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Teladoc has notified regulators of a change in its leadership team or board of directors. While the filing confirms a shift at the top, the company has not yet detailed who is departing or who will take their place.
This comes at a sensitive time for the telehealth provider. The company is currently trying to turn around its business by cutting costs and focusing more on chronic care management, such as diabetes and hypertension programs, rather than just simple video doctor visits. A change in leadership can often signal a new strategy, but it also adds uncertainty while the company is still working to reach consistent profitability.
Source: 8-K filing
The company has appointed Mark Anquillare, the former president of Verisk Analytics, to its board of directors. Verisk is a firm that provides data and risk analysis to the insurance industry. This background is relevant because the company sells many of its virtual care services directly to insurance plans and large employers.
Adding an expert in insurance data may help the company better prove the value of its chronic care programs to these big buyers. This is a key part of the plan to grow its business-to-business segment, which has struggled to find momentum lately.
Source: 8-K filing
Evercore ISI lowered its price target for the stock from $10 to $7.50 after the company cut its full-year sales outlook. The move reflects growing concern that the mental health division, BetterHelp, is shrinking faster than expected as it becomes more expensive to find new customers through online ads.
While the firm kept its neutral rating, the lower target suggests that the path to a higher stock price is blocked until the company can prove its core business-to-business segment can grow enough to offset the losses in mental health.
Source: Evercore ISI
The company reported second-quarter revenue of about 607 million dollars, which was lower than the 620 million dollars analysts expected. The main problem was the BetterHelp mental health unit, where revenue dropped 12 percent from last year. This unit is struggling because it is costing more to acquire new patients through advertising, and demand is shifting.
Management also lowered its sales forecast for the full year to a range of 2.36 billion to 2.45 billion dollars. This is a setback for the goal of stabilizing the business. While the Integrated Care segment, which sells to employers, grew slightly, it was not enough to make up for the weakness in mental health. The stock fell about 20 percent following the news as the timeline for a recovery looks longer than it did a few months ago.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company's Canadian arm received the Accreditation Canada Primer Award, which is an independent check on the safety and quality of its medical programs. This award validates that its virtual care meets the same high standards as traditional in-person medical services. While this is a small piece of the global business, maintaining these certifications is important for winning contracts with government health systems and large insurers. It helps the company stand out from smaller rivals that may not have the same level of clinical oversight.
Source: Business Wire
The company has a mixed record of hitting its targets, often reporting losses even when it beats sales estimates. This makes it hard to rely on management's forecasts until they show a clearer path to profit.
| Expectation | |
|---|---|
| EPS | $-0.20 |
| Revenue | $591M |
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