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.
Teladoc Health, Inc. (NYSE: TDOC) Stock Chart
Important Notice
- Watanabe & Brothers’ Investment is holding shares of Teladoc Health.
- This report is provided solely for informational purpose and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell any specific products.
- Any opinions or statements expressed in this report are based on the author’s personal and subjective views, and are not the official views of the organization to which the author belongs. In addition, although we have done our best efforts in making accurate assessments on the original financial statements, we cannot guarantee any complete accuracy of this report. We do not guarantee either that any future forecasts referred to in this report will certainly be realized. Investment in listed stocks, ETFs, etc. should be carried out under the responsibility of each investor, and even if the investor who read this report suffers a loss due to investment activities, Watanabe & Brothers’ Investment is not responsible for any liability.
- This report was originally prepared in English, and translated into the other languages with plugin utilizing Google Translation API. We hereby notify that the translations are provided only for the sake of reference, and any opinions or statements in this report should be interpreted in original English. We ask any investors reading this report to refer to the original financial statements issued by the company.