Teladoc Health (NYSE: TDOC) announced its 2021 Q1 earning results on April 28th, 2021. According to the announcement, its total revenue showed significant growth of 151% (YoY, 3 months). In this regard, subscription-based access fee revenue was up 183% and visit fee revenue was up 24% (YoY, 3 months). In addition, U.S. paid membership was up 20% and U.S. visit fee only access was up 15%.
In 2021 Q1, Teladoc paid USD 86.3 million as stock based compensation (SBC). Increase in the SBC of USD 68.0 million is partially associated with Livongo stock awards that continue to vest after the merger. In addition, depreciation and amortization (D&A) also increased by USD 39.0 million to USD 48.7 million. Thus, its net loss of USD 199.6 million in 2021 Q1 is partially attributable to these increase of expenses. In this regard, the net loss in 2021 Q1 was increased by USD 170.0 million year-over-year.
D&A to sales ratio of Teladoc is 10.7%. According to data from 2010 to 2015, median of D&A to sales ratio for software companies is around 4.4% and the 80th percentile is around 8%. When reviewing these values, Teladoc’s upfront investment costs seem higher. However, its upfront investment may not be excessive since growth ratio of its total revenue is extremely high.
- Watanabe & Brothers’ Investment is holding shares of Teladoc Health.
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