Teladoc Health Inc (TDOC) Q3 2024 Earnings Call Highlights: Navigating Challenges and Strategic ...

GuruFocus News
4 min read

In This Article:

  • Consolidated Revenue: $641 million, decreased 3% year-over-year.

  • Adjusted EBITDA: $83.3 million, down 6% year-over-year, with a margin of 13%.

  • Net Loss Per Share: $0.19, compared to $0.35 in the third quarter of 2023.

  • Free Cash Flow: $79 million, up approximately 16% year-over-year.

  • Cash and Cash Equivalents: Over $1.2 billion at quarter end.

  • Integrated Care Revenue: $384 million, increased 2.5% year-over-year.

  • US Integrated Care Membership: 93.9 million members, up 4% year-over-year.

  • Chronic Care Program Enrollment: 1.18 million, up approximately 5% year-over-year.

  • BetterHelp Revenue: $257 million, down 10% year-over-year.

  • BetterHelp Adjusted EBITDA: $15.2 million, down from $26 million in the prior year.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Teladoc Health Inc (NYSE:TDOC) reported third quarter integrated care revenue of $384 million, which increased by 2.5% over the prior year period and exceeded the top end of their guidance range.

  • The company saw strong growth in visit revenue driven by increased membership, contributing to robust visit volume growth.

  • International integrated care operations continue to show strong momentum with revenue growth in the high teens on a constant currency basis.

  • Teladoc Health Inc (NYSE:TDOC) ended the quarter with over $1.2 billion in cash and cash equivalents, providing significant financial flexibility.

  • The company is making strategic investments to enhance product innovation and improve execution, which are already showing positive impacts in terms of efficiency and effectiveness.

Negative Points

  • Third quarter consolidated revenue of $641 million decreased by 3% year-over-year.

  • BetterHelp segment revenue was down 10% versus the prior year, with average paying users declining by 13% year-over-year.

  • The company is facing challenges in the health plan space, with bookings tracking lower than the previous year, reflecting a challenging market backdrop.

  • Adjusted EBITDA margin for BetterHelp decreased to 5.9%, down from 9.6% in the second quarter, driven by lower revenue and additional ad spend.

  • Teladoc Health Inc (NYSE:TDOC) is not reinstating formal guidance for consolidated revenue, adjusted EBITDA, net loss per share, or free cash flow for the fourth quarter or full year 2024, indicating uncertainty in future performance.

Q & A Highlights

Q: Can you provide more details on the BetterHelp fee-for-service transition and payer contracting? A: Michael Minchak, Head of Investor Relations, emphasized the focus on maintaining BetterHelp as a consumer-oriented business model. The initiative to allow consumers to access their benefit coverage is progressing, with internal capabilities on target and discussions with select health plans underway. A measured approach is being taken to ensure methodical investments and rollout.

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