Teladoc Health Inc. (TDOC) shares plummeted 16.01% in the after-hours session on Wednesday following the company's disappointing fourth-quarter 2024 earnings report and weak outlook for 2025.
The virtual healthcare provider reported a quarterly loss of $0.28 per share, missing Wall Street's expectations of a $0.23 per share loss. While Teladoc's revenue of $640.5 million for the quarter narrowly beat estimates, the larger-than-expected loss overshadowed the positive revenue surprise.
The earnings miss was driven by a decline in Teladoc's BetterHelp mental health segment, which saw revenue drop 10% due to decreased demand for direct mental health services. Additionally, the company's gross margin slipped to 65.7% from 68.8% a year earlier, and adjusted EBITDA declined across segments.
Looking ahead, Teladoc's guidance for 2025 fell short of analysts' projections. The company expects revenue between $2.468 billion and $2.576 billion, compared to $2.570 billion in 2024. Its adjusted EBITDA forecast range of $278 million to $319 million is largely below the $310.7 million reported in 2024.
The disappointing results and lackluster outlook weighed heavily on Teladoc's stock, with investors punishing the virtual healthcare leader amid intense competition and concerns over slowing demand for its services.