Teladoc Narrows Loss In Q1 As Coronavirus Causes Demand Surge For Remote Health Services

Teladoc Health Inc. TDOC on Wednesday reported that it reduced losses in the first quarter compared to a year ago, as the novel coronavirus (COVID-19) pandemic caused a surge in demand for its services.

Q1 Earnings

The New York-based company posted a net loss of $29.6 million in Q1, down nearly 2% from the $30.2 million net loss for the same quarter in 2019.

The net loss per share was 40 cents, down about 7% year-on-year from 43 cents.

It reported an adjusted EBITDA of $10.7 million, compared to the $1.2 million in Q1 last year. Total revenue increased by 41% to $180.8 million.

Teladoc said total visits on its platform increased 92% YoY from 1.06 million to 2.04 million in the quarter.

2020 Outlook

The telehealth company said it's difficult to give narrow guidance for the second quarter and the 2020 financial year due to the ongoing pandemic.

It said it expects its revenue to be between $215 million to $225 million for the second quarter, with an adjusted EBITDA between $20 million to $24 million. It estimates for the net loss per share in Q2 to be between 23 cents and 28 cents.

For the entire financial year 2020, it expects $800-825 million revenue, with an adjusted EBITDA in the range of $70-80 million. Loss per share for the year could be between $1.13 and $1.27, it said.

Teladoc estimates total visits in 2020 to be between 8 million to 9 million.

Cantor Fitzgerald Raises Price Target

Financial services firm Cantor Fitzgerald maintained a "neutral" rating on Teladoc's stock and increased its price target to $175 from an earlier $145.

"We remain enthusiastic about the adoption of virtual health services and TDOC's near-term performance," the analysts said in a note. "That said, the industry appears to be increasingly competitive, and our long-term growth assumptions already reflect very strong growth."

Price Action

Teladoc shares closed 3.3% lower at $175.10 on Wednesday and traded another 1% lower in the after-hours session.