Teladoc Inc.’s TDOC fourth-quarter operating loss of 31 cents per share came in narrower than the Zacks Consensus Estimate of a loss of 35 cents per share. In the year-ago quarter, the company had incurred a loss of 39 cents per share.
Total revenue during the quarter came in at $37.4 million, in line with the Zacks Consensus Estimate and up 65% year over year. Revenues were above the high end of the company’s guided range of $36–$37 million.
Revenue from subscription access fees and visit fees was $30.4 million and $7 million, respectively, reflecting an increase of 69% and 50% year over year.
Total operating expenses were $38 million, 31% higher year over year. The increase was due to increased expenditure on advertising, marketing and sales.
Adjusted EBITDA narrowed to a loss of $8.0 million from a loss of $11.8 million, in the year-ago quarter.
Total visits of 310,467 surged 68% year over year. Total visits, came in much above the company’s guided range of 273,000 to 288,000.
Total membership was 17.5 million, reflecting an increase of 43% year over year. It met the high end of the company’s guided range of 17.3 million to 17.5 million.
Teladoc, Inc. Price, Consensus and EPS Surprise
Teladoc, Inc. Price, Consensus and EPS Surprise | Teladoc, Inc. Quote
Financial Position
Teldoc’s total assets were $303.7 million as of Dec 31, 2016, up from $229.7 million as of Dec 31, 2015.
Total cash, cash equivalents and marketable securities were $50 million as of Dec 31, 2016, down from $55.1 million as of Dec 31, 2015.
Guidance
For the first quarter of 2017, the company currently expects total revenue between $41.5 million and $42.5 million, EBITDA loss between $14 million and $15 million and adjusted EBITDA loss between $10 million and $11 million. The loss might stem from the seasonal impact of higher on-boarding expenses from millions of new members, total membership of approximately 20 million to 20.5 million, total visits between 375,000 and 385,000 and net loss per share based on 52.1 million weighted average shares outstanding of 33 cents to 34 cents.
For the full year of 2017, the company expects total revenue between $180 million and $185 million, EBITDA loss between $31 million and $34 million and adjusted EBITDA loss between $19.5 million and $22.5 million. The company targets adjusted EBITDA of a break-even in the fourth quarter of this year and total membership of approximately 21.5 million to 23 million. Total visits between 1.4 million and 1.45 million and net loss per share based on 54.2 million weighted average shares outstanding is expected to range from 85 cents to 91 cents.
Recent Developments
In January, the company completed a follow-on offering of approximately 7.9 million shares, resulting in net proceeds of around $124 million. This capital raise provided the company with significant additional financial strength and the flexibility to reinvest in growth.
Also, in the recent selling season, the company signed Bed, Bath & Beyond, SunTrust, Takeda, Magellan, Petco and Owens Corning, among other enterprise clients, as well as new health plan clients, such as HealthNet, Clover, Fallon and UltiCare. These have joined the Teladoc platform and have either gone live recently or will be implemented over the next few months.
Zacks Rank and Other Stocks
Teladoc carries a Zacks Rank #3 (Hold).
Some other stocks in the healthcare space that beat earnings estimates this quarter are UnitedHealth Group Inc. UNH, Aetna Inc. AET and Humana Inc. HUM. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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