Teladoc Health, a leading virtual care vendor, faced significant challenges in 2024 as its direct-to-consumer mental health segment, BetterHelp, struggled with worsening performance. The company reported a staggering net loss of $1 billion for the year, a sharp increase from $220.4 million in 2023. This increase was primarily due to a $790 million non-cash goodwill impairment charge associated with BetterHelp.
Despite efforts to improve user growth, BetterHelp experienced an 11% decrease in paying users by the end of 2024. Teladoc’s CEO, Chuck Divita, acknowledged the ongoing challenges, stating that the company has not yet achieved the level of stability it strives for in the mental health segment.
The financial results released in 2024 marked Teladoc’s first full-year earnings under Divita’s leadership. The company has implemented cost-cutting measures and leadership restructuring to address the lower stock price it has experienced post-pandemic. While cost-saving initiatives have been successful, BetterHelp’s financial performance continued to decline in 2024.
Despite these challenges, Teladoc remains optimistic about the future of its mental health segment. The company is exploring international expansion, introducing new pricing models, and seeking to accept insurance coverage to enhance BetterHelp’s membership and performance.
In contrast to BetterHelp, Teladoc’s integrated care unit saw positive growth in 2024. The segment’s adjusted EBITDA increased by 21% to $232.9 million, with a 4% rise in revenue year over year. Membership in the integrated care segment also increased, particularly in chronic condition management services.
Teladoc recently announced the acquisition of virtual preventive care provider Catapult Health for $65 million. This strategic move is expected to drive user engagement and expand Teladoc’s offerings in chronic condition management programs.
Overall, Teladoc reported a 1% decrease in revenue to $2.57 billion in 2024. Looking ahead to 2025, the company anticipates revenue between $2.47 billion and $2.58 billion, with a projected net loss per share ranging from $1.10 to $0.50.
Teladoc’s ongoing efforts to address the challenges in its mental health segment while capitalizing on growth opportunities in integrated care demonstrate the company’s commitment to providing comprehensive virtual care services to its members.
