In this video, I will be going over Teladoc's (NYSE:TDOC)Q3 earnings report and trying to understand why the stock is down on a great print. You can find the video down below, but here are some of the highlights.

Earnings summary

The company reported earnings per share of -$0.53, beating estimates of -$0.65, and revenue of $522 million, up 81% year of year, beating estimates of $516.6 million. 

  • Total visits came in at 3.9 million, growing 37% year over year (YOY) and beating guidance by 10%. 
  • 70% of bookings were multiproduct sales, compared to 50% last year. 
  • Organic revenue grew 32% YOY, with domestic revenue up 89% YOY to $483 million and international revenue up 17% YOY to $39 million. 
  • Access fee revenue was $451 million, up 99% YOY, and visit fee revenue was $60 million, up 17.4% YOY. 
  • Per member per month (PMPM) was $2.57, up 117% YOY and 4.1% quarter over quarter. 
  • Gross profit margin (according to generally accepted accounting principles or GAAP) remained flat at 67.1%.

As for guidance for Q4 and FY21,

  • For Q4, the company expects revenue of $539 million and net loss per share of $0.69, beating expectations by 8.6% at the midpoint. 
  • For FY21, the company expects total revenue to be in the range of $2.015 billion to $2.025 billion. 
  • It expects visits to be between 14.5 million and 14.7 million, up 6% at the midpoint from previous guidance.  

The long-term thesis is still intact, and a broken stock does not equal a broken company

For the full insights, do watch the video below, and consider subscribing. 

*Stock prices used were the closing prices of Oct. 27, 2021. The video was published on Oct. 28, 2021.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.