Teladoc Stock Plummets Facing Analyst Price Target Cuts After Wider Than Expected Q1 Loss

Teladoc Health TDOC reported a wider than expected Q1 loss of $1.31 per share which missed the analyst consensus estimate of $0.62, versus a loss of $0.40 a year ago.
That steeper net loss stemmed in part from a $68 million increase in stock-based compensation expense, as well as amortization of acquired intangibles related to its Livongo and Intouch Health acquisitions that pulled its bottom line down by $37 million compared to the prior-year period.
The biggest hit was due to an $87 million non-cash income tax charge that primarily reflected a valuation allowance on the stock compensation benefits linked to its purchase of Livongo.
The company reported quarterly sales of $453.68 million, marginally above the analyst consensus of $451.92 million, up 151% Y/Y. The total visits increased 56% Y/Y to 3.2 million.
The company’s revenue increased by 18% sequentially, with part of this growth acquisition of Livongo, closed in October 2020.
However, Teladoc achieved significant improvement on adjusted EBITDA of $56.6 million in the first quarter, up from $10.7 million in the prior-year period.
Teladoc’s U.S. paid membership decreased in the first quarter to 51.5 million from 51.8 million in the previous quarter. However, its total number of visits rose nearly 8% sequentially to almost 3.2 million.
The company’s utilization rate also increased to 19.6% from the fourth quarter’s 17.7%.
Guidance: Teladoc expects Q3 revenue between $495 million and $505 million, with full-year revenue of $1.97 billion to $2.02 billion, in line with the analyst consensus.
It anticipates total U.S. paid membership in Q2 of between 52 million and 53 million, not much higher than its Q1 level.
For the full year, it sees the U.S. paid membership climb no higher than 54 million.
The company doesn’t expect total visits to rise much in Q2, with a projection of 3.2 million and 3.4 million.
After the Q1 earnings, several analysts lowered their price targets for Teladoc:
- Evercore ISI lowered the price target to $185 from $195 and kept an in-line rating.
- Cowen’s Charles Rhyee cut his price target to $240 from $268, maintaining his outperform rating.
- Oppenheimer lowered the price target to $250 from $270.
- KeyBanc analyst Donald Hooker lowered the price target to $220 from $270, keeping an Overweight rating on the stock.
- Craig-Hallum cut the firm’s price target to $202 from $220 and kept a Hold rating.
- Canaccord slashed the price target to $295 from $330, with the Buy rating unchanged.
- BTIG analyst David Larsen lowered the firm’s price target to $300 from $330 but kept a Buy rating.
Price Action: TDOC shares are down 9.37% at $168.86 during market trading hours on the last check Thursday.

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