Shares of Teladoc Health (TDOC -2.10%) fell 61.6% in 2024, according to data from S&P Global Market Intelligence. The steep price drop continued a negative trend that started with a 54% price cut in 2021 and a 74% plunge in 2022.

From pandemic star to struggling survivor

Teladoc's revenue soared in 2020 and 2021 as online doctor's appointments made perfect sense in the coronavirus pandemic's lockdown phase. But the company's growth slowed dramatically after that temporary surge, and the latest earnings report showed a 4.6% year-over-year revenue drop.

Business is particularly slow in the BetterHelp division. In the recently published third-quarter report, this segment's mental health services saw revenue fall 10% year over year. The number of paying BetterHelp users dropped even faster, at an annual rate of 13%. That wasn't a fluke, either -- BetterHelp's poor results in this report were similar to Teladoc's results in the first half of 2024.

The company isn't sitting on its proverbial hands, of course. The board of directors installed a new CEO last summer, bringing in financial efficiency expert Chuck DiVita from FloridaBlue parent GuideWell. DiVita is expected to sharpen Teladoc's cost controls while taking advantage of the company's large head start in the remote healthcare market. The company has only published two earnings reports since the CEO change, so it's too early to tell how well DiVita's turnaround effort is working out. The upcoming fourth-quarter report should bring more clarity to Teladoc's business trends and growth plans.

Can Teladoc lock down a place in healthcare's digital future?

Doctors and hospitals have many Teladoc alternatives available today, but most of them are either very small or totally proprietary services developed for a specific healthcare provider. Remote doctor visits still make sense, especially in the healthcare market where there's less need for physical interaction between the patient and healthcare professionals.

In a perfect world, DiVita would consolidate this fragmented market under a single industry-standard solution. In reality, regulatory actions and ethical considerations will probably lead to a different future.

As a longtime shareholder, I've seen my Teladoc shares lose 85% of their value in four years. The company isn't profitable these days, and you already saw its uncomfortable revenue trends.

At the same time, Teladoc still generates healthy cash profits and the stock is changing hands at a modest 5.1 times free cash flows. I'm tempted to double down on my Teladoc investment while the stock looks cheap, but there's a significant risk that I'll end up catching a falling knife that way.

Your mileage may vary but I'll hold off on that idea for at least one more earnings report. I need to see some progress in DiVita's turnaround plan before increasing my real-money stakes in this risky healthcare stock.