Teladoc Health, Inc. TDOC incurred a fourth-quarter 2024 adjusted loss of 28 cents per share, wider than the Zacks Consensus Estimate of a loss of 21 cents and the year-ago quarter’s loss of 17 cents.

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Operating revenues amounted to $640.5 million, which declined 3% year over year. The top line, however, beat the consensus mark by a whisker.

The quarterly results were hurt by lower access fees and softer BetterHelp and Integrated Care segment results. However, growing International revenues, declining expenses and expanding membership base in the Integrated Care segment partially offset the negatives.

Quarterly Operational Update of TDOC

Revenues from access fees (which accounted for 86.7% of total quarterly revenues) declined 5% year over year to $543.1 million. The metric missed the Zacks Consensus Estimate by a whisker.

Other revenues of $97.4 million increased 12% year over year and beat the Zacks Consensus Estimate by 15.9%.

On a geographical basis, Teladoc Health generated $535.4 million in revenues from the United States, down 5% year over year. The metric beat the consensus mark by 2.8%. International revenues rose 10% year over year to $105.1 million and outpaced the consensus mark by 10.3%.  

Adjusted EBITDA fell 35% year over year to $74.8 million. The adjusted gross margin of 70.5% was down from 70.7% a year ago.

Total expenses decreased 1% year over year to $688.7 million in the quarter, higher than our estimate of $659.2 million. The year-over-year decline resulted from lower costs of revenues, advertising and marketing, sales, technology and development costs.

TDOC’s Segmental Update

The Integrated Care segment reported revenues of $390.7 million, which improved 2% year over year in the fourth quarter and surpassed the Zacks Consensus Estimate of $389.7 million and our estimate of $387.8 million. Adjusted EBITDA declined 5% year over year to $53.2 million, higher than the consensus mark of $51.6 million. Adjusted EBITDA margin of 13.6% deteriorated from 14.6% a year ago.

The BetterHelp segment’s revenues declined 10% year over year to $249.8 million but beat the Zacks Consensus Estimate of $246.6 million and our estimate of $228.5 million. Adjusted EBITDA of $21.7 million fell 63% year over year and missed the consensus mark of $29 million. Adjusted EBITDA margin deteriorated to 8.7% from 21.2% a year ago.

Visits & Memberships of TDOC

Total visits of Teladoc Health were 4.4 million, which remained flat year over year but came above the Zacks Consensus Estimate and our estimate of 4.06 million.

U.S. Integrated Care Members totaled 93.8 million as of Dec. 31, 2024, which improved 5% year over year. The metric missed the consensus mark by 0.4%.

Teladoc Health’s Financial Update (as of Dec. 31, 2024)

Teladoc Health exited the fourth quarter with cash and cash equivalents of $1.3 billion, which slid from the $1.12 billion figure at 2023-end. Total assets of $3.52 billion fell from the 2023-end level of $4.39 billion.

Debt amounted to $991.4 million, which declined from the $1.54 billion figure as of Dec. 31, 2023. Total stockholders’ equity of $1.5 billion declined from the 2023-end level of $2.33 billion.  

Operating cash flow amounted to $293.7 million in 2024, which decreased 16.1% year over year. Free cash flows were $169.6 million in 2024, down from $193.7 million a year ago. Capex decreased 5.9% year over year to $10.8 million.

TDOC’s Full-Year Update

Total revenues declined 1% year over year in 2024. Adjusted EBITDA declined 5% year over year.

Adjusted loss per share widened to $5.87 from $1.34.

TDOC’s Outlook

First-Quarter View

Revenues in the Integrated Care segment are forecasted to witness (0.5)-2% year-over-year growth, while the unit’s adjusted EBITDA margin is anticipated to remain within the band of 11.25-12.75%. U.S. Integrated Care members are expected to be between 101 million and 102 million.

Revenues in the BetterHelp segment are forecasted to witness (13.5)-(9)% year-over-year growth, while the unit’s adjusted EBITDA margin is anticipated to remain within the band of 2-4.25%.

2025 View

Revenues in the Integrated Care segment are expected to witness 0-3% growth on a year-over-year basis.

U.S. Integrated Care members are expected to remain within 101-103 million.

Adjusted EBITDA margin in the Integrated Care segment is estimated to be within the band of 14.3-15.3% in 2025.

Revenues in the BetterHelp segment are expected to witness (9.75)-(3.75)% growth on a year-over-year basis.

Adjusted EBITDA margin in the BetterHelp segment is estimated to be within the range of 6.25-7.75% in 2025.

TDOC’s Zacks Rank

Teladoc Health currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Medical Sector Releases

Here are some stocks in the broader Medical space that have also reported earnings for the December quarter: HCA Healthcare, Inc. HCA, The Ensign Group, Inc. ENSG and The Cigna Group CI.

HCA Healthcare reported fourth-quarter 2024 adjusted earnings per share (EPS) of $6.22, which outpaced the Zacks Consensus Estimate by 4.2%, driven by higher patient volumes giving rise to an increased number of inpatient surgeries and same-facility emergency room visits. However, the upside was partly offset by elevated salaries and benefits expenses. Additional expenses due to Hurricane Helene and Hurricane Milton also impacted the results.

Ensign reported fourth-quarter 2024 adjusted EPS of $1.49, which outpaced the Zacks Consensus Estimate by 1.4% thanks to improved occupancy rates, higher patient days and increased skilled service revenues. The positives were partly offset by an elevated expense level due to the higher cost of services and rents. 

Cigna reported fourth-quarter 2024 adjusted EPS of $6.64, which missed the Zacks Consensus Estimate by 15.2% due to a decline in its overall medical customer base and elevated medical costs. Nevertheless, the downside was partly offset by expanding specialty volumes in the Evernorth Health Services segment and new client wins.

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Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report

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