Just before the close of their high-profile merger, Teladoc Health and Livongo Health each reported blockbuster results for their respective third quarters. This marked the third consecutive quarter of accelerating revenue growth for each company. Teladoc and Livongo also share a strategy of investing heavily in the future and foregoing current profits to drive future growth.
In this episode of Fool Live that aired on Oct. 28, “The Wrap” host Jason Hall, Fool analyst Jim Gillies, and Fool.com contributor Danny Vena discuss the results, the merger, and what it all means for investors.
Jason Hall: So, our good friend, Danny here — Danny Vena — I know you popped away for a little bit to take a closer look at a big high-interest company, Teladoc, reported drop after hours. Are you ready to talk about Teladoc? Or you need a few more minutes to marinate and the juices of their earnings announcement?
Danny Vena: Actually what I’m going to do is I’m going to talk about it a little bit, and also I’m going to go ahead and share my screen, so folks can see the earnings announcement as I go along. I’m just going to pick out a couple of headline numbers and give them some context. But the news is pretty good for Teladoc shareholders. You wouldn’t know that by the way the stock is reacting after hours.
Jason Hall: Teladoc, that’s ticker, TDOC. Just for everybody’s edification that might not know, this is a company that’s just really leading the charge in telemedicine. Big merger, big acquisition they made not too long ago, that’s increasing their addressable market. Huge interest, hyper-growth company, and ton of people have made a ton of money and something’s happened.
