Teladoc Health telemedicine specialist is close to breaking even
Telemedicine solutions provider Teladoc Health Inc. (TDOC) reported double-digit sales growth earlier this week in the fourth quarter. The stock ended trading on February 24 at $68.94, rising by more than 12%. Note that it is currently almost 75% below 52-week highs. Teladoc Health’s revenue in the fourth quarter increased by 45% year-on-year and exceeded $554 million. But more importantly, the company has come close to breaking even.
At the end of the quarter, its loss was $0.07 per share, while a year earlier, it exceeded $3 per share Teladoc Health by an increase in revenue from service access fees by 51% year-on-year and costs for remote visits by 21% year-on-year.
The number of requests from paid subscribers in the United States increased by 22% yearly. In addition, Teladoc Health continues to integrate its acquisition — the amount of data registered by Livongo increased by 94%, to 2.19 billion.
Thus, the growth of Teladoc Health has slowed down compared to the first quarters of the pandemic (then it was triple-digit). However, such a comparison can hardly be considered correct since the first months of COVID-19, visitors had no choice but remote consultations. Now many visitors choose in favor of telemedicine on their own.
Management forecasts 25-30% growth in the current year, which is still a good indicator for such a large company. Adjusted margin at the level of 23-33% means that Teladoc Health continues to grow steadily, increasing the number of visits, including paid ones. The company expands the range of services provided and attracts large subscribers-employers and insurance companies. The pandemic has become a catalyst for telemedicine services, but termination will not stop.
