Teladoc Financials Impress in Q2: Analysts Optimistic On Q2 Performance But Stay On Sidelines

Teladoc Health Inc TDOC shares are trading higher after the company reported better-than-expected financial results.

Teladoc said second-quarter revenue increased 10% year-over-year to $652.4 million, which beat the consensus estimate of $649.19 million. The company reported a quarterly loss of 40 cents per share, which beat analyst estimates for a loss of 41 cents per share. 

William Blair analysts Ryan Daniels says the quarter demonstrated management’s heightened focus on operating discipline and profitability.

The analysts say this was a solid second-quarter performance for the company and another positive step forward after a somewhat volatile 2022. 

Still, the analysts reiterate the Market Perform rating until further clarity on the organic growth outlook (and clear catalysts to move the stock upward) emerge.

Needham analysts Ryan Macdonald, Scott Berg, and Matthew Shea maintain the Hold rating on the stock.

The analysts say that with the strong chronic care management adds, the topline 2H23 Integrated Care estimates are largely derisked, while the higher chronic care management revenue should drive modest margin improvement for the balance of the year. 

The Needham analysts also say the outlook looks conservative but also note the lack of visibility into macro and consumer-related trends.

Credit Suisse analysts Jonathan Yong and A.J. Rice remain Neutral as they look to see sustained topline growth alongside continued EBITDA improvement.

Price Action: TDOC shares are up 25.60% at $28.61 on the last check Wednesday.