Teladoc Health (NYSE: $TDOC), the parent company of BetterHelp, is a pioneer in delivering virtual care services that include wellness, prevention, acute care, and complex healthcare solutions. At its most basic, it is an online platform that connects patients to healthcare experts.
On Tuesday, February 20, 2024, the company released its fourth quarter and full-year fiscal 20203 results to a negative market reaction.
Teladoc Hearth Fourth Quarter Results
In the fourth quarter, Teladoc Health reported an EPS of $-0.17, beating expectations of $-0.22. However, the quarter’s revenue of $660.53 million came in below the expected $670.79 million. In the fourth quarter, adjusted EBITDA increased 22% to $114.4 million.
Teladoc Health reported a revenue of $2.60 billion for the full year, an 8% increase. Full-year EBITDA increased 33% to $328.1 million, the company’s most profitable year yet.
The company ended 2023 with an operating cash flow of $350 million, a massive increase from the $189.3 million reported in FY22. Teladoc Health ended the year with a free cash flow of $193.7 million, a massive increase from the $16.5 million the previous year. As of the end of 2023, the company had a cash position of $1.12 billion.
Teladoc Guidance Misses Estimates
Teladoc Health expects an EPS of $-0.55- $-0.45, below analysts’ expectations of $-0.43. It expects revenue of $630-$645 million, below expectations of $672.90 million.
For FY24, Teladoc expects an EPS of $-1.10-$-0.80, compared to the analysts’ expectations of $-1.23. It expects full-year revenue of $2.64-$2.74 billion, below expectations of $2.77 billion.
Teladoc (TDOC) Stock Performance
Following the revenue miss and weak guidance, Teladoc (TDCO) stock tumbled. Following the release of the results, the stock fell from a closing price of $20.05 on Tuesday, February 20, 2024, to $15.43 per share as of 01:33 PM EST. Thus far, the stock has lost 24.69% of its value.
Teladoc Forecast: $TDOC
As of Wednesday, February 21, 2024, Teladoc has an overall moderate buy rating. The analysts predict a high of $30 and a low of $19 for the stock. The average prediction for the stock is $24.38, a 58.62% upside. However, after the dismal Q4 results, many analysts will likely downgrade their forecast for the stock.
Should You Buy TDOC Stock?
Teladoc (TDOC) was one of the successes of the pandemic. Its ability to deliver medical care amid restrictions proved quite popular with investors. However, the stock has lost its appeal since COVID restrictions were eased.
Revenue growth slowed, which means the stock is now too pricey, as most of the stock’s price was baked into predictions of high revenue growth. Another issue that investors have with the stock is its bottom line. The stock continues to report net losses, which has watered down the stock’s attractiveness.
However, the company still has room to grow. One of its largest expenses is marketing; as the company becomes well-known, those costs will significantly reduce. Additionally, the company sees growth in its chronic care segment. CEO Jason Gorevic stated in an investor call that “there’s still a long runway for chronic care growth within our existing virtual care book.”
In summary, Teladoc might be a good long-term investment for patient investors. While a turnaround could take a while to pull off successfully, the company is well-positioned to grow in telehealth.
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