What happened
Shares of Teladoc Health (TDOC +1.00%) took investors on a roller-coaster ride on Wednesday, initially surging as much as 6% before being weighed down by negative market sentiment. As of 1:45 p.m. ET, the stock was down 4.3%.
The catalyst that initially sent the healthcare company higher was its quarterly financial report, which was much better than expected.
NYSE: TDOC
Key Data Points
So what
For the fourth quarter, Teladoc Health generated revenue of $554.2 million, which climbed 45% year over year. Perhaps more importantly, the company edged closer to profitability, with a loss per share of $0.07, much improved from a loss of $3.07 in the prior-year quarter.
Image source: Getty Images.
To put the top- and bottom-line numbers in context, analysts' consensus estimates were calling for revenue of $547.2 million and a loss per share of $0.57.
It was telling that Teladoc's cash flow from operations soared to $83.2 million, reversing cash burn of $114.9 million in the year-ago period and illustrating that the loss was the result of non-cash expenses like depreciation.
Teladoc's overall results were driven higher by increases in access fee revenue and visit fee revenue, which climbed 51% and 21%, respectively, compared to the prior-year quarter.
Other metrics improved as well. Utilization by U.S. paid members climbed to 22.7%, up from 16% in the prior-year quarter. Data points logged by Livongo users jumped to 2.19 billion, up 94%.
Now what
Teladoc stock has fallen precipitously since the highs it reached in early 2021, dragged lower by concerns regarding its acquisition of Livongo Health and its label as a "pandemic stock."
That said, Teladoc is forecasting solid, if somewhat slower, growth over the coming year. Management is forecasting revenue growth in a range of 25% to 30%, resulting in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of between 23% and 33%.
While it's unlikely the company will experience the triple-digit, year-over-year growth that was common during the early days of the pandemic, Teladoc Health's results demonstrate that its best days are yet to come.
