PURCHASE, NY, Feb. 26, 2025 (GLOBE NEWSWIRE) — Teladoc Health, Inc. (NYSE: TDOC), the global leader in whole-person virtual care, today reported financial results for the full year ended December 31, 2024 (“Full Year 2024”) and three months ended December 31, 2024 (“Fourth Quarter 2024”). Unless otherwise noted, percentage and other changes are relative to the full year ended December 31, 2023 (“Full Year 2023”) and three months ended December 31, 2023 (“Fourth Quarter 2023”).
Full Year and Fourth Quarter 2024 Highlights
- Full Year 2024 revenue of $2,569.6 million, down 1% year-over-year, and Fourth Quarter 2024 revenue of $640.5 million, down 3% year-over-year
- Full Year 2024 net loss of $1,001.2 million, or $5.87 per share, and Fourth Quarter 2024 net loss of $48.4 million, or $0.28 per share
- Full Year 2024 adjusted EBITDA of $310.7 million, down 5% year-over-year, and Fourth Quarter 2024 adjusted EBITDA of $74.8 million, down 35% year-over-year
- Full Year 2024 operating cash flow of $293.7 million, down from $350.0 million; Full Year 2024 free cash flow of $169.6 million, down from $193.7 million; cash position of $1,298.3 million at December 31, 2024
- Initiates 2025 guidance
“We had a solid finish to the year, both in terms of performance and advancing initiatives important to our future. Consistent with our guidance range, Integrated Care delivered revenue growth and strong margin expansion, and progressed well on key priorities, including the announced agreement to acquire Catapult Health. In BetterHelp, while we were pleased with the sequential improvement in key metrics in the fourth quarter, the operating environment continues to be challenging and we remain focused on actions to stabilize results consistent with our overall virtual mental health strategy,” said Chuck Divita, Chief Executive Officer of Teladoc Health.
“As we look forward in 2025, execution will continue to be a top priority as we advance efforts to unlock growth opportunities and position the company for long term success. We will also remain focused on our cost structure, building on the significant improvements achieved in 2024 over the prior year. I believe we are setting a stronger foundation to drive our business going forward and we have a committed team operating with speed and urgency,” Divita added.
| Key Financial Data | |||||||||||||||||||
| ($ in thousands, except per share data, unaudited) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||
| Revenue | $ | 640,491 | $ | 660,527 | (3)% | $ | 2,569,574 | $ | 2,602,415 | (1)% | |||||||||
| Net loss | $ | (48,409 | ) | $ | (28,890 | ) | (68)% | $ | (1,001,245 | ) | $ | (220,368 | ) | n/m | |||||
| Net loss per share, basic and diluted | $ | (0.28 | ) | $ | (0.17 | ) | (65)% | $ | (5.87 | ) | $ | (1.34 | ) | n/m | |||||
| Adjusted EBITDA (1) | $ | 74,835 | $ | 114,443 | (35)% | $ | 310,711 | $ | 328,120 | (5)% | |||||||||
See note (1) in the Notes section that follows.
n/m – not meaningful
Fourth Quarter 2024
Revenue decreased 3% to $640.5 million from $660.5 million in Fourth Quarter 2023. Access fees revenue decreased 5% to $543.1 million and other revenue grew 12% to $97.4 million. U.S. revenue decreased 5% to $535.4 million and International revenue grew 10% to $105.1 million.
Teladoc Health Integrated Care (“Integrated Care”) segment revenue increased 2% to $390.7 million in Fourth Quarter 2024 and BetterHelp segment revenue decreased 10% to $249.8 million.
Net loss totaled $48.4 million, or $0.28 per share, for Fourth Quarter 2024, compared to $28.9 million, or $0.17 per share, for Fourth Quarter 2023. Results for Fourth Quarter 2024 included stock-based compensation expense of $27.5 million, or $0.16 per share pre-tax, and amortization of acquired intangibles of $51.0 million, or $0.29 per share pre-tax. Net loss for Fourth Quarter 2024 also included $5.6 million, or $0.03 per share pre-tax, of restructuring costs, related to severance costs and costs associated with office space reduction.
Results for Fourth Quarter 2023 primarily included stock-based compensation expense of $46.8 million, or $0.28 per share pre-tax, and amortization of acquired intangibles of $70.8 million, or $0.43 per share pre-tax.
Adjusted EBITDA(1) decreased 35% to $74.8 million, compared to $114.4 million for Fourth Quarter 2023. Integrated Care segment adjusted EBITDA decreased 5% to $53.2 million in Fourth Quarter 2024 and BetterHelp segment adjusted EBITDA decreased 63% to $21.7 million in Fourth Quarter 2024.
GAAP gross margin, which includes amortization of intangible assets and depreciation of property and equipment, was 65.7% for Fourth Quarter 2024, compared to 68.8% for Fourth Quarter 2023.
Adjusted gross margin(1) was 70.5% for Fourth Quarter 2024, compared to 70.7% for Fourth Quarter 2023.
Full Year Ended December 31, 2024
Revenue decreased 1% to $2,569.6 million from $2,602.4 million for the year ended December 31, 2023. Access fees revenue decreased 3% to $2,215.2 million, and other revenue grew 11% to $354.4 million. U.S. revenue decreased 3% to $2,160.0 million, and International revenue grew 12% to $409.6 million for the year ended December 31, 2024.
Revenue for the Integrated Care segment increased 4% to $1,528.9 million and for the BetterHelp segment decreased 8% to $1,040.7 million for the year ended December 31, 2024.
Non-cash goodwill impairment charge of $790.0 million was recorded for the year ended December 31, 2024 and was attributable to changes in estimates of future cash flows related to the company’s BetterHelp segment. The non-cash charge had no impact on the provision for income taxes.
Net loss totaled $1,001.2 million, or $5.87 per share, for the year ended December 31, 2024, compared to $220.4 million, or $1.34 per share, for the year ended December 31, 2023. Results for the year ended December 31, 2024 included a non-cash goodwill impairment charge of $790.0 million, or $4.63 per share pre-tax, stock-based compensation expense of $146.0 million, or $0.86 per share pre-tax, restructuring costs of $20.4 million, or $0.12 per share pre-tax, primarily related to severance costs, and amortization of acquired intangibles of $230.3 million, or $1.35 per share pre-tax.
Results for the year ended December 31, 2023 primarily included stock-based compensation expense of $201.6 million, or $1.22 per share pre-tax, amortization of acquired intangibles of $243.0 million, or $1.48 per share pre-tax, as well as restructuring costs related to the abandonment of certain excess leased office space and severance of $16.9 million, or $0.10 per share pre-tax.
Adjusted EBITDA(1) decreased 5% to $310.7 million, compared to $328.1 million for the year ended December 31, 2023. Integrated Care segment adjusted EBITDA increased 21% to $232.9 million for the year ended December 31, 2024 and BetterHelp segment adjusted EBITDA decreased 43% to $77.8 million for the year ended December 31, 2024.
GAAP gross margin, which includes amortization of intangible assets and depreciation of property and equipment, was 66.3% for the year ended December 31, 2024, compared to 68.2% for the year ended December 31, 2023.
Adjusted gross margin(1) was 70.8% for both the year ended December 31, 2024 and 2023.
Capex and Cash Flow
Cash flow from operations was $85.9 million in Fourth Quarter 2024, compared to $130.1 million in Fourth Quarter 2023, and was $293.7 million for the year ended December 31, 2024, compared to $350.0 million for the year ended December 31, 2023. Capitalized expenditures and capitalized software development costs (together, “Capex”) were $29.6 million in Fourth Quarter 2024, compared to $36.5 million in Fourth Quarter 2023, and were $124.1 million for the year ended December 31, 2024, compared to $156.3 million for the year ended December 31, 2023. Free cash flow was $56.3 million in Fourth Quarter 2024, compared to $93.6 million in Fourth Quarter 2023, and was $169.6 million for the year ended December 31, 2024, compared to $193.7 million for the year ended December 31, 2023.
Financial Outlook
The outlook provided below is based on current market conditions and expectations and what we know today, and includes anticipated contribution from the acquisition of Catapult Health, which we expect to close at the end of February. However, it does not include the impact of any purchase accounting or any potential impairments resulting from such acquisition. Accordingly, we believe our outlook ranges provide a reasonable baseline for future financial performance.
| For the full year of 2025, we expect: | |
| Full Year 2025 Outlook Range | |
| Revenue | $2,468 – $2,576 million |
| Adjusted EBITDA | $278 – $319 million |
| Net loss per share | ($1.10) – ($0.50) |
| Free Cash Flow | $190- $220 million |
| U.S. Integrated Care Members (2) | 101 – 103 million |
| Integrated Care | |
| Revenue growth percentage (year-over-year) | 0.00% – 3.00% |
| Adjusted EBITDA margin | 14.30% – 15.30% |
| BetterHelp | |
| Revenue growth percentage (year-over-year) | (9.75%) – (3.75%) |
| Adjusted EBITDA margin | 6.25% – 7.75% |
| For the first quarter of 2025, we expect: | |
| 1Q 2025 Outlook Range | |
| Revenue | $608 – $629 million |
| Adjusted EBITDA | $47 – $59 million |
| Net loss per share | ($0.40) – ($0.15) |
| U.S. Integrated Care Members (2) | 101 – 102 million |
| Integrated Care | |
| Revenue growth percentage (year-over-year) | (0.50%) – 2.00% |
| Adjusted EBITDA margin | 11.25% – 12.75% |
| BetterHelp | |
| Revenue growth percentage (year-over-year) | (13.50%) – (9.00%) |
| Adjusted EBITDA margin | 2.00% – 4.25% |
See note (2) in the Notes section that follows.
Earnings Conference Call
The Fourth Quarter and Full Year 2024 earnings conference call and webcast will be held Wednesday, February 26, 2025 at 4:30 p.m. E.T. The conference call can be accessed by dialing 1-833-470-1428 for U.S. participants and using the access code #259200. For international participants, please visit the following link for global dial-in numbers: https://www.netroadshow.com/events/global-numbers?confId=72270. A live audio webcast will also be available online at http://ir.teladoc.com/news-and-events/events-and-presentations/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.
About Teladoc Health
Teladoc Health empowers all people everywhere to live their healthiest lives by transforming the healthcare experience. As the world leader in virtual care, Teladoc Health uses proprietary health signals and personalized interactions to drive better health outcomes across the full continuum of care, at every stage in a person’s health journey. Teladoc Health leverages more than two decades of expertise and data-driven insights to meet the growing virtual care needs of consumers and healthcare professionals. For more information, please visit www.teladochealth.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding future financial or operating results, future numbers of members, BetterHelp paying users or clients, litigation outcomes, regulatory developments, market developments, new products and growth strategies, and the effects of any of the foregoing on our future results of operations or financial condition.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market conditions and receptivity to our services and offerings, including our ability to effectively compete; (iii) results of litigation or regulatory actions; (iv) the loss of one or more key clients or the loss of a significant number of members or BetterHelp paying users; (v) changes in valuations or useful lives of our assets; (vi) changes to our abilities to recruit and retain qualified providers into our network; (vii) the impact of and risk related to impairment losses with respect to goodwill or other assets; and (viii) the success of our operational review of the company to achieve a more balanced approach to growth and margin. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to, our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
TELADOC HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data, unaudited)
| Three Months Ended
December 31, |
Year Ended
December 31, |
||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 640,491 | $ | 660,527 | $ | 2,569,574 | $ | 2,602,415 | |||||||
| Costs and expenses: | |||||||||||||||
| Cost of revenue (exclusive of depreciation and amortization, which are shown separately below) | 188,928 | 193,424 | 751,270 | 760,031 | |||||||||||
| Advertising and marketing | 174,726 | 147,156 | 705,787 | 688,854 | |||||||||||
| Sales | 52,726 | 53,451 | 204,993 | 213,780 | |||||||||||
| Technology and development | 76,752 | 89,938 | 307,274 | 348,521 | |||||||||||
| General and administrative | 99,996 | 108,957 | 435,490 | 464,659 | |||||||||||
| Goodwill impairment | – | – | 790,000 | – | |||||||||||
| Acquisition, integration, and transformation costs | 456 | 4,262 | 1,743 | 21,110 | |||||||||||
| Restructuring costs | 5,602 | 899 | 20,355 | 16,942 | |||||||||||
| Amortization of intangible assets | 86,540 | 94,728 | 363,365 | 325,933 | |||||||||||
| Depreciation of property and equipment | 2,980 | 2,793 | 10,183 | 11,138 | |||||||||||
| Total costs and expenses | 688,706 | 695,608 | 3,590,460 | 2,850,968 | |||||||||||
| Loss from operations | (48,215 | ) | (35,081 | ) | (1,020,886 | ) | (248,553 | ) | |||||||
| Interest income | (14,231 | ) | (13,707 | ) | (57,071 | ) | (46,782 | ) | |||||||
| Interest expense | 6,846 |
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