Teladoc Health Reports Full Year and Fourth Quarter 2024 Results
Teladoc Health (NYSE: TDOC) reported its Full Year and Fourth Quarter 2024 results, showing overall revenue decline. Full Year 2024 revenue decreased 1% to $2,569.6 million, while Q4 2024 revenue fell 3% to $640.5 million.
The company recorded a significant Full Year 2024 net loss of $1,001.2 million ($5.87 per share), including a non-cash goodwill impairment charge of $790.0 million related to BetterHelp segment. Q4 2024 net loss was $48.4 million ($0.28 per share).
Key performance metrics showed mixed results:
- Integrated Care segment revenue grew 2% to $390.7 million in Q4
- BetterHelp segment revenue declined 10% to $249.8 million
- Full Year adjusted EBITDA decreased 5% to $310.7 million
- Cash position stood at $1,298.3 million as of December 31, 2024
Teladoc Health (NYSE: TDOC) ha pubblicato i risultati dell'intero anno e del quarto trimestre 2024, evidenziando un calo complessivo dei ricavi. I ricavi dell'intero anno 2024 sono diminuiti dell'1% a $2.569,6 milioni, mentre i ricavi del quarto trimestre 2024 sono scesi del 3% a $640,5 milioni.
L'azienda ha registrato una significativa perdita netta per l'intero anno 2024 di $1.001,2 milioni ($5,87 per azione), inclusa una svalutazione non monetaria del goodwill di $790,0 milioni relativa al segmento BetterHelp. La perdita netta del quarto trimestre 2024 è stata di $48,4 milioni ($0,28 per azione).
I principali indicatori di prestazione hanno mostrato risultati misti:
- Il fatturato del segmento Integrated Care è cresciuto del 2% a $390,7 milioni nel quarto trimestre
- Il fatturato del segmento BetterHelp è diminuito del 10% a $249,8 milioni
- Il EBITDA rettificato per l'intero anno è diminuito del 5% a $310,7 milioni
- La posizione di cassa era di $1.298,3 milioni al 31 dicembre 2024
Teladoc Health (NYSE: TDOC) informó sus resultados del año completo y del cuarto trimestre de 2024, mostrando una disminución general de los ingresos. Los ingresos del año completo 2024 disminuyeron un 1% a $2,569.6 millones, mientras que los ingresos del cuarto trimestre 2024 cayeron un 3% a $640.5 millones.
La compañía registró una pérdida neta significativa de $1,001.2 millones ($5.87 por acción) para el año completo 2024, incluyendo un cargo por deterioro de goodwill no monetario de $790.0 millones relacionado con el segmento BetterHelp. La pérdida neta del cuarto trimestre 2024 fue de $48.4 millones ($0.28 por acción).
Los principales indicadores de rendimiento mostraron resultados mixtos:
- Los ingresos del segmento de Atención Integrada crecieron un 2% a $390.7 millones en el cuarto trimestre
- Los ingresos del segmento BetterHelp disminuyeron un 10% a $249.8 millones
- El EBITDA ajustado del año completo disminuyó un 5% a $310.7 millones
- La posición de efectivo se situó en $1,298.3 millones al 31 de diciembre de 2024
텔라독 헬스 (NYSE: TDOC)는 2024년 전체 및 4분기 실적을 발표하며 전체 수익 감소를 보여주었습니다. 2024년 전체 수익은 1% 감소하여 $2,569.6백만에 이르렀고, 2024년 4분기 수익은 3% 감소하여 $640.5백만이었습니다.
회사는 2024년 전체에서 $1,001.2백만 ($5.87 주당)의 상당한 순손실을 기록했으며, 이는 BetterHelp 부문과 관련된 비현금 goodwill 손상 차감액 $790.0백만을 포함합니다. 2024년 4분기 순손실은 $48.4백만 ($0.28 주당)입니다.
주요 성과 지표는 혼합된 결과를 보여주었습니다:
- 통합 치료 부문의 수익은 4분기 동안 2% 증가하여 $390.7백만에 이르렀습니다
- BetterHelp 부문의 수익은 10% 감소하여 $249.8백만이었습니다
- 조정된 EBITDA는 전체 연도 기준으로 5% 감소하여 $310.7백만이었습니다
- 2024년 12월 31일 기준 현금 보유액은 $1,298.3백만이었습니다
Teladoc Health (NYSE: TDOC) a publié ses résultats pour l'année entière et le quatrième trimestre 2024, montrant un déclin général des revenus. Les revenus de l'année entière 2024 ont diminué de 1 % pour atteindre 2 569,6 millions de dollars, tandis que les revenus du quatrième trimestre 2024 ont chuté de 3 % pour s'établir à 640,5 millions de dollars.
L'entreprise a enregistré une perte nette significative de 1 001,2 millions de dollars (5,87 $ par action) pour l'année entière 2024, y compris une charge de dépréciation du goodwill non monétaire de 790,0 millions de dollars liée au segment BetterHelp. La perte nette pour le quatrième trimestre 2024 s'élevait à 48,4 millions de dollars (0,28 $ par action).
Les principaux indicateurs de performance ont montré des résultats mitigés :
- Les revenus du segment Soins Intégrés ont augmenté de 2 % pour atteindre 390,7 millions de dollars au quatrième trimestre
- Les revenus du segment BetterHelp ont diminué de 10 % pour s'établir à 249,8 millions de dollars
- L'EBITDA ajusté pour l'année entière a diminué de 5 % pour atteindre 310,7 millions de dollars
- La position de liquidités s'élevait à 1 298,3 millions de dollars au 31 décembre 2024
Teladoc Health (NYSE: TDOC) hat seine Ergebnisse für das gesamte Jahr und das vierte Quartal 2024 veröffentlicht, die einen allgemeinen Rückgang der Einnahmen zeigen. Die Einnahmen für das gesamte Jahr 2024 sanken um 1% auf $2.569,6 Millionen, während die Einnahmen im vierten Quartal 2024 um 3% auf $640,5 Millionen fielen.
Das Unternehmen verzeichnete einen erheblichen Nettoverlust für das gesamte Jahr 2024 in Höhe von $1.001,2 Millionen ($5,87 pro Aktie), einschließlich einer nicht zahlungswirksamen Wertminderung des Goodwills in Höhe von $790,0 Millionen, die mit dem Segment BetterHelp verbunden ist. Der Nettoverlust im vierten Quartal 2024 betrug $48,4 Millionen ($0,28 pro Aktie).
Die wichtigsten Leistungskennzahlen zeigten gemischte Ergebnisse:
- Die Einnahmen im Segment Integrierte Versorgung stiegen im vierten Quartal um 2% auf $390,7 Millionen
- Die Einnahmen im Segment BetterHelp sanken um 10% auf $249,8 Millionen
- Das bereinigte EBITDA für das gesamte Jahr sank um 5% auf $310,7 Millionen
- Die Liquiditätsposition betrug zum 31. Dezember 2024 $1.298,3 Millionen
- Integrated Care segment revenue grew 4% for full year 2024
- Integrated Care adjusted EBITDA increased 21% to $232.9 million
- International revenue grew 12% to $409.6 million
- Strong cash position of $1.3 billion maintained
- Overall revenue declined 1% to $2,569.6 million in 2024
- $790 million goodwill impairment charge for BetterHelp segment
- BetterHelp revenue decreased 8% for full year 2024
- Net loss increased to $1,001.2 million ($5.87 per share)
- Adjusted EBITDA decreased 5% to $310.7 million
Insights
Teladoc's Q4 and full-year 2024 results reveal a company struggling with significant challenges, particularly in its BetterHelp segment. The $1 billion annual net loss (
Revenue trends show a bifurcated business: while Integrated Care grew modestly (
The impairment charge signals management's acknowledgment that BetterHelp's future cash flows will be substantially lower than previously forecast. This mental health segment faces structural challenges beyond cyclical headwinds, raising questions about its long-term viability within Teladoc's portfolio.
Gross margin compression (Q4 GAAP margins fell from
The
Teladoc's 2024 results reveal fundamental challenges in the virtual care business model that extend beyond company-specific execution issues. The
The stark performance divergence between segments is telling: BetterHelp's
The acquisition of Catapult Health represents a strategic pivot toward employer-sponsored preventive care services and away from the consumer-direct model. This reflects a broader industry recognition that sustainable telehealth growth may depend more on integration with established healthcare payment systems rather than consumer out-of-pocket spending.
International growth (
Reduced capital expenditures (
The post-pandemic normalization in telehealth utilization has proven more challenging than anticipated, forcing Teladoc to recalibrate its growth expectations across both segments and suggesting the pandemic-era adoption curves may have overestimated the long-term trajectory of virtual care demand.
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 , down1% year-over-year, and Fourth Quarter 2024 revenue of$640.5 million , down3% 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 , down5% year-over-year, and Fourth Quarter 2024 adjusted EBITDA of$74.8 million , down35% 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
Teladoc Health Integrated Care (“Integrated Care”) segment revenue increased
Net loss totaled
Results for Fourth Quarter 2023 primarily included stock-based compensation expense of
Adjusted EBITDA(1) decreased
GAAP gross margin, which includes amortization of intangible assets and depreciation of property and equipment, was
Adjusted gross margin(1) was
Full Year Ended December 31, 2024
Revenue decreased
Revenue for the Integrated Care segment increased
Non-cash goodwill impairment charge of
Net loss totaled
Results for the year ended December 31, 2023 primarily included stock-based compensation expense of
Adjusted EBITDA(1) decreased
GAAP gross margin, which includes amortization of intangible assets and depreciation of property and equipment, was
Adjusted gross margin(1) was
Capex and Cash Flow
Cash flow from operations was
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 | |
| Adjusted EBITDA | |
| Net loss per share | ( |
| Free Cash Flow | |
| U.S. Integrated Care Members (2) | 101 - 103 million |
| Integrated Care | |
| Revenue growth percentage (year-over-year) | |
| Adjusted EBITDA margin | |
| BetterHelp | |
| Revenue growth percentage (year-over-year) | ( |
| Adjusted EBITDA margin | |
| For the first quarter of 2025, we expect: | |
| 1Q 2025 Outlook Range | |
| Revenue | |
| Adjusted EBITDA | |
| Net loss per share | ( |
| U.S. Integrated Care Members (2) | 101 - 102 million |
| Integrated Care | |
| Revenue growth percentage (year-over-year) | ( |
| Adjusted EBITDA margin | |
| BetterHelp | |
| Revenue growth percentage (year-over-year) | ( |
| Adjusted EBITDA margin |
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 | 5,538 | 23,803 | 22,282 | |||||||||||
| Other expense (income), net | 7,341 | (1,537 | ) | 6,035 | (4,445 | ) | |||||||||
| Loss before provision for income taxes | (48,171 | ) | (25,375 | ) | (993,653 | ) | (219,608 | ) | |||||||
| Provision for income taxes | 238 | 3,515 | 7,592 | 760 | |||||||||||
| Net loss | $ | (48,409 | ) | $ | (28,890 | ) | $ | (1,001,245 | ) | $ | (220,368 | ) | |||
| Net loss per share, basic and diluted | $ | (0.28 | ) | $ | (0.17 | ) | $ | (5.87 | ) | $ | (1.34 | ) | |||
| Weighted-average shares used to compute basic and diluted net loss per share | 172,765,307 | 166,059,023 | 170,564,088 | 164,578,219 | |||||||||||
Stock-based Compensation Summary
Compensation expense for stock-based awards were classified as follows (in thousands, unaudited):
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Cost of revenue (exclusive of depreciation and amortization, which are shown separately) | $ | 1,000 | $ | 1,418 | $ | 4,782 | $ | 5,478 | |||
| Advertising and marketing | 1,552 | 3,773 | 12,575 | 15,300 | |||||||
| Sales | 4,683 | 8,393 | 24,807 | 35,448 | |||||||
| Technology and development | 7,721 | 15,352 | 34,855 | 58,336 | |||||||
| General and administrative | 12,516 | 17,906 | 68,932 | 86,988 | |||||||
| Total stock-based compensation expense (3) | $ | 27,472 | $ | 46,842 | $ | 145,951 | $ | 201,550 | |||
See note (3) in the Notes section that follows.
Revenues
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| ($ in thousands, unaudited) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||
| Revenue by Type | |||||||||||||||
| Access fees | $ | 543,123 | $ | 573,920 | (5)% | $ | 2,215,220 | $ | 2,282,521 | (3)% | |||||
| Other | 97,368 | 86,607 | 354,354 | 319,894 | |||||||||||
| Total Revenue | $ | 640,491 | $ | 660,527 | (3)% | $ | 2,569,574 | $ | 2,602,415 | (1)% | |||||
| Revenue by Geography | |||||||||||||||
| U.S. Revenue | $ | 535,396 | $ | 564,763 | (5)% | $ | 2,159,959 | $ | 2,237,533 | (3)% | |||||
| International Revenue | 105,095 | 95,764 | 409,615 | 364,882 | |||||||||||
| Total Revenue | $ | 640,491 | $ | 660,527 | (3)% | $ | 2,569,574 | $ | 2,602,415 | (1)% | |||||
Summary Operating Metrics
Consolidated
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| (In millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
| Total Visits | 4.4 | 4.4 | —% | 17.3 | 18.4 | (6)% | ||||||
Integrated Care
| As of December 31, | |||||
| (In millions) | 2024 | 2023 | Change | ||
| U.S. Integrated Care Members (2) | 93.8 | 89.6 | |||
| Chronic Care Program Enrollment (4) | 1.203 | 1.158 | |||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||
| Average Monthly Revenue Per U.S. Integrated Care Member (5) | $ | 1.39 | $ | 1.42 | (2)% | $ | 1.37 | $ | 1.41 | (3)% | |||||
BetterHelp
| Average for | Average for | ||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||
| (In millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||
| BetterHelp Paying Users (6) | 0.400 | 0.425 | (6)% | 0.405 | 0.457 | (11)% | |||||
See notes (2), (4), (5), and (6) in the Notes section that follows.
Selected Operating Results by Segment (see notes (7) in the Notes section that follows)
The following table presents selected operating results by reportable segment for the periods indicated:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||
| ($ in thousands, unaudited) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||
| Integrated Care | |||||||||||||||||||
| Revenue | $ | 390,672 | $ | 384,356 | $ | 1,528,870 | $ | 1,468,794 | |||||||||||
| Adjusted EBITDA | $ | 53,161 | $ | 55,971 | (5)% | $ | 232,902 | $ | 191,871 | ||||||||||
| Adjusted EBITDA Margin % | 13.6 | % | 14.6 | % | 15.2 | % | 13.1 | % | |||||||||||
| BetterHelp | |||||||||||||||||||
| Therapy Services | $ | 244,352 | $ | 271,273 | (10)% | $ | 1,017,725 | $ | 1,116,693 | (9)% | |||||||||
| Other Wellness Services | 5,467 | 4,898 | 22,979 | 16,928 | |||||||||||||||
| Total Revenue | $ | 249,819 | $ | 276,171 | (10)% | $ | 1,040,704 | $ | 1,133,621 | (8)% | |||||||||
| Adjusted EBITDA | $ | 21,674 | $ | 58,472 | (63)% | $ | 77,809 | $ | 136,249 | (43)% | |||||||||
| Adjusted EBITDA Margin % | 8.7 | % | 21.2 | % | 7.5 | % | 12.0 | % | |||||||||||
TELADOC HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
| Year Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (1,001,245 | ) | $ | (220,368 | ) | |
| Adjustments to reconcile net loss to net cash flows from operating activities: | |||||||
| Goodwill impairment | 790,000 | — | |||||
| Amortization of intangible assets | 363,365 | 325,933 | |||||
| Depreciation of property and equipment | 10,183 | 11,138 | |||||
| Amortization of right-of-use assets | 9,295 | 11,650 | |||||
| Provision for allowances for doubtful accounts | 3,795 | 4,686 | |||||
| Stock-based compensation | 145,951 | 201,550 | |||||
| Deferred income taxes | (1,145 | ) | (1,903 | ) | |||
| Other, net | 9,796 | 5,692 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (375 | ) | (10,252 | ) | |||
| Prepaid expenses and other current assets | 5,188 | 12,461 | |||||
| Inventory | (9,749 | ) | 24,095 | ||||
| Other assets | (1,257 | ) | (23,052 | ) | |||
| Accounts payable | (10,365 | ) | (4,185 | ) | |||
| Accrued expenses and other current liabilities | 30,178 | 9,069 | |||||
| Accrued compensation | (20,499 | ) | 19,180 | ||||
| Deferred revenue | (18,246 | ) | (4,900 | ) | |||
| Operating lease liabilities | (10,892 | ) | (10,224 | ) | |||
| Other liabilities | (298 | ) | (549 | ) | |||
| Net cash provided by operating activities | 293,680 | 350,021 | |||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (10,790 | ) | (11,464 | ) | |||
| Capitalized software development costs | (113,262 | ) | (144,884 | ) | |||
| Other, net | — | 1 | |||||
| Net cash used in investing activities | (124,052 | ) | (156,347 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from the exercise of stock options | 3,566 | 1,481 | |||||
| Proceeds from employee stock purchase plan | 4,748 | 9,651 | |||||
| Other, net | (2 | ) | (278 | ) | |||
| Net cash provided by financing activities | 8,312 | 10,854 | |||||
| Net increase in cash and cash equivalents | 177,940 | 204,528 | |||||
| Effect of foreign currency exchange rate changes | (3,288 | ) | 965 | ||||
| Cash and cash equivalents at beginning of the period | 1,123,675 | 918,182 | |||||
| Cash and cash equivalents at end of the period | $ | 1,298,327 | $ | 1,123,675 | |||
The following table presents the selected cash flow information for the following quarters (in thousands, unaudited):
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Net cash provided by operating activities | $ | 85,902 | $ | 130,082 | |||
| Net cash used in investing activities | (29,644 | ) | (36,506 | ) | |||
| Net cash provided by (used in) financing activities | 1,882 | (1,775 | ) | ||||
| Effect of foreign currency exchange rate changes | (3,855 | ) | 1,347 | ||||
| Net increase in cash and cash equivalents | $ | 54,285 | $ | 93,148 | |||
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data, unaudited)
| December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,298,327 | $ | 1,123,675 | |||
| Accounts receivable, net of allowance for doubtful accounts of | 214,146 | 217,423 | |||||
| Inventories | 38,138 | 29,513 | |||||
| Prepaid expenses and other current assets | 113,296 | 118,437 | |||||
| Total current assets | 1,663,907 | 1,489,048 | |||||
| Property and equipment, net | 29,487 | 32,032 | |||||
| Goodwill | 283,190 | 1,073,190 | |||||
| Intangible assets, net | 1,431,360 | 1,677,781 | |||||
| Operating lease—right-of-use assets | 27,092 | 40,060 | |||||
| Other assets | 81,488 | 80,258 | |||||
| Total assets | $ | 3,516,524 | $ | 4,392,369 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 33,130 | $ | 43,637 | |||
| Accrued expenses and other current liabilities | 202,157 | 178,634 | |||||
| Accrued compensation | 76,229 | 102,686 | |||||
| Deferred revenue—current | 79,296 | 95,659 | |||||
| Convertible senior notes, net—current | 550,723 | — | |||||
| Total current liabilities | 941,535 | 420,616 | |||||
| Other liabilities | 720 | 1,080 | |||||
| Operating lease liabilities, net of current portion | 32,135 | 42,837 | |||||
| Deferred revenue, net of current portion | 9,786 | 13,623 | |||||
| Deferred taxes, net | 49,851 | 49,452 | |||||
| Convertible senior notes, net—non-current | 991,418 | 1,538,688 | |||||
| Total liabilities | 2,025,445 | 2,066,296 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Common stock, | 173 | 167 | |||||
| Additional paid-in capital | 17,759,194 | 17,591,551 | |||||
| Accumulated deficit | (16,229,900 | ) | (15,228,655 | ) | |||
| Accumulated other comprehensive loss | (38,388 | ) | (36,990 | ) | |||
| Total stockholders’ equity | 1,491,079 | 2,326,073 | |||||
| Total liabilities and stockholders’ equity | $ | 3,516,524 | $ | 4,392,369 | |||
Non-GAAP Financial Measures:
To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use certain non-GAAP financial measures to clarify and enhance an understanding of past performance, which include adjusted gross profit, adjusted gross margin, adjusted EBITDA, and free cash flow. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance, and are commonly used by investors to evaluate our performance and that of our competitors. We further believe that these financial measures are useful to assess our operating performance and financial and business trends from period-to-period by excluding certain items that we believe are not representative of our core business, and that free cash flow reflects an additional way of viewing our liquidity that, when viewed together with GAAP results, provides management, investors, and other users of our financial information with a more complete understanding of factors and trends affecting our cash flows. We use these non-GAAP financial measures for business planning purposes and in measuring our performance relative to that of our competitors. We utilize adjusted EBITDA as a key measure of our performance.
Adjusted gross profit is our total revenue minus our total cost of revenue (exclusive of depreciation and amortization, which are shown separately) and adjusted gross margin is adjusted gross profit as a percentage of our total revenue.
Adjusted EBITDA consists of net loss before provision for income taxes; other expense (income), net; interest income; interest expense; depreciation of property and equipment; amortization of intangible assets; restructuring costs; acquisition, integration, and transformation cost; goodwill impairment; and stock-based compensation.
Free cash flow is net cash provided by operating activities less capital expenditures and capitalized software development costs.
Our use of these non-GAAP terms may vary from that of others in our industry, and other companies may calculate such measures differently than we do, limiting their usefulness as comparative measures.
Non-GAAP measures have important limitations as analytical tools and you should not consider them in isolation, and they should not be considered as an alternative to net loss before provision for income taxes, net loss, net loss per share, net cash from operating activities or any other measures derived in accordance with GAAP. Some of these limitations are:
- adjusted gross margin has been and will continue to be affected by a number of factors, including the fees we charge our clients, the number of visits and cases we complete, the costs paid to providers and medical experts, as well as the costs of our provider network operations center;
- adjusted gross margin does not reflect the significant depreciation and amortization to cost of revenue;
- adjusted EBITDA eliminates the impact of the provision for income taxes on our results of operations, and does not reflect other expense (income), net, interest income, or interest expense;
- adjusted EBITDA does not reflect restructuring costs. Restructuring costs may include certain lease impairment costs, certain losses related to early lease terminations, and severance;
- adjusted EBITDA does not reflect significant acquisition, integration, and transformation costs. Acquisition, integration, and transformation costs include investment banking, financing, legal, accounting, consultancy, integration, fair value changes related to contingent consideration, and certain other transaction costs related to mergers and acquisitions. It also includes costs related to certain business transformation initiatives focused on integrating and optimizing various operations and systems, including upgrading our customer relationship management and enterprise resource planning systems. These transformation cost adjustments made to our results do not represent normal, recurring, operating expenses necessary to operate the business but, rather, incremental costs incurred in connection with our acquisition and integration activities;
- adjusted EBITDA does not reflect goodwill impairment charges; and
- adjusted EBITDA does not reflect the significant non-cash stock-based compensation expense which should be viewed as a component of recurring operating costs.
In addition, although amortization of intangible assets and depreciation of property and equipment are non-cash charges, the assets being amortized and depreciated will often have to be replaced in the future, and adjusted gross profit, adjusted gross margin, and adjusted EBITDA do not reflect any expenditures for such replacements.
We compensate for these limitations by using these non-GAAP measures along with other comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include net loss, net loss per share, net cash provided by operating activities, and other performance measures.
In evaluating these financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in this presentation. Our presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.
The following is a reconciliation of gross profit, the most directly comparable GAAP financial measure, to adjusted gross profit:
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
(In thousands, 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 | |||||||
| Cost of revenue (exclusive of depreciation and amortization, which are shown separately below) | (188,928 | ) | (193,424 | ) | (751,270 | ) | (760,031 | ) | |||||||
| Amortization of intangible assets and depreciation of property and equipment | (31,052 | ) | (12,658 | ) | (113,747 | ) | (67,751 | ) | |||||||
| Gross Profit | 420,511 | 454,445 | 1,704,557 | 1,774,633 | |||||||||||
| Amortization of intangible assets and depreciation of property and equipment | 31,052 | 12,658 | 113,747 | 67,751 | |||||||||||
| Adjusted gross profit | $ | 451,563 | $ | 467,103 | $ | 1,818,304 | $ | 1,842,384 | |||||||
| Gross margin | 65.7 | % | 68.8 | % | 66.3 | % | 68.2 | % | |||||||
| Adjusted gross margin | 70.5 | % | 70.7 | % | 70.8 | % | 70.8 | % | |||||||
The following is a reconciliation of net loss, the most directly comparable GAAP financial measure, to adjusted EBITDA:
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(In thousands, unaudited)
| Outlook in millions (8) | |||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | First Quarter | Full Year | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2025 | 2025 | ||||||||||||||
| Net income (loss) | $ | (48,409 | ) | $ | (28,890 | ) | $ | (1,001,245 | ) | $ | (220,368 | ) | |||||||
| Add: | |||||||||||||||||||
| Provision for income taxes | 238 | 3,515 | 7,592 | 760 | |||||||||||||||
| Other expense (income), net | 7,341 | (1,537 | ) | 6,035 | (4,445 | ) | |||||||||||||
| Interest expense | 6,846 | 5,538 | 23,803 | 22,282 | |||||||||||||||
| Interest income | (14,231 | ) | (13,707 | ) | (57,071 | ) | (46,782 | ) | |||||||||||
| Depreciation of property and equipment | 2,980 | 2,793 | 10,183 | 11,138 | |||||||||||||||
| Amortization of intangible assets | 86,540 | 94,728 | 363,365 | 325,933 | |||||||||||||||
| Restructuring costs | 5,602 | 899 | 20,355 | 16,942 | |||||||||||||||
| Acquisition, integration, and transformation costs | 456 | 4,262 | 1,743 | 21,110 | |||||||||||||||
| Goodwill impairment | — | — | 790,000 | — | |||||||||||||||
| Stock-based compensation | 27,472 | 46,842 | 145,951 | 201,550 | |||||||||||||||
| Total Adjustments | 123,244 | 143,333 | 1,311,956 | 548,488 | 75 - 129 | 367 - 515 | |||||||||||||
| Consolidated Adjusted EBITDA | $ | 74,835 | $ | 114,443 | $ | 310,711 | $ | 328,120 | |||||||||||
| Segment Adjusted EBITDA | |||||||||||||||||||
| Integrated Care | $ | 53,161 | $ | 55,971 | $ | 232,902 | $ | 191,871 | |||||||||||
| BetterHelp | 21,674 | 58,472 | 77,809 | 136,249 | |||||||||||||||
| Consolidated Adjusted EBITDA | $ | 74,835 | $ | 114,443 | $ | 310,711 | $ | 328,120 | |||||||||||
See note (8) in the Notes section that follows.
The following is a reconciliation of net cash provided by operating activities, the most directly comparable GAAP financial measure, to free cash flow:
Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow
(In thousands, unaudited)
| Three Months Ended | Year Ended | Outlook (9) | |||||||||||||||
| December 31, | December 31, | Full Year | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2025 (in millions) | |||||||||||||
| Net cash provided by operating activities | $ | 85,902 | $ | 130,082 | $ | 293,680 | $ | 350,021 | |||||||||
| Capital expenditures | (6,132 | ) | (1,404 | ) | (10,790 | ) | (11,464 | ) | |||||||||
| Capitalized software development costs | (23,512 | ) | (35,103 | ) | (113,262 | ) | (144,884 | ) | |||||||||
| Capex | (29,644 | ) | (36,507 | ) | (124,052 | ) | (156,348 | ) | (131) - (121) | ||||||||
| Free Cash Flow | $ | 56,258 | $ | 93,575 | $ | 169,628 | $ | 193,673 | |||||||||
See note (9) in the Notes section that follows.
Notes:
- A reconciliation of each non-GAAP measure to the most comparable measure under GAAP has been provided in this press release in the accompanying tables. An explanation of these non-GAAP measures is also included under the heading “Non-GAAP Financial Measures.”
- U.S. Integrated Care Members represent the number of unique individuals who have paid access and visit fee only access to our suite of integrated care services in the U.S. at the end of the applicable period.
- Excluding the amount capitalized related to software development projects.
- Chronic Care Program Enrollment represents the total number of enrollees across our suite of chronic care programs at the end of the applicable period.
- Average monthly revenue per U.S. Integrated Care member is calculated by dividing the total revenue generated from the Integrated Care segment by the average number of U.S. Integrated Care Members (see note 2) during the applicable period.
- BetterHelp Paying Users represent the average number of global monthly paying users of our BetterHelp therapy services during the applicable period.
- We have two segments: Integrated Care and BetterHelp. The Integrated Care segment includes a suite of global virtual medical services including general medical, expert medical services, specialty medical, chronic condition management, mental health, and enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment includes virtual therapy and other wellness services provided on a global basis which are predominantly marketed and sold on a direct-to-consumer basis.
- We have not provided a full line-item reconciliation for net loss to adjusted EBITDA outlook because we do not provide outlook on the individual reconciling items between net loss and adjusted EBITDA. This is due to the uncertainty as to timing, and the potential variability, of the individual reconciling items such as impairments, stock-based compensation and the related tax impact, provision for income taxes, acquisition, integration, and transformation costs, and restructuring costs, the effect of which may be significant. Accordingly, a full line-item reconciliation of the GAAP measure to the corresponding non-GAAP financial measure outlook is not available without unreasonable effort.
- We have not provided a line-item reconciliation for free cash flow to net cash from operating activities for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable efforts.
Investors:
Michael Minchak
617-444-9612
ir@teladochealth.com
Media:
Lou Serio
202-569-9715
pr@teladochealth.com
FAQ
What caused Teladoc's (TDOC) significant net loss in Full Year 2024?
How did Teladoc's (TDOC) BetterHelp segment perform in Q4 2024?
What was Teladoc's (TDOC) cash position and cash flow in 2024?
How did Teladoc's (TDOC) Integrated Care segment perform in 2024?
