Teladoc Health Reports Mixed Q1 Results, CEO Steps Down
Teladoc Health Inc. (TDOC) reported mixed first-quarter results on Thursday, with earnings weighed down by slowing growth in its direct-to-consumer behavioral health service, BetterHelp.
Despite the challenges, the company expressed optimism about its international markets and appointed a new CEO, Charles Divita, to lead the company.
In Q1, Teladoc reported a net loss of $837.7 million, or $4.92 per share, compared to a net income of $97.6 million, or $0.58 per share, in the same period last year. Revenue climbed 10% year-over-year to $565.1 million, but missed analysts' estimates.
The company's direct-to-consumer BetterHelp service, which provides online counseling and therapy, saw a slowdown in growth compared to previous quarters. Teladoc attributed this to increased competition and a seasonal decline in demand during the first quarter.
Amidst the mixed results, Teladoc announced the resignation of its longtime CEO, Jason Gorevic. Gorevic had been at the helm of the company for over a decade and oversaw its growth into one of the world's largest telehealth providers.
Interim CEO Mala Murthy expressed confidence in the company's international expansion strategy as a key driver of future growth. Teladoc is currently operating in over 30 countries and sees opportunities for expansion in Europe, Asia, and Latin America.
The company appointed Charles Divita as its new CEO, effective immediately. Divita previously served as CEO of One Medical, a primary care provider that was recently acquired by Amazon.
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