Group 1 - The article suggests that investors should consider positioning themselves in undervalued stocks that are mispriced by the market as May approaches [1] - There is an emphasis on the importance of conducting personal research or consulting a financial advisor before making investment decisions [3] - The article does not provide specific stock recommendations or advice on suitability for particular investors [4] Group 2 - The content is intended for informational purposes only and does not constitute a solicitation to buy or sell securities [3] - The article clarifies that past performance is not indicative of future results, highlighting the inherent risks in investing [4] - The authors of the article are identified as third-party contributors, which may include both professional and individual investors [4]

Membership and Enrollment - U.S. Integrated Care members increased by 10.7 million, or 12%, to 102.5 million at March 31, 2025, compared to the same period in 2024[108]. - Chronic care program enrollment increased by 3% to 1.151 million at March 31, 2025, compared to 1.121 million at March 31, 2024[109]. Revenue and Financial Performance - Total revenue for the three months ended March 31, 2025, was $629.4 million, a decrease of $16.8 million, or 3%, compared to $646.1 million in the same period of 2024[125]. - Integrated Care segment revenue increased by $12.4 million, or 3%, to $389.5 million for the three months ended March 31, 2025, driven by higher chronic care program enrollment and telemedicine product revenue[143]. - BetterHelp total revenues decreased by $29.1 million, or 11%, to $239.9 million for the three months ended March 31, 2025, driven by a 4% decrease in average monthly paying users[148]. Profitability and Loss - Net loss for the three months ended March 31, 2025, was $93.0 million, an increase of $11.1 million, or 14%, compared to a net loss of $81.9 million in the same period of 2024[124]. - Adjusted EBITDA for the three months ended March 31, 2025, was $58.1 million, a decrease of $5.0 million, or 8%, compared to $63.1 million in the same period of 2024[125]. - Adjusted EBITDA decreased by $7.8 million, or 50%, to $7.7 million, with an adjusted EBITDA margin of 3.2%[148]. Expenses - Advertising and marketing expenses decreased by $15.1 million, or 8%, to $168.2 million for the three months ended March 31, 2025, primarily due to lower digital and media advertising costs[128]. - Technology and development expenses decreased by $11.4 million, or 14%, to $70.0 million for the three months ended March 31, 2025, reflecting lower employee compensation costs[129]. - Cost of revenue increased by $2.3 million, or 1%, to $196.8 million for the three months ended March 31, 2025, primarily driven by higher labor and technology costs[126]. - Cost of revenue, exclusive of depreciation, amortization, and stock-based compensation, decreased by $7.6 million, or 10%, to $65.2 million, primarily due to lower therapist costs[148]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $15.9 million for the three months ended March 31, 2025, compared to $8.9 million for the same period in 2024[157]. - Cash used in investing activities was $123.3 million, including $64.6 million for the acquisition of Catapult Health and $27.0 million for acquiring securities of a private company[159]. - Free cash flow was an outflow of $15.7 million for the three months ended March 31, 2025, compared to an outflow of $26.6 million for the same period in 2024[161]. - As of March 31, 2025, cash and cash equivalents totaled $1,193.3 million, with expectations of continuing positive operating cash flows for 2025[151]. Impairments and Restructuring - Goodwill impairment of $59.1 million was recognized in the three months ended March 31, 2025, related to the acquisition of Catapult Health[132]. - Restructuring costs decreased to $4.3 million for the three months ended March 31, 2025, from $9.7 million in the same period of 2024, reflecting a reduction in employee transition and severance costs[134][135]. Market and Competitive Environment - The company faces risks related to competition, particularly from health plans that may develop solutions replicating its services[108]. - The company expects tariffs on imported goods to impact consolidated results of operations due to retaliatory tariffs from affected countries[107]. - The company’s business is subject to seasonality, with the highest level of visit and fee revenue typically occurring in the first and fourth quarters[112]. Financial Metrics and Estimates - Adjusted EBITDA is used as a key measure of performance, consisting of net loss before provision for income taxes and other specified expenses[117]. - Free cash flow is defined as net cash provided by operating activities less capital expenditures and capitalized software development costs[118]. - The company evaluates its estimates and judgments related to revenue recognition and other financial metrics on an ongoing basis[115]. - Revenue from the five largest customers accounted for 31% of total Integrated Care segment revenue for the three months ended March 31, 2025[166]. - A 1% change in interest rates would result in a change of interest income generated from cash and cash equivalents by approximately $7.2 million over the next 12 months[163].

Core Insights - Teladoc reported revenue of $629.37 million for Q1 2025, a decrease of 2.6% year-over-year, with an EPS of -$0.19, an improvement from -$0.49 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $617.67 million by 1.89%, while the EPS surpassed the consensus estimate of -$0.33 by 42.42% [1] Financial Performance Metrics - Average Revenue Per U.S. Integrated Care Member was $1.27, matching the five-analyst average estimate [4] - U.S. Integrated Care Members reached 102.5 million, exceeding the five-analyst average estimate of 101.3 million [4] - BetterHelp Paying Users totaled 0.4 million, slightly above the estimated 0.39 million [4] - Chronic Care Program Enrollment was 1.15 million, below the average estimate of 1.19 million [4] Revenue by Segment - Teladoc Health Integrated Care generated $389.47 million, surpassing the $380.91 million average estimate, reflecting a year-over-year increase of 3.3% [4] - BetterHelp reported revenues of $239.90 million, slightly above the $237.29 million estimate, but down 10.8% year-over-year [4] - BetterHelp-Other Wellness Services generated $5.46 million, below the three-analyst average estimate of $5.87 million, with a year-over-year increase of 2.9% [4] - BetterHelp-Therapy Services reported $234.44 million, exceeding the $231.85 million estimate, but down 11.1% from the previous year [4] Revenue by Type - Revenue from Other sources was $103.63 million, significantly above the two-analyst average estimate of $84.31 million, marking a year-over-year increase of 16.5% [4] - Access fees generated $525.74 million, below the $533.56 million average estimate, representing a year-over-year decline of 5.6% [4] Adjusted EBITDA - Adjusted EBITDA for BetterHelp was $7.71 million, slightly below the $7.93 million average estimate [4] - Adjusted EBITDA for Teladoc Health Integrated Care was $50.38 million, exceeding the five-analyst average estimate of $46.02 million [4]

Financial Data and Key Metrics Changes - The company reported first quarter consolidated revenue of $629.4 million, down 3% year over year, but at the high end of the guidance range [22] - Adjusted EBITDA was $58.1 million, representing a margin of 9.2%, near the high end of the guidance range [22] - Consolidated net loss per share was $0.53, compared to a net loss per share of $0.49 in the same quarter of the previous year [22][23] - Free cash flow was a net outflow of $16 million, an improvement of $11 million compared to the prior year [22] Business Line Data and Key Metrics Changes - Integrated Care segment revenue was $389.5 million, an increase of 3.3% year over year, exceeding the top end of the guidance range [24] - U.S. Integrated Care segment membership reached 102.5 million, up 12% year over year [25] - BetterHelp segment revenue was $239.9 million, down 11% year over year, but above the midpoint of the guidance range [27] - BetterHelp adjusted EBITDA was $7.7 million, down from $15.5 million in the prior year, with an adjusted EBITDA margin of 3.2% [27] Market Data and Key Metrics Changes - U.S. virtual visit volumes grew by 7%, and Chronic Care enrollment increased by 3% [13] - International revenue growth for Integrated Care was in the mid-teens on a constant currency basis [14] - BetterHelp served over 1 million unique users globally in 2024, with 40% of those being new to therapy [10] Company Strategy and Development Direction - The company announced the acquisition of Uplift, a virtual mental health company, to enhance its BetterHelp segment and support consumers seeking covered benefits [3][9] - The focus remains on expanding access to virtual mental health services and leveraging BetterHelp's marketing budget more effectively [27][75] - The company is committed to improving performance through technology investments and operational efficiencies [20][102] Management's Comments on Operating Environment and Future Outlook - The healthcare industry is facing challenges such as medical cost trends and mental health issues, which present both opportunities and challenges for the company [18][19] - The broader economic environment is being monitored closely, with signs of weakening business and consumer sentiment [20] - The company remains on track with its 2025 revenue outlook and is focused on executing strategic priorities despite macro uncertainties [21] Other Important Information - The company has a strong cash position with nearly $1.2 billion in cash and cash equivalents [41] - The acquisition of Uplift is expected to enhance the company's ability to offer insurance benefits coverage, which is anticipated to lead to higher conversion rates and user engagement [34][35] Q&A Session Summary Question: Impact of shorter duration contracts on churn and expectations - Management noted that the weekly offering has led to stronger conversion rates but also higher churn, which was expected. Overall, the net effect remains positive [48][49] Question: Evaluation of BetterHelp network's payer coverage - Management clarified that the focus was on technical capabilities and that they paused payer contracts to avoid mixed signals during the Uplift acquisition [51][52] Question: Trends in BetterHelp member growth and revenue per member - Management explained that while revenue per member has declined, this is due to onboarding a large number of new members, which will provide opportunities for upselling additional services over time [61][62] Question: Strategic focus on profitability per member - Management emphasized the importance of activating membership to drive revenue and highlighted ongoing efforts to enhance chronic care management programs [71][73] Question: BetterHelp margin improvement in the second half of the year - Management indicated that revenue growth in the second half will be driven by international efforts and insurance initiatives, with a planned pullback in ad spend [81][82] Question: Customer acquisition cost trends in BetterHelp - Management reported stable customer acquisition costs, with improved conversion rates from the weekly offering contributing to favorable trends [92][93] Question: Opportunities for cost savings in technology and G&A - Management confirmed ongoing efforts to streamline costs, with a focus on reducing technology and development spending while maintaining control over the overall cost base [100][102]

Financial Performance (Q1 2025) - Revenue for 1Q-25 was $629 million, a decrease of 3% year-over-year[4] - Net loss per share for 1Q-25 was $(0.53)[4] - Adjusted EBITDA for 1Q-25 was $58.1 million, a decrease of 8% year-over-year[4] Financial Outlook (FY2025 & Q2 2025) - The company projects FY-25 revenue to be in the range of $2,468 million to $2,576 million[5] - The company projects 2Q-25 revenue to be in the range of $614 million to $633 million[5] - The company projects FY-25 net loss per share to be in the range of $(1.40) to $(0.90)[6] - The company projects 2Q-25 net loss per share to be in the range of $(0.40) to $(0.20)[6] - The company projects FY-25 Adjusted EBITDA to be in the range of $263 million to $304 million[6] - The company projects 2Q-25 Adjusted EBITDA to be in the range of $56 million to $70 million[6] Key Operating Metrics (Q1 2025) - U S Integrated Care Members reached 102.5 million[20] - Average Revenue per Month per U S Integrated Care Member was $1.27[22]

Financial Data and Key Metrics Changes - First quarter consolidated revenue was $629.4 million, down 3% year over year, but at the high end of the guidance range [20] - Adjusted EBITDA was $58.1 million, representing a margin of 9.2% [20] - Consolidated net loss per share was $0.53, compared to a net loss per share of $0.49 in the same quarter of the previous year [20][21] - Free cash flow was a net outflow of $16 million, an improvement of $11 million compared to the prior year [22] Business Line Data and Key Metrics Changes - Integrated Care segment revenue was $389.5 million, an increase of 3.3% year over year, exceeding the top end of guidance [22] - BetterHelp segment revenue was $239.9 million, down 11% year over year, but above the midpoint of guidance [26] - U.S. Integrated Care segment membership reached 102.5 million, up 12% year over year [24] - Virtual visit volume in the U.S. increased by 7%, while Chronic Care enrollment rose by 3% [24] Market Data and Key Metrics Changes - The international business of Integrated Care showed revenue growth in the mid-teens on a constant currency basis [13][24] - BetterHelp served over 1 million unique users globally in 2024, with 40% being new to therapy [8] Company Strategy and Development Direction - The acquisition of Uplift aims to enhance the BetterHelp segment's position in virtual mental health services [6][7] - The company is focused on expanding its international markets and enhancing product offerings, including new pricing models [11] - The strategy includes leveraging BetterHelp's consumer expertise to provide more options for mental health care [7] Management's Comments on Operating Environment and Future Outlook - The healthcare industry faces challenges from medical cost trends and mental health issues, but these dynamics also present opportunities [16] - The broader economic environment is being monitored closely, with signs of weakening business and consumer sentiment [18] - The company remains on track with its 2025 revenue outlook and is optimistic about future growth potential despite macro uncertainties [19] Other Important Information - The company has a strong cash position with nearly $1.2 billion in cash and cash equivalents [38] - The acquisition of Uplift was valued at $30 million in cash, with potential additional earn-out consideration [32] Q&A Session Summary Question: Impact of shorter duration contracts on BetterHelp - Management noted that the weekly offering has led to stronger conversion rates but also higher churn, resulting in a net positive effect [41][44] Question: Evaluation of BetterHelp network's payer coverage - Management clarified that the focus was on technical capabilities and that they paused payer contracts to avoid mixed signals during the Uplift acquisition [47][49] Question: Trends in BetterHelp member growth and revenue per member - Management explained that while revenue per member has declined, the significant increase in membership provides opportunities for upselling additional services [56][58] Question: BetterHelp margin improvement expectations - Management indicated that the second half of the year would see revenue growth driven by international efforts and insurance initiatives, with a planned pullback in ad spend [75][77] Question: Customer acquisition cost trends - Management reported stable customer acquisition costs, with favorable trends due to improved conversion rates from the weekly offering [85][86] Question: Cost-saving opportunities in technology and G&A - Management emphasized ongoing efforts to streamline costs, with a focus on technology and development spending being down year over year [92][95]

Revenue Performance - First Quarter 2025 revenue decreased 3% year-over-year to $629.4 million from $646.1 million in First Quarter 2024[7] - Integrated Care segment revenue increased 3% year-over-year to $389.5 million, with an adjusted EBITDA margin of 12.9%[7] - BetterHelp segment revenue decreased 11% year-over-year to $239.9 million, with an adjusted EBITDA margin of 3.2%[7] - Total revenue for the three months ended March 31, 2025, was $629,369,000, a decrease of 3% compared to $646,131,000 in 2024[26] - U.S. revenue decreased by 4% to $524,970,000 from $547,600,000, while international revenue increased by 6% to $104,399,000 from $98,531,000[26] Net Loss and Earnings - Net loss for First Quarter 2025 was $93.0 million, or $0.53 per share, compared to a net loss of $81.9 million, or $0.49 per share in the prior year[9] - Net loss for the three months ended March 31, 2025, was $93,012,000, compared to a net loss of $81,889,000 in 2024[32] - Consolidated Adjusted EBITDA for the three months ended March 31, 2025, was $58,093 million, down from $63,140 million in 2024[42] Adjusted EBITDA - Adjusted EBITDA for First Quarter 2025 was $58.1 million, down 8% from $63.1 million in First Quarter 2024[12] - BetterHelp segment reported an Adjusted EBITDA of $7,714 million for the three months ended March 31, 2025, compared to $15,466 million in 2024[42] - The company expects a full-year Adjusted EBITDA outlook of $263 - $304 million for 2025[42] Cash Flow and Capital Expenditures - Free cash flow for 2025 is projected to be between $170 million and $200 million[16] - Free Cash Flow for the three months ended March 31, 2025, was $(15,666) million, compared to $(26,592) million in 2024[43] - Capital expenditures for the three months ended March 31, 2025, were $(31,585) million, with a full-year outlook of $(139) - $(129) million[43] Member Growth and Metrics - The company anticipates U.S. Integrated Care Members to be between 101 million and 103 million for the full year 2025[16] - U.S. Integrated Care members increased by 12% to 102.5 million from 91.8 million year-over-year[28] - Average monthly revenue per U.S. Integrated Care member decreased by 8% to $1.27 from $1.38[28] - Average monthly revenue per U.S. Integrated Care member is calculated based on total revenue generated from the Integrated Care segment divided by the average number of U.S. Integrated Care Members[45] Acquisition and Future Outlook - The company announced the acquisition of UpLift Health Technologies for $30.0 million, with potential additional earnout consideration of up to $15.0 million[13] - For the second quarter of 2025, revenue is expected to be in the range of $614 million to $633 million[16] - For the full year 2025, the company expects revenue in the range of $2,468 million to $2,576 million and adjusted EBITDA between $263 million and $304 million[16] Financial Position - Cash and cash equivalents at the end of the period were $1,193,332,000, down from $1,298,327,000 at the beginning of the period[34] - Total assets decreased to $3,444,445,000 from $3,516,524,000, while total liabilities slightly decreased to $2,017,415,000 from $2,025,445,000[34] Restructuring and Impairment - The company incurred restructuring costs of $4,347 million for the three months ended March 31, 2025[42] - Goodwill impairment for the three months ended March 31, 2025, was $59,138 million, indicating potential challenges in asset valuation[42]

Core Insights - Teladoc Health reported a consolidated revenue of $629.4 million for Q1 2025, a decrease of 3% compared to $646.1 million in Q1 2024 [5][6] - The company experienced a net loss of $93.0 million, or $0.53 per share, which is an increase in loss compared to $81.9 million, or $0.49 per share, in the previous year [7][26] - Adjusted EBITDA for Q1 2025 was $58.1 million, down 8% from $63.1 million in Q1 2024 [11][47] Financial Performance - Revenue breakdown: Access fees revenue decreased by 6% to $525.7 million, while other revenue grew by 16% to $103.6 million [6][28] - U.S. revenue decreased by 4% to $525.0 million, while international revenue increased by 6% to $104.4 million [6][28] - Integrated Care segment revenue increased by 3% to $389.5 million, while BetterHelp segment revenue decreased by 11% to $239.9 million [6][32] Loss and Expenses - The net loss included a non-cash goodwill impairment charge of $59.1 million, which contributed significantly to the overall loss [7][9] - Total costs and expenses for Q1 2025 were $749.98 million, compared to $733.25 million in Q1 2024 [26] - Stock-based compensation expense decreased to $25.2 million from $42.3 million in the previous year [27] Cash Flow and Capital Expenditures - Cash flow from operations was $15.9 million, an increase from $8.9 million in Q1 2024 [12] - Capital expenditures were $31.6 million, down from $35.5 million in the previous year [12] Strategic Developments - Teladoc announced the acquisition of UpLift Health Technologies for $30 million, aimed at enhancing its BetterHelp segment [13] - The acquisition is expected to expand access to virtual mental health services for consumers [13] Future Outlook - For the full year 2025, the company expects revenue between $2.468 billion and $2.576 billion, with adjusted EBITDA projected between $263 million and $304 million [16] - The second quarter 2025 outlook includes expected revenue of $614 million to $633 million and adjusted EBITDA of $56 million to $70 million [18]

Core Viewpoint - Teladoc Health has acquired UpLift for $30 million in cash, with potential additional earnouts, to enhance its position in virtual mental health services [6]. Group 1: Acquisition Details - The acquisition of UpLift is aimed at strengthening Teladoc's leadership in virtual mental health, allowing BetterHelp users to access mental health service benefits [2][3]. - UpLift has coverage arrangements for over 100 million lives and a network of more than 1,500 mental health professionals [2]. - The transaction closed on April 30, 2025, and UpLift's 2024 revenue was approximately $15 million [6]. Group 2: Strategic Implications - BetterHelp, as the largest consumer-oriented virtual therapy business, will utilize its differentiated experience to enhance insurance coverage access for consumers through UpLift [3]. - The partnership is expected to drive topline revenue growth and expand the impact of mental health services [4]. - UpLift will continue to operate under its existing CEO, maintaining its responsibilities in provider network management and insurance administration [5]. Group 3: Company Overview - Teladoc Health is a leader in virtual care, leveraging over two decades of expertise to improve health outcomes across various stages of a person's health journey [7].

Core Insights - Virtual healthcare services, or telehealth, are becoming a standard in the digital healthcare space, with companies like Hims & Hers Health, Inc. (HIMS) and Teladoc Health, Inc. (TDOC) emerging as key players [1][2] Group 1: Hims & Hers Health, Inc. (HIMS) - HIMS is expanding into new specialty areas that can be treated effectively via telehealth, including weight loss, sleep disorders, and hypertension, which are prevalent among its customer base [3] - The company has announced a collaboration with Novo Nordisk to enhance accessibility and affordability of obesity care [4] - Over 65% of new subscribers in 2024 benefited from personalized products, supported by the MedMatch AI tool for customized treatment plans [5] - HIMS has shown strong stock performance, rallying 158.5% over the past year, compared to TDOC's decline of 44.3% [9] Group 2: Teladoc Health, Inc. (TDOC) - TDOC is broadening its virtual care offerings across the healthcare continuum, including primary care, chronic care, and mental health management [6] - The company has established a global distribution network, facilitating partnerships with insurers and expanding its services internationally [7] - TDOC aims to enhance its capabilities through selective acquisitions, such as the agreement to acquire Catapult Health [8] - Despite its growth, TDOC's stock has underperformed, with a decline of 29.7% over the past three months [9] Group 3: Stock Performance & Valuation - HIMS is trading at a forward price-to-sales (P/S) ratio of 3.1X, above its three-year median of 2.2X, while TDOC's forward sales multiple is at 0.5X, below its median of 1.2X [10] - The Zacks Consensus Estimate for HIMS' 2025 earnings per share suggests a 166.7% improvement from 2024, while TDOC's estimate implies an 85% improvement in loss per share [12][15] - Analysts' average price target for HIMS is $27.50, indicating a potential decline of 53.5%, while TDOC's average target is $10.90, implying a decline of 19.3% [16][18] Group 4: Investment Outlook - HIMS is viewed as a more stable investment opportunity with strong profitability and user engagement, earning a Zacks Rank 2 (Buy) [21] - TDOC, with a Zacks Rank 3 (Hold), is expanding but faces challenges in its business environment, making HIMS a more compelling choice for investors seeking lower execution risk [22]