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Shares of Teladoc Health (TDOC, Financials) tumbled 15.8% in after-hours trading Wednesday after the company reported a wider quarterly loss and declining revenue.
Compared to a $28.9 million loss, or $0.17 per share, the virtual healthcare service had a net loss of $48.4 million, or $0.28 per share for the fourth quarter of 2024 vs the same time a year before.
Revenue was down 3% year over year to $640.5 million; U.S. revenue dropped 5% to $535.4 million; overseas revenue grew 10% to $105.1 million.
While the BetterHelp sectorwhich offers virtual treatment servicessaw a 10% sales drop to $249.8 million, Teladoc's Integrated Care segment revenue climbed 2% to $390.7 million.
Versus $114.4 million in Q4 2023, adjusted profits before interest, taxes, depreciation, and amortization plummeted 35% to $74.8 million. Reflecting continuing difficulties in the virtual mental health business, BetterHelp's modified EBITDA fell 63%.
Teladoc reported a 1% drop in income for full year 2024 to $2.57 billion. Compared to a $220.4 million loss in 2023, the business had a net loss of $1.0 billion, or $5.87 per share. Along with $20.4 million in restructuring expenses, the results included a $790 million goodwill impairment charge linked to the BetterHelp division.
From $350.0 million a year earlier, operating cash flow dipped to $293.7 million; free cash flow fell from $193.7 million to $169.6 million. By 2024 the company had $1.3 billion in cash.
Looking forward, Teladoc gave a revenue estimate for 2025 between $2.47 billion and $2.58 billion. For the whole year the business estimates a net loss per share between $1.10 and $0.50.
Aimed at enhancing its virtual care capacity, the company recently announced an agreement to acquire Catapult Health. Teladoc will be emphasizing operational efficiency, according to CEO Chuck Divita, and will also be pushing growth prospects.
This article first appeared on GuruFocus.