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Teladoc Health (TDOC) Q3 Loss Narrower Than Expected, Down Y/Y
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Teladoc Health, Inc. (TDOC - Free Report) reported third-quarter 2021 loss of 53 cents per share, which came in narrower than the Zacks Consensus Estimate of a loss of 70 cents. However, the figure was wider than the prior-year quarter’s loss of 43 cents per share.
The company’s results gained on the back of substantial revenue growth and uptick in visits, partly offset by escalating costs.
Operational Update
The company’s operating revenues of $522 million (higher than management’s expected range of $510-$520 million) surpassed the Zacks Consensus Estimate by 1%. The top line improved 81% year over year in the third quarter, courtesy of a solid contribution of its revenue components namely access fees and visit fees.
Revenues from access fees (which comprised 86.6% of total revenues) doubled year over year to $451.6 million. Within this, access fees from the United States more than doubled year over year to $413.6 million and accounted for 91.6% of total access fees. International access fees made up the remaining 8.4% and amounted to $38 million (up 19% year over year).
Meanwhile, the company generated $60 million of visit fee revenues (up 18% year over year) in the quarter under review. While visit fee revenues from the United States advanced 18% year over year to $59.9 million, International visits revenues totaled $0.1 million (up 22% year over year).
Adjusted EBITDA surged 70.6% year over year to $67.4 million and remained higher than management’s projected range of $60-$65 million.
Adjusted gross margin expanded 390 basis points year over year to 67.6% in the third quarter.
Total visits of 3.9 million (higher than the expectation of 3.4-3.6 million) improved 37% year over year on account of 40% and 19% increase in visits from the United States and International segments, respectively.
Teladoc ended the quarter with U.S. paid membership of 52.5 million, which inched up 2% year over year. U.S. visit fee only access membership rose 8% year over year to 23.6 million in the quarter under review.
Total expenses escalated 88.7% year over year to $582.2 million due to higher expenses related to cost of revenues, advertising and marketing, sales, technology and development, and general and administrative.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
The company exited the third quarter with cash and cash equivalents of $823.8 million, which increased 12.3% from the 2020-end level.
Total debt was $1.2 billion, which tumbled 12.2% from the figure as of Dec 31, 2020.
During the first nine months of 2021, net cash provided by operating activities amounted to $110.8 million, which soared 80.4% from the prior-year comparable period.
Fourth-Quarter Guidance
For the fourth quarter of 2021, the company expects total revenues of $536-$546 million and adjusted EBITDA of $69-$74 million. It projects total visits between 3.9 million and 4.1 million. Net loss per share is expected to be within 53-73 cents per share.
2021 Outlook Revised
The company has revised its full-year guidance with respect to certain metrics.
For 2021, revenues are anticipated between $2.015 billion and $2.025 billion compared with the previous guidance of $2-$2.025 billion.
Adjusted EBITDA is estimated to be $260-$265 million compared with the prior outlook of $255-$275 million.
The company projects total visits in the band of 14.5 million to 14.7 million (up from the 13.5-14 million range anticipated earlier).
Total U.S. paid membership is expected between 52.5 million and 53.5 million members (compared with the prior guidance of 52-54 million). Visit fee only access is projected to be available to somewhere around 23-24 million individuals (up from the earlier projection of roughly 22 million individuals).
Net loss per share is expected to be $3.20-$3.40 per share, narrower than the prior outlook of a loss of $3.35-$3.60.
Of the medical sector players that reported third-quarter results so far, the bottom lines of UnitedHealth Group Incorporated (UNH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Tenet Healthcare Corporation (THC - Free Report) have beat the respective Zacks Consensus Estimate.
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Teladoc Health (TDOC) Q3 Loss Narrower Than Expected, Down Y/Y
Teladoc Health, Inc. (TDOC - Free Report) reported third-quarter 2021 loss of 53 cents per share, which came in narrower than the Zacks Consensus Estimate of a loss of 70 cents. However, the figure was wider than the prior-year quarter’s loss of 43 cents per share.
The company’s results gained on the back of substantial revenue growth and uptick in visits, partly offset by escalating costs.
Operational Update
The company’s operating revenues of $522 million (higher than management’s expected range of $510-$520 million) surpassed the Zacks Consensus Estimate by 1%. The top line improved 81% year over year in the third quarter, courtesy of a solid contribution of its revenue components namely access fees and visit fees.
Revenues from access fees (which comprised 86.6% of total revenues) doubled year over year to $451.6 million. Within this, access fees from the United States more than doubled year over year to $413.6 million and accounted for 91.6% of total access fees. International access fees made up the remaining 8.4% and amounted to $38 million (up 19% year over year).
Meanwhile, the company generated $60 million of visit fee revenues (up 18% year over year) in the quarter under review. While visit fee revenues from the United States advanced 18% year over year to $59.9 million, International visits revenues totaled $0.1 million (up 22% year over year).
Adjusted EBITDA surged 70.6% year over year to $67.4 million and remained higher than management’s projected range of $60-$65 million.
Adjusted gross margin expanded 390 basis points year over year to 67.6% in the third quarter.
Total visits of 3.9 million (higher than the expectation of 3.4-3.6 million) improved 37% year over year on account of 40% and 19% increase in visits from the United States and International segments, respectively.
Teladoc ended the quarter with U.S. paid membership of 52.5 million, which inched up 2% year over year. U.S. visit fee only access membership rose 8% year over year to 23.6 million in the quarter under review.
Total expenses escalated 88.7% year over year to $582.2 million due to higher expenses related to cost of revenues, advertising and marketing, sales, technology and development, and general and administrative.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote
Strong Financial Update (as of Sep 30, 2021)
The company exited the third quarter with cash and cash equivalents of $823.8 million, which increased 12.3% from the 2020-end level.
Total debt was $1.2 billion, which tumbled 12.2% from the figure as of Dec 31, 2020.
During the first nine months of 2021, net cash provided by operating activities amounted to $110.8 million, which soared 80.4% from the prior-year comparable period.
Fourth-Quarter Guidance
For the fourth quarter of 2021, the company expects total revenues of $536-$546 million and adjusted EBITDA of $69-$74 million. It projects total visits between 3.9 million and 4.1 million. Net loss per share is expected to be within 53-73 cents per share.
2021 Outlook Revised
The company has revised its full-year guidance with respect to certain metrics.
For 2021, revenues are anticipated between $2.015 billion and $2.025 billion compared with the previous guidance of $2-$2.025 billion.
Adjusted EBITDA is estimated to be $260-$265 million compared with the prior outlook of $255-$275 million.
The company projects total visits in the band of 14.5 million to 14.7 million (up from the 13.5-14 million range anticipated earlier).
Total U.S. paid membership is expected between 52.5 million and 53.5 million members (compared with the prior guidance of 52-54 million). Visit fee only access is projected to be available to somewhere around 23-24 million individuals (up from the earlier projection of roughly 22 million individuals).
Net loss per share is expected to be $3.20-$3.40 per share, narrower than the prior outlook of a loss of $3.35-$3.60.
Zacks Rank
Teladoc Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that reported third-quarter results so far, the bottom lines of UnitedHealth Group Incorporated (UNH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Tenet Healthcare Corporation (THC - Free Report) have beat the respective Zacks Consensus Estimate.