Teladoc Health Q3 Earnings Preview: Investors brace for BetterHealth, strategic updates

Teladoc Health (NYSE:TDOC) is scheduled to announce Q3 earnings results on Wednesday, October 30th, after market close.

Teladoc’s (TDOC) last quarterly result was a disappointment, with the top line below estimates and the company withdrawing its 2024 financial guidance as well as its three-year business outlook. It was also hurt by a $790M goodwill impairment charge related to estimate changes in future cash flows from its BetterHelp mental health segment.

RBC Capital Market analysts will keep their eyes on BetterHelp revenue, given its usage has declined sequentially for four straight quarters so far. Its own analysis of BetterHelp app utilization has shown usage continued to decline in Q3, although the rate of decline seems to have slowed down.

Analysts at Truist also expect slightly better revenues from BetterHelp than consensus expectations, although overall results are likely to be in-line to slightly above estimates.

Shares of Teladoc (TDOC) have plunged 33% in the past six months, but Truist analysts believe the recovery seen since the Q2 decline was largely driven by expectations of a Q3 beat and material updates on a potential restructuring or sale of its businesses.

“Q3 would be the perfect opportunity to provide this update. A lack of update would be disappointing relative to investor expectations,” Truist said. However, RBC analysts do not believe any meaningful updates will be disclosed until early 2025.

The consensus EPS Estimate is -$0.32 and the consensus Revenue Estimate is $631.94M (-4.3% Y/Y).

Over the last 1 year, TDOC has beaten EPS estimates 50% of the time and has beaten revenue estimates 50% of the time.

Over the last 3 months, EPS estimates have seen 0 upward revisions and 3 downward. Revenue estimates have seen 0 upward revisions and 21 downward.