• Q4 2024 Revenue: $640 million.
• Q4 2024 Adjusted EBITDA: $75 million, representing an 11.7% margin.
• Q4 2024 Net Loss Per Share: $0.28.
• Full Year 2024 Revenue: $2.6 billion, a decrease of 1% versus 2023.
• Full Year 2024 Adjusted EBITDA: $311 million, representing a 12.1% margin.
• Full Year 2024 Net Loss Per Share: $5.87, including a noncash goodwill impairment charge.
• Full Year 2024 Free Cash Flow: $170 million.
• Cash and Cash Equivalents at Year-End 2024: Nearly $1.3 billion.
• Integrated Care Q4 2024 Revenue: $391 million, a 2% increase year-over-year.
• Integrated Care Q4 2024 Adjusted EBITDA: $53 million, representing a 13.6% margin.
• BetterHelp Q4 2024 Revenue: $250 million, down 9.5% year-over-year.
• BetterHelp Q4 2024 Adjusted EBITDA: $22 million, with an 8.7% margin.
• BetterHelp Full Year 2024 Revenue: $1 billion, an 8% decline versus the prior year.
• BetterHelp Full Year 2024 Adjusted EBITDA: $78 million, representing a 7.5% margin.
• 2025 Revenue Guidance: $2.47 billion to $2.58 billion.
• 2025 Adjusted EBITDA Guidance: $278 million to $319 million.
• 2025 Free Cash Flow Guidance: $190 million to $220 million.
• Q1 2025 Revenue Guidance: $608 million to $629 million.
• Q1 2025 Adjusted EBITDA Guidance: $47 million to $59 million.

• Warning! GuruFocus has detected 5 Warning Signs with TDOC.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Teladoc Health Inc (NYSE:TDOC) added over 4 million members in the US in 2024, with a 6% increase in visit volumes, indicating strong customer growth and engagement.
• The company reported a successful implementation season with over 800 new clients launched on January 1, showcasing effective operational execution.
• Teladoc Health Inc (NYSE:TDOC) achieved mid-teens revenue growth in its International Integrated Care business, highlighting strong performance in global markets.
• The acquisition of Catapult Health is expected to enhance Teladoc Health Inc (NYSE:TDOC)'s Chronic Care management offerings, providing new growth opportunities.
• BetterHelp, a segment of Teladoc Health Inc (NYSE:TDOC), served over 1 million unique paying users in 2024, demonstrating its significant market presence and consumer appeal.

Negative Points

• Teladoc Health Inc (NYSE:TDOC) reported a full-year revenue decline of 1% in 2024 compared to 2023, indicating challenges in maintaining growth.
• The company faced a net loss per share of $5.87 for the full year, including a significant noncash goodwill impairment charge.
• BetterHelp's revenue declined by 8% in 2024, reflecting challenges in the competitive environment and impacting overall financial performance.
• The health plan channel is experiencing pressures, creating headwinds for Teladoc Health Inc (NYSE:TDOC) in this segment.
• Teladoc Health Inc (NYSE:TDOC) anticipates a more extended visit ramp for TRICARE, impacting expected visit volumes and revenue growth in the first half of 2025.

Q & A Highlights

Q: Can you discuss how contracts have changed in 2025, particularly regarding visit-focused arrangements, and what are the current utilization trends? A: Charles Divita, CEO: The trend towards visit-based contracts has been ongoing as the virtual visit space matures. This shift aligns with the broader healthcare system's utilization basis. We expect increased visit volumes with the addition of new members, which is crucial for revenue and engagement. Utilization trends have remained stable, and we are focused on making each visit more valuable. Mala Murthy, CFO, added that while some clients are shifting to visit-based models, many still use traditional structures. The flu season and overall visit volumes have contributed to high single-digit revenue growth from visits.

Q: What are the differences between BetterHelp's offerings and the Integrated Care segment's behavioral health services? A: Charles Divita, CEO: The Integrated Care segment offers a range of mental health services, including digital tools, coaching, and psychiatry, with about 60% of the installed base having access. BetterHelp, on the other hand, has a strong consumer brand and high volume, which is crucial for network utilization. BetterHelp's ability to match patients with providers quickly and its diverse network are significant advantages.

Q: Can you break down the operational factors for 2025 compared to 2024, particularly for BetterHelp and Integrated Care? A: Mala Murthy, CFO: For Integrated Care, we expect low double-digit growth internationally and contributions from the Catapult acquisition. Visit revenue growth and Chronic Care enrollment will drive growth, despite some headwinds like FX and client attrition. For BetterHelp, stabilization is key, with a focus on customer acquisition costs, international growth, and improving the core platform. We aim for sequential revenue improvement throughout the year.

Q: Why did the average revenue per user for BetterHelp decline sequentially? A: Mala Murthy, CFO: The decline is due to international growth, where headline prices are lower, and international taxes impact revenue. The weekly pricing model is currently equivalent to monthly pricing divided by four, but we plan to experiment with different pricing strategies in 2025.

Q: How are you addressing the challenges in the health plan channel, and does it relate to your product set? A: Charles Divita, CEO: The health plan channel faces macro challenges like ACA subsidies and inflationary trends. While we continue to do business and expand with health plans, these factors create headwinds. Our products resonate well, and we are investing in engagement and Chronic Care Management to support health plans' strategies.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.