What happened
Shares of Teladoc Health (TDOC 2.92%) 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.
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.
