Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Teladoc Health Inc (TDOC, Financial) reported revenues and adjusted EBITDA at the higher end of their first-quarter guidance ranges.
- The acquisition of Virtual Mental Health Company UpLift is expected to enhance the BetterHelp segment by providing access to over 100 million covered lives.
- The Integrated Care segment saw a significant milestone with U.S. membership surpassing 100 million, growing by 8.7 million members sequentially.
- International business continues to grow with mid-teens revenue growth on a constant currency basis, showcasing strong performance in both B2B and public health channels.
- Teladoc Health Inc (TDOC) was recognized as one of Newsweek's Most Trustworthy Companies in America for 2025, ranking number one in the healthcare and life sciences industry.
Negative Points
- First-quarter consolidated revenue was down 3% year-over-year, and the net loss per share increased compared to the previous year.
- The BetterHelp segment experienced an 11% decline in revenue compared to the prior year, with adjusted EBITDA margin decreasing from 5.7% to 3.2%.
- The company faces potential headwinds from tariffs, which could impact adjusted EBITDA by $5 million to $10 million in 2025.
- There was a slight uptick in churn rates for BetterHelp, indicating potential challenges in retaining users.
- The acquisition of UpLift is expected to lead to an incremental headwind of approximately $10 million to $15 million to 2025 adjusted EBITDA due to additional operational investments.
Q & A Highlights
Q: Can you discuss the impact of the shorter duration contracts introduced in BetterHelp and their effect on churn and revenue per member?
A: Mala Murthy, CFO: The weekly offering, introduced in September, is priced at one-fourth of the monthly subscription. It has led to stronger conversion due to its accessible price point, but also higher churn as users are reminded weekly. Despite this, the net impact remains positive. The revenue per member is naturally lower due to the lower price point, but we are acquiring more users overall.
Q: Why was the core BetterHelp network unable to secure payer coverage, and how does UpLift fit into this strategy?
A: Charles Divita, CEO: We were operationally ready to pursue payer contracts and had applied to over a dozen payers. However, the UpLift acquisition presented an opportunity to accelerate our strategy. The BetterHelp network has over 35,000 therapists, many of whom could meet payer requirements, and we plan to activate this over time.
Q: Can you explain the decline in revenue per member in both the Integrated Care and BetterHelp segments?
A: Mala Murthy, CFO: In Integrated Care, the decline is due to a significant increase in members, which initially come in with core telehealth services. Over time, we will cross-sell additional services. In BetterHelp, the decline is due to a mix effect from international growth, where revenue per user is lower, and the impact of the weekly price offering.
Q: How do you plan to improve profitability per member while focusing on member growth?
A: Charles Divita, CEO: Growth in members will translate into growth in service usage, especially as we shift from subscription-based to visit-fee-based models. We are investing in technology to enhance service value and drive more outcomes in Chronic Care management, which will support future growth.
Q: What is the expected cadence of BetterHelp margin improvement in the second half of the year?
A: Mala Murthy, CFO: The improvement will be driven by revenue growth from international efforts and insurance initiatives. We also plan to pull back on ad spend in the fourth quarter more than last year, contributing to margin improvement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
