Teladoc Health Reports Mixed Results In 1Q; Shares Drop 5.5%

Teladoc Health’s (TDOC) shares fell 5.5% in extended trading on Wednesday as losses for the provider of virtual healthcare solutions widened in the first quarter. The company reported a net loss of $199.6 million compared to a loss of $29.6 million in the same quarter of last year.

Don't Miss our Black Friday Offers:

Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

A diluted net loss of $1.31 per share was wider than analysts’ expectations for a loss of $0.54 per share. However, revenues jumped 151% year-on-year to $453.7 million, beating consensus estimates of $451.9 million.

Teladoc Health’s CEO, Jason Gorevic said, “After a transformational year, Teladoc Health continues to show strong momentum by delivering record results across the business. Consumers are embracing our whole-person virtual care offerings, engaging with multiple products and coming to us for more of their health needs.”

“As our integration accelerates, we are leading the way in whole-person care, unlocking the full spectrum of healthcare in one unified and personalized consumer experience,” Gorevic added.

Access fees of $388.2 million rose 183% year-on-year and comprised around 85.5% of the company’s total revenues of $453.7 million. The company’s paid memberships in the United States hit 51.5 million in 1Q, a rise of 20% year-on-year.

For the second quarter, TDOC expects revenues to be between $495 million and $505 million and adjusted EBITDA to land between $61 million and $64 million. For FY21, the company raised its revenue outlook and has forecast revenues of $1,970 million to $2,020 million and adjusted EBITDA of between $255 million and $275 million. (See Teladoc Health stock analysis on TipRanks)

Following the earnings, Oppenheimer analyst Michael Wiederhorn lowered the price target from $270 to $250 but reiterated a Buy on the stock. Wiederhorn said in a note to investors, “The results reflect the first full quarter with Livongo, along with 69% organic growth…”

“Due to improved outlook, we raise our 2021/2022 adj. EBITDA estimates to $273M/$424M from $267M/$418M, but due to the quarter/below-the-line items, we lower our GAAP 2021/2022E EPS estimates to ($2.42)/($0.82) from ($0.29)/$0.45…” Wiederhorn added.

Shares have crashed approximately 32% in the past three months.

Overall, consensus on the Street is that TDOC is a Moderate Buy based on 13 Buys and 6 Holds. The average analyst price target of $255.61 implies upside potential of about 37.2% from current levels.