Teladoc posts first-quarter loss, plunges into bleak outlook

Global telemedicine and virtual healthcare company Teladoc Health, Inc. (NYSE: TDOC) posted a net loss in the first quarter of 2022. In addition, revenue exceeded analysts’ expectations.

Shares of the company plunged 36.83% in Wednesday’s extended trading session after closing down more than 3% on the day. The price drop came after the company disclosed a $6.6 billion non-cash goodwill impairment charge in the quarter and cut its 2022 outlook.

During his earnings call, Teladoc Chief Financial Officer Mala Murthy said, “The goodwill impairment was triggered by the sustained decline in Teladoc Health share price, the valuation and magnitude of the impairment charge being driven by a combination of recent market-based factors. .

Results in detail

Teladoc suffered a net loss of $41.58 per share in the first quarter. Results were impacted by a non-cash goodwill impairment charge of $41.11 per share, stock-based compensation expense of $0.38 per share and amortization of acquired intangibles of $0.31 per share.

Including some charges, the company reported a net loss of $1.31 per share in the same quarter last year, while Street’s estimated loss was $0.56 per share.

Total revenue generated in the quarter increased 25% year-over-year to $565.4 million, but fell short of the consensus estimate of $568.8 million.

By segment, access fee revenue was $491.3 million, up 29% year-over-year, while visitation fee revenue increased 12% to $67.9 million. Additionally, US revenue was $491.2 million, up 24%, while international revenue was $74.2 million, up 27%.

Adjusted EBITDA was $54.5 million, down 4% from the prior year quarter, while adjusted gross margin was 66.9%, down 90 basis points. year-to-year basis.

Average revenue per paying member in the United States was $2.52 in the current quarter, compared to $2.09 in the first quarter of 2021.

CEO Comments

Encouragingly, Teladoc Health CEO Jason Gorevic said, “During the first quarter, we demonstrated significant progress on a number of strategic initiatives, such as the successful launch of several customers on our innovative services. , including Primary360 and our Staged Chronic Disease. programs.”

Orientation

Gorevic commented: “As we continue to see sustainable growth in our range of products and services, we are revising our outlook for 2022 to reflect the momentum we are currently experiencing in the direct-to-consumer mental health and chronic disease markets. (D2C).

For the second quarter of 2022, the company expects revenue of between $580 million and $600 million. Additionally, a net loss in the range of $0.72 to $0.60 per share is expected, while adjusted EBITDA is expected to be between $39 million and $49 million.

For 2022, the company now expects revenue of $2.4 billion to $2.5 billion. Additionally, he forecasts a net loss per share between $43.50 and $43. Adjusted EBITDA for the year is expected to be between $240 million and $265 million.

The Taking of Wall Street

The Street is cautiously bullish on the stock and has a Moderate Buy consensus rating based on 16 buys and 11 takes. Teladoc’s average price target of $98 implies upside potential of 75.03% from current levels. Shares have fallen nearly 69% over the past year.

Bloggers weigh

Bloggers seem excited about the company’s results. Data from TipRanks shows that the opinions of financial bloggers are 84% bullish on the TDOC, compared to an industry average of 72%.

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