Dive Brief:
- Teladoc Health shared an early look at its financial results at JPMorgan’s healthcare conference on Monday, indicating between $633 million and $640 million in revenue for the fourth quarter, a little higher than consensus estimates from analysts.
- The virtual care giant projected total 2022 revenue between $2.4 billion and $2.41 billion, according to its regulatory filing. Teladoc’s direct-to-consumer mental health unit, BetterHelp, is expected to contribute roughly $1 billion of that topline.
- Teladoc’s earnings expectations for the fourth quarter and the full year remain unchanged. The New York-based company’s stock rose more than 4% over Monday’s trade following the news.
Dive Insight:
In comments at the conference in San Francisco on Monday, Teladoc CEO Jason Gorevic touted the financial guidance, calling it “in stark contrast” to many of the company’s smaller competitors and adding that BetterHelp’s growth is “staggering.”
BetterHelp’s contribution implies a growth rate of 43% for the business, up from previous management targets, according to SVB Securities analyst Stephanie Davis.
That could be a good sign for Teladoc heading into the new year. In comments on its third quarter in October, management issues cautious comments on growth for 2023, saying macroeconomic headwinds like inflation could lead consumers to tighten their purse strings, hampering sales.
“This stronger than expected D2C spend could suggest positive readthroughs to FY23 guidance, as BetterHelp growth remains a key swing factor,” Davis wrote in a note on the filing.
Teladoc, which reaches more than 80 million people across its virtual care products, has been focusing on capturing a greater slice of the healthcare delivery market by addressing whole-person health as the telemedicine industry evolves beyond its urgent care origins.
Last week, Teladoc announced it’s launching a new app giving health plan members and employer clients access to all of Teladoc’s clinical programs in one location. The company plans to spend $400 million on R&D this year, including on the rollout of the app, Chief Medical Officer Vidya Raman-Tangella told Healthcare Dive.
Unlike past preannouncements, Teladoc did not disclose updated visit or membership expectations in the release.
