In this video, I will be going over Teladoc's (TDOC +2.10%) recent earnings and why the stock has crashed by over 40%. You can find the video below, but here are some highlights.
- Q1 revenue grew 25% year over year (YOY) to $565.4 million, meeting the lower end of Teladoc's own guidance.
- Average revenue per member per month was $2.51, up 21% YOY from $2.09.
- Total visits grew 35% YOY to 4.51 million, meeting Teladoc's expectations.
- The big hit was the $6.6 billion noncash goodwill impairment charge that was recorded this quarter. This resulted in a net loss of $41.58, compared to $1.31 one year ago.
- Adjusted EBITDA decreased 4% to $54.5 million, and adjusted gross margin was 66.9%, compared to 67.8% one year ago.
- Teladoc's "whole-person-care" approach is working; 70% of its bookings were multiproduct.
- Last quarter, management was very proud of how strongly the business was performing (especially BetterHelp). This quarter did not show the same strength.
- Teladoc put the blame on increasing cost per acquisition in paid search and paid social, specifically a 10% increase in cost of acquisition.
- It now expects full-year revenue growth to come in between 18% to 23%, which is lower than the previous 25% to 30%.
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*Stock prices used were the closing prices of April 27, 2022. The video was published on April 28, 2022.
