Telemed, Inc. (TLMD) Misses Q4 EPS by $1.77, Revenues Beat; Offers FY21 Revenue Guidance Above Consensus

Telemed, Inc. (NASDAQ: TLMD) reported Q4 EPS of ($1.87), $1.77 worse than the analyst estimate of ($0.10). Revenue for the quarter came in at $14.5 million versus the consensus estimate of $13.87 million.

Fourth Quarter HighlightsFinancial performance for the three months ended December 31, 2020 compared to the three months ended December 31, 2019.

• Completed transaction with Healthcare Merger Corp. and commenced public trading on Nasdaq.
• Bookings of $3.9 million compared to $2.0 million, a 95% increase primarily driven by the increased interest in telemedicine and overall momentum in the business.
• Revenue was $14.5 million compared to $16.6 million, a 13% decrease due to lower utilization of core services resulting from a decrease in hospital visits tied to the COVID-19 pandemic.
• GAAP gross profit was $5.2 million compared to $6.6 million and adjusted gross profit (non-GAAP) was $6.3 million compared to $7.4 million.
• GAAP gross margin was 36% compared to 40% and adjusted gross margin (non-GAAP) was 44% compared to 45%. Despite the impact of the COVID-19 pandemic to revenue, the Company was able to partially offset adjusted gross margin pressure by reducing direct costs.
• Net loss of $(24.8) million compared to a loss of $(6.0) million, primarily due to stock-based compensation and transaction costs in connection with the merger transaction with Healthcare Merger Corp.
• Adjusted EBITDA was a loss of $(3.9) million compared to positive $0.2 million as we continued to invest in our go to market functions and begin to incur expenses related to being a public company.
• Total cash and cash equivalents were $38.8 million as of December 31, 2020.

"SOC Telemed closed out a solid 2020, delivering record bookings which nearly doubled our bookings results from 2019. During the quarter, we furthered our commitment to enriching and enhancing our team with a number of key additions that bring depth and breadth of experience to the organization, and we continued our investments in our go-to-market capabilities to ensure we are well-positioned for success in 2021 and beyond," said John Kalix, CEO of SOC Telemed.

Mr. Kalix continued, "The long-term demand for acute telemedicine solutions has only become more evident amidst the ongoing pandemic and despite continued volatility in utilization and hospitals' near-term focus on the vaccine rollout, we remain encouraged by the elevated levels of interest and our growing pipeline."

"We also announced today the acquisition of Access Physicians, an experienced and growing multi-specialty acute telemedicine provider, which increases our clinical service lines, grows our physician network and expands the customer base we serve. As a combined company, we will be able to bring to market a comprehensive acute telemedicine offering, expanding our reach into the hospital beyond the emergency department and delivering the right solutions to meet our customers' needs."

GUIDANCE:

Telemed, Inc. sees FY2021 revenue of $107-113 million, versus the consensus of $71.5 million.

For the full year 2021, SOC Telemed is providing the following guidance on a pro forma basis for the combined company inclusive of contribution from the acquisition of Access Physicians:

• Revenue is expected in the range of $107-$113 million, approximately 30-35% of which is expected to be contributed by Access Physicians
• Adjusted Gross Margin is expected to be in the range of 42% and 45%
• Adjusted EBITDA is expected to be in the range of $(15) million to $(19) million

For earnings history and earnings-related data on Telemed, Inc. (TLMD) click here.

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