Teladoc Health (TDOC) Q4 2024 earnings summary

Executive summary

• 2024 closed with a solid finish, advancing strategic priorities, streamlining operations, and expanding internationally, but faced revenue and margin declines, especially in BetterHelp, which recorded a $790M non-cash goodwill impairment.

• Added over 4 million U.S. members, grew visit volumes by 6% year-over-year, and achieved strong client wins, including TRICARE and chronic care programs.

• International business delivered mid-teens revenue growth, expanding services in France and Canada.

• Nearly one million B2B mental health visits completed in 2024, with B2B mental health revenue at $150 million.

• Announced agreement to acquire Catapult Health, expected to close end of February 2025, enhancing chronic and preventative care offerings.

Financial highlights

• Q4 2024 consolidated revenue was $640 million, down 3% year-over-year; Adjusted EBITDA was $74.8 million, down 35%; net loss per share was $0.28.

• Full year 2024 revenue was $2.57 billion, down 1% year-over-year; Adjusted EBITDA was $310.7 million, down 5%; net loss per share was $5.87, including a $4.63 per share goodwill impairment.

• Free Cash Flow for 2024 was $170 million; year-end cash and equivalents totaled $1.3 billion.

• Integrated Care Q4 revenue grew 2% year-over-year to $391 million; full year revenue up 4% to $1.53 billion; Adjusted EBITDA up 21% year-over-year.

• BetterHelp Q4 revenue was $250 million, down 10% year-over-year; full year revenue was $1.04 billion, down 8% year-over-year.

Outlook and guidance

• 2025 consolidated revenue expected between $2.47 billion and $2.58 billion; Adjusted EBITDA guidance is $278 million-$319 million.

• Free Cash Flow for 2025 projected at $190 million-$220 million, up 12%-30% year-over-year.

• Integrated Care 2025 revenue expected to be flat to up 3% year-over-year; Adjusted EBITDA margin guided at 14.8% ±50 bps, with Catapult acquisition dilutive by ~40 bps.

• BetterHelp 2025 revenue expected to decline 3.75%-9.75% year-over-year; Adjusted EBITDA margin guided at 6.25%-7.75%.

• Q1 2025 consolidated revenue expected at $608 million-$629 million; Adjusted EBITDA at $47 million-$59 million.