Teladoc Earnings Reveal ANOTHER Bombshell | Summary and Q&A

TL;DR

Teledoc Health's Q4 revenue exceeded expectations, but earnings per share were worse than expected. Gross margin was positive, but operating and net margins were poor. The company's acquisition of Lavongo resulted in a significant Goodwill impairment charge. Investors should be skeptical of acquisitions.

Key Insights

• 🍂 Teledoc Health's Q4 revenue exceeded expectations, but earnings per share fell short.
• 🪐 Gross margin was a bright spot for the company, while operating and net margins were poor.
• 🥺 The company's acquisition of Lavongo led to a substantial Goodwill impairment charge and loss of value.
• 😨 Teledoc Health's chronic care business and Better Help segment showed positive growth.
• ⚖️ The company's balance sheet remains in poor shape, with more debt than cash.
• 💗 Advertising and marketing expenses have grown faster than the company's revenue, indicating reduced effectiveness.
• 🐢 Teledoc Health's guidance for the next quarter suggests slower revenue growth and continued losses.

Transcript

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Questions & Answers

Q: How did Teledoc Health's Q4 revenue perform compared to expectations?

Teledoc Health's Q4 revenue grew by 15%, exceeding Wall Street's estimates.

Q: What were Teledoc Health's earnings per share on an adjusted basis?

Teledoc Health reported negative 30 cents in earnings per share on an adjusted basis, worse than what analysts were expecting.

Q: How did Teledoc Health's gross margin perform in Q4?

Teledoc Health achieved a gross margin of 68.6%, which was considered a positive result for the company.

Q: What significant charge impacted Teledoc Health's earnings in Q4?

Teledoc Health recorded a $3.8 billion Goodwill impairment charge due to its acquisition of Lavongo, resulting in a significant loss from operations.

Summary & Key Takeaways

• Teledoc Health's Q4 revenue grew 15% to $638 million, surpassing expectations.

• Earnings per share on an adjusted basis were negative 30 cents, worse than expected.

• Gross margin was positive at 68.6%, while operating and net margins on a gap basis were poor.

• The company's acquisition of Lavongo resulted in a $3.8 billion Goodwill impairment charge, causing significant loss in earnings per share.