Teladoc Lower After Posting Wider-Than-Expected Loss

Teladoc's shares fell after the telemedicine provider posted a wider-than-expected fourth-quarter loss.
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Teladoc Health  (TDOC) - Get Report shares fell in after-hours trading Wednesday, after the telemedicine provider reported a wider-than-expected fourth-quarter loss.

The Purchase, N.Y., company's shares at last check traded at $238.61, down 6.3%. They had more than doubled (up 124%) in the year through Wednesday’s close.

Teladoc incurred a net loss of $394 million, or $3.07 a share, in the latest quarter, widening from $19 million, or 26 cents, in the year-earlier quarter. Analysts had forecast a 26-cent loss for this year’s quarter.

To be sure, the latest quarter reflects 45 cents a share of acquisition costs, 97 cents a share of integration costs, $2.59 a share of accelerated stock-based awards expense related to its merger with Livongo, and 43 cents a share of expense for Livongo stock awards that continue to vest after the merger. Teladoc also posted an income-tax benefit of 67 cents a share.

Revenue registered $383.3 million in the latest quarter, more than double the year-earlier total of $156.5 million. The latest figure also topped the FactSet analyst consensus of $378.9 million.

GAAP gross-profit margin widened to 67.9% from 64.6%.

The COVID pandemic sparked demand for Teladoc’s services, with patients and doctors stuck at home.

“As virtual care shifted to become a consumer expectation in 2020, Teladoc Health not only met the rapidly growing demand, but we transformed our company to define a new category of whole-person virtual care,” Chief Executive Jason Gorevic said in a statement.

“We exceeded our fourth-quarter and full-year 2020 expectations and see strong momentum across our global business in 2021.”

For all of this year, Teladoc forecasts a loss before interest, taxes, depreciation and amortization of $90 million to $110 million, compared with a loss of $436.9 million for all of 2020.

Teladoc predicts revenue of $1.95 billion to $2 billion for 2021, compared with $1.09 billion for last year. FactSet's survey calls: $1.97 billion.