Teladoc Health (TDOC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 3% year-over-year to $640.5–$641 million, mainly due to lower BetterHelp segment revenue; net loss narrowed to $33.3 million ($0.19 per share), a 42% improvement from Q3 2023.

• Adjusted EBITDA for Q3 2024 was $83.3 million (13% margin), down 6% year-over-year; nine-month Adjusted EBITDA rose 10% to $235.9 million.

• Integrated Care segment revenue grew 2% to $383.7–$384 million, while BetterHelp revenue dropped 10% to $256.8–$257 million; Integrated Care membership and chronic care enrollment increased.

• Leadership restructuring, operational improvements, and sharpened market focus are underway to drive efficiency and effectiveness.

• International revenue rose 15% while U.S. revenue declined 6% year-over-year.

Financial highlights

• Q3 2024 consolidated revenue was $640.5–$641 million, down 3% year-over-year; net loss per share was $0.19, improved from $0.35 in Q3 2023.

• Adjusted EBITDA was $83.3 million; GAAP gross margin was 67.2%–68.6%, and adjusted gross margin was 71.8%–71.9%.

• Free cash flow was $79 million in Q3 2024, up from $68 million in Q3 2023; cash and equivalents stood at $1.24 billion as of September 30, 2024.

• Q3 2024 included $3.6 million in severance and lease termination costs.

• Operating cash flow for the nine months was $207.8 million; free cash flow for the nine months was $113.4 million.

Outlook and guidance

• Q4 2024 Integrated Care revenue growth expected between 0% and 2.5%; adjusted EBITDA margin guidance is 12.25%–13.75%.

• Full-year 2024 Integrated Care revenue growth projected in the low to mid-single digits; adjusted EBITDA margin expected at 14.9%–15.3%.

• U.S. Integrated Care member guidance raised to 93.5–94.5 million for year-end.

• No formal Q4 or full-year guidance for BetterHelp or consolidated results due to ongoing business transition.

• Management expects continued positive operating cash flow for 2024 and believes current liquidity is sufficient for at least the next 12 months.