virtual care company Teladoc reported $646.1 million in revenue in the first quarter of 2024, an increase of 3% from $629.2 million in the first quarter of 2023.
Its Teladoc Health Integrated Care revenue increased to $377.1 million in the first quarter of 2024, an 8% year-over-year increase, and BetterHelp revenue decreased 4% to $269 million.
The company reported adjusted EBITDA of $63.1 million, up 20% year over year, compared to $52.8 million in the first quarter of 2023.
Teladoc’s Integrated Care segment’s adjusted EBITDA grew 36% year over year in the first quarter to $47.7 million, while its BetterHelp segment declined 12% to $15.5 million.
The New York-based company reported a first-quarter net loss of $81.9 million.
Teladoc attributed the loss to stock-based compensation expenses of $42.3 million, amortization of acquired intangibles of $64.2 million and $9.7 million of restructuring costs, primarily related to severance payments.
“We are pleased to report a strong start to the year, with strength in both revenue and adjusted EBITDA in the first quarter. During this transition period, our team remains focused on our key initiatives, including leveraging our leading market position; drive greater product penetration across our large installed base of more than 90 million virtual care members; and accelerate our bottom-line performance,” Mala Murthy, interim CEO and CFO of Teladoc Health, said in a statement.
THE BIGGEST TREND
The virtual care company laid off 300 workers in 2023 in an effort to cut costs. The layoffs represented approximately 6% of the company’s non-clinical employees. At the same time, the company worked to reduce its office space.
In 2023, a federal judge He dismissed a class-action lawsuit against the telehealth company related to the company’s $18.5 billion merger with Livongo. The lawsuit alleged that Teladoc misled investors by downplaying the challenges the company faced in integrating Livongo.
Former CEO Jason Gorevic he resigned as CEO in April when the company’s stock price plunged 22% in February after failing to fourth quarter earnings estimated and projected revenue decline in 2024.
Last year, the company saw its annual revenue grow in 2023. 8% to $2.6 billion, up from $2.4 billion in 2022, but reported a full-year net loss of $220.4 million, or $1.34 per share, and an increase in adjusted EBITDA 33% to $328.1 million, its most profitable year to date. Operating cash flow for 2023 increased from $189.3 million to $350 million.
Chief Financial Officer Mala Murthy will take his place as the company searches for a new CEO. During the company’s first-quarter earnings call, Murthy stated that she will name a permanent CEO by the end of the year.