Teladoc Health shares are falling: Teladoc can increase sales and reduce losses – but the outlook is disappointing

On Tuesday, Teladoc Health, the virtual health care provider that is also in two ETFs owned by star investor Cathie Wood, reported its fourth-quarter and full-year 2023 numbers.

• Sales increased, loss reduced
• Largely negative prognosis
• CEO warns of saturated market

Teladoc Health can increase sales and reduce losses

In the fourth quarter, Teladoc Health increased its revenue by four percent to $660.5 million. In the fourth quarter of 2022, the telemedicine company had sales of $637.7 million. Net loss for the quarter was $28.9 million, or $0.17 per Teladoc Health share, compared to $3.81 billion, or $23.49 per share, in the same period last year.

For full-year 2023, Teladoc Health’s revenue increased 8 percent to $2.6 billion, up from $2.4 billion in fiscal 2022. Net loss in 2023 was $220.4 million, or $1.34 Dollars per share. In the previous year, the company suffered a loss of $13.66 billion or $84.60 per share.

Outlook disappointed

For the first quarter of 2024, Teladoc expects revenue between $630 million and $645 million. That’s below FactSet analysts’ forecasts of $673 million, MarketWatch reports. The company also expects a net loss per share of between $0.45 and $0.55, while analysts’ expectations were just 41 cents per share, according to MarketWatch.

For the full year 2024, the company forecasts sales in a range of around $2.64 billion to $2.74 billion. That’s below analyst forecasts of $2.77 billion, MarketWatch reports. According to Teladoc Health, the net loss is expected to be between $0.80 and $1.10, which is less than analysts expected. They had expected a loss of $1.20 per share.

In its three-year outlook, the company forecasts: “Low-to-mid-single-digit annual consolidated sales growth, including mid-single-digit annual Integrated Care and low-single-digit annual BetterHelp sales growth.” In addition, Teladoc Health expects 50 to 100 basis points of annual margin expansion “and at least $425 million in adjusted EBITDA for the full year 2025.” This includes cost measures related to the company’s efficiency program.

“As we look to 2024 and beyond, we are excited about the future. We remain focused on serving our customers worldwide, providing world-class healthcare while growing our bottom line through a combination of operating leverage and cost reduction,” said Jason Gorevic, CEO of Teladoc Health, was quoted in the press release on the figures.

CEO warns of saturated market

However, Teladoc Health CEO Jason Gorevic also warned that the market for virtual health services is saturated, according to MarketWatch. “It’s important to remember that most U.S. healthcare consumers today have access to virtual emergency care,” Gorevic said on Tuesday’s conference call. “So at this point it’s largely a replacement market.”

“We have continually gained market share and expect this to continue,” MarketWatch quoted Gorevic as saying. “But market penetration is quite good, and accordingly we expect sales growth of our virtual care products in the US to be in the low single digits going forward. So imagine about half of the integrated care segment as stable but with lower growth before.”

Teladoc Health shares are plummeting

After the Teladoc Health share rose sharply during the corona pandemic against the backdrop of lockdowns and numerous restrictions and peaked at just under $ 300 at the beginning of 2021, the paper has since lost significantly in value and cost on the US -NYSE stock exchange was recently only 20.49 US dollars. So far this year, Teladoc Health shares have lost 4.92 percent (as of February 20, 2024).

After the telemedicine provider issued a largely negative forecast and warned that the market for virtual health services was saturated, the company’s shares continued to decline. On Wednesday, Teladoc Health shares on the NYSE temporarily fell by 21.21 percent to $ 16.15. In the last twelve months, the share had already lost 31.86 percent in value.

Editorial team

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