Teladoc Inc. ((TDOC)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Teladoc Health’s recent earnings call painted a picture of resilience and growth, tempered by a few challenges. The company exceeded its revenue and EBITDA guidance midpoints, showcasing strong international growth and expansion in the mental health sector. However, hurdles in BetterHelp’s U.S. cash pay segment and a goodwill impairment charge have added some clouds to the otherwise promising outlook.
Revenue and Adjusted EBITDA Above Midpoint
Teladoc Health reported that its third-quarter consolidated revenue and adjusted EBITDA both surpassed the midpoint of their guidance ranges. This achievement underscores the company’s robust execution and performance during the quarter.
Expansion in Mental Health Segment
The company experienced double-digit growth in its B2B mental health visits, projecting over $150 million in total revenue, excluding new insurance-covered benefits from BetterHelp. This expansion highlights Teladoc’s commitment to broadening its mental health services.
International Integrated Care Growth
Teladoc’s international revenues grew by 14% year-over-year on a constant currency basis. The acquisition of Telecare in Australia is a testament to the company’s strategic expansion in international markets.
Operational Excellence and Certification
Achieving ISO 9001 certification for key processes within U.S. Integrated Care, Teladoc has demonstrated improvements in client service and operational efficiency, reflecting its dedication to operational excellence.
BetterHelp Revenue Decline
Despite the overall positive performance, BetterHelp’s third-quarter revenue declined by 2.2% year-over-year. This decline is primarily attributed to challenges in the U.S. cash pay business.
Goodwill Impairment Charge
The company’s net loss per share included a noncash goodwill impairment charge of $0.07 per share pretax, which has impacted its financial performance.
Challenges in U.S. Cash Pay Business
Teladoc continues to face challenges in converting top-of-the-funnel traffic into paying users within the U.S. cash pay business, amid heavy competition in the sector.
Forward-Looking Guidance
Looking ahead, Teladoc Health has updated its full-year 2025 guidance, expecting consolidated revenue between $2.510 billion and $2.539 billion, and adjusted EBITDA ranging from $270 million to $287 million. The company anticipates free cash flow of $170 million to $185 million, maintaining a steady outlook despite current challenges.
In conclusion, Teladoc Health’s earnings call reflected a balanced mix of growth and challenges. While the company has shown resilience with strong revenue and EBITDA performance, it continues to navigate obstacles in the BetterHelp segment and U.S. cash pay business. The forward-looking guidance remains optimistic, suggesting a promising future for Teladoc as it continues to expand its services and improve operational efficiency.