Teladoc Health Inc (NYSE: TDOC) is up more than 10% in extended trading after reporting better-than-expected results for its fiscal third quarter.
Teladoc Health Q3 financial highlights
- Lost $73.5 million versus the year ago $84.3 million
- Per-share loss narrowed from 53 cents to 45 cents
- Revenue jumped 17% year-on-year to $611.4 million
- Consensus was 57 cents loss on $609 million revenue
- Cash flow from operating activities was $63 million
CEO Jason Gorevic’s remarks
Gross margin improved 120 basis points to 68.3% this quarter. In the earnings press release, CEO Jason Gorevic said:
We delivered strong Q3, including adjusted EBITDA above high end of expectations. During Q3, we continued to make progress against our whole person care strategy as market evolves towards integrated virtual and digital health solutions.
For the year, this Cathie Wood stock is still down close to 70% as investors continue to punish the unprofitable tech companies in a rising rate environment.
Teladoc stock up on Q4 guidance
Teladoc stock is also up after the bell because the virtual health company issued in line guidance for the future.
It expects revenue to fall between $625 million and $640 million in Q4 on $88 million to $98 million of adjusted EBITDA. In comparison, analysts had called for $636 million and $94 million, respectively.
Over the past two quarters, the Cathie Wood stock was also hit on more than $9.0 billion worth of goodwill impairment charges.
Wall Street has a consensus “hold” rating on Teladoc Health. Still, one may consider trading this stock considering the average price target on it is over $34 that represents another 15% upside from here.