Revenue Analysis:
Total and Operating Revenue: TDOC’s operating revenue was fairly stable over the period, being 646.1 million (2024-03-31), slightly lower than previous quarters dating back from 660.5 million (2023-12-31) to 629.2 million (2023-03-31). This indicates a relatively flat growth in operational scope.
Gross Profit margins: Gross Profit has seen a decrease from 467.1 million in 2023-12-31 to 451.6 million in 2024-03-31. The highest gross profit within these periods was 474.3 million in 2023-09-30, showing fluctuations over time but generally indicating operational resilience.
Cost Management:
Cost of Revenue: The cost of revenue has shown slight variances. It ranged from a high of 194.5 million (2024-03-31) to a low of 185.9 million (2023-09-30), suggesting a management strategy that maintains a consistent cost despite revenue fluctuations.
Operating Expense: Operating expenses varied from 528.7 million (2024-03-31) up to 532.8 million (2023-09-30). Effective cost control seems consistent, yet no drastic reductions have been observed which could be an area for further efficiency enhancements.
Total Expenses: Increased slightly from 690.4 million (2023-12-31) to 723.2 million (2024-03-31), further reinforcing evidence of stable, but slightly increasing operational costs.
Profitability Analysis:
EBITDA: EBITDA underwent growth from 43.6 million (2023-09-30) to peaks of 86.8 million (2023-12-31), demonstrating improved operational efficiency before depreciation, interest, taxes, and amortization were considered.
Operating Income: Variably negative, from -29.9 million (2023-12-31) to -77.1 million (2024-03-31), reflecting the challenges in achieving operational profitability.
Pretax Income: Similarly, pretax income has been negative, with a decrease of losses from -59.6 million (2023-09-30) to -79.2 million (2024-03-31), indicating ongoing fiscal stress.
Net Income: Net income has consistently been in deficit, for example, -81.9 million in 2024-03-31 compared to -57.1 million in 2023-09-30, highlighting persistent unprofitability in net terms.
Cash Flow Indicators:
Reconciled Depreciation: Reflects an upward trajectory from 79.5 million (2023-06-30) to 100.5 million (2024-03-31), suggesting asset value depreciation over time or acquisitions of new assets.
Interest Expense: Remained almost steady, e.g., 5.8 million (2023-06-30) against 5.6 million (2024-03-31), showing manageable finance cost considerations without significant changes.
Taxation:
Tax Rate: Ranged narrowly around 0.21 in 2024-03-31 and variably lower in earlier periods, suggesting recent adjustments or stable tax policy impacts.
Tax Provision: Varied from the gain of 0.68 million (2023-03-31) to more substantial provisions like 2.7 million in 2024-03-31, indicative of different pretax profitability periods.
Tax Effect of Unusual Items: Highlight anomalies like -4 million (2024-03-31) and small effects like -260K (2023-09-30), impacting net figures due to one-off events or adjustments.
Shareholder Metrics:
Diluted and Basic EPS: Show consistent negative performance, -0.49 (2024-03-31), worsening slightly from earlier periods such as -0.17 (2023-12-31), reflecting broader profitability challenges.
Average Shares: Mildly increasing, possibly due to financings or dilutions, from 162.9 million (2023-03-31) to 167.7 million (2024-03-31).
Net Income Available to Common Stockholders: Stood consistently negative, demonstrating the lack of distributable income.
Conclusion:
Key Findings: TDOC has shown relatively stable revenue but with fluctuating gross profit margins. The costs have slightly increased without achieving profitability, as seen from consistently negative operational, pretax, and net incomes. Taxations seem to be well-managed although the effective tax rates have been low, reflecting tax planning or potential carry-forward losses.
Recommendations: Focus on enhancing operational efficiency, possibly through technological investments or process optimizations, could reduce the expenses. Strategic considerations should be given to revenue diversification or enhancement strategies to improve the bottom line. A comprehensive review of the asset management and depreciation strategies might also yield cash flow improvements.
Appendices:
Data tables and specific calculations are supplemented herein to authenticate the detailed analysis above.