|
|
|
|
|||||
|
|
|
Shares of Teladoc Health Inc. TDOC have fallen 4.6% since it reported first-quarter 2025 results on April 30, as investors are not impressed with its 2025 outlook. Although it reported better-than-expected results due to growing international revenues and an expanding membership base in the Integrated Care segment, the upsides were partially offset by lower access fees and fewer visits.
Teladoc Health incurred a first-quarter 2025 adjusted loss of 19 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents and the year-ago quarter’s loss of 49 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Operating revenues amounted to $629.4 million, which decreased from $646.1 million in the prior year. However, the top line beat the consensus mark by 1.9%.
Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote
Revenues from access fees declined 6% year over year to $525.7 million. The metric missed the Zacks Consensus Estimate by 1.5%.
Other revenues of $103.6 million increased 16% year over year and beat the Zacks Consensus Estimate by 22.9%.
On a geographical basis, Teladoc Health generated $525 million in revenues from the United States, down 4% year over year. However, the metric beat the consensus mark by 1.2%. International revenues rose 6% year over year to $104.4 million and outpaced the consensus mark by 6.1%.
Adjusted EBITDA fell 8% year over year to $58.1 million.
Total expenses increased 2.3% year over year to $750 million in the quarter, higher than our estimate of $685.9 million. The year-over-year increase resulted from higher costs of revenues and general and administrative costs.
The Integrated Care segment reported revenues of $389.5 million, which improved 3% year over year in the first quarter and surpassed the Zacks Consensus Estimate of $380.9 million and our estimate of $382.2 million. Adjusted EBITDA improved 6% year over year to $50.4 million, higher than the consensus mark of $46 million. The adjusted EBITDA margin of 12.9% improved from 12.6% a year ago.
The BetterHelp segment’s revenues declined 11% year over year to $239.9 million but beat the Zacks Consensus Estimate of $237.3 million and our estimate of $235 million. Adjusted EBITDA of $7.7 million fell 50% year over year and missed the consensus mark of $7.9 million. The adjusted EBITDA margin deteriorated to 3.2% from 5.7% a year ago.
Total visits of Teladoc Health were 4.4 million, which declined 3% year over year and also came below the Zacks Consensus Estimate by 0.1%.
U.S. Integrated Care Members totaled 102.5 million as of March 31, 2025, which improved 12% year over year. The metric beat the consensus mark by 1.2%.
Teladoc Health exited the first quarter with cash and cash equivalents of $1.2 billion, which decreased from the $1.3 billion at 2024-end. Total assets of $3.4 billion fell from the 2024-end level of $3.5 billion.
Debt amounted to $992.3 million, which rose from $991.4 million as of Dec. 31, 2024. Total stockholders’ equity of $1.4 billion declined from the 2024-end level of $1.5 billion.
Operating cash flow amounted to $15.9 million in the first quarter of 2025, which increased from $8.9 million in the year-ago quarter. Free cash outflow was $15.7 million in the first quarter of 2025, which improved from $26.6 million a year ago. Capex decreased 11% year over year to $31.6 million.
Revenues in the Integrated Care segment are forecasted to witness 0.25%-2.75% year-over-year growth, while the unit’s adjusted EBITDA margin is anticipated to remain in the band of 13.25-14.75%. U.S. Integrated Care members are expected to be between 101.5 million and 102.5 million.
Revenues in the BetterHelp segment are forecasted to witness a 11.25%-7.50% year-over-year decline, while the unit’s adjusted EBITDA margin is anticipated to remain in the band of 2.5-5.25%. Total revenues are expected between $614 and $633 million.
Revenues in the Integrated Care segment are expected to witness 0-3% growth on a year-over-year basis. U.S. Integrated Care members are expected to remain within the 101-103 million range. The adjusted EBITDA margin in the Integrated Care segment is estimated to be within the band of 14.3-15.3% in 2025.
Revenues in the BetterHelp segment are expected to witness a 9.75%-3.75% decline on a year-over-year basis. The adjusted EBITDA margin in the BetterHelp segment is now estimated to be in the range of 4.75-6.25% in 2025, down from the earlier range of 6.25-7.75%.
The company expects full-year revenues to be within $2.468-$2.576 billion and a net loss of 90 cents-$1.40 per share. Adjusted EBITDA is likely to be in the range of $263-$304 million. Free cash flow is expected to be within the range of $170-$200 million.
TDOC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Aveanna Healthcare Holdings Inc. AVAH, BrightSpring Health Services, Inc. BTSG and GeneDx Holdings Corp WGS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Aveanna Healthcare’s current-year earnings of 12 cents per share has witnessed five upward revisions in the past 60 days against none in the opposite direction. The consensus estimate for current-year revenues is pegged at $2.1 billion, implying 4.6% year-over-year growth.
The Zacks Consensus Estimate for BrightSpring Health Services’ current-year earnings is pegged at 82 cents per share. BrightSpring Health Services has witnessed two upward revisions in the past seven days against none in the opposite direction. The consensus estimate for current-year revenues is pegged at $12.1 billion, implying 7.1% year-over-year growth.
The Zacks Consensus Estimate for GeneDx Holdings’ current-year earnings of $1.09 per share has witnessed one upward revision in the past seven days against no movement in the opposite direction. GeneDx Holdings beat earnings estimates in each of the trailing four quarters, with the average surprise being 145.8%. The consensus estimate for current-year revenues is pegged at $374.1 billion, calling for 22.5% year-over-year growth.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 6 hours | |
| 6 hours | |
| 6 hours | |
| 7 hours | |
| 8 hours | |
| 8 hours | |
| 9 hours | |
| 9 hours | |
| 11 hours | |
| 11 hours | |
| 12 hours | |
| May-07 | |
| May-07 | |
| May-07 | |
| May-06 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite