Teladoc Health reported QQ3 2024 revenue of $640.5 million, a slight year-over-year decline of 3% and flat sequence quarter-over-quarter, reflecting a cautious demand backdrop in the U.S. telehealth market and continued investment activity in growth initiatives. The quarter showcased a robust gross margin of 71.9%, underscoring a favorable product and services mix and scalable software-enabled capabilities within the Integrated Care and BetterHelp platforms. However, operating income remained negative at $44.4 million, driven by ongoing investments in platform enhancements, sales execution, and international expansion activities, resulting in an EBITDA of $65.0 million (EBITDA margin ~10.1%). Net income was negative $33.3 million, implying a net margin of around -5.2% and a diluted EPS of approximately -$0.19 to -$0.20 for the quarter.
From a cash-flow perspective, Teladoc generated $110.2 million of operating cash flow and $31.1 million of capital expenditures, delivering free cash flow of $79.0 million. The company ended the period with cash and cash equivalents of about $1.243 billion and net debt of roughly -$345 million, signaling ample liquidity to fund growth initiatives while maintaining a conservative leverage profile (long-term debt $1.028 billion; total debt $1.589 billion; current ratio ~1.73).
Valuation and profitability metrics suggest a growth-oriented but still-early-stage margin expansion story: gross margin is robust, while operating margins remain a work in progress as Teladoc invests in scale, international expansion, and strategic initiatives. The stock trades with a forward-looking multiple framework (EV/Revenue ~29.4x; P/S ~2.4x) that reflects market expectations for long-term monetization of its telehealth platforms and adjacent services. Investors should monitor the trajectory of operating leverage, cash flow durability, and the pace of platform monetization as key drivers of the longer-term risk/return profile.