In this video, I will be going over Teladoc's (TDOC 0.08%)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.