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Teladoc (TDOC) Up 12.6% 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 12.6% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Teladoc Q4 Loss Narrows on Higher Visits, Memberships
Teladoc Health reported fourth-quarter 2021 loss of 7 cents per share, narrower than the Zacks Consensus Estimate of a loss of 59 cents. Also, the figure was narrower than the prior-year loss of $3.07 per share.
The company’s operating revenues of $554.2 million (higher than management’s expected range of $536-$546 million) surpassed the Zacks Consensus Estimate of $548 million. The top line also improved 45% year over year for the fourth quarter.
The strong fourth-quarter results were supported by increased visits and memberships as well as lower expenses. Solid contribution from access and visit fees benefited the results.
Operational Update
Revenues from access fees (which comprised 84.8% of total revenues) increased 51% year over year to $469.9 million. Within this, access fees from the United States jumped 53% year over year to $403.1 million and accounted for 85.8% of total access fees. International access fees made up the remaining 14.2% and amounted to $66.8 million (up 36% year over year).
Meanwhile, TDOC generated $68.9 million of visit fee revenues (up 21% year over year) in the quarter under review. While visit fee revenues from the United States advanced 18% year over year to $65.3 million, revenues from International visits totaled $3.6 million (up 123%).
Adjusted EBITDA surged to $77.1 million from $50.4 million a year ago and was higher than management’s projected range of $69-$74 million.
Adjusted gross margin expanded 50 basis points year over year to 68.4% for the fourth quarter.
Total expenses plunged to $595.7 million from $841.8 million a year ago due to lower expenses related to sales, technology and development, and general and administrative.
Visits & Memberships
Total visits of 4.4 million (higher than the expectation of 3.9-4.1 million) improved 41% year over year on account of 44% and 35% increase in visits from the United States and International segments, respectively.
Teladoc ended the quarter with U.S. paid membership of 53.6 million, which inched up 3% year over year. U.S. visit fee-only access membership rose 14% year over year to 24.2 million for 2021.
Utilization (the ratio of visits to total U.S. paid members) increased 670 bps year over year to 22.7%.
Financial Update (as of Dec 31, 2021)
The company exited the fourth quarter with cash and cash equivalents of $893.5 million, which increased 21.8% from the 2020-end level.
Total debt was $1.2 billion, which tumbled 11.2% from the figure as of Dec 31, 2020.
In 2021, net cash provided by operating activities amounted to $194 million, which improved from cash used in operations of $53.5 million a year ago.
Guidance
First Quarter
For first-quarter 2022, TDOC expects total revenues of $565-$571 million and adjusted EBITDA within $51-$55 million. It projects total visits between 4.3 million and 4.5 million. Net loss per share is expected within 50-60 cents.
Full-Year 2022
For 2022, revenues are anticipated between $2.55 billion and $2.65 billion compared with the 2021 level of $2 billion.
Adjusted EBITDA is estimated to be $330-$355 million, calling for an improvement from the 2021 figure of $267.8 million.
The company projects total visits in the band of 18.5-20 million (indicating a rise from the 2021 level of 15.4 million).
Total U.S. paid membership is expected between 54 million and 56 million members (suggesting growth from the 2021 level of 53.6 million). U.S. visit fee-only access is projected to be available to 24-25 million individuals (compared with the 2021 figure of 24.2 million).
Net loss per share is expected to be $1.40-$1.60, pointing to a narrower loss from the 2021 figure of $2.73.
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 -9.95% due to these changes.
VGM Scores
Currently, Teladoc has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, 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 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Teladoc has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Teladoc (TDOC) Up 12.6% 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 12.6% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Teladoc Q4 Loss Narrows on Higher Visits, Memberships
Teladoc Health reported fourth-quarter 2021 loss of 7 cents per share, narrower than the Zacks Consensus Estimate of a loss of 59 cents. Also, the figure was narrower than the prior-year loss of $3.07 per share.
The company’s operating revenues of $554.2 million (higher than management’s expected range of $536-$546 million) surpassed the Zacks Consensus Estimate of $548 million. The top line also improved 45% year over year for the fourth quarter.
The strong fourth-quarter results were supported by increased visits and memberships as well as lower expenses. Solid contribution from access and visit fees benefited the results.
Operational Update
Revenues from access fees (which comprised 84.8% of total revenues) increased 51% year over year to $469.9 million. Within this, access fees from the United States jumped 53% year over year to $403.1 million and accounted for 85.8% of total access fees. International access fees made up the remaining 14.2% and amounted to $66.8 million (up 36% year over year).
Meanwhile, TDOC generated $68.9 million of visit fee revenues (up 21% year over year) in the quarter under review. While visit fee revenues from the United States advanced 18% year over year to $65.3 million, revenues from International visits totaled $3.6 million (up 123%).
Adjusted EBITDA surged to $77.1 million from $50.4 million a year ago and was higher than management’s projected range of $69-$74 million.
Adjusted gross margin expanded 50 basis points year over year to 68.4% for the fourth quarter.
Total expenses plunged to $595.7 million from $841.8 million a year ago due to lower expenses related to sales, technology and development, and general and administrative.
Visits & Memberships
Total visits of 4.4 million (higher than the expectation of 3.9-4.1 million) improved 41% year over year on account of 44% and 35% increase in visits from the United States and International segments, respectively.
Teladoc ended the quarter with U.S. paid membership of 53.6 million, which inched up 3% year over year. U.S. visit fee-only access membership rose 14% year over year to 24.2 million for 2021.
Utilization (the ratio of visits to total U.S. paid members) increased 670 bps year over year to 22.7%.
Financial Update (as of Dec 31, 2021)
The company exited the fourth quarter with cash and cash equivalents of $893.5 million, which increased 21.8% from the 2020-end level.
Total debt was $1.2 billion, which tumbled 11.2% from the figure as of Dec 31, 2020.
In 2021, net cash provided by operating activities amounted to $194 million, which improved from cash used in operations of $53.5 million a year ago.
Guidance
First Quarter
For first-quarter 2022, TDOC expects total revenues of $565-$571 million and adjusted EBITDA within $51-$55 million. It projects total visits between 4.3 million and 4.5 million. Net loss per share is expected within 50-60 cents.
Full-Year 2022
For 2022, revenues are anticipated between $2.55 billion and $2.65 billion compared with the 2021 level of $2 billion.
Adjusted EBITDA is estimated to be $330-$355 million, calling for an improvement from the 2021 figure of $267.8 million.
The company projects total visits in the band of 18.5-20 million (indicating a rise from the 2021 level of 15.4 million).
Total U.S. paid membership is expected between 54 million and 56 million members (suggesting growth from the 2021 level of 53.6 million). U.S. visit fee-only access is projected to be available to 24-25 million individuals (compared with the 2021 figure of 24.2 million).
Net loss per share is expected to be $1.40-$1.60, pointing to a narrower loss from the 2021 figure of $2.73.
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 -9.95% due to these changes.
VGM Scores
Currently, Teladoc has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, 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 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Teladoc has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.