Teladoc Health, which had once been a shining star in the telehealth industry, lost its luster after reporting its first-quarter earnings. The company, like many others that experienced rapid growth during the pandemic, has seen a significant decrease in its stock value since then. After market hours on Thursday, Teladoc’s stock price dropped more than 2%, 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. 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.
Teladoc’s integrated care division saw an 8% increase in revenue to over $377 million, while BetterHelp experienced a 4% decline to $269 million. The company’s guidance for the second quarter fell short of analyst estimates, with revenue expected to range between $635 million to $660 million and a per-share net loss between $0.35 to $0.45, lower than the average analyst projections of nearly $663 million for revenue and $0.29 per share for net loss.
Despite these challenges, Teladoc Health continues to navigate the telehealth industry, with investors closely monitoring its performance in the face of changing market conditions.