Teladoc Health (NYSE: TDOC) announced its 2020 Q3 earning results on October 28th, 2020. According to the announcement, its total revenue increased 109% (YoY, 3 months), and total US paid membership increased 47%. In addition, the total visits increased 206%. As a result, adjusted EBITDA increased 338% indicating superior performance of the Teladoc’s business. However, due to the acquisition costs of Livongo, which was announced in July 2020, Teladoc recorded operating loss and net loss in this quarter.
Although net cash provided by operating activities increased 423%, free cash flow decreased significantly due to the acquisition costs. In this quarter, Teladoc issued fixed rate notes totaling $ 1 billion.
As for the growth and valuation of the stock price, expected PSR based on the revenue in this quarter is 16.3, the subscription ratio based on the access fees revenue is 78.5%, the free cash flow margin is -19.3%, and the growth of revenue is 109.3%. Although the apparent profitability is declining due to the impact of M&A, the growth of revenue is still high, indicating continuous growth of Teladoc in the future.
- Watanabe & Brothers’ Investment is holding shares of Teladoc Health.
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