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Teladoc (TDOC) Q2 Loss Wider than Expected, Revenues Up Y/Y

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Teladoc Inc.’s (TDOC - Free Report) second-quarter 2017 operating loss of 28 cents per share was wider than the Zacks Consensus Estimate of a loss of 26 cents. In the year-ago quarter, the company had incurred a loss of 38 cents per share.

Operational Update

Total revenue of $45 million not only surpassed the Zacks Consensus Estimate of $44 million but also grew 68% year over year. The figure is at the highest point of the company’s guided range of $44–$45 million.

Revenues from subscription access fees and visit fees were $37.5 million and $7.1 million, respectively, reflecting an increase of 74% and 44% year over year. The increase in subscription fees reflect overall membership expansion and total visit growth.

Total visits of 309,000 surged 55% year over year and total membership was 20.5 million, reflecting an increase of 33%. Both of these were at the higher end of the company’s guided range of 290,000–310,000 and 20–21.5 million, respectively.

Total operating expenses were $49 million, 44% higher year over year. The rise was due to increased expenditure on advertising & marketing, sales, technology & development, acquisition related costs, general & administrative expenses as well as depreciation & amortization costs.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) narrowed to a loss of $5.1 million from a loss of $10.5 million, in the year-ago quarter, and came in better than the company’s guided range of a loss of $6 million to $7 million.

Teladoc, Inc. Price, Consensus and EPS Surprise

Financial Position

Teldoc’s total assets were approximately $674 million as of Jun 30, 2017, up more than 100% from $303.7 million as of Dec 31, 2016.

Total cash, cash equivalents and marketable securities were $409 million as of Jun 30, 2017, up from $50 million as of Dec 31, 2016.

Q3 Guidance

Net loss per share, based on 56.5 million weighted average shares outstanding, is expected to be between a loss of 56and 58 cents in the third quarter.

Revenues are expected to be in the range of $67–$68 million.  

Adjusted EBITDA is expected to be in the range of a loss of $2–$3 million.  

Membership is expected to be between 22.0 million and 22.5 million.

Total visits are projected within the range of 275,000–300,000.  

2017 Guidance

Net loss per share, based on 55.1 million weighted average shares outstanding, is expected to be between a loss of $1.52 and $1.55.

Revenues are expected to be in the range of $230–$235 million.  

Adjusted EBITDA is expected to be in the range of a loss of $15–$17 million and the company targets to achieve positive adjusted EBITDA in the fourth-quarter of 2017.

Membership is expected to lie within 22.5–23.0 million.

 Total visits are projected to be between 1,400,000 and 1,450,000.

Zacks Rank & Performance of Other Insurers

Teladoc currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among the other firms in the medical sector that have reported second-quarter earnings so far, the bottom lines of Anthem Inc. (ANTM - Free Report) , Humana Inc. (HUM - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.

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