Teladoc’s BetterHelp Playing Program recorded Adjusted EBITDA Margin of 19.1% 

Teladoc Health (NYSE: TDOC) announced its 2022 Q4 financial results on February 22, 2023. According to the announcement, total revenue was up 15% (YoY, 3 months). In addition, adjusted EBITDA was up 22% (YoY, 3 months).

Teladoc recorded 3,773 million USD non-cash goodwill impairment in this quarter. As a result, operating loss and net loss amounted to 3,816 million USD and 3,810 million USD, respectively.

Access fees revenue paid by member companies increased by 16% (YoY, 3 months). On the other hand, the other revenue including visit fees was up 10%.

Looking at membership trends, US International care members increased by 7%(YoY). On the other hand, users of the mental health care program BetterHelp Playing were up 37%. Moreover, chronic care program enrollment increased by 16%.

Teladoc Health Integrated Care Program revenue was up 6% (YoY, 3 months). Meanwhile, the BetterHelp Playing Program revenue increased by 29% year-over-year.

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Photo by Anthony Tran on Unsplash

In terms of margins, the Integrated Care Program had an adjusted EBITDA margin of 12.2% (+232bps, YoY, 3 months). On the other hand, the BetterHelp Playing Program had an adjusted EBITDA margin of 19.1% (+110bps). The higher growth in the higher-margin segment would lead to higher profitability for the company.

Regarding cash flow, net cash provided by operating activities recorded cash inflow of 189 million USD (-2%, YoY, TTM). In addition, free cash flow recorded cash inflow of 22 million USD (-82%). The larger decrease in free cash flow is mainly due to recording CAPEX.

Teladoc might have made system improvements and the other investment to improve the profitability of its chronic and mental illness-related businesses.  These business might be sustainably profitable. Thus, we expect that revenues in the BetterHelp Playing Program and Chronic Care Program could grow rapidly in near future.

Teladoc Health, Inc. (NYSE: TDOC) Stock Chart

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