Teladoc recorded Positive Cash Flow in 2021 Q2

Teladoc Health (NYSE: TDOC) announced its 2021 Q2 financial results on July 27th.  According to the announcement, total revenue was up 109% (YoY, 3 months). However, Teladoc recorded operating loss and net loss of 78.9 million USD and 133.8 million USD, respectively.  In this regard, these amounts of operating loss and net loss were mainly attributable to depreciation and amortization associated with the acquisitions of Livongo and InTouch Health as well as Livongo stock awards that continue to vest after the merger.  On the other hand, Teladoc recorded positive operating cash flow and free cash flow in 2021 Q2. 

Teladoc’s US paid membership recorded 51 million in 2021 Q2.  Considering the population of the US citizens, drastic growth of the US paid membership in the future may be improbable.  In this regard, the US paid membership was up 1% (YoY), and it likely plateaued these days.  

However, subscription-based access fee revenue was up 138% compared to 2020 Q2 (YoY, 3 months). In addition, it accounts for 91% of the total revenue. These facts suggest soundness and underlying strength of the Teladoc’s revenue.

Recently, Teladoc has launched several services related to chronic care and mental care. Success in these new business segments would be one of the next milestones of the Teladoc’s growth. 

As many people know, Teladoc’s stock price has been slumping these days. The future reduction of the net loss might bring further growth in their stock price.

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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