Virtual care company Teladoc reported $646.1 million in revenue in the first quarter of 2024, a 3% increase from $629.2 million in Q1 2023.
Its revenue from Teladoc Health Integrated Care increased to $377.1 million in Q1 2024, an 8% increase year-over-year, and BetterHelp revenue decreased 4% to $269 million.
The company posted an adjusted EBITDA of $63.1 million, a 20% year-over-year increase, compared to $52.8 million in Q1 of 2023.
Teladoc’s Integrated Care segment adjusted EBITDA grew 36% year-over-year in the first quarter to $47.7 million, while its BetterHelp segment decreased 12% to $15.5 million.
The New York-based company reported a first quarter net loss of $81.9 million.
Teladoc attributed the loss to stock-based compensation expense of $42.3 million, amortization of acquired intangibles at $64.2 million and $9.7 million of restructuring costs, primarily related to severance payments.
“We are pleased to report a solid start to the year, with strength in both revenue and adjusted EBITDA in the first quarter. During this period of transition, our team remains laser focused on our key initiatives, which include building upon our market leadership position; driving increased product penetration through our large installed base of over 90 million virtual care members; and accelerating our bottom-line performance.” Mala Murthy, acting CEO and chief financial officer of Teladoc Health, said in a statement.
THE LARGER TREND
The virtual care company laid off 300 workers in 2023 in an effort to slash costs. The layoffs made up about 6% of the company’s non-clinician employees. At the same time, the company worked to reduce its office-space footprint.
In 2023, a federal judge dismissed a class action lawsuit against the telehealth company pertaining to its $18.5 billion merger with Livongo. The lawsuit alleged Teladoc misled investors by downplaying challenges the company faced integrating Livongo.
Former CEO Jason Gorevic stepped down as CEO in April as the company’s stock price dove 22% in February after it missed fourth-quarter earnings estimates and projected decreased revenue in 2024.
Last year, the company saw its full-year 2023 revenue grow 8% to $2.6 billion, up from $2.4 billion in 2022, but reported a full-year net loss of $220.4 million, or $1.34 per share, and an adjusted EBITDA increase of 33% to $328.1 million, its most profitable year to date. Operating cash flow for 2023 increased from $189.3 million to $350 million.
CFO Mala Murthy is filling in as the company searches for a new CEO. During the company’s Q1 earnings call, Murthy stated a permanent CEO will be named by the end of the year.