Teladoc Inc. ((TDOC)) has held its Q4 earnings call. Read on for the main highlights of the call.
Teladoc Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company reported significant growth in membership and international expansion. However, these positive developments were tempered by revenue declines and challenges within the BetterHelp segment and health plan channels. Despite acknowledging these headwinds, Teladoc emphasized its strategic priorities and growth areas moving forward.
Membership and Visit Volume Growth
In 2024, Teladoc Health witnessed substantial growth, adding over 4 million members in the U.S. and increasing underlying visit volumes by 6%. The company also saw a 4% rise in Chronic Care management enrollment and experienced its strongest year of bookings in the employer channel since 2020.
International Expansion Success
Teladoc’s international business achieved mid-teens revenue growth in 2024, marking a successful year for its global operations. Key expansions included partnerships in France for virtual psychiatry services and the integration of virtual services with proprietary devices in Canada.
BetterHelp Milestone
The BetterHelp segment reached a significant milestone by serving over 5 million people and maintaining a high Net Promoter Score above 70. International revenue contributed approximately 20% to BetterHelp’s segment revenues, highlighting its global reach.
Revenue Decrease
Teladoc reported a 1% decrease in full-year 2024 consolidated revenue, totaling $2.6 billion compared to 2023. The BetterHelp segment experienced an 8% revenue decline for the year, reflecting the challenges faced in this area.
BetterHelp Challenges
The BetterHelp business faced a challenging environment, impacting its financial performance in 2024. The average revenue per user declined sequentially, attributed to international expansion with lower pricing.
Health Plan Channel Pressures
Teladoc encountered challenges in the health plan channel due to macroeconomic factors and broader industry issues, affecting sales and growth dynamics.
Chronic Care Client Loss
Teladoc was informed by a client about plans to transition a portion of their business during the second quarter, which impacted Chronic Care enrollment growth.
Forward-Looking Guidance
Looking ahead to 2025, Teladoc provided guidance that includes expectations for consolidated revenue between $2.47 billion and $2.58 billion, with adjusted EBITDA projected to range from $278 million to $319 million. The company anticipates a year-over-year free cash flow increase of 12% to 30%. The Integrated Care segment is expected to achieve flat to 3% revenue growth, while the BetterHelp segment may see a revenue decline of 3.75% to 9.75%. Teladoc aims to drive growth through increased member engagement, enhanced value per visit, productivity improvements, and international expansion. The company also plans to invest in its offerings and explore synergies across its mental health services.
In summary, Teladoc’s earnings call painted a picture of both opportunities and challenges. While the company experienced growth in membership and international markets, it faced revenue declines and pressures in certain segments. Looking forward, Teladoc remains focused on strategic growth initiatives and improving its financial performance, despite the hurdles it encountered in 2024.