Teladoc reported an $837.7 million loss in the second quarter of 2024, including a $790 million impairment charge related to BetterHelp.
Teladoc acquired BetterHelp, a direct to consumer virtual telehealth platform, in 2015.
On a July 31 call with investors transcribed by SeekingAlpha, Chuck Divita, CEO of Teladoc, said customer acquisition and advertising costs are driving steep losses for BetterHelp.
The company had 407,000 paying members at the end of June 2024, down 14% from the same time period last year. The platform’s revenue decreased 7% from the same time last year to $534 million.
The company will shift its focus to acquiring international users and to contracting with insurers for its telehealth services, Mr. Divita said
“From my perspective, this is what I see as the next logical step for BetterHelp,” Mr. Divita said. “We’ve got a lot of eyes on the product, but as people work through the process, a significant number of those consumers that don’t choose to move forward cite high out-of-pocket costs, as well as having insurance coverage.”
The company plans to have the infrastructure to contract with insurers in place by the end of 2024, and roll out contracts with payers over the course of 2025.
Teladoc pulled its full-year guidance for its BetterHelp segment based on the loss.