Virtual healthcare provider Teladoc (NYSE:TDOC) impressed investors by posting a narrower-than-anticipated third-quarter loss, driven by solid revenue and cost controls. Loss per share came down to $0.45 in Q3 2022 from $0.53 in the prior-year quarter. Analysts were expecting a loss per share of $0.57.
Teladoc stock jumped nearly 11% in Wednesday’s extended trading session. Shares have plunged about 71% year-to-date due to dismal results in recent quarters following the fading of pandemic tailwinds.
Meanwhile, Teladoc’s Q3 revenue increased 17% year-over-year to $611.4 million, surpassing analysts’ estimate of $609 million. The company attributed its top-line growth to the 35% rise in revenue from its direct-to-consumer mental health brand, BetterHelp.
The Q3 average revenue per paid member in the U.S. increased 8.8% to $2.61, with paid membership rising 10% to 57.8 million members.
Coming to Q4 guidance, Teladoc expects revenue of $625 million to $640 million, reflecting growth of 13% to 15%. The company anticipates Q4 adjusted EBITDA in the range of $88 million to $98 million. Analysts were expecting Q4 revenue and adjusted EBITDA of $636 million and $94 million, respectively.
Teladoc had previously stated that it expected its full-year results to be at the low end of its prior guidance range. Consistent with that statement, the company now anticipates full-year revenue to be in the range of $2.395 billion to $2.41 billion and adjusted EBITDA between $240 million to $250 million. The company raised its U.S. paid membership estimate by 1.5 million to the range of 57 million to 58 million members.
What is the Forecast for Teladoc Stock?
Wall Street is sidelined on Teladoc stock, with a Hold consensus rating based on five Buys and 18 Holds. The average TDOC stock price target of $36.39 implies 36.1% upside potential from current levels.