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Teladoc Incurs Loss as Expected in Q3, Beats on Revenues

Teladoc Inc . TDOC incurred third-quarter operating loss of 35 cents per share, in line with the Zacks Consensus Estimate. However, the loss was narrower than $1.14 loss per share incurred in the year-ago quarter.

Teladoc (TDOC) - Earnings Surprise | FindTheCompany

A meteoric rise in its operating expenses, which outdid revenue growth, was responsible for the loss in the quarter.

Total revenue during the quarter came in at $20 million, reflecting an increase of 83%. Revenues surpassed the Zacks Consensus Estimate by 3.3%.

Revenues from subscription access fees were $17 million, up 78% year over year. Revenues from visit fees came at $3 million, reflecting an increase of 122%.

Total operating expense more than doubled year over year to $28.1 million due to higher advertising and marketing expenses, cost of sales, technology and development costs as well as an increase in general and administrative costs.

Adjusted EBITDA came at a loss of $10.4 million, wider than a loss of $3.1 million incurred in the year-ago quarter.

Total membership was 12.6 million, up 56% year over year.

Financial Position

Cash and cash equivalents were $50.1 million at Sep 30, 2015, up from $46.4 million as of Dec 31, 2014.

Teldoc's total assets were $243.3 million as of the end of the third quarter, up from $92 million as of Dec 31, 2014.

Long-term bank and other debt totaled $25.9 million, up slightly from $25.2 million at Dec 31, 2014.

Stockholders' equity totaled $192.5 million, comparing favorably with a deficit of $67.5 million at Dec 31, 2014.

Cash used in operating activities was $34.5 million through the first nine months of 2015, more than $7.1 million used in the year-ago period.

Guidance

For the fourth quarter, Teladoc projects revenues in the range of $21 million to $22 million. EBITDA is expected in the range of a loss of $13 million to $14 million while adjusted EBITDA is projected at loss of $12.3-13.3 million. Total visits are projected between 150,000 and 160,000. Net loss is estimated between 41 cents and 43 cents per share.

Teladoc's revenues for 2015 are projected between $75.5 million and 76.5 million. EBITDA is estimated between a loss of $51 million and 52 million while adjusted EBITDA is projected between a loss of $48 million and 49 million. Total visits for the full year are projected at 540,000 to 550,000. Net loss is estimated between loss of $2.95 and $3.00 per share.

Zacks Rank

Teladoc carries a Zacks Rank # 3 (Hold). Some better-ranked stocks in the same space are Cancer Genetics, Inc CGIX , MedAssets, Inc MDAS and PRA Health Sciences, Inc PRAH . Each of these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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