Teladoc Health (TDOC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $641 million, down 3% year-over-year, with Adjusted EBITDA of $83.3 million (13% margin), and net loss per share of $0.19, an improvement from $0.35 last year.

• Integrated Care revenue grew 2%–2.5% year-over-year to $384 million, exceeding guidance, while BetterHelp revenue declined 10% to $257 million, in line with expectations.

• Membership in U.S. Integrated Care rose to 93.9 million, up 4% year-over-year and 1.5 million sequentially; chronic care enrollment reached 1.18 million, up 5% year-over-year.

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

• BetterHelp remains the largest direct-to-consumer virtual therapy platform, serving over 1 million annually, but faces revenue and user declines.

Financial highlights

• Q3 Adjusted EBITDA margin was 13%, with Integrated Care segment margin at 17.7% and BetterHelp at 5.9%.

• Free cash flow was $79 million in Q3, up 16% year-over-year; cash and equivalents stood at $1.24 billion at quarter-end.

• Net loss per share improved, with notable non-recurring charges: $0.30/share for amortization, $0.20/share for stock-based comp, and $0.02/share for severance and lease termination.

• GAAP gross margin for Q3 was 67.2%–68.6%; adjusted gross margin was 71.8%–71.9%.

• Operating cash flow for Q3 was $110 million; for the nine months, it was $207.8 million.

Outlook and guidance

• Q4 Integrated Care revenue expected to be flat to up 2.5%; Adjusted EBITDA margin guided to 12.25%–13.75%.

• Full-year 2024 Adjusted EBITDA margin expected at 14.9%–15.3%, up ~20% from 2023.

• 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 transition and market uncertainties.

• 2025 expected to be a repositioning year, with Integrated Care revenue growth similar to Q4 2024 (flat to 2.5%) and margins maintained at 2024 levels.