Shares of Teladoc Health Inc. tumbled 13% in after-hours trading on Wednesday following the telehealth company’s announcement of a significantly larger-than-anticipated quarterly loss and the withdrawal of its financial guidance for the year.
For the second quarter, Teladoc reported a net loss of $838 million, or $4.92 per share. This loss includes a substantial goodwill impairment charge of $790 million related to its online mental health unit. In comparison, the company posted a loss of $65 million, or 40 cents per share, in the same quarter last year.
The company’s online mental health segment, BetterHelp, experienced a revenue decline of 9%, bringing in $265 million. Overall, Teladoc’s total revenue also fell by 2%, totaling $642.4 million.
Analysts surveyed by FactSet had projected a loss of 35 cents per share and revenues of $650 million for the quarter.
These disappointing results come on the heels of Teladoc’s leadership change in June, when Chuck Divita was appointed as the new CEO. Former CEO Jason Gorevic stepped down in April after a 15-year tenure.
Additionally, Teladoc has withdrawn its 2024 revenue outlook for both its consolidated operations and the BetterHelp segment, without providing a specific reason. The company had previously forecasted revenue growth in the low to mid-single digits for 2024.
Year-to-date, Teladoc’s stock has declined by 56%, in stark contrast to the S&P 500, which has seen gains of approximately 14%.
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