Despite beating revenue expectation, Teladoc's net losses lead to dip in stock

Teladoc reports a net loss of $1.31 per share, a total of $199.6 million.
By Laura Lovett
01:08 pm
Share

Photo by Kwanchai Lettanapunyaporn/Getty Images

After a fiscally strong 2020, Teladoc reported a net loss of $1.31 per share – missing its expectations by $0.71, in its Q1 earnings call. This came out to a total net loss of $199.6 million.

However, it did manage to beat its revenue expectation by $1.76 million. The telemedicine giant also upped its Q2 expectations, as well as its full year expectations.

"As a result of the momentum demonstrated across our channels and geographies and a continued development of the pipeline of new and expanded opportunities, we are raising our full year revenue guidance by $20 million, to $1.97 billion to $2.02 billion for the year," Jason Gorevic, CEO of Teladoc said during the earnings call.

Despite this increased yearly expectations, the company's stock has taken a steep tumble since the earnings call was announced yesterday. The stock dropped from nearly $188 to a bit over $168 within the last day.

TOPLINE DATA

Teladoc reported a 151% increase in total revenue during the first quarter to $454 million, or 69% excluding acquired revenue. That breaks down to $416 million in U.S. revenue, up by 175% from the 2020's Q1, and a $38 million, or 29%, Y-o-Y increase in international revenue.

The net loss of $199.6 million was significantly higher than the $29.6 million during the first quarter of 2020.

"The larger net loss was primarily attributable to increase stock-based compensation, amortization of acquired intangibles, and income tax adjustments primarily related to the merger at Livongo," Mala Murthy, chief financial officer of Teladoc, said during the earnings call.

The company reported that its gross margin, which includes depreciations and amortization, was 67%, vs 59.2% in 2020 Q1. The adjusted gross margin was 67.8%, as compared to 60% last year. The company also reported the EBITDA was a loss of $36 million, compared to $11.3 million in the first quarter of 2020.

Some of the business highlights that Teladoc highlighted were its 3.2 million visits during the first quarter, which represents a 50% growth over the previous year, as well as its growing chronic-care-management sector.   

The company reports that Livongo, a chronic-care-management platform Teladoc acquired for $18.5 billion in 2020, grew it membership 66% over the previous year, adding 62,000 new members.

LOOKING AHEAD

The company is setting its total venture range for the second quarter of 2021 to be in the range of $495 to $505 million. It's also looking to up its total visits to between 3.2 million and 3.4 million.

The company is looking to up its full year 2021 numbers as well. It's projecting its total revenue be in the range of $1,970 million to $2,020 million. Up ahead for the next year, the company is looking to grow its business and roll out new products.

"As we previously discussed, we expect increased spending over the course of the year as we invest in the growth of the business, particularly in new product launches, and expansions into new markets, the integration of Livongo, and the development of our integrated data platform. We now expect total visits in 2021 to be between 12.5 and 13.5 million visits, representing growth of 18% to 27% over the prior year," Murthy said.

LOOKING BACK

In 2020 Teladoc had a very strong year, with a large part of that due to the demand of telehealth during the COVID-19 pandemic. During 2020 it also announced a slew of big-name acquisitions.

It acquired InTouch Health for $600 million, which was announced in January of 2020 and formally closed over the summer, and a $18.5 billion merger with data-driven disease-management platform Livongo that was announced over the summer and closed in late October of 2020.

 

MobiHealthNews:

The latest news in digital health delivered daily to your inbox.

Thank you for subscribing!
Error! Something went wrong!