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Why Teladoc Stock Slid Sharply on Thursday
Some investors have also viewed Teladoc as primarily a pandemic play.

Shares of telehealth specialist Teladoc Health (NYSE: TDOC) took a hit on Thursday. The company’s shares declined as much as 9.9% but were down 8% by the time the market closed.

The stock’s decline came as the company released some forecasts as part of its Investor Day. While the metrics provided were largely in line (and in some cases even better) than current analyst estimates. Investors may have been hoping for a more exciting outlook from management.

Teladoc expects 2021 revenue of $2.015bn–$2.025bn, which is the low end of its original guidance range and potentially lower than analyst forecasts of $2.02bn.

Teladoc expects a 2022 revenue of $2.6bn (£1.9bn), which is slightly up from average analyst forecasts for next year. Looking out longer-term, the company said it expects fiscal 2024 revenue to cross $4 billion, translating to a compound average growth rate of 25% to 30%.

Late Wednesday, Teladoc posted a surprise third-quarter profit of 23 cents a share vs. an 8-cent loss a year earlier. Revenue shot up 81% to $521.7 million. After-tax margin hit 7%

Jason Gorevic, Teladoc CEO, cited “expanding relationships” with leading national health plans thanks to a successful launch of its Primary360 offering.

This product “reimagines the primary care model and delivers increased access and engagement to members,” Gorevic added.

U.S. access fees-related revenue made the bulk of the company’s sales at $413.6 million, up 113% year over year. International fees revenue climbed a much more modest 19% to $38 million. Teladoc notched a 2% bump up in U.S. paid memberships to 52.5 million. The U.S.-based visit fee-only access metric rose 8% to 23.6 million.

About the Company

Teladoc Health Inc. is multinational telemedicine and virtual healthcare company based in the United States.

Started in 2002, Teladoc has established itself as a leader in virtual doctor visits. A network of more than 3,000 board-certified physicians helps consumers get diagnoses and prescriptions across the U.S. and abroad. According to its latest 10-K annual filing to the Securities and Exchange Commission, more than 51 million unique paid members in the U.S. and 22 million “visit fee-only individuals” have access to the company’s expertise. In the U.S., Teladoc showed a median response time of fewer than 10 minutes in 2020 for general medical inquiries.

Just witness the growth in the top line. From $123 million in 2016 to $1.09 billion in 2020, the Purchase, N.Y., the firm has grown its sales a compound 72% each year over that four-year period. Amazing. And following third-quarter results, the Street now expects sales to ratchet up another 84% this year to $2.02 billion, then rise another 28% to $2.58 billion in 2022

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