Teladoc Health 2025 Q1 Earnings Misses Targets as Net Loss Expands 14%

Teladoc Health (TDOC) reported its fiscal 2025 Q1 earnings on Apr 30th, 2025. Teladoc's revenue for the first quarter was $629.4 million, exceeding analyst expectations of $619.29 million. However, the company reported a net loss of $93 million, which widened by 14% compared to last year, missing analyst estimates for a loss of $0.34 per share. The company has adjusted its full-year earnings outlook, anticipating a loss of $0.90 to $1.40 per share, down from the previous guidance of $0.50 to $1.10 per share. Despite ongoing challenges, Teladoc remains optimistic about growth opportunities, particularly in virtual mental health services.

Revenue

Teladoc Health experienced a 2.6% decrease in total revenue for 2025 Q1, amounting to $629.37 million, compared to $646.13 million in 2024 Q1. The Access Fees segment generated $525.74 million, while the Other segment contributed $103.63 million to the overall revenue.

Earnings/Net Income

Teladoc Health's losses widened to $0.53 per share in 2025 Q1 from a loss of $0.49 per share in 2024 Q1, an 8.2% increase. The company's net loss expanded to $93.01 million, up 13.6% from the $81.89 million loss reported in the previous year. EPS remains a concern for investors due to its negative trajectory.

Price Action

The stock price of Teladoc Health edged down 0.14% during the latest trading day, increased by 1.70% over the most recent full trading week, and declined 11.12% month-to-date.

Post-Earnings Price Action Review

The impact of Teladoc Health's (TDOC) earnings report on its stock price has been mixed, with varying results across different metrics. Revenue showed a 45% chance of the stock price increasing within three days post-earnings, but this momentum falters in the long term, with a 25% chance of increase over 30 days. Net income follows a similar trend, with a 40% three-day win rate and a declining 30-day win rate of 25%. EPS has the lowest market reaction, with only a 25% chance of a positive three-day response, dropping to 15% over 30 days. While short-term reactions can be positive, particularly for revenue, the longer-term outlook remains challenging, especially concerning EPS, suggesting that investors should be cautious about the stock's potential movements post-earnings.

CEO Commentary

"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, with Integrated Care segment results exceeding expectations. We continue to make progress towards strategic priorities aimed at driving sustainable performance, particularly in virtual mental health, exemplified by our acquisition of UpLift Health Technologies, which enhances our BetterHelp segment's capabilities. We see significant opportunities ahead to strengthen our business position despite macro uncertainties, executing with urgency against key strategic priorities." - Chuck Divita, Chief Executive Officer of Teladoc Health.

Guidance

Teladoc Health maintains a focus on strategic priorities that aim to drive sustainable performance and future growth. The company expects to strengthen its market position through targeted investments and initiatives, particularly in virtual mental health services. While navigating uncertainties in the macro environment, Teladoc remains committed to executing its outlined strategies with urgency, positioning itself for potential growth opportunities in the upcoming quarters.

Additional News

Recently, Teladoc Health completed the acquisition of UpLift Health Technologies, a virtual mental health therapy provider, for $30 million in an all-cash transaction. This acquisition aims to bolster Teladoc's BetterHelp segment by enhancing its capabilities to support consumers seeking virtual mental health services covered by their benefits. This strategic move aligns with Teladoc's focus on expanding its offerings in the virtual mental health space. Additionally, Teladoc has seen significant growth in its U.S. integrated care members, which increased by 11.7% year-on-year, reaching 102.5 million, showing effective user attraction strategies. Despite these positive developments, Teladoc's stock has faced pressure, reflecting market concerns over revenue decline amidst expanding user numbers.