Teladoc Health, once a standout in the telehealth industry, has seen its shine fade after reporting its first-quarter earnings. The company’s stock price dropped more than 2% after market hours on Thursday, in contrast to the S&P 500 index’s 1% increase. Despite a 3% increase in revenue to $646 million for the period, Teladoc reported a deeper net loss according to generally accepted accounting principles (GAAP), amounting to almost $82 million. This was higher than the $69 million ($0.49 per share) loss in the first quarter of 2023.
Teladoc’s integrated care division saw an 8% increase in revenue to over $377 million, while BetterHelp experienced a 4% decline to $269 million. Analysts had mixed expectations for the company, anticipating slightly higher revenue of over $637 million but a slightly narrower net loss of $0.46 per share. However, despite these challenges, Teladoc Health continues to navigate the telehealth industry with investors closely monitoring its performance in the face of changing market conditions.
