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Teladoc (TDOC) Up 1.6% Since Q3 Earnings Beat on Higher Visits
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Teladoc Health, Inc.'s (TDOC - Free Report) shares rose 1.6% since it reported earnings on Oct 26, 2022. It reported strong third-quarter results, supported by increased visits and memberships, as well as higher utilization. Solid contributions from access and visit fees benefited the results. The positives were partially offset by a rise in expenses.
TDOC reported third-quarter 2022 adjusted loss of 45 cents per share, narrower than the Zacks Consensus Estimate of a loss of 59 cents. TDOC delivered an adjusted loss per share of 53 cents a year ago.
TDOC’s operating revenues of $611.4 million (within the management’s expected range of $600-$620 million) beat the Zacks Consensus Estimate of $609 million. The top line improved from $521.7 million in the year-ago quarter.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
Revenues from Access Fees (which comprised 88.3% of total revenues) increased 20% year over year to $540.1 million. Access fees from the United States jumped 21% year over year to $465.7 million and accounted for 86.2% of total access fees. International access fees made up the remaining and amounted to $74.4 million (up 19% year over year).
TDOC generated $65.6 million of Visit Fee revenues (up 5% year over year) in the quarter under review. While visit fee revenues from the United States advanced 5% year over year to $62.8 million, revenues from international visits totaled $2.8 million (up 4%).
Adjusted EBITDA declined to $51.2 million from $67.4 million a year ago but was above the management’s projected range of $35-$45 million.
Adjusted gross margin rose 200 basis points (bps) year over year to 69.6% for the third quarter.
Total expenses rose to $683.1 million from $582.2 million a year ago, primarily due to higher costs of revenues, advertising and marketing, technology, development and depreciation and amortization, partially offset by lower expenses related to sales.
Visits & Memberships
Total visits of 4.6 million (below the expectation of 4.8-5 million) improved 14% year over year on account of a 15% and 14% increase in visits from the United States and International segments, respectively.
Teladoc ended the quarter with U.S. paid memberships of 57.8 million, which rose 10% year over year. U.S. visit fee-only access membership climbed 3% year over year to 24.3 million at the third-quarter end.
Utilization (the ratio of visits to total U.S. paid members) increased 128 bps year over year to 22.3%. Average U.S. revenues per member improved 9% year over year to $2.61.
Financial Update (as of Sep 30, 2022)
Teladoc exited the third quarter with cash and cash equivalents of $899.6 million, which increased from $893.5 million in 2021 end. Total assets of $8,104 million at the third-quarter end plunged from $17,734.6 million.
Total debt was $1.5 billion, which increased from the 2021-end figure of $1.2 billion.
In the first nine months of 2022, net operating cash flow amounted to $123.7 million, which increased from $110.8 million a year ago. For the third quarter alone, the metric was at $63 million.
Guidance
Fourth Quarter
For fourth-quarter 2022, TDOC expects total revenues in the range of $625-$640 million and adjusted EBITDA within $88-$98 million. Teladoc projects total visits between 4.7 million and 4.9 million. Net loss per share is expected within 10-40 cents. Total U.S. paid membership is expected within 57-58 million.
Full-Year 2022
For the full year, revenues are anticipated within the $2,395-$2,410 million range, down from the previous guidance of $2,400-$2,500 million. The guidance is still higher than the 2021 level of $2 billion.
Adjusted EBITDA is now estimated to be in the range of $240-$250 million, down from the 2021 figure of $267.8 million. Its bet on mental health service BetterHelp is likely to generate a lower yield this year.
Teladoc projects total visits in the band of 18.4-18.6 million, lower than the previous guidance of 18.8-19.3 million (still indicating a rise from the 2021 level of 15.4 million).
Total U.S. paid membership is now expected between 57 million and 58 million members (suggesting growth from the 2021 level of 53.6 million). U.S. visit fee-only access is projected to be available to around 24 million individuals (compared with the 2021 figure of 24.2 million).
Net loss per share is now expected to be within $61.10-$61.40 compared with the previous estimate of $61-$62. The same also indicates a deterioration from the 2021 loss figure of $2.73 per share.
The Zacks Consensus Estimate for Elevance Health’s earnings is currently pegged at $28.92 per share, indicating a year-over-year increase of 11.3%. ELV beat earnings estimates in all the past four quarters, with an average surprise of 4.1%.
The Zacks Consensus Estimate for Bright Health’s bottom line indicates a 41.7% improvement from the prior-year reported number. The consensus estimate for BHG’s top line also indicates 68.9% year-over-year growth.
The Zacks Consensus Estimate for Inventiva’s 2022 bottom line indicates an 11.3% year-over-year improvement. IVA has witnessed two upward estimate revisions in the past 60 days against none in the opposite direction.
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Teladoc (TDOC) Up 1.6% Since Q3 Earnings Beat on Higher Visits
Teladoc Health, Inc.'s (TDOC - Free Report) shares rose 1.6% since it reported earnings on Oct 26, 2022. It reported strong third-quarter results, supported by increased visits and memberships, as well as higher utilization. Solid contributions from access and visit fees benefited the results. The positives were partially offset by a rise in expenses.
TDOC reported third-quarter 2022 adjusted loss of 45 cents per share, narrower than the Zacks Consensus Estimate of a loss of 59 cents. TDOC delivered an adjusted loss per share of 53 cents a year ago.
TDOC’s operating revenues of $611.4 million (within the management’s expected range of $600-$620 million) beat the Zacks Consensus Estimate of $609 million. The top line improved from $521.7 million in the year-ago quarter.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote
Operational Update
Revenues from Access Fees (which comprised 88.3% of total revenues) increased 20% year over year to $540.1 million. Access fees from the United States jumped 21% year over year to $465.7 million and accounted for 86.2% of total access fees. International access fees made up the remaining and amounted to $74.4 million (up 19% year over year).
TDOC generated $65.6 million of Visit Fee revenues (up 5% year over year) in the quarter under review. While visit fee revenues from the United States advanced 5% year over year to $62.8 million, revenues from international visits totaled $2.8 million (up 4%).
Adjusted EBITDA declined to $51.2 million from $67.4 million a year ago but was above the management’s projected range of $35-$45 million.
Adjusted gross margin rose 200 basis points (bps) year over year to 69.6% for the third quarter.
Total expenses rose to $683.1 million from $582.2 million a year ago, primarily due to higher costs of revenues, advertising and marketing, technology, development and depreciation and amortization, partially offset by lower expenses related to sales.
Visits & Memberships
Total visits of 4.6 million (below the expectation of 4.8-5 million) improved 14% year over year on account of a 15% and 14% increase in visits from the United States and International segments, respectively.
Teladoc ended the quarter with U.S. paid memberships of 57.8 million, which rose 10% year over year. U.S. visit fee-only access membership climbed 3% year over year to 24.3 million at the third-quarter end.
Utilization (the ratio of visits to total U.S. paid members) increased 128 bps year over year to 22.3%. Average U.S. revenues per member improved 9% year over year to $2.61.
Financial Update (as of Sep 30, 2022)
Teladoc exited the third quarter with cash and cash equivalents of $899.6 million, which increased from $893.5 million in 2021 end. Total assets of $8,104 million at the third-quarter end plunged from $17,734.6 million.
Total debt was $1.5 billion, which increased from the 2021-end figure of $1.2 billion.
In the first nine months of 2022, net operating cash flow amounted to $123.7 million, which increased from $110.8 million a year ago. For the third quarter alone, the metric was at $63 million.
Guidance
Fourth Quarter
For fourth-quarter 2022, TDOC expects total revenues in the range of $625-$640 million and adjusted EBITDA within $88-$98 million. Teladoc projects total visits between 4.7 million and 4.9 million. Net loss per share is expected within 10-40 cents. Total U.S. paid membership is expected within 57-58 million.
Full-Year 2022
For the full year, revenues are anticipated within the $2,395-$2,410 million range, down from the previous guidance of $2,400-$2,500 million. The guidance is still higher than the 2021 level of $2 billion.
Adjusted EBITDA is now estimated to be in the range of $240-$250 million, down from the 2021 figure of $267.8 million. Its bet on mental health service BetterHelp is likely to generate a lower yield this year.
Teladoc projects total visits in the band of 18.4-18.6 million, lower than the previous guidance of 18.8-19.3 million (still indicating a rise from the 2021 level of 15.4 million).
Total U.S. paid membership is now expected between 57 million and 58 million members (suggesting growth from the 2021 level of 53.6 million). U.S. visit fee-only access is projected to be available to around 24 million individuals (compared with the 2021 figure of 24.2 million).
Net loss per share is now expected to be within $61.10-$61.40 compared with the previous estimate of $61-$62. The same also indicates a deterioration from the 2021 loss figure of $2.73 per share.
Zacks Rank & Key Picks
Teladoc currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Elevance Health Inc. (ELV - Free Report) , Bright Health Group, Inc. and Inventiva S.A. (IVA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Elevance Health’s earnings is currently pegged at $28.92 per share, indicating a year-over-year increase of 11.3%. ELV beat earnings estimates in all the past four quarters, with an average surprise of 4.1%.
The Zacks Consensus Estimate for Bright Health’s bottom line indicates a 41.7% improvement from the prior-year reported number. The consensus estimate for BHG’s top line also indicates 68.9% year-over-year growth.
The Zacks Consensus Estimate for Inventiva’s 2022 bottom line indicates an 11.3% year-over-year improvement. IVA has witnessed two upward estimate revisions in the past 60 days against none in the opposite direction.