New York-based virtual care company Teladoc Health is Stock Price The company reported second-quarter 2024 revenue of $642.4 million, down 2% from $652.4 million in the same period last year, and its stock price fell to $8.10 per share from $9.44 on Tuesday.
The company’s BetterHelp division reported revenue of $265 million in the second quarter, down 9% from 2Q23.
However, Integrated Care revenue increased 5% year over year to $377.4 million, with adjusted EBITDA margin of 17%.
Teladoc’s net loss for the second quarter of this year was $837.7 million, or $4.92 per share, compared with a loss of $65.1 million, or $0.40 per share, for the second quarter of 2023.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 24% to $89.5 million from $73.2 million in the second quarter of 2023. The company reported operating cash flow of $101.2 million and free cash flow of $64.6 million in the second quarter of 2023.
The company withdrew its full-year 2024 financial outlook for its Better Help division and consolidated operations, as well as its three-year outlook for its consolidated operations and operating segments, which it issued in April.
“I am excited to join Teladoc Health and have the opportunity to lead the company forward while leveraging our strengths to drive higher levels of performance. Our scaled position, core capabilities and talented employees position us well in this regard,” said the company’s president and CEO. New CEO Chuck DiVita”
“We also see opportunities to strengthen our execution and streamline our organization to ensure we can serve our customers and stakeholders. While we delivered strong performance in Integrated Care, continued headwinds in BetterHelp impacted our overall performance. We are focused on addressing the challenges ahead with urgency to unlock significant long-term value across the company.”
Larger trends
DiVita joined the telemedicine company in June after Jason Gorevic, who had been CEO for 15 years, resigned in April after the company missed fourth-quarter profit expectations and its shares plummeted 22%. Revenue decline predicted for 2024.
In May, Stary v. Teladoc Health, Inc. et al. was filed as a potential class action lawsuit in the U.S. District Court for the Southern District of New York and names as defendants Teladoc Health, Inc., Gorevic, and Mala Murthy, who held the position of Chief Financial Officer but became Acting CEO after Gorevic’s resignation.
The lawsuit, filed on behalf of Teladoc investors, alleges that while the company has publicly acknowledged that increasing marketing spending on BetterHelp would be inefficient due to market saturation, it will expand marketing spending on its online therapy platform throughout 2023.
The lawsuit also alleged that when the company released its fourth-quarter 2023 earnings, it demonstrated that its advertising expenses increased significantly due to digital and media advertising expenses related to BetterHelp.
The potential class action lawsuit also alleges that these increased expenses hurt the company’s revenues and caused its stock price to fall significantly, and that despite the company’s public statements that BetterHelp had a “long period” of membership growth, membership numbers remained constant or declined throughout 2023.
Still, the telemedicine company has forged new partnerships since DiVita came on board.
In July, the company Exclusively Announced MobiHealthNews The company has partnered with pediatric virtual behavioral health company Brightline to expand mental health care options for children, adolescents and their families through Teladoc’s platform.
