Virtual care company Teladoc Health reported a historic net loss of $13.7 billion off revenue of $2.4 billion in 2022, mostly from an impairment charge related to the shrinking value of its Livongo acquisition.
By comparison, the virtual care company reported a loss of $429 million in 2021.
The non-cash goodwill impairment charge of $13.4 billion reported over the past year reflects the waning market value of Teladoc’s $18.5 billion acquisition of chronic care company Livongo in late 2020.
In an earnings call, CFO Mala Murphy said that the impairment charge doesn’t impact the company’s financial position or its ability to invest in the business going forward.
Earlier this year in January, the company also laid off about 300 employees, or about 6% of the virtual care company's non-clinician workforce, as part of a larger restructuring plan to reduce operating costs.
The company grew exponentially over the COVID-19 pandemic but has struggled to maintain its growth rate over the past year. Though the company is putting a stronger emphasis on profitability through cost-controlling measures, financial experts are still concerned about the long-term profitability of digital health companies, especially due to the current market conditions.
For 2023, the company's outlook predicts revenue between $2.55 billion and $2.68 billion, with a net loss per share between $1.75 and $1.25.
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