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Total revenue during the quarter came in at $26.5 million, reflecting an increase of 45%. Revenues, however, came below the guided range of $27.5–$28.5 million.
Revenue from subscription access fees and visit fees was $21 million and $5 million, respectively, reflecting an increase of 42% and 57%.
Total operating expenses were $34.1 million, 14.8% higher year over year. The increase was due to higher advertising, sales, technology and development, general and administrative and depreciation and amortization expenses.
Total visits of 199,106 surged 59% year over year. Also, total visits came in higher than the guided range of 180,000 to 190,000.
Financial Position
Teldoc’s total assets were $203.8 million as of Jun 30, 2016, down from $229.7 million as on Dec 31, 2015.
Total cash, cash equivalents and marketable securities were $55.8 million at the end of the quarter, up from $55.1 million as of Dec 31, 2015.
Guidance
The company gave the following guidance for third-quarter 2016: • Revenue in the range of $32 million to $33 million. • EBITDA in the range of a loss of $12 million to a loss of $13 million. • Adjusted EBITDA in the range of a loss of $9 million to a loss of $10 million. • Membership of approximately 15.5 million to 17 million at Sep 30, 2016. • Total visits between 205,000 and 215,000. • Net loss per share, based on 45.7 million weighted average shares outstanding, between $(0.35) and $(0.38).
The company changed its guidance for 2016 since two large, new clients that were forecast to be added in the second half of the year delayed their launch dates to the start of 2017.
• Revenue in the range of $121 million to $124 million. • EBITDA in the range of a loss of $48 million to a loss of $50 million. • Adjusted EBITDA in the range of a loss of $41 million to a loss of $43 million. • Membership of 17 million to 17.5 million at Dec 31, 2016. • Total visits between 915,000 and 945,000. • Net loss per share, based on 42.2 million weighted average shares outstanding, between $(1.47) and $(1.52).
Our Take
Notably, this was the fifth quarter as a publicly traded company for Teladoc, the first and largest telehealth provider in the nation. The company, which was founded in 2002, launched its IPO in Jun 2015.
Teladoc is renowned for clinical quality and patient satisfaction, which will enable it to maintain its leading position in the rapidly growing telemedicine industry. The company is seeing its business growing steadily with insurers and customers increasingly embracing telehealth. The second quarter of 2016 marked the fourteenth consecutive quarter in which the number of telehealth visits increased faster than its member base. This reflects a trend of rapidly increasing adoption of this service.
Zacks Rank and Other Stocks to Consider
Teladoc carries a Zacks Rank #2 (Buy). Among the other stocks in the space, AMN Healthcare Services, Inc. , The Advisory Board Company and CareDx, Inc. (CDNA - Free Report) are also worth considering. While AMN Healthcare and The Advisory Board Company carry a Zacks Rank #1 (Strong Buy), CareDx carries the same Zacks Rank as Teladoc.
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Teladoc (TDOC) Q2 Loss Narrower Than Expected, Gives View
Teladoc Inc.’s (TDOC - Free Report) second-quarter operating loss of 38 cents per share came in a penny narrow than the Zacks Consensus Estimate.
The company incurred loss in the quarter due to an increase in cost of advertising in its direct-to-consumer segment.
TELADOC INC Price, Consensus and EPS Surprise
TELADOC INC Price, Consensus and EPS Surprise | TELADOC INC Quote
Total revenue during the quarter came in at $26.5 million, reflecting an increase of 45%. Revenues, however, came below the guided range of $27.5–$28.5 million.
Revenue from subscription access fees and visit fees was $21 million and $5 million, respectively, reflecting an increase of 42% and 57%.
Total operating expenses were $34.1 million, 14.8% higher year over year. The increase was due to higher advertising, sales, technology and development, general and administrative and depreciation and amortization expenses.
Total visits of 199,106 surged 59% year over year. Also, total visits came in higher than the guided range of 180,000 to 190,000.
Financial Position
Teldoc’s total assets were $203.8 million as of Jun 30, 2016, down from $229.7 million as on Dec 31, 2015.
Total cash, cash equivalents and marketable securities were $55.8 million at the end of the quarter, up from $55.1 million as of Dec 31, 2015.
Guidance
The company gave the following guidance for third-quarter 2016:
• Revenue in the range of $32 million to $33 million.
• EBITDA in the range of a loss of $12 million to a loss of $13 million.
• Adjusted EBITDA in the range of a loss of $9 million to a loss of $10 million.
• Membership of approximately 15.5 million to 17 million at Sep 30, 2016.
• Total visits between 205,000 and 215,000.
• Net loss per share, based on 45.7 million weighted average shares outstanding, between $(0.35) and $(0.38).
The company changed its guidance for 2016 since two large, new clients that were forecast to be added in the second half of the year delayed their launch dates to the start of 2017.
• Revenue in the range of $121 million to $124 million.
• EBITDA in the range of a loss of $48 million to a loss of $50 million.
• Adjusted EBITDA in the range of a loss of $41 million to a loss of $43 million.
• Membership of 17 million to 17.5 million at Dec 31, 2016.
• Total visits between 915,000 and 945,000.
• Net loss per share, based on 42.2 million weighted average shares outstanding, between $(1.47) and $(1.52).
Our Take
Notably, this was the fifth quarter as a publicly traded company for Teladoc, the first and largest telehealth provider in the nation. The company, which was founded in 2002, launched its IPO in Jun 2015.
Teladoc is renowned for clinical quality and patient satisfaction, which will enable it to maintain its leading position in the rapidly growing telemedicine industry. The company is seeing its business growing steadily with insurers and customers increasingly embracing telehealth. The second quarter of 2016 marked the fourteenth consecutive quarter in which the number of telehealth visits increased faster than its member base. This reflects a trend of rapidly increasing adoption of this service.
Zacks Rank and Other Stocks to Consider
Teladoc carries a Zacks Rank #2 (Buy). Among the other stocks in the space, AMN Healthcare Services, Inc. , The Advisory Board Company and CareDx, Inc. (CDNA - Free Report) are also worth considering. While AMN Healthcare and The Advisory Board Company carry a Zacks Rank #1 (Strong Buy), CareDx carries the same Zacks Rank as Teladoc.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>