Shares of Teladoc Health (TDOC -5.00%) collapsed over 30% this week, according to data from S&P Global Market Intelligence. The telehealth provider posted weak revenue growth, more operating losses, and bad 2024 guidance in its 2023 earnings release. Investors have soured on Teladoc stock after it boomed in 2020.The pandemic-era favorite is now off 95% from all-time highs, meaning for every $100 invested at its share price peak, only $5 remains today.Slowing growth, unprofitabilityIn the fourth quarter, Tel ...

Telehealth Services and Platform Capabilities - Teladoc Health completed approximately 18.4 million telehealth visits in 2023 through its business-to-business and direct-to-consumer channels[18] - Teladoc Health's platform is equipped to handle upwards of 100,000 visits per day and supports seamless integration of new clinical and digital services[40] - The company provides a proprietary blood glucose meter integrated with its platform, which delivers personalized health insights and AI-selected "nudges" to improve clinical outcomes[41] - Teladoc Health's platform is compliant with international data and privacy regulations, including GDPR, enabling global expansion and customization for local markets[43] - The company launched a unified mobile app in 2023, offering access to all virtual health services under the Teladoc Health brand, enhancing member engagement and multi-program enrollment[59] Revenue and Business Model - 88% of Teladoc Health's consolidated revenue for the year ended December 31, 2023, was derived from access fees[22] - The Integrated Care segment primarily generates revenue on a per-member-per-month (PMPM) basis, with access fees comprising the significant majority of its revenue[23][24] - The BetterHelp segment primarily generates revenue from paying users who pay a monthly fee to access its network of therapists and psychiatrists[26] - BetterHelp represented 44% of the company's total consolidated revenue in 2023[191] - The company's net cash provided by operating activities was $350.0 million in 2023, up from $189.3 million in 2022[193] Growth Strategy and Market Expansion - Teladoc Health's growth strategy focuses on enabling a "virtual first" approach to healthcare access, leveraging its integrated platform, AI, and machine learning to streamline care and drive better outcomes[51][52] - The company's Primary360 virtual primary care offering is expanding through commercial health plans, employers, and other organizations, aiming to deliver a reimagined model for primary care with integrated, multi-source data and personalized care plans[54][55] - The company estimates significant growth potential within existing clients, with opportunities to expand membership and cross-sell chronic condition management products[63] - The company's international operations, headquartered in Barcelona, Spain, provide 24x7 services globally, with expansion opportunities through existing partners in attractive markets[64][65] - The company plans to support its strategy with selective investments and acquisitions, focusing on scalable and rapidly growing products, capabilities, and distribution channels[67] Regulatory and Legal Compliance - Telehealth services require providers to hold valid licenses in the state where the patient is located, and the company has systems in place to ensure compliance with state licensing laws[84] - The company contracts with physician-owned professional associations and corporations for telehealth services, providing non-clinical functions like billing and medical record maintenance, which are subject to state laws prohibiting fee splitting and corporate practice of medicine[85] - State corporate practice of medicine and fee splitting laws vary and may apply even without a physical presence in the state, potentially leading to adverse actions if non-compliance is asserted[86] - The company is subject to the federal Stark Law, which prohibits physician self-referrals for Medicare patients, with penalties including denial of payment, refunds, civil penalties up to $29,899 per violation, and possible exclusion from federal healthcare programs[87] - The federal Anti-Kickback Statute prohibits remuneration for referrals under Medicare and Medicaid, with penalties including civil monetary penalties up to $120,816, criminal fines of $100,000 per violation, and imprisonment up to ten years[89] Financial Performance and Risks - Net losses of $220.4 million and $13,659.5 million for the years ended December 31, 2023 and 2022, respectively, with non-cash impairment charges of $13,402.8 million in 2022[124] - Accumulated deficit of $15,228.7 million as of December 31, 2023[124] - Definitive-lived intangible assets, net of $1.7 billion and goodwill of $1.1 billion as of December 31, 2023, all carried by the BetterHelp segment[127] - Non-deductible goodwill impairments totaling $13.4 billion recognized in 2022[127] - Virtual care market uncertainty due to potential negative publicity, lack of consumer acceptance, and slow market adoption[130] Cybersecurity and Data Privacy - The company is subject to HIPAA's privacy and security standards, which require administrative, physical, and technical safeguards for PHI, and applies to business associates creating, receiving, maintaining, or transmitting PHI[95] - HIPAA violations may result in significant civil and criminal penalties, with breach notifications required for unsecured PHI affecting more than 500 individuals, including reporting to HHS and local media[96] - State attorneys general can prosecute HIPAA violations, and while HIPAA does not create a private right of action, its standards have been used in state civil suits for negligence or recklessness in misusing personal information[97] - The company is subject to GDPR compliance, with potential fines of up to €20,000,000 or 4% of total worldwide annual revenue for violations[103] - The company operates under the EU-U.S. Data Privacy Framework, which replaced the U.S.-EU Privacy Shield in July 2023[104] Employee and Organizational Structure - The company employs approximately 5,600 people as of December 31, 2023, with 86% being full-time employees and 14% part-time employees[112] - 63% of the company's employees work in the U.S., while 37% are based in international locations[112] - The company offers employees access to mental health resources, digital health devices, and an employee assistance program as part of its benefits[113] - The company has seven Business Resource Groups (BRGs) focused on diversity, equity, and inclusion, including LGBTQ+, women, and military veterans[116] - The company achieved over 13,000 volunteer hours globally in 2023, aligning with its values of community impact and social responsibility[118] Technology and Innovation - The company relies on intellectual property rights, including trademarks, trade secrets, and confidentiality agreements, to protect its products and technologies[119] - AI and machine learning present risks, including potential bias issues and regulatory challenges, which could affect adoption and business performance[152][153] - Rapid technological change in the virtual care market poses risks, requiring continuous system upgrades and adaptation to evolving consumer trends[149] - The company faces challenges in maintaining interoperability with third-party technologies and platforms, which could impact member engagement and growth[151] - Proprietary software defects or errors could harm the company's reputation and lead to revenue loss or increased maintenance costs[211] Market and Competitive Risks - Competitive pressures in the virtual care market, including price declines and elongated sales cycles for certain products[135] - Significant reliance on Client contract renewals and sales of additional applications and services for future revenue growth[138] - Risk of early contract termination by Clients, potentially leading to unanticipated revenue and cash flow shortfalls[140] - Revenue is heavily dependent on the number of individuals covered by clients and the number of applications or services subscribed to, with potential decreases due to economic conditions or other factors[145][146] - A decline in employer-sponsored healthcare or the emergence of new technologies could render the company's virtual care solutions obsolete[154][155] Operational and Supply Chain Risks - The company relies on a limited number of third-party suppliers for medical device components, and disruptions in supply could harm its business and reputation[173] - The company's services depend on the development and maintenance of internet and mobile technology infrastructure by third parties[203] - The company's ability to deliver services without interruption is critical, but it has experienced and expects future interruptions and delays[203] - The company's cloud vendors and data center operators could decide to close facilities without adequate notice, potentially causing significant costs and service interruptions[202] - The company faces risks from third-party vendor service interruptions, which could reduce revenue and lead to refunds for prepaid subscription services[204] Cybersecurity Threats - Cybersecurity incidents could result in unauthorized access to sensitive client or member data, leading to reputational damage and potential litigation[206] - The company has experienced cybersecurity incidents in the past and may need to allocate additional resources to enhance security measures[206] - A successful ransomware attack could disrupt services, resulting in revenue loss, fines, and reputational damage[209] - Security breaches or failures could lead to litigation, regulatory actions, and significant costs for remedial measures[206] - The threat of ransomware has escalated, posing risks of large-scale business disruption and data breaches[209] International Operations and Risks - International operations accounted for approximately 14% of revenue in 2023, but they face risks such as regulatory compliance, geopolitical instability, and currency fluctuations[179] - The company is expanding internationally, facing varying legal and regulatory requirements, including anti-corruption laws like the FCPA and U.K. Bribery Act[106] - The company's business is exposed to fluctuations in exchange rates due to operations in different geographical areas and transactions in multiple currencies[198] - The company relies on a multi-cloud architecture with geographically diverse instances to insulate applications from local failures[202] - The company may face challenges in maintaining adequate insurance coverage for security and privacy damages at acceptable costs[204] Sales and Marketing - The company's marketing programs target HR, benefits, and finance executives, as well as healthcare professionals, leveraging integrated campaigns and industry events to build brand awareness[69] - The sales cycle for the company's solutions varies widely, ranging from days to approximately 24 months, with economic conditions potentially delaying or lengthening the cycle[166] - Economic downturns or uncertainties could disproportionately affect demand for the company's solutions, particularly in industries like healthcare, where spending may be reduced[167] - Failure to expand the direct sales force adequately could impede the company's growth, as it takes six months or longer to fully train a new sales representative[165] - The company's growth strategy depends on maintaining and expanding a network of qualified providers, with increasing competition for such providers[163] Financial and Investment Overview - As of December 31, 2023, the company had $1,123.7 million in cash and cash equivalents[193] - The company had outstanding $1,000.0 million of 1.25% convertible senior notes due 2027, $0.7 million of 1.375% convertible senior notes due 2025, and $550.0 million of 0.875% convertible senior notes due 2025[193] - The company's investments include $1,123.7 million in cash, cash equivalents, restricted cash, and fixed income securities as of December 31, 2023[197] - The company's quarterly results may fluctuate significantly due to upfront costs for client contracts, with revenue recognized over the contract term, making short-term results less indicative of future performance[172] - Significant upfront costs are incurred in client relationships, and failure to maintain or grow these relationships could lead to unrecovered costs and adverse effects on financial performance[147] Chronic Care and Mental Health Services - myStrength Complete and Chronic Care Complete are expanding within the chronic care management and mental health suite, with innovations like home delivery of continuous glucose monitors and A1c test kits, and expanded mental health therapy for adolescents[57] - BetterHelp, the company's D2C mental health platform, is a market leader with substantial untapped growth potential, historically attracting almost half of its users who had never sought therapy before[66] - The company plans to increase engagement and long-term relationships with members by refining user experience and leveraging integrated smart devices for AI-driven nudges to improve health outcomes[58][59] - The Inpatient Connected Care offering addresses hospital staffing shortages, projected to require 2.1 million new registered nurses by 2025, by turning patient room TVs into virtual care endpoints[56] - The company established The Institute for Patient Safety and Quality of Virtual Care in 2019, the first Patient Safety Organization (PSO) dedicated to virtual care[50] Legal and Regulatory Risks - The False Claims Act imposes fines ranging from $13,058 to $27,018 per false claim, plus up to three times the damages sustained by the federal government, and may result in exclusion from federally funded healthcare programs[90] - The company is subject to state privacy laws such as the CCPA, CPRA, and others, which may impose stricter requirements than HIPAA[99] - The company faces potential litigation and reputational damage from privacy-related lawsuits, even if in compliance with applicable laws, due to increased public awareness of privacy issues[98] - Potential adverse effects from changes in healthcare spending and policy, including Medicare payment reductions of up to 2% per fiscal year through 2030[132] - The company depends on its senior management team, and the loss of key executives or difficulty in attracting skilled employees could disrupt its growth strategy[185]

Teladoc Health (TDOC -23.67%) has taken investors on a roller-coaster ride over the past few years. During the earliest days of the pandemic, the telemedicine giant soared, along with its revenue and virtual visits, as people favored staying home. Then the shares declined in more recent times as investors worried about the company's ability to reach profitability.The company heard those concerns, and last year, it set to work on a plan to cut costs, boost efficiency, and balance the quest for revenue growth ...

Teladoc (TDOC -23.67%) stock got crushed in Wednesday's trading session. The online healthcare specialist's share price ended the day's trading down 23.7%, according to data from S&P Global Market Intelligence.Teladoc released its Q4 results after the market closed yesterday and actually posted a loss for the period that was significantly smaller than expected. But the company's sales performance for the quarter missed Wall Street's target, and management issued disappointing forward guidance. The stock is ...

Key PointsTeladoc Health stock is down sharply after weak 2024 guidance. The company is finding it harder to capture market share as virtual care is now a mainstream option.  Institutions may not be giving up on TDOC stock, but it may be a better trade than an investment.  5 stocks we like better than Teladoc HealthOne of 2021's favorite meme stocks is falling on hard times. Teladoc Health Inc. NYSE: TDOC stock is down more than 22% in early morning trading after the company delivered a poor outlook for 202 ...

Teladoc Health, Inc. (TDOC) incurred a fourth-quarter 2023 adjusted loss of 17 cents per share, narrower than the Zacks Consensus Estimate of a loss of 22 cents per share and the year-ago quarter’s figure of a loss of $23.49 per share. The figure also came narrower than the management’s estimated range of a loss of 33-23 cents per share.Operating revenues improved 4% year over year to $660.5 million (within management’s expected range of $658-$683 million). The top line missed the consensus mark by 1.5%.The ...

It was another quarter, another disappointment for Teladoc Health (TDOC -24.62%) this week. Shares of the telehealth services provider plummeted sharply at the open on Wednesday after the company posted weaker-than-expected financial results.The report wasn't pretty, and its guidance was also underwhelming from a top-line growth perspective. Teladoc was a market darling when it hit the market as the country's first and largest telehealth platform nine years ago at $19 a share. It became a broken IPO on Wedn ...

Fool.com contributor Parkev Tatevosian determines if Teladoc (TDOC -2.57%) stock is a buy after it plunged 93% in the stock market. *Stock prices used were the afternoon prices of Feb. 18, 2024. The video was published on Feb. 20, 2024. ...

Teladoc Health (NYSE:TDOC) stock is dropping on Wednesday after the virtual healthcare services company released its earnings report for the fourth quarter of 2023.The reason for this drop is Teladoc Health reporting revenue of $660.53 million in its earnings report. That’s below the $671.09 million that Wall Street was expecting for the quarter. Even if it’s a 4% increase year-over-year from $637.71 million.The company’s diluted earnings per share for the quarter came in at -17 cents. That’s better than th ...

Financial Data and Key Metrics - Consolidated revenue for Q4 2023 grew 4% year-over-year to $661 million, with adjusted EBITDA increasing 22% to $114 million, representing a margin of 17.3% [35][41] - Full-year 2023 revenue was $2.6 billion, up 8% year-over-year, with adjusted EBITDA growing 33% to $328 million and margins expanding 240 basis points to 12.6% [73] - Free cash flow for Q4 2023 was $93.6 million, compared to $11.7 million in Q4 2022, with full-year free cash flow reaching $193.7 million, up from $16.5 million in 2022 [42] - The company ended 2023 with over $1.1 billion in cash and cash equivalents [42] Business Line Performance Integrated Care Segment - Q4 2023 revenue grew 8% year-over-year to $384 million, with segment margins expanding 230 basis points to 14.6% [35][74] - Full-year 2023 revenue for the segment increased 7% to $1.5 billion, driven by chronic care revenue growth [74] - Chronic care enrollment grew by 36,000 in Q4, bringing full-year net enrollment growth to 139,000, with total enrollment reaching 1.16 million, up 14% year-over-year [43] - Approximately 16% of the general medical client base has access to chronic care products, up from 12% two years ago [31][89] BetterHelp Segment - Q4 2023 revenue was $276 million, flat year-over-year, with adjusted EBITDA growing 11% to $58 million and margins expanding 210 basis points to 21.2% [30][44] - Full-year 2023 revenue for BetterHelp was $1.1 billion, up 11% year-over-year, with adjusted EBITDA growing 19% to $136 million and margins expanding to 12% [44] - Marketing yields for BetterHelp were below expectations in the second half of 2023, particularly in social media channels, impacting growth [30][96] Market Performance - The U.S. virtual care business, which accounts for roughly half of the Integrated Care segment, is expected to grow in the low single digits due to market penetration [36] - International B2B business, particularly in Canada, is a steady contributor to revenue growth, with expanded presence expected to drive visibility into 2024 growth [37] - BetterHelp's international revenue accounted for 15% of fiscal 2023 revenue, with efforts underway to expand further into non-English-speaking markets [38] Strategic Direction and Industry Competition - The company is targeting 50 to 100 basis points of annual margin expansion over the next three years, with a goal of reaching at least $425 million in adjusted EBITDA by 2025 [29][53] - Productivity initiatives, including automation and organizational realignment, are expected to deliver $85 million in annual run-rate savings by the end of 2024 [40] - The company is focusing on cross-selling chronic care products to its existing client base, with 75% of bookings coming from upsells or expansions with existing clients [34][89] - Investments in technology, including AI and machine learning, are seen as key competitive advantages to drive engagement and multi-product utilization [39] Management Commentary on Operating Environment and Future Outlook - Management expects mid-single-digit annual revenue growth for the Integrated Care segment and low single-digit growth for BetterHelp over the next three years [37][53] - The company anticipates continued pressure on customer acquisition costs in the first half of 2024, with easier comps in the second half [2][86] - BetterHelp's growth is gated by the ability to deploy capital efficiently at acceptable rates of return, with a focus on profitable growth [69][113] Other Key Information - The company identified a technical issue in mapping new client populations, delaying B2B consumer engagement efforts and impacting 2024 revenue by approximately $20 million [78][84] - Share buybacks are being considered to offset potential dilution from employee stock grants, with $1.1 billion in cash providing flexibility for strategic opportunities [19][80] Q&A Summary Question: Capital Deployment and Debt Management [6] - The company has $550 million in convertible debt due in June 2025 and $1 billion due in 2027, with plans to use cash to pay down debt and consider share buybacks [16][118] Question: BetterHelp Marketing Yields [17] - Marketing yields for BetterHelp remain depressed due to increased competition in the ad space, with no single competitor driving up rates [18][96] Question: Portfolio Assessment [23] - The company is conducting a portfolio assessment to evaluate profitability and growth outlook across customer segments, geographies, and products, with no significant changes expected in the near term [105] Question: Chronic Care Growth and Bundling [57] - Chronic care growth is expected to be mid to high single digits, with bundled programs contributing to higher revenue per client but lower revenue per member [108] Question: Cost Savings Program [93] - The $35 million in cost savings for 2024 is expected to benefit adjusted EBITDA, with most savings coming from the Integrated Care segment [114] Question: Delayed Enrollment Impact [115] - A technical issue in mapping new client populations delayed consumer engagement marketing by three to four weeks, impacting chronic care program enrollment [115]