Virtual healthcare provider Teladoc (NYSE:TDOC) raised the lower end of its revenue guidance for the fourth quarter of 2022 and the full-year 2022 ahead of the 41st Annual J.P. Morgan Healthcare Conference held on Monday. TDOC stock, one of the top 10 holdings of Cathie Wood’s ARK Innovation ETF (ARKK), rose 4.1% in Monday’s regular trading.
Teladoc now expects Q4 2022 revenue in the range of $633 million to $640 million compared to the prior outlook of $625 million to $640 million. For the full-year 2022, it projects revenue of $2.403 billion to $2.410 billion compared to its previous guidance of $2.395 billion to $2.410 billion. Teladoc reaffirmed its adjusted EBITDA guidance for Q4 2022 and 2022.
It’s worth noting that Teladoc’s 2022 top line includes an estimated $1 billion in revenue from its BetterHelp direct-to-consumer mental health business. Over 1 million people received therapy in 2022 from BetterHelp.
Teladoc’s revenue increased 86% and 98% in 2021 and 2020, respectively, driven by strong demand for its telehealth services during the pandemic and the impact of the InTouch acquisition and Livongo merger. However, revenue grew 20% to $1.77 billion in the first nine months of 2022, reflecting a considerable slowdown as the pandemic-led tailwinds faded. Furthermore, Teladoc reported huge losses due to impairment charges related to the Livongo deal.
On the positive side, the company is optimistic about the continued adoption of telehealth. It has guided for total visits for 2022 to be between 18.4 million and 18.6 million, reflecting growth of 19% to 21% over the prior year.
What is the Forecast for Teladoc Stock?
Wall Street’s Hold consensus rating for Teladoc stock is based on four Buys and 15 Holds. The average Teladoc stock price target of $33.38 implies 43.8% upside potential. Shares have plunged 72% over the past year.
