Teladoc stock plunges on weak revenue guidance
Teladoc Health (TDOC) — the parent company of mental health counseling service BetterHelp — shares are plummeting in afternoon trading on Wednesday after missing fourth-quarter earnings estimates. Teladoc CEO Jason Gorevic stated the telehealth market was "well-penetrated" in the company's earnings call, while delivering weaker-than-expected full-year guidance.
Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the latest development with Teladoc Health and what it means for the company moving forward.
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Editor's note: This article was written by Luke Carberry Mogan and Nicholas Jacobino
Video Transcript
- Time for a trending ticker that we're watching on the Yahoo Finance platform. Teladoc, the shares plunging after giving a weaker than expected first quarter and full-year forecast. The company's CEO warning that the virtual care market is well penetrated and now expects revenue growth of low single digits going forward. You're taking a look at shares right now down by about 19%.
It was interesting on the call, they did say that they are looking to bring to market a broader range of services. Areas like weight management, pediatrics this year, even as they work to achieve profitability.
- Yeah, exactly. And this is a stock that clearly had a run up during the pandemic. We've seen it fall back obviously not as many people are using those telehealth types of options now that many people have returned to an inpatient type of facility here, so we are seeing some pressure on that name. As a result, revenue outlook is disappointing just a bit. A lot of the analyst commentary reaction to these results have been surrounding the BetterHelp growth and lack thereof, the slowdown that we have seen within that division.
Barclays, one of the companies coming out saying that they need to see or expect to see some stabilization in BetterHelp in order to have that meaningful recovery. So as a result, we are seeing pressure still across the business with Teladoc shares under a significant amount of pressure this morning.
