cash and cash equivalents, up 6.9% year over year.
Total debt was $1.20 million, down 13% from the December 2020-end level.
Higher Cash Generated by Business
During the first six months, net cash provided by operating activities of $34.2 million compared with cash generated of $29.2 million in the first six months of 2020.
Revised Third-Quarter Guidance
The company expects third-quarter revenues between $510 million and $520 million, net loss between 78 cents and 68 cents a share and adjusted EBITDA in the range of $60-$65 million.
Total visits are expected in the range of 3.4-3.6 million while total U.S. paid membership is envisioned in the band of 52-53 million members. Visit-fee-only access is estimated to be approximately 22 million individuals. Net loss per share, based on 159.8 million weighted average shares outstanding, is anticipated between 78 cents and 68 cents.
Updated 2021 Outlook
The company raised its guidance for revenues and visits for the second time this year. The telehealth provider anticipates total revenues of $2-$2.025 billion (up from the previous estimate of $1.97-$2.02 billion). Total adjusted EBITDA is estimated to be $255-$275 million.
The company projects total visits between 13.5 million and 14 million (compared with the 12.5-13.5 million range anticipated earlier). Total U.S. paid membership is expected in the range of 52-54 million members and visit fee only access is projected to be approximately 22 million individuals. Net loss per share, based on 157.4 million weighted average shares outstanding, is predicted between $3.60 and $3.35.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -22.61% due to these changes.
VGM Scores
Currently, Teladoc has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.