Teladoc: Stock Likely To Be Range Bound Until Guidance Is Revised Upwards


  • Teladoc reported its Q1 FY24 earnings where revenue and earnings grew 3% and 20% YoY respectively, driven by its Integrated Care Segment.
  • Unfortunately, the company’s BetterHelp segment continued to struggle with a decline in paying users, leading to revenue and earnings slowdown of 3.5% and 12% YoY respectively.
  • Although the management is optimistic about growth picking up in both its segments in the second half of FY24, it kept its guidance unchanged.
  • Assessing both the “good” and the “bad”, I believe that although there are budding signs of a turnaround, there are still too many uncertainties, making the stock a “hold”.

Female doctor talking with colleagues through a video call with a laptop in the consultation.

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Introduction & Investment Thesis

Teladoc (NYSE:TDOC) is a virtual healthcare services company that has massively underperformed the S&P 500 and Nasdaq 100 YTD. I had put a “hold” rating in my previous post

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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