Virtual healthcare provider Teladoc Health Inc. (NYSE: TDOC) stock is trading down 57.8% year-to-date (YTD). The collapse occurred after reporting Q4 2023 earnings, which were further accelerated by its Q1 2024 earnings miss and lowered guidance. This once promising telehealth company, whose shares once topped $308, has left shareholders in excruciating pain, trading near all-time lows at $9. The company threw a Hail Mary pass with the appointment of a new CEO to helm the turnaround attempt.
Teladoc operates in the medical sector, competing with other telehealth companies like Him & Hers Inc. (NYSE: HIMS), LifeMD Inc. (NASDAQ: LFMD), and American Well Co. (NYSE: AMWL).
Teladoc's Core Services
Teladoc provides on-demand 24/7 access to healthcare providers for primary care services. Most major insurers cover its services, but individuals can also access it without insurance, paying out of pocket, starting at $89 for general medical visits. They also provide dermatology, nutrition, back & joint care, and mental health visits. The value proposition is quick and convenient access to a medical professional anywhere at any time. This is helpful, especially when your primary care doctor doesn't have any appointments available for the next two weeks. The company has delivered over 50 million virtual visits over 20 years, connecting people with virtual care.
Patients suffering from chronic conditions like diabetes and hypertension can be monitored remotely. Hospital organizations and clinicians use its Solo virtual care platform. Teladoc offers mental health services through its BetterHealth online therapy platform, which connects over 35,000 licensed therapists with patients.
Teladoc's New CEO Gets To Work Immediately Following the June 10, 2024, Announcement
On June 10, 2024, Teladoc appointed Charles Divita as its new CEO effectively immediately. Divita comes from GuideWell, a not-for-profit health solutions company focused on health insurance in Florida. It operates as the parent company of Florida Blue, a $23 billion annual revenue-generating insurer. GuideWell offers a range of Florida Blue health plans and provides access to medical services through its network of providers. Divita served as Executive Vice President of Commercial Markets. Prior to that, he was the CFO for several years.
TDOC Stock May be Forming a Bear Flag Breakdown Pattern
The daily candlestick chart for TDOC illustrates a bear flag breakdown pattern. The pattern forms after a steep decline, which represents the flagpole. TDOC shares gapped down to $16.82 on February 21, 2024, and continued to trickle to a low of $8.73 on July 10, 2024. The parallel higher highs and higher low trendlines formed the flag pattern. The bear flag was triggered when TDOC fell back under its lower trendline support at $9.74. The daily relative strength index (RSI) fell back down to the 38-band. Pullback support levels are at $8.73, $7.54, $6.50, and $5.48.
TDOC's Q1 2024 Earnings Report Accelerates the Stock Sell-Off
On April 29, 2024, Teladoc reports a Q1 2024 EPS loss of 49 cents, missing consensus estimates by 3 cents. This includes an amortization of 38 cents in intangibles and a stock-based compensation expense of 25 cents. Teladoc grew adjusted EBITDA by 20% YoY to $63.1 million. Revenues grew 2.7% YoY to $646.13 million versus $637.31 million consensus estimates. Its Integrated Care segment revenues were $377 million, down from $383 million in the year-ago period. BetterHelp revenues fell to $269 million from $276 million a year ago. BetterHelp's adjusted EBITDA fell to $15 million, down from $58 million in the year-ago period. The company ended the quarter with $1.10 billion in cash and cash equivalents.
Teladoc Issues Downside Guidance for Q2 2024
The company issued lower guidance for Q2 2024, with an EPS loss of 45 cents to 35 cents versus a loss of 30 cents, as per consensus estimates. Revenues for Q2 are expected to fall between $635 million and $660 million, falling short of the $662.55 million consensus estimates.
Teladoc reaffirmed full-year 2024 guidance with an EPS loss of $1.10 to 80 cents versus $1.03 consensus estimates. Full-year 2024 revenues are expected to be between $2.635 billion and $2.735 billion versus the consensus estimates of $2.66 billion. Incidentally, Teladoc terminated its President of Enterprise Growth and Global Markets, Laizer Kornwasser, without incident on July 1, 2024. He will remain an advisor to the CEO through August 2, 2024. The bar and stock price are set low heading into its Q2 2024 earnings release.
Teladoc Health analyst ratings and price targets are at MarketBeat. There are 18 analyst ratings comprised of 6 Buys and 12 Holds, with an average consensus price target 97% higher at $17.97.
