Teladoc Health Reports First Quarter 2025 Results
Teladoc Health reported mixed Q1 2025 financial results, with revenue declining 3% year-over-year to $629.4 million. The company posted a net loss of $93.0 million ($0.53 per share), including a $59.1 million goodwill impairment charge.
The Integrated Care segment showed positive growth, with revenue up 3% to $389.5 million and improved EBITDA margin of 12.9%. However, BetterHelp segment revenue decreased 11% to $239.9 million with an EBITDA margin of 3.2%.
Key highlights include the acquisition of UpLift Health Technologies for $30 million plus potential earnout of $15 million, expanding mental health coverage to over 100 million lives. The company's outlook for 2025 projects full-year revenue between $2.47-2.58 billion and adjusted EBITDA of $263-304 million, reflecting continued challenges in the BetterHelp segment but stability in Integrated Care operations.
Teladoc Health ha riportato risultati finanziari contrastanti per il primo trimestre del 2025, con un fatturato in calo del 3% su base annua, attestandosi a 629,4 milioni di dollari. L'azienda ha registrato una perdita netta di 93,0 milioni di dollari (0,53 dollari per azione), inclusa una svalutazione del goodwill di 59,1 milioni di dollari.
Il segmento Integrated Care ha mostrato una crescita positiva, con ricavi in aumento del 3% a 389,5 milioni di dollari e un margine EBITDA migliorato al 12,9%. Tuttavia, il segmento BetterHelp ha visto un calo del fatturato dell'11%, scendendo a 239,9 milioni di dollari, con un margine EBITDA del 3,2%.
Tra i punti salienti, l'acquisizione di UpLift Health Technologies per 30 milioni di dollari più un possibile earnout di 15 milioni, che amplia la copertura della salute mentale a oltre 100 milioni di persone. Le previsioni per il 2025 indicano un fatturato annuale compreso tra 2,47 e 2,58 miliardi di dollari e un EBITDA rettificato tra 263 e 304 milioni, riflettendo le difficoltà persistenti nel segmento BetterHelp ma una stabilità nelle operazioni di Integrated Care.
Teladoc Health presentó resultados financieros mixtos en el primer trimestre de 2025, con ingresos que disminuyeron un 3% interanual hasta 629,4 millones de dólares. La compañía registró una pérdida neta de 93,0 millones de dólares (0,53 dólares por acción), incluyendo un cargo por deterioro de fondo de comercio de 59,1 millones de dólares.
El segmento de Integrated Care mostró un crecimiento positivo, con ingresos que aumentaron un 3% hasta 389,5 millones de dólares y un margen EBITDA mejorado del 12,9%. Sin embargo, los ingresos del segmento BetterHelp disminuyeron un 11% hasta 239,9 millones de dólares, con un margen EBITDA del 3,2%.
Entre los aspectos destacados se incluye la adquisición de UpLift Health Technologies por 30 millones de dólares más un posible earnout de 15 millones, ampliando la cobertura de salud mental a más de 100 millones de personas. Las perspectivas para 2025 proyectan ingresos anuales entre 2,47 y 2,58 mil millones de dólares y un EBITDA ajustado de 263 a 304 millones, reflejando desafíos continuos en el segmento BetterHelp pero estabilidad en las operaciones de Integrated Care.
Teladoc Health은 2025년 1분기 실적에서 매출이 전년 대비 3% 감소한 6억 2,940만 달러를 기록하며 혼조된 결과를 발표했습니다. 회사는 5,900만 달러의 영업권 손상차손을 포함하여 9,300만 달러(주당 0.53달러)의 순손실을 기록했습니다.
Integrated Care 부문은 매출이 3% 증가한 3억 8,950만 달러를 기록하며 EBITDA 마진도 12.9%로 개선되었습니다. 반면, BetterHelp 부문 매출은 11% 감소한 2억 3,990만 달러에 그쳤으며 EBITDA 마진은 3.2%였습니다.
주요 내용으로는 UpLift Health Technologies를 3,000만 달러에 인수하고 추가로 최대 1,500만 달러의 성과금(earnout)이 포함되어 정신 건강 서비스가 1억 명 이상의 인구로 확대된 점이 있습니다. 2025년 전망은 연간 매출 24억 7,000만 달러에서 25억 8,000만 달러, 조정 EBITDA는 2억 6,300만 달러에서 3억 400만 달러 사이로 예상되며, BetterHelp 부문의 지속적인 어려움과 Integrated Care 운영의 안정성을 반영합니다.
Teladoc Health a publié des résultats financiers mitigés pour le premier trimestre 2025, avec un chiffre d'affaires en baisse de 3% en glissement annuel, atteignant 629,4 millions de dollars. La société a enregistré une perte nette de 93,0 millions de dollars (0,53 dollar par action), incluant une charge de dépréciation du goodwill de 59,1 millions de dollars.
Le segment Integrated Care a affiché une croissance positive, avec un chiffre d'affaires en hausse de 3% à 389,5 millions de dollars et une marge EBITDA améliorée à 12,9%. En revanche, le chiffre d'affaires du segment BetterHelp a diminué de 11% pour s'établir à 239,9 millions de dollars, avec une marge EBITDA de 3,2%.
Parmi les points forts, on note l'acquisition de UpLift Health Technologies pour 30 millions de dollars, plus un complément de prix éventuel de 15 millions, étendant la couverture en santé mentale à plus de 100 millions de personnes. Les perspectives pour 2025 prévoient un chiffre d'affaires annuel compris entre 2,47 et 2,58 milliards de dollars et un EBITDA ajusté entre 263 et 304 millions, reflétant les défis persistants du segment BetterHelp mais une stabilité dans les opérations d'Integrated Care.
Teladoc Health meldete gemischte Finanzergebnisse für das erste Quartal 2025, mit einem Umsatzrückgang von 3 % im Jahresvergleich auf 629,4 Millionen US-Dollar. Das Unternehmen verzeichnete einen Nettoverlust von 93,0 Millionen US-Dollar (0,53 US-Dollar pro Aktie), einschließlich einer Goodwill-Abschreibung von 59,1 Millionen US-Dollar.
Der Bereich Integrated Care zeigte ein positives Wachstum, mit einem Umsatzanstieg von 3 % auf 389,5 Millionen US-Dollar und einer verbesserten EBITDA-Marge von 12,9 %. Der Umsatz im Segment BetterHelp sank hingegen um 11 % auf 239,9 Millionen US-Dollar bei einer EBITDA-Marge von 3,2 %.
Zu den wichtigsten Highlights zählt die Übernahme von UpLift Health Technologies für 30 Millionen US-Dollar zuzüglich eines möglichen Earnouts von 15 Millionen US-Dollar, wodurch die Abdeckung im Bereich psychische Gesundheit auf über 100 Millionen Menschen ausgeweitet wird. Die Prognose für 2025 sieht einen Jahresumsatz zwischen 2,47 und 2,58 Milliarden US-Dollar sowie ein bereinigtes EBITDA von 263 bis 304 Millionen US-Dollar vor, was die weiterhin bestehenden Herausforderungen im BetterHelp-Bereich, aber die Stabilität der Integrated Care-Geschäfte widerspiegelt.
- Integrated Care segment revenue increased 3% YoY to $389.5M with improved EBITDA margin of 12.9%
- Strategic acquisition of UpLift Health Technologies expands mental health network coverage to 100M+ lives
- Operating cash flow improved to $15.9M from $8.9M YoY
- Free cash flow usage improved to -$15.7M from -$26.6M YoY
- U.S. Integrated Care Members grew 12% YoY to 102.5M
- Overall revenue declined 3% YoY to $629.4M
- Net loss increased 14% YoY to $93.0M
- BetterHelp segment revenue dropped 11% YoY to $239.9M
- BetterHelp adjusted EBITDA margin declined to 3.2%
- Recorded $59.1M goodwill impairment charge
- Access fees revenue decreased 6% to $525.7M
- Total visits decreased 3% YoY to 4.44M
Insights
Teladoc posts mixed Q1 results with 3% revenue decline, $59.1M goodwill impairment, while making strategic acquisition in mental health space.
Teladoc Health's Q1 2025 financial results present a complex picture with clear challenges and some growth opportunities. The company reported
The results include a significant non-cash goodwill impairment charge of
Performance varied notably between segments:
- Integrated Care segment: Revenue grew
3% to$389.5 million with improved adjusted EBITDA margin of12.9% - BetterHelp segment: Revenue declined
11% to$239.9 million with adjusted EBITDA margin of3.2%
The divergence is important: while member growth in Integrated Care looks robust at
The acquisition of UpLift Health Technologies for
Cash metrics improved but remain mixed: Q1 operating cash flow increased to
Teladoc's maintained full-year guidance suggests management doesn't anticipate further deterioration beyond Q1's performance, projecting full-year revenue of
PURCHASE, NY, April 30, 2025 (GLOBE NEWSWIRE) -- Teladoc Health, Inc. (NYSE: TDOC), the global leader in virtual care, today reported financial results for the three months ended March 31, 2025 (“First Quarter 2025”). Unless otherwise noted, percentage and other changes are relative to the three months ended March 31, 2024 (“First Quarter 2024”).
First Quarter 2025 Highlights
- First Quarter 2025 revenue of
$629.4 million , down3% year-over-year - First Quarter 2025 net loss of
$93.0 million , or$0.53 per share, including a pre-tax goodwill impairment charge of$59.1 million , or$0.34 per share, which occurred after the issuance of the previously provided outlook and was not included - First Quarter 2025 adjusted EBITDA of
$58.1 million , down8% year-over-year - Integrated Care segment revenue of
$389.5 million , up3% year-over-year, and adjusted EBITDA margin improved to12.9% - BetterHelp segment revenue of
$239.9 million , down11% year-over-year, and adjusted EBITDA margin of3.2% - Teladoc Health announced acquisition of UpLift Health Technologies, Inc., a virtual mental health provider with in-network health plan relationships representing more than 100 million covered lives
“We are pleased with the solid start to 2025. Consolidated revenue and adjusted EBITDA were towards the higher end of our first quarter guidance ranges, including our Integrated Care segment being above our ranges for both measures and BetterHelp segment results in the upper half of our ranges as well. We also continue to make progress towards strategic priorities aimed at driving sustainable performance, including advancing our position in virtual mental health. We are excited about the UpLift acquisition announced today, which will further the BetterHelp segment's ability to support consumers seeking to use their covered benefits for virtual mental health services,” said Chuck Divita, Chief Executive Officer of Teladoc Health.
“We continue to see significant opportunities ahead to strengthen our position across our business and unlock future growth potential. Despite uncertainties in the macro environment, we remain focused on what we can most impact, and are executing with urgency against the key strategic priorities that we have previously outlined,” Divita added.
| Key Financial Data | |||||||||
| ($ in thousands, except per share data, unaudited) | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| 2025 | 2024 | Change | |||||||
| Revenue | $ | 629,369 | $ | 646,131 | (3)% | ||||
| Net loss | $ | (93,012 | ) | $ | (81,889 | ) | (14)% | ||
| Net loss per share, basic and diluted | $ | (0.53 | ) | $ | (0.49 | ) | (8)% | ||
| Adjusted EBITDA (1) | $ | 58,093 | $ | 63,140 | (8)% | ||||
See note (1) in the Notes section that follows.
First Quarter 2025
Revenue decreased
Teladoc Health Integrated Care ("Integrated Care") segment revenue increased
Net loss totaled
The non-cash goodwill impairment charge recorded in First Quarter 2025 was the result of the fair value of the Integrated Care segment being less than its carrying value at the time of the acquisition of Catapult Health, LLC.
Results for First Quarter 2024 included stock-based compensation expense of
Adjusted EBITDA(1) decreased
Capex and Cash Flow
Cash flow from operations was
UpLift Acquisition
Today, Teladoc Health announced that it completed the acquisition of UpLift Health Technologies, Inc. ("UpLift") in an all-cash transaction of
Visit the Teladoc Health investor relations page at http://ir.teladochealth.com/investors/default.aspx for the separate release announcing the UpLift acquisition.
Financial Outlook
The outlook provided below is based on current market conditions and expectations and what we know today, and includes the anticipated contribution from the acquisition of UpLift. However, due to continued uncertainty regarding the implementation dates and scope of potential U.S. import tariffs or retaliatory tariffs put in place by other countries, this guidance does not include any impact from new tariff actions in 2025.
| For the full year of 2025, we expect: | |
| Full Year 2025 Outlook Range | |
| Revenue | |
| Adjusted EBITDA | |
| Net loss per share | ( |
| Free Cash Flow | |
| U.S. Integrated Care Members (2) | 101 - 103 million |
| Integrated Care | |
| Revenue growth percentage (year-over-year) | |
| Adjusted EBITDA margin | |
| BetterHelp | |
| Revenue growth percentage (year-over-year) | ( |
| Adjusted EBITDA margin | |
| For the second quarter of 2025, we expect: | |
| 2Q 2025 Outlook Range | |
| Revenue | |
| Adjusted EBITDA | |
| Net loss per share | ( |
| U.S. Integrated Care Members (2) | 101.5 - 102.5 million |
| Integrated Care | |
| Revenue growth percentage (year-over-year) | |
| Adjusted EBITDA margin | |
| BetterHelp | |
| Revenue growth percentage (year-over-year) | ( |
| Adjusted EBITDA margin | |
See note (2) in the Notes section that follows.
Earnings Conference Call
The First Quarter 2025 earnings conference call and webcast will be held Wednesday, April 30, 2025 at 4:30 p.m. E.T. The conference call can be accessed by dialing 1-833-470-1428 for U.S. participants and using the access code #309585. For international participants, please visit the following link for global dial-in numbers:
https://www.netroadshow.com/conferencing/global-numbers?confId=81196. A live audio webcast will also be available online at http://ir.teladoc.com/news-and-events/events-and-presentations/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.
About Teladoc Health
Teladoc Health empowers all people everywhere to live their healthiest lives by transforming the healthcare experience. As the world leader in virtual care, Teladoc Health uses proprietary health signals and personalized interactions to drive better health outcomes across the full continuum of care, at every stage in a person’s health journey. Teladoc Health leverages more than two decades of expertise and data-driven insights to meet the growing virtual care needs of consumers and healthcare professionals. For more information, please visit www.teladochealth.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, the information under the caption “Financial Outlook” and statements we make regarding future financial or operating results, future numbers of members, BetterHelp paying users or clients, litigation outcomes, regulatory developments, market developments, new products and growth strategies, and the effects of any of the foregoing on our future results of operations or financial condition.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market conditions and receptivity to our services and offerings, including our ability to effectively compete; (iii) results of litigation or regulatory actions; (iv) the loss of one or more key clients or the loss of a significant number of members or BetterHelp paying users; (v) changes in valuations or useful lives of our assets; (vi) changes to our abilities to recruit and retain qualified providers into our network; (vii) the impact of and risk related to impairment losses with respect to goodwill or other assets; (viii) the success of our operational review of the company to achieve a more balanced approach to growth and margin; and (ix) imposed and threatened tariffs by the United States and its trading partners, and any resulting disruptions or inefficiencies in our supply chain. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to, our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
| TELADOC HEALTH, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data, unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Revenue | $ | 629,369 | $ | 646,131 | |||
| Costs and expenses: | |||||||
| Cost of revenue (exclusive of depreciation and amortization, which are shown separately below) | 196,829 | 194,538 | |||||
| Advertising and marketing | 168,185 | 183,329 | |||||
| Sales | 48,693 | 54,364 | |||||
| Technology and development | 69,958 | 81,388 | |||||
| General and administrative | 112,774 | 111,697 | |||||
| Goodwill impairment | 59,138 | — | |||||
| Acquisition, integration, and transformation costs | 2,188 | 373 | |||||
| Restructuring costs | 4,347 | 9,673 | |||||
| Amortization of intangible assets | 84,304 | 95,057 | |||||
| Depreciation of property and equipment | 3,564 | 2,834 | |||||
| Total costs and expenses | 749,980 | 733,253 | |||||
| Loss from operations | (120,611 | ) | (87,122 | ) | |||
| Interest income | (12,674 | ) | (13,942 | ) | |||
| Interest expense | 5,765 | 5,649 | |||||
| Other expense (income), net | (2,435 | ) | 370 | ||||
| Loss before provision for income taxes | (111,267 | ) | (79,199 | ) | |||
| Provision for income taxes | (18,255 | ) | 2,690 | ||||
| Net loss | $ | (93,012 | ) | $ | (81,889 | ) | |
| Net loss per share, basic and diluted | $ | (0.53 | ) | $ | (0.49 | ) | |
| Weighted-average shares used to compute basic and diluted net loss per share | 174,154,128 | 167,730,746 | |||||
Stock-based Compensation Summary
Compensation expense for stock-based awards were classified as follows (in thousands, unaudited):
| Three Months Ended March 31, | |||||
| 2025 | 2024 | ||||
| Cost of revenue (exclusive of depreciation and amortization, which are shown separately) | $ | 573 | $ | 1,394 | |
| Advertising and marketing | 1,503 | 3,789 | |||
| Sales | 4,259 | 7,967 | |||
| Technology and development | 5,785 | 9,299 | |||
| General and administrative | 13,043 | 19,876 | |||
| Total stock-based compensation expense (3) | $ | 25,163 | $ | 42,325 | |
See note (3) in the Notes section that follows.
Revenues
| Three Months Ended | ||||||||
| March 31, | ||||||||
| ($ in thousands, unaudited) | 2025 | 2024 | Change | |||||
| Revenue by Type | ||||||||
| Access Fees | $ | 525,736 | $ | 557,174 | (6)% | |||
| Other | 103,633 | 88,957 | 16 | % | ||||
| Total Revenue | $ | 629,369 | $ | 646,131 | (3)% | |||
| Revenue by Geography | ||||||||
| U.S. Revenue | $ | 524,970 | $ | 547,600 | (4)% | |||
| International Revenue | 104,399 | 98,531 | 6 | % | ||||
| Total Revenue | $ | 629,369 | $ | 646,131 | (3)% | |||
Summary Operating Metrics
Consolidated
| Three Months Ended | |||||
| March 31, | |||||
| (In millions) | 2025 | 2024 | Change | ||
| Total Visits | 4.44 | 4.59 | (3)% | ||
Integrated Care
| As of March 31, | ||||||
| (In millions) | 2025 | 2024 | Change | |||
| U.S. Integrated Care Members (2) | 102.5 | 91.8 | 12 | % | ||
| Chronic Care Program Enrollment (4) | 1.151 | 1.121 | 3 | % | ||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | Change | |||||
| Average Monthly Revenue Per U.S. Integrated Care Member (5) | $ | 1.27 | $ | 1.38 | (8)% | ||
BetterHelp
| Average for | |||||
| Three Months Ended | |||||
| March 31, | |||||
| (In millions) | 2025 | 2024 | Change | ||
| BetterHelp Paying Users (6) | 0.397 | 0.415 | (4)% | ||
See notes (2), (4), (5), and (6) in the Notes section that follows.
Operating Results by Segment (see note (7) in the Notes section that follows)
The following table presents operating results by reportable segment for the periods indicated:
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| ($ in thousands, unaudited) | 2025 | 2024 | Change | |||||||
| Integrated Care | ||||||||||
| Revenue | $ | 389,468 | $ | 377,111 | 3 | % | ||||
| Adjusted EBITDA | $ | 50,379 | $ | 47,674 | 6 | % | ||||
| Adjusted EBITDA Margin % | 12.9 | % | 12.6 | % | ||||||
| BetterHelp | ||||||||||
| Therapy Services | $ | 234,438 | $ | 263,712 | (11)% | |||||
| Other Wellness Services | 5,463 | 5,308 | 3 | % | ||||||
| Total Revenue | $ | 239,901 | $ | 269,020 | (11)% | |||||
| Adjusted EBITDA | $ | 7,714 | $ | 15,466 | (50)% | |||||
| Adjusted EBITDA Margin % | 3.2 | % | 5.7 | % | ||||||
TELADOC HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (93,012 | ) | $ | (81,889 | ) | |
| Adjustments to reconcile net loss to net cash flows from operating activities: | |||||||
| Goodwill impairment | 59,138 | — | |||||
| Amortization of intangible assets | 84,304 | 95,057 | |||||
| Depreciation of property and equipment | 3,564 | 2,834 | |||||
| Amortization of right-of-use assets | 2,305 | 2,614 | |||||
| Provision for allowances for doubtful accounts | 59 | 86 | |||||
| Stock-based compensation | 25,163 | 42,325 | |||||
| Deferred income taxes | (26,865 | ) | (1,600 | ) | |||
| Other, net | 1,753 | 1,403 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (15,270 | ) | 2,133 | ||||
| Prepaid expenses and other current assets | (23,786 | ) | (23,691 | ) | |||
| Inventory | 1,515 | (3,091 | ) | ||||
| Other assets | 412 | 1,009 | |||||
| Accounts payable | 17,356 | (5,870 | ) | ||||
| Accrued expenses and other current liabilities | 12,568 | 25,185 | |||||
| Accrued compensation | (21,463 | ) | (51,973 | ) | |||
| Deferred revenue | (5,542 | ) | 7,297 | ||||
| Operating lease liabilities | (2,482 | ) | (2,861 | ) | |||
| Other liabilities | (3,798 | ) | (48 | ) | |||
| Net cash provided by operating activities | 15,919 | 8,920 | |||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (2,726 | ) | (1,149 | ) | |||
| Capitalized software development costs | (28,859 | ) | (34,363 | ) | |||
| Acquisition of business, net of cash acquired | (64,608 | ) | — | ||||
| Payments for investments | (27,075 | ) | — | ||||
| Net cash used in investing activities | (123,268 | ) | (35,512 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from the exercise of stock options | 80 | 131 | |||||
| Proceeds from employee stock purchase plan | 689 | 1,516 | |||||
| Other, net | — | 104 | |||||
| Net cash provided by financing activities | 769 | 1,751 | |||||
| Net decrease in cash and cash equivalents | (106,580 | ) | (24,841 | ) | |||
| Effect of foreign currency exchange rate changes | 1,585 | (899 | ) | ||||
| Cash and cash equivalents at beginning of the period | 1,298,327 | 1,123,675 | |||||
| Cash and cash equivalents at end of the period | $ | 1,193,332 | $ | 1,097,935 | |||
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data, unaudited)
| March 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,193,332 | $ | 1,298,327 | |||
| Accounts receivable, net of allowance for doubtful accounts of | 232,971 | 214,146 | |||||
| Inventories | 38,012 | 38,138 | |||||
| Prepaid expenses and other current assets | 137,514 | 113,296 | |||||
| Total current assets | 1,601,829 | 1,663,907 | |||||
| Property and equipment, net | 30,640 | 29,487 | |||||
| Goodwill | 283,190 | 283,190 | |||||
| Intangible assets, net | 1,393,381 | 1,431,360 | |||||
| Operating lease—right-of-use assets | 26,589 | 27,092 | |||||
| Other assets | 108,816 | 81,488 | |||||
| Total assets | $ | 3,444,445 | $ | 3,516,524 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 52,054 | $ | 33,130 | |||
| Accrued expenses and other current liabilities | 218,971 | 202,157 | |||||
| Accrued compensation | 56,741 | 76,229 | |||||
| Deferred revenue—current | 73,933 | 79,296 | |||||
| Convertible senior notes, net—current | 550,724 | 550,723 | |||||
| Total current liabilities | 952,423 | 941,535 | |||||
| Other liabilities | 4,322 | 720 | |||||
| Operating lease liabilities, net of current portion | 33,798 | 32,135 | |||||
| Deferred revenue, net of current portion | 10,246 | 9,786 | |||||
| Deferred taxes, net | 24,336 | 49,851 | |||||
| Convertible senior notes, net—non-current | 992,290 | 991,418 | |||||
| Total liabilities | 2,017,415 | 2,025,445 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Common stock, | 175 | 173 | |||||
| Additional paid-in capital | 17,787,012 | 17,759,194 | |||||
| Accumulated deficit | (16,322,912 | ) | (16,229,900 | ) | |||
| Accumulated other comprehensive loss | (37,245 | ) | (38,388 | ) | |||
| Total stockholders’ equity | 1,427,030 | 1,491,079 | |||||
| Total liabilities and stockholders’ equity | $ | 3,444,445 | $ | 3,516,524 | |||
Non-GAAP Financial Measures:
To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use certain non-GAAP financial measures to clarify and enhance an understanding of past performance, which include adjusted EBITDA and free cash flow. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance, and are commonly used by investors to evaluate our performance and that of our competitors. We further believe that these financial measures are useful to assess our operating performance and financial and business trends from period-to-period by excluding certain items that we believe are not representative of our core business, and that free cash flow reflects an additional way of viewing our liquidity that, when viewed together with GAAP results, provides management, investors, and other users of our financial information with a more complete understanding of factors and trends affecting our cash flows. We use these non-GAAP financial measures for business planning purposes and in measuring our performance relative to that of our competitors. We utilize adjusted EBITDA as a key measure of our performance.
Adjusted EBITDA consists of net loss before provision for income taxes; other expense (income), net; interest income; interest expense; depreciation of property and equipment; amortization of intangible assets; restructuring costs; acquisition, integration, and transformation cost; goodwill impairment; and stock-based compensation.
Free cash flow is net cash provided by operating activities less capital expenditures and capitalized software development costs.
Our use of these non-GAAP terms may vary from that of others in our industry, and other companies may calculate such measures differently than we do, limiting their usefulness as comparative measures.
Non-GAAP measures have important limitations as analytical tools and you should not consider them in isolation, and they should not be considered as an alternative to net loss before provision for income taxes, net loss, net loss per share, net cash from operating activities or any other measures derived in accordance with GAAP. Some of these limitations are:
- adjusted EBITDA eliminates the impact of the provision for income taxes on our results of operations, and does not reflect other expense (income), net, interest income, or interest expense;
- adjusted EBITDA does not reflect restructuring costs. Restructuring costs may include certain lease impairment costs, certain losses related to early lease terminations, and severance;
- adjusted EBITDA does not reflect significant acquisition, integration, and transformation costs. Acquisition, integration and transformation costs include investment banking, financing, legal, accounting, consultancy, integration, fair value changes related to contingent consideration, and certain other transaction costs related to mergers and acquisitions. It also includes costs related to certain business transformation initiatives focused on integrating and optimizing various operations and systems, including upgrading our customer relationship management and enterprise resource planning systems. These transformation cost adjustments made to our results do not represent normal, recurring, operating expenses necessary to operate the business but, rather, incremental costs incurred in connection with our acquisition and integration activities;
- adjusted EBITDA does not reflect goodwill impairment charges; and
- adjusted EBITDA does not reflect the significant non-cash stock-based compensation expense which should be viewed as a component of recurring operating costs.
In addition, although amortization of intangible assets and depreciation of property and equipment are non-cash charges, the assets being amortized and depreciated will often have to be replaced in the future, and adjusted EBITDA does not reflect any expenditures for such replacements.
We compensate for these limitations by using these non-GAAP measures along with other comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include net loss, net loss per share, net cash provided by operating activities, and other performance measures.
In evaluating these financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in this presentation. Our presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.
The following is a reconciliation of net loss, the most directly comparable GAAP financial measure, to adjusted EBITDA:
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(In thousands, unaudited)
| Outlook in millions (8) | |||||||||||
| Three Months Ended March 31, | Second Quarter | Full Year | |||||||||
| 2025 | 2024 | 2025 | 2025 | ||||||||
| Net income (loss) | $ | (93,012 | ) | $ | (81,889 | ) | |||||
| Add: | |||||||||||
| Provision for income taxes | (18,255 | ) | 2,690 | ||||||||
| Other expense (income), net | (2,435 | ) | 370 | ||||||||
| Interest expense | 5,765 | 5,649 | |||||||||
| Interest income | (12,674 | ) | (13,942 | ) | |||||||
| Depreciation of property and equipment | 3,564 | 2,834 | |||||||||
| Amortization of intangible assets | 84,304 | 95,057 | |||||||||
| Restructuring costs | 4,347 | 9,673 | |||||||||
| Acquisition, integration, and transformation costs | 2,188 | 373 | |||||||||
| Goodwill impairment | 59,138 | — | |||||||||
| Stock-based compensation | 25,163 | 42,325 | |||||||||
| Total Adjustments | 151,105 | 145,029 | 91 - 140 | 422 - 551 | |||||||
| Consolidated Adjusted EBITDA | $ | 58,093 | $ | 63,140 | |||||||
| Segment Adjusted EBITDA | |||||||||||
| Integrated Care | $ | 50,379 | $ | 47,674 | |||||||
| BetterHelp | 7,714 | 15,466 | |||||||||
| Consolidated Adjusted EBITDA | $ | 58,093 | $ | 63,140 | |||||||
See note (8) in the Notes section that follows.
The following is a reconciliation of net cash provided by operating activities, the most directly comparable GAAP financial measure, to free cash flow:
Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow
(In thousands, unaudited)
| Three Months Ended | Outlook (9) | ||||||||
| March 31, | Full Year | ||||||||
| 2025 | 2024 | 2025 (in millions) | |||||||
| Net cash provided by operating activities | $ | 15,919 | $ | 8,920 | |||||
| Capital expenditures | (2,726 | ) | (1,149 | ) | |||||
| Capitalized software development costs | (28,859 | ) | (34,363 | ) | |||||
| Capex | (31,585 | ) | (35,512 | ) | (139) - (129) | ||||
| Free Cash Flow | $ | (15,666 | ) | $ | (26,592 | ) | |||
See note (9) in the Notes section that follows.
Notes:
- A reconciliation of each non-GAAP measure to the most comparable measure under GAAP has been provided in this press release in the accompanying tables. An explanation of these non-GAAP measures is also included under the heading “Non-GAAP Financial Measures.”
- U.S. Integrated Care Members represent the number of unique individuals who have paid access and visit fee only access to our suite of integrated care services in the U.S. at the end of the applicable period.
- Excluding the amount capitalized related to software development projects.
- Chronic Care Program Enrollment represents the total number of enrollees across our suite of chronic care programs at the end of the applicable period.
- Average monthly revenue per U.S. Integrated Care member is calculated by dividing the total revenue generated from the Integrated Care segment by the average number of U.S. Integrated Care Members (see note 2) during the applicable period.
- BetterHelp Paying Users represent the average number of global monthly paying users of our BetterHelp therapy services during the applicable period.
- We have two segments: Teladoc Health Integrated Care (“Integrated Care”) and BetterHelp. The Integrated Care segment includes a suite of global virtual medical services including general medical, expert medical services, specialty medical, chronic condition management, mental health, and enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment includes virtual therapy and other wellness services provided on a global basis which are predominantly marketed and sold on a direct-to-consumer basis.
- We have not provided a full line-item reconciliation for net loss to adjusted EBITDA outlook because we do not provide outlook on the individual reconciling items between net loss and adjusted EBITDA. This is due to the uncertainty as to timing, and the potential variability, of the individual reconciling items such as impairments, stock-based compensation and the related tax impact, provision for income taxes, acquisition, integration, and transformation costs, and restructuring costs, the effect of which may be significant. Accordingly, a full line-item reconciliation of the GAAP measure to the corresponding non-GAAP financial measure outlook is not available without unreasonable effort.
- We have not provided a line-item reconciliation for free cash flow to net cash from operating activities for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable efforts.
Investors:
Michael Minchak
617-444-9612
ir@teladochealth.com
Media:
Lou Serio
202-569-9715
pr@teladochealth.com
FAQ
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