Teladoc Inc. TDOC incurred third-quarter operating loss of 35 cents per share, in line with the Zacks Consensus Estimate. However, the loss was narrower than $1.14 loss per share incurred in the year-ago quarter.
A meteoric rise in its operating expenses, which outdid revenue growth, was responsible for the loss in the quarter.
Total revenue during the quarter came in at $20 million, reflecting an increase of 83%. Revenues surpassed the Zacks Consensus Estimate by 3.3%.
Revenues from subscription access fees were $17 million, up 78% year over year. Revenues from visit fees came at $3 million, reflecting an increase of 122%.
Total operating expense more than doubled year over year to $28.1 million due to higher advertising and marketing expenses, cost of sales, technology and development costs as well as an increase in general and administrative costs.
Adjusted EBITDA came at a loss of $10.4 million, wider than a loss of $3.1 million incurred in the year-ago quarter.
Total membership was 12.6 million, up 56% year over year.
Financial Position
Cash and cash equivalents were $50.1 million at Sep 30, 2015, up from $46.4 million as of Dec 31, 2014.
Teldoc’s total assets were $243.3 million as of the end of the third quarter, up from $92 million as of Dec 31, 2014.
Long-term bank and other debt totaled $25.9 million, up slightly from $25.2 million at Dec 31, 2014.
Stockholders’ equity totaled $192.5 million, comparing favorably with a deficit of $67.5 million at Dec 31, 2014.
Cash used in operating activities was $34.5 million through the first nine months of 2015, more than $7.1 million used in the year-ago period.
Guidance
For the fourth quarter, Teladoc projects revenues in the range of $21 million to $22 million. EBITDA is expected in the range of a loss of $13 million to $14 million while adjusted EBITDA is projected at loss of $12.3–13.3 million. Total visits are projected between 150,000 and 160,000. Net loss is estimated between 41 cents and 43 cents per share.
Teladoc’s revenues for 2015 are projected between $75.5 million and 76.5 million. EBITDA is estimated between a loss of $51 million and 52 million while adjusted EBITDA is projected between a loss of $48 million and 49 million. Total visits for the full year are projected at 540,000 to 550,000. Net loss is estimated between loss of $2.95 and $3.00 per share.
Zacks Rank
Teladoc carries a Zacks Rank # 3 (Hold). Some better-ranked stocks in the same space are Cancer Genetics, Inc CGIX, MedAssets, Inc MDAS and PRA Health Sciences, Inc PRAH. Each of these stocks sport a Zacks Rank #1 (Strong Buy).
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