Teladoc Health Reports $1B Net Loss In 2024

Teladoc Health, a New York-based virtual care company, reported its 2024 financial results, showing a 1% year-over-year revenue decline to $2.569 billion from $2.6 billion in 2023. Q4 2024 revenue dropped 3% to $640 million, compared to $660.5 million in Q4 2023. The company posted a net loss of $1 billion in 2024, a sharp increase from $220 million in 2023, with a Q4 2024 net loss of $48.4 million, up from $28.89 million in Q4 2023. Adjusted EBITDA fell 5% year-over-year to $310.7 million, with Q4 2024 adjusted EBITDA dropping 35% to $74.8 million. Operating cash flow declined to $293.7 million from $350 million in 2023, while free cash flow fell to $169.6 million from $192.7 million.

Revenue in Teladoc’s Integrated Care segment grew 2% in Q4 2024 to $390.7 million, while BetterHelp revenue declined 10% to $249.8 million. For the full year, Integrated Care revenue increased 4% to $1.5 billion, while BetterHelp revenue dropped 8% to $1.04 billion. CEO Chuck Divita acknowledged challenges in BetterHelp’s performance but emphasized a focus on stabilizing results. Looking ahead to 2025, he highlighted priorities around growth opportunities, cost structure optimization, and long-term success.

Following the earnings release, Teladoc’s stock dropped about 15%, trading around $9.42 per share. Divita, who became CEO in June 2024 after Jason Gorevic’s departure, took over following a 22% stock plunge due to missed Q4 2023 earnings and lower 2024 revenue projections. Earlier this year, Teladoc acquired virtual preventative care company Catapult Health in a $65 million all-cash deal, with an additional $5 million in contingent earnout. Catapult Health provides VirtualCheckup, an at-home diagnostic and virtual care platform for employers and health plans. Last year, Teladoc also partnered with pediatric virtual behavioral health company Brightline to expand mental healthcare options for children and families.