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Teladoc (TDOC) Q3 Loss Wider Than Expected, Revenues Top

Zacks Equity Research
Updated

Teladoc Inc.’s TDOC third-quarter 2017 operating loss of 55 cents per share was wider than the Zacks Consensus Estimate of a loss of 50 cents. In the year-ago quarter, the company had incurred a loss of 33 cents per share.

Operational Update

Total revenues of $69 million not only surpassed the Zacks Consensus Estimate of $68 million but also surged 112% year over year. This is above the company’s guided range of $67-$68 million.

Revenues from subscription access fees and visit fees were $59.8 million and $8.9 million, respectively, reflecting an increase of 115% and 94% year over year. The rise in subscription fees indicates overall membership expansion and total visit growth.

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Total visits of 306,000 surged 51% year over year and total U.S.paid membership was 22.6 million, reflecting an increase of 33%. Both of these surpassed the company’s guided range of 275,000-300,000 and 22.0-22.5 million, respectively.

Total operating expenses were $73.4 million, 61% 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 $0.6 million from a loss of $9.3 million in the year-ago quarter and came in better than the company’s guided range of a loss of $2-$3 million.

Teladoc, Inc. Price, Consensus and EPS Surprise

Teladoc, Inc. Price, Consensus and EPS Surprise | Teladoc, Inc. Quote

Financial Position

Teladoc’s total assets were approximately $880 million as of Sep 30, 2017, up from $303.7 million as of Dec 31, 2016.

Total cash, cash equivalents and marketable securities were $83.1 million as of Sep 30, 2017, up from $50 million as of Dec 31, 2016.

Fourth-Quarter Guidance

Net loss per share, based on 57.1 million weighted average shares outstanding, is expected to be between 41 cents and 43 cents.

Revenues are expected to be in the range of $75-$77 million.  

Adjusted EBITDA is expected to be in the range of $1-$2 million.  

Membership is expected to be between 22.6 million and 23 million.

Total visits are projected within the range of 4,00,00–4,50,000.  

2017 Guidance

Net loss per share, based on 55.1 million weighted average shares outstanding, is expected to be between $1.56 and $1.58, wider than the previously guided range of  a loss of $1.52 to $1.55.

Revenues are expected to be in the range of $231 million to $233 million compared with the previously guided range of $230-$235 million.  

Adjusted EBITDA is expected to be in the range of a loss of $14-$15 million compared with the previously guided range of a loss of $15-$17 million

Membership is expected to lie within 22.6 million to 23 million compared with the previously guided band of 22.5-23.0 million.

Total visits are projected to be between 1,400,000 and 1,450,000, unchanged from the previous guidance.

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 third-quarter earnings so far, the bottom lines of Anthem Inc.ANTM, Aetna Inc. AET and UnitedHealth Group Inc. UNH beat their respective Zacks Consensus Estimate.

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