Teladoc Health (TDOC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $642.4 million, down 2% year-over-year, primarily due to lower BetterHelp segment revenue; net loss was $837.7 million, driven by a $790 million non-cash goodwill impairment charge related to BetterHelp.

• Adjusted EBITDA rose 24% year-over-year to $89.5 million, reflecting operational improvements and efficiency.

• Integrated Care segment showed solid growth, while BetterHelp faced revenue and user declines amid high customer acquisition costs.

• Leadership is focused on streamlining operations, cost efficiency, and unlocking value across business units, with a CEO transition in June 2024.

Financial highlights

• Net loss per share was $(4.92) for Q2 2024, including a $4.64 non-cash goodwill impairment charge.

• Adjusted EBITDA for Q2 2024 was $89.5 million, up from $72.2 million in Q2 2023.

• Free cash flow for Q2 2024 was $60.9 million; cash and equivalents at quarter-end were $1.16 billion.

• Integrated Care revenue grew 5% to $377.4 million; BetterHelp revenue fell 9% to $265.0 million.

• Adjusted gross margin for Q2 2024 was 70.7%, compared to 70.8% in Q2 2023.

Outlook and guidance

• Full-year and segment guidance for BetterHelp and consolidated company withdrawn due to high customer acquisition cost uncertainty.

• Integrated Care 2024 revenue growth expected in low to mid-single digits; adjusted EBITDA margin expansion narrowed to 150–200 basis points.

• U.S. Integrated Care members forecasted at 92.5–94.0 million for FY24.

• Management anticipates continued positive operating cash flow for 2024 and sufficient liquidity for at least the next 12 months.