Teladoc Health (NYSE: TDOC) released its Q1 2022 financial results on Wednesday post-closing bell. The timing hinted at unfavorable numbers but the firm surprised the market with the extent of the decline–pulling in $6.67 billion in net loss for the quarter.
The bottomline figure is a monumental decline from Q4 2021’s net loss of $428.8 million and Q1 2021’s net loss of $199.6 million. The quarterly loss also translates to $41.58 loss per share, far from the firm’s guidance of $0.50 to $0.60 loss per share.
The huge net loss is driven by a recognized non-cash goodwill impairment charge of $6.60 billion.
Along with the quarterly financials, the firm also slashed its 2022 guidance across the board to reflect the Q1 2022 performance. Following the release, the firm’s shares plummet by 38% pre-market.
|2022 full-year guidance||Previously announced||Revised|
|Revenue||$2.55 – $2.65 billion||$2.40 – $2.50 billion|
|EBITDA||$18 – $48 million||$7 – $52 million (loss)|
|Adjusted EBITDA||$330 – $355 million||$240 – $265 million|
|Net loss per share||$1.40 – $1.60||$43.00 – $43.50|
The firm recorded quarterly revenue of $565.4 million, up from $554.2 million last quarter and $453.7 million last year. The topline figure managed to meet the lower end of the firm’s previously announced guidance for Q1 2022 revenue of $565 – $571 million.
Adjusted EBITDA for the quarter came in at $54.5 million, down from last quarter’s $77.1 million and last year’s $56.6 million. The figure met the $51 – $55 million guidance for the quarter.
With the dive in share price, the company’s current market cap stands at approximately $9.0 billion–drawing comparisons to the company’s purchase of fellow telemedicine firm Livongo for roughly $14 billion in October 2020.
Adding spice to the story, ARK Innovation fund manager Cathie Wood apparently bought Teladoc shares just days before the Q1 2022 release. The hedge fund, holding around 6.82% of its portfolio in the firm, lost an estimated $236.8 million with the price share drop.
Teladoc last traded at US$55.99 on the NYSE, then declined 38% pre-market.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.