Teladoc posts $640.5 million in revenue, stresses virtual care improvement
The company says there's opportunity to enhance its value proposition in the realm of virtual care.
Photo: Kilito Chan/Getty Images
Teladoc Health put in a stronger-than-expected showing in the third quarter, bringing in $640.5 million in revenue, down 3% year-over-year (YOY), according to the company's earnings results. The company lost about $0.19 per share in the quarter, for a net loss of $33.3 million.
U.S. revenue decreased 6%, to $536.2 million, and international revenue grew 15%, to $104.3 million over that time. Teladoc Health Integrated Care revenue increased 2%, to $383.7 million in Q3, and BetterHelp revenue decreased 10%, to $256.8 million.
Calling BetterHelp a "company in transition," Teladoc executives said on an earnings call that there are opportunities to improve the virtual care segment.
"In the U.S. market, it's clear that continued high medical cost trends, and other pressures, are impacting our current and prospective customers," said Teladoc CEO Chuck Divita on the call. "And in turn, they're evaluating their strategies, and expecting more value from the broader healthcare ecosystem, including from virtual care."
Divita said there's an opportunity for the company to enhance its value proposition in the realm of virtual care, including generating greater value from its virtual visit and touch points, and improving chronic condition management services.
"We see these areas as essential to unlocking our growth potential," said Divita. "As such, this will be a core priority in terms of strategic direction, and investments we're making."
He said BetterHelp has become the largest direct-to-consumer virtual therapy business of its kind, serving more than one million people per year.
WHAT'S THE IMPACT?
Revenue through the first nine months of this year is 1% lower than last year at this time. Access-fee revenue decreased 2% YOY and other revenue grew 10%, to $257.0 million.
U.S. revenue decreased 3%, to $1.6 billion, and international revenue grew 13%, to $304.5 million, for the first nine months of 2024.
Revenue for the Integrated Care segment increased 5%, to about $1.1 billion, and the BetterHelp segment decreased 8%, to $790.9 million. A noncash goodwill impairment charge of $790 million was recorded in the first nine months of 2024. It was attributable to changes in estimates of future cash flows related to the company's BetterHelp segment. The noncash charge had no impact on the provision for income taxes, Teladoc said.
Net loss totaled $952.8 million, or $5.61 per share, for the first nine months of 2024, compared to $191.5 million, or $1.17 per share, for the first nine months of 2023.
Adjusted EBITDA increased 10%, to $235.9 million, compared to $213.7 million for the first nine months of 2023.
THE LARGER TREND
National telehealth utilization increased by 6.3% in November 2023, rising from 4.8% to 5.1% of medical claim lines compared to October 2023, according to a February report from FAIR Health's Monthly Telehealth Regional Tracker.
An October 2023 study indicated that telehealth is effectively meeting the critical demand for pediatric mental health services, which suggests that commercial health insurers should leverage telehealth to address the shortage of mental health providers for young people.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
