Teladoc (TDOC) Loss Lower Than Expected, '18 View Intact
Teladoc, Inc.’s TDOC first-quarter 2018 operating loss of 39 cents per share came in narrower than the Zacks Consensus Estimate of a loss of 43 cents. In the year-ago quarter, the company had incurred a loss of 30 cents per share.
Better-than-expected earnings were driven by an increase in revenues led by higher visits and membership.
Strong Operational Performance
Total revenues of $89.6 million not only surpassed the Zacks Consensus Estimate by 3% but also surged 109% year over year. Revenues are also above the company’s guidance of $86-$88 million. The increase in top line was driven mainly by a 107% rise in revenues from subscription access fees to $71.7 million, led by a 78% increase in revenues from U.S. Subscription Access Fees and $10.7 million of International Subscription Access Fees compared to none in 2017.
Teladoc, Inc. Price, Consensus and EPS Surprise
Teladoc, Inc. Price, Consensus and EPS Surprise | Teladoc, Inc. Quote
Revenues from visits increased 109% year over year to $17.9 million. Total visits of 606,000 surged 57% year over year. Total U.S. paid membership was 20.8 million, reflecting an increase of 41% year over year.
Total operating expenses were $81.88 million, 79.6% 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) was loss of 1.4 million compared with loss of $9.1 million in the year-ago quarter.
Financial Position
Teladoc’s total assets were approximately $817.5 million as of Mar 31, 2018, down from $824.4 million as of Dec 31, 2017.
Total cash, cash equivalents were $65.2 million as of Mar 31, 2018, up 52.3% from Dec 31, 2017.
Second-Quarter 2018 Guidance
Net loss per share, based on 62.6 million weighted average shares outstanding, is expected between 35 cents and 37 cents. Revenues are expected in the range of $86-$87 million and adjusted EBITDA in the range of $1.5-$2.5 million.
Total U.S. paid membership is expected between 20.8 million and 21 million, and visit fee only access should be within 18-18.5 million individuals.
Total visits are projected between 450,000 and 500,000.
2018 Guidance Kept Intact
The company expects net loss per share, based on 62.8 million weighted average shares outstanding, between $1.36 and $1.41; revenues of $350 million to $360 million; adjusted EBITDA between $7 million and $10 million and total U.S. paid membership within 22 million to 24 million.
Total visits are projected between 1.9 million and 2 million.
Our Take
The company’s results reflect its rapidly expanding business in the booming telehealth services industry. Higher adoption of its services has led to an increase in membership and visits, which has led to revenue growth.
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 first-quarter earnings so far, the bottom line of Anthem Inc. ANTM, Aetna Inc. AET and UnitedHealth Group Inc. UNH beat their respective Zacks Consensus Estimate.
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