Teladoc Health, Inc. (NYSE:TDOC) reported an adjusted loss of 17 cents per share for the fourth quarter of 2023, which was narrower than both the Consensus Estimate of a loss of 22 cents per share and the loss of $23.49 per share reported in the same quarter last year. The company’s loss also came in narrower than its own projected range of 33-23 cents per share.
Total operating revenues for the quarter were $660.5 million, a 4% increase from the previous year and within the management’s expected range of $658-$683 million. However, this figure fell slightly short of the consensus estimate by 1.5%.
The quarterly results were driven by a growing membership base in the Integrated Care segment, along with reduced overall expenses and improved access fees. Despite these positives, the decline in visits offset some of the gains.
Revenues from access fees, which accounted for 87% of total quarterly revenues, were $573.9 million, a 4% increase year over year. Other revenues totaled $86.6 million, a 3% increase year over year.
In the United States, revenues increased by 2% year over year to $564.8 million, accounting for 86% of total revenues. International revenues were $95.8 million, a 15% increase year over year.
Adjusted EBITDA for the quarter was $114.4 million, up 22% year over year and within the management’s anticipated range of $107-$117 million. The adjusted gross margin improved by 30 basis points year over year to 70.7%.
Total expenses declined significantly year over year to $695.6 million, mainly due to lower general and administrative costs, reduced restructuring expenses, and the absence of a goodwill impairment cost recorded in the year-ago quarter.
In the Integrated Care segment, revenues grew by 8% year over year to $384.4 million, but missed the consensus estimate. Adjusted EBITDA for the segment was $56 million, a 28% increase year over year.
The BetterHelp segment recorded revenues of $276.2 million, flat year over year, with adjusted EBITDA rising by 11% year over year to $58.5 million.
Total visits for Teladoc Health were 4.4 million, an 8% decrease year over year, while U.S. Integrated Care Members were 89.6 million as of December 31, 2023, an 8% increase year over year.
Teladoc Health ended the fourth quarter with cash and cash equivalents of $1.1 billion, up 22.4% from the end of 2022. Total assets were $4.4 billion, a 1.1% increase from the end of 2022.
For the first quarter of 2024, Teladoc Health projects total revenues between $630 million and $645 million, with adjusted EBITDA between $52 million and $62 million. Net loss per share is expected to be in the range of 55-45 cents.
For the full year 2024, the company estimates revenues between $2.635 billion and $2.735 billion, adjusted EBITDA between $350 million and $390 million, and net loss per share between $1.10 and 80 cents.
Teladoc Health anticipates annual consolidated revenues to grow in the low to mid-single digits over the next three years, with margin expansion of 50-100 basis points.
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