Teladoc Health Q3 Loss Narrows on Strong Integrated Care Unit

In This Article:

Teladoc Health, Inc. TDOC incurred a third-quarter 2024 adjusted loss of 19 cents per share, narrower than the Zacks Consensus Estimate of a loss of 29 cents and the year-ago quarter’s loss of 35 cents.

Operating revenues amounted to $610.5 million, which declined 3% year over year. The top line, however, beat the consensus mark by 1.6%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The better-than-expected quarterly results were supported by growing International revenues, strength in the Integrated Care segment and declining expenses. However, a decline in access fees and BetterHelp’s revenues acted as a partial offset.

Teladoc Health, Inc. Price, Consensus and EPS Surprise

Teladoc Health, Inc. Price, Consensus and EPS Surprise
Teladoc Health, Inc. Price, Consensus and EPS Surprise

Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote

Quarterly Operational Update of TDOC

Revenues from access fees (which accounted for 86.7% of total quarterly revenues) declined 5% year over year to $555.3 million in the quarter under review. But the metric beat the Zacks Consensus Estimate by 2.1%.

Other revenues of $85.2 million increased 9% year over year and beat the Zacks Consensus Estimate by 3%.

On a geographical basis, Teladoc Health generated $536.2 million in revenues from the United States, down 6% year over year in the third quarter. The metric beat the consensus mark by 1%. International revenues rose 15% year over year to $104.3 million and outpaced the consensus mark by 12.8%.

Adjusted EBITDA fell 6% year over year to $83.3 million. The adjusted gross margin of 71.9% was up from 71.8% a year ago.

Total expenses decreased 5.5% year over year to $684.9 million in the quarter, lower than our estimate of $688 million. The year-over-year decline resulted from lower costs of revenues, advertising and marketing, sales, technology and development costs.

TDOC’s Segmental Update

The Integrated Care segment reported revenues of $383.7 million, which improved 2% year over year in the third quarter and surpassed the Zacks Consensus Estimate of $376.4 million and our estimate of $371.2 million. Adjusted EBITDA rose 8% year over year to $68 million, higher than the consensus mark of $57.4 million. Adjusted EBITDA margin of 17.7% improved from 16.8% a year ago.

The BetterHelp segment’s revenues declined 10% year over year to $256.8 million but beat the Zacks Consensus Estimate of $251.3 million and our estimate of $252.2 million. Adjusted EBITDA of $15.2 million fell 41% year over year and missed the consensus mark of $20.82 million. Adjusted EBITDA margin deteriorated to 5.9% in the quarter under review from 9.1% a year ago.

Waiting for permission
Allow microphone access to enable voice search

Try again.