With this company's third-quarter performance, the bottom line is the bottom line

Teladoc Health Inc. (TDOC) disappointed investors early this year with its first and second quarter results. However, the third time is the charm.
 
CENTRAL, Hong Kong - Jan. 5, 2023 - PRLog -- After the market closed on Wednesday, the virtual care provider presented its third-quarter update. TDOC's stock increased in after-hours trading. Here's what's surprising investors in TDOC shares.

The phrase "the bottom line" is frequently used to allude to the most crucial factor to consider. Accountants use the same phrase to refer to a company's net income or loss (which shows up on the bottom line of the income statement). To apply both meanings, TDOC's bottom line is what investors wanted to see the most: an improved net loss shown in the company's third-quarter results.

Sure, investors were pleased to see that TDOC's third-quarter sales increased 17% year on year to $611.4 million and they must have loved the fact that this amount exceeded the consensus Wall Street revenue projection of $610 million. However, TDOC also exceeded sales projections in the second quarter, causing the telehealth stock to plummet.

The significant disparity between their Q3 results and its results earlier this year was obvious on the company's bottom line. TDOC reported a $73.5 million net loss, or $0.45 per share. This figure was significantly lower than the average analyst forecast of a net loss of $0.55 per share.

Importantly, TDOC has made headway toward profitability. The Q3 net loss was less than the prior-year period's net loss of $84.3 million and far better from the previous quarter's enormous net loss of $3.1 billion.

TDOC has also considerably lowered the amount of interest it pays. In the third quarter, the company's net interest expense was less than $1.4 million. This is much less than the prior year's quarter's interest expense of $18.9 million and $4.3 million, respectively.

However, TDOC's sustained top-line growth should not be overlooked. Growth in various important operating measures contributed to the company's continuing momentum. Total visitors increased by 14% year on year. Utilization, which measures the ratio of visits of total paying members in the United States, increased from 21% in the previous year to 22.3% in Q3. Paid membership in the United States climbed 10% year on year.

Ability Corporate Advisory Limited [https://abilitycorporateadvisory.com] is an independent Firm established in 2009 and headquartered in Hong Kong. As a boutique Firm, we are free from conflicts of interest or biased advice that can arise from misaligned incentives or commission-based structures. We offer rational investment and asset management recommendations based on a thorough understanding and analysis of your individual financial circumstances, risk profile, priorities and goals.

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