Teladoc (NYSE:TDOC) shares should bounce following a solid 1Q beat, according to analysts at Canaccord.
During the quarter ended March 31, 2023, Teladoc (NYSE:TDOC) reported total revenue of $629.2 million, which beat Canaccord estimates of $618.2 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $52.8 million, which beat estimates of $45.8 million.
One bright spot was Teladoc (NYSE:TDOC)’s chronic care segment, which stabilized with a 13% increase in enrollment year-over-year, while Integrated Care margins expanded approximately 300 basis points, analysts noted.
The group also cited BetterHelp, a direct-to-consumer mental health platform, as showing resiliency, with paying users up 22% and revenue growth of 21%.
That said, Teladoc continues to take a conservative stance with guidance, according to Canaccord, which could lead to upside surprises if the stable selling environment in both B2B Integrated Care and D2C BetterHelp continues.
“The continued investments in technology with the introduction of an integrated app, and new provider-based chronic care programs now across the entire portfolio, offer the potential to drive greater engagement, improve member retention, and ultimately improve revenue growth and adjusted EBITDA margin,” analysts at Canaccord wrote.
“Considering the deeply depressed valuation, we believe downside risk is minimal and continued execution on conservative guidance should lead to decent appreciation from current levels.
Canaccord is reiterating its Buy rating on Teladoc stock, telling investors: “One thing remains clear, Teladoc is the best positioned company to benefit from continued acceptance and adoption of digital health.”
Shares of Purchase, New York-based Teladoc were up around 6.4% on Thursday afternoon at $27.41.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas