Teladoc Sinks More Than 3% Despite Upbeat Q4 Results

Telemedicine and virtual healthcare company Teladoc Health, Inc. (NYSE: TDOC) has reported better-than-expected results for the fourth quarter ended December 31, 2021.

However, following the earnings, shares of the company declined 3.2% to close at $63.22 in Tuesday’s extended trading session.

Revenue & Earnings

Teladoc Health reported quarterly revenues of $554.2 million, up 45% from the previous year. Further, the figure topped the consensus estimate of $546.6 million. With a 51% year-over-year rise to $469.9 million, access fees revenue contributed majorly to the overall growth in revenues and accounted for roughly 85% of the total revenues.

The company reported a quarterly loss per share of $0.07, which compares favorably to a loss of $3.07 reported in the prior-year quarter. Further, the figure came in narrower than the consensus estimate of a loss per share of $0.56.

Other Operating Metrics

The company’s adjusted EBITDA grew 53% from the previous year to $77.1 million, while the adjusted gross margin increased to 68.4% from 67.9% in the prior year.

The average revenue per U.S. paid member witnessed a rise of 52.8% from the previous year to $2.49.

Outlook

For the first quarter, the company expects to post revenues in the range of $565 million to $571 million against the consensus estimate of $588.94 million. Further, it foresees a loss of $0.60 to $0.50 per share during the quarter.

For full-year 2022, Teladoc anticipates revenues between $2.55 billion and $2.65 billion against the consensus of $2.57 billion. It sees a loss in the range of $1.60 to $1.40 per share.

CEO Comments

The CEO of Teladoc Health, Jason Gorevic, said, “We successfully delivered against performance metrics, solidified our position as the partner of choice for our clients and connected millions of consumers with high-quality care. We saw meaningful growth and penetration across several key areas of our business, in mental health through both BetterHelp in the direct-to-consumer space and our new MyStrength Complete B2B2C approach to right care at the right time, as well as primary care through Primary 360, all helping to meet a greater share of an individual’s healthcare needs.”

Stock Rating

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 8 Buys and 6 Holds. The average Teladoc Health price target of $120.50 implies that the stock has upside potential of 84.5% from current levels. Shares have declined 74.5% over the past year.

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