Shares of Teladoc Health fell after the company reported a second-quarter revenue decline and lowered its outlook, including sharply reduced revenue guidance for its BetterHelp online-therapy unit.
Shares were recently down about 26% at $6.82 in early Thursday afternoon trading. The stock is down about 4% year to date.
The company reported a second-quarter net loss of $38.9 million, or 21 cents a share, compared with a net loss of $32.7 million, or 19 cents a share, a year earlier.
Analysts polled by FactSet expected a loss of 25 cents a share.
Revenue was $606.9 million, down 4% from $631.9 million a year earlier. Analysts were looking for $615.4 million.
Management said cash-pay revenue weakness at BetterHelp intensified late in the quarter. The BetterHelp segment's revenue was $212.6 million, down 12% from a year earlier.
Demand for insurance-covered therapy outpaced available provider capacity, Teledoc said, which limited its ability to convert a greater share of that demand into sessions and revenue to offset the cash-pay decline.
For the full year, the company expects revenue of $2.36 billion to $2.45 billion, down from $2.48 billion to $2.58 billion previously. It also expects a full-year per-share loss of between 75 cents and $1, narrowed from the prior range of a loss of 75 cents to $1.05.
It additionally expects BetterHelp revenue to decline 13% to 19% for the year, down from the prior outlook for a 1%-to-6.5% drop.
For the third quarter, the company expects revenue of $569 million to $609 million and a per-share loss of between 20 cents and 30 cents. BetterHelp revenue is seen falling 12% to 24% for the quarter.
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