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Teladoc Down 3% Despite Piper Sandler Raising Subscription Access Fee Estimates

Published 2022-04-14, 10:20 a/m
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By Sam Boughedda

Investing.com -- Shares of telehealth company Teladoc Inc (NYSE:TDOC) are down just over 3% in early Thursday trading.

The slide comes despite Piper Sandler analyst Jessica Tassan reiterating an Overweight rating and $104 price target.

Tassan said in a note that she now sees Teladoc's subscription access fee revenue just ahead of first-quarter consensus estimates after collecting data on Livongo app downloads.

Teladoc acquired Livongo in August 2020 in a deal worth $18.5 billion.

"We counted 71.8K Livongo app downloads in 1Q22. This is up 56% vs. the 46.2K downloads recorded in 4Q21, but down (21)% y/y from 1Q21 when we recorded 91.0K downloads," wrote Tassan.

According to the analyst, downloads picked up in each month of the quarter, while she added that average daily downloads trended up over the period.

"We saw 584 average daily downloads in January 2022; 775 average daily downloads in February 2022; and 1,034 average daily downloads in March 2022," Tassan added. 

"The accelerating monthly downloads observed in 1Q22 are not consistent with patterns observed in 1Q21 or 1Q20, and suggest that FY22 will indeed be a seasonal anomaly with respect to both Chronic Condition enrollment and revenue growth."

Teladoc has had a rough year as the pandemic faded and telehealth service utilization reduced. As a result, its stock has declined 65% in the last 12 months and 26.6% in 2022.

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