(Reuters) – Shares of Teladoc Health slumped 20% after the biggest publicly listed telehealth firm forecast 2024 sales below expectations on sluggish demand for its online mental health platform.
At least two analysts said while the company managed to improve its margin in the fourth quarter, the weaker sales forecast for this year highlighted continued challenges in demand for its online mental health platform, BetterHelp.
Citi analyst Daniel Grosslight said BetterHelp and the “anemic” forecast would likely weigh on shares.
The company expects its 2024 sales to be in the range of $2.64 billion to $2.74 billion, compared with analysts’ estimates of $2.77 billion, according to LSEG data.
Sales from BetterHelp during the quarter marginally fell to $276.17 million, as the number of people visiting the website declined and the cost of customer acquisition rose.
Teladoc’s fourth-quarter sales came in at $660.50 million, missing analysts’ estimates of $671.40 million.
Teladoc shares were at $16.20 in premarket trading. The stock has fallen 32% in the last 12 months.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Vijay Kishore)
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