Yahoo Finance Teladoc Health Inc (TDOC) (Q1 2024) Earnings Call Transcript Highlights: Navigating Challenges ...
Consolidated Revenue: Increased 3% year-over-year to $646 million.
Integrated Care Revenue: Grew 8% year-over-year to $377 million.
BetterHelp Revenue: Decreased 4% year-over-year to $269 million.
Adjusted EBITDA: $63 million, margin of 9.8%.
Net Loss Per Share: $0.49, compared to $0.42 in the first quarter of 2023.
Free Cash Flow: Net outflow of $27 million.
Cash and Cash Equivalents: Ended the quarter with $1.1 billion.
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide some early insights on the international strategy and timing for BetterHelp? A: Mala Murthy, CFO & Acting CEO, highlighted that international markets, particularly English-speaking countries like the U.K., Canada, and Australia, are already contributing to revenue growth. The company plans to deepen penetration in these markets, which is driving confidence in the second half revenue ramp.
Q: Are there any strategic changes to the business being considered, especially with the pressure on BetterHelp? A: Mala Murthy stated that the focus is on executing current plans and investments. The leadership is actively assessing various parts of the business to ensure they drive both top-line and bottom-line growth, particularly focusing on executing initiatives that will ramp up in the second half of the year.
Q: How does the 8% membership growth impact revenue and adjusted EBITDA? A: Mala Murthy explained that the membership growth lays the groundwork for future revenue increases through cross-selling and upselling as new products are introduced to the member base. This strategy is expected to accrue revenue benefits in subsequent quarters.
Q: Can you discuss the sequential decline in Chronic Care program enrollment? A: Mala Murthy acknowledged a slight sequential decline but expects enrollment to ramp up throughout the year. The focus remains on executing marketing strategies and leveraging the company's strong start to the year to boost enrollment despite initial setbacks.
Q: What are the expectations for the 3-year outlook provided earlier, especially regarding revenue growth from Integrated Care and BetterHelp? A: Mala Murthy reaffirmed the 3-year outlook, expecting mid-single-digit growth in Integrated Care driven by Chronic Care and low-single-digit growth in BetterHelp. The company plans to achieve this through a combination of strategic initiatives focused on retention, international expansion, and targeted pricing adjustments.
Q: How is subscriber retention improving in BetterHelp, and what are the strategies to enhance it further? A: Mala Murthy mentioned that retention is improving due to innovations in the platform and user experience, aided by AI models that enhance provider matching. The focus is on multiple levers to drive growth, including geographical expansion and targeted pricing strategies.
These insights provide a comprehensive overview of Teladoc Health's strategic directions, operational focus, and expectations for future growth, particularly in light of the challenges and opportunities presented in the current fiscal period.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
