Teladoc recorded Non-Cash Goodwill Impairment of 3.0 billion USD again

Teladoc Health, Inc. (NYSE: TDOC) announced its 2022 Q2 financial results on July 27, 2022. According to the announcement, total revenue was up 18% (YoY, 3 months). On the other hand, Teladoc recorded operating loss and net loss of -3 billion USD each (3 months), due to non-cash goodwill impairment charge, which is related to the past M&A. Teledoc previously announced similar non-cash goodwill impairment in 2022 Q1. 

However, adjusted EBITDA recorded 46 million USD in 2022 Q2, although it was down 30% (YoY, 3 months).

Of the total revenue, subscription based access fee revenue increased by 18% (YoY, 3 months). In 2022 Q2, the access fee revenue accounts for 88% of the total revenue and GAAP gross margin recorded 68%. These figures indicate the superiority of the business model and promising financial outlook of Teladoc. 

Reviewing cashflow statement, net cash provided by operating activities was up 78% (6 months, YoY). However, free cash flow recorded outflow of 12 million USD. The main cause of the negative figure of free cash flow was the recording costs for capitalized software.

As for the visits and membership, total visit was up 28%, US paid membership was up 9%, and unique chronic care members was up 13% (YoY, 3 months). Since treatment of chronic diseases incurs continuous costs, the increase in the number of unique chronic care members may contribute to improvement of Teladoc’s business performance.

A decorative photo of diabetes. A medical stuff is monitoring blood glucose using a test device.
Photo by Matt C on Unsplash

Teladoc still has cash and cash equivalents exceeding double of its total current liabilities. Thus, its financial position seems to be extremely stable. 

Watanabe & Brothers’ Investment will continue to invest in Teladoc Health.

Teladoc Health, Inc. (NYSE: TDOC) Stock Chart

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  1. Watanabe & Brothers’ Investment is holding shares of Teladoc Health.
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