Teladoc Plunges 20% After Slashing Revenue Outlook, BetterHelp Woes Deepen
TDOC sits 72% above its 52-week low of $4.4.
Summary
Teladoc shares cratered over 20% pre-market after the company cut its full-year revenue forecast and warned of accelerating headwinds at its BetterHelp mental health unit. The new revenue range of $2.36B-$2.45B is down from the prior $2.48B-$2.58B, with the midpoint now well below the $2.58B consensus. BetterHelp's revenue decline is now expected to be 12.7%-19%, a sharp worsening from the previous 1%-6.5% decline estimate. CEO Chuck Divita said cash-pay demand weakened further in late May and June, exceeding prior assumptions, while insurance-covered services faced capacity constraints. This follows last night's Q2 miss and guidance cut, but today's selloff reflects the market digesting the magnitude of the BetterHelp deterioration and the lowered ad spend outlook. The stock had been up over 30% year-to-date, so the reversal is violent. Watch for analyst downgrades and any commentary on the earnings call about the timeline for stabilizing BetterHelp.
At the time of this announcement, TDOC was trading at $7.59 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $4.40 to $9.89. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.