Executive Summary
Teladoc Health’s Q4 2024 results reflect a transition to improved operating discipline amid a still-challenging profitability backdrop. Revenue for the quarter was $640.5 million, essentially flat year over year and broadly in line with the prior quarter at $640.5 million, signaling stabilization in top-line trends after a period of growth headwinds. Gross margin remained robust at 70.5%, delivering $451.6 million in gross profit, yet the company delivered an operating loss of $48.2 million and a net loss of $48.4 million, underscoring ongoing cost allocation pressures and investments that have yet to fully translate into normalized profitability.
From a cash-flow perspective, Teladoc generated $85.9 million of operating cash flow and $56.3 million of free cash flow in Q4, supported by a healthy cash balance of $1.30 billion and a net debt position of roughly $286 million. This liquidity framework provides near-term flexibility to fund strategic initiatives, including platform expansion and international growth opportunities, while absorbing continued investments in SG&A and product development. The balance sheet remains solid with total assets of $3.52 billion and current liquidity metrics (current ratio 1.77, quick ratio 1.73, cash ratio 1.38) signaling adequate short-term oversight of working capital needs.
On a comparative basis, Teladoc’s gross margin sits at the higher end of the peer set, but the company remains the only material loss-maker among the selected peers in this snapshot, with a negative net income and negative earnings per share for Q4. The market continues to price Teladoc with a higher weight on cash-generation capability and long-term growth, given secular tailwinds in telehealth and virtual care adoption, but execution of cost containment and revenue expansion remains critical to achieving sustained profitability. Investors should monitor trajectory of revenue growth in IIntegrated Care and BetterHelp, ongoing leverage in operating expenses, and the pace of cash-flow conversion as catalysts for a more favorable earnings trajectory.
Key Performance Indicators
QoQ: -45.48% | YoY:-67.56%
QoQ: -40.00% | YoY:-64.71%
Key Insights
Revenue: $640.5M (+0% QoQ, -3.0% YoY) | Gross Profit: $451.6M, Gross Margin: 70.5% (-3.3% YoY, -2.0% QoQ) | Operating Income: -$48.2M, Operating Margin: -7.5% (YoY +44.7%, QoQ -8.6%) | EBITDA: $50.3M, EBITDA Margin: 7.9% | Net Income: -$48.4M, Net Margin: -7.6% (YoY -67.6%, QoQ -45.5%) | EPS: -$0.28 | Cash Flow: Operating cash flow $85.9M; Free cash flow $56.3M | Capex: -$29.6M | End Cash: $1.30B | Net Debt: $286.3M | Current Ratio: 1.77; Quick Ratio: 1.73; Cash Ratio: 1.38 | Debt: Total $1.584B...
Financial Highlights
Revenue: $640.5M (+0% QoQ, -3.0% YoY) | Gross Profit: $451.6M, Gross Margin: 70.5% (-3.3% YoY, -2.0% QoQ) | Operating Income: -$48.2M, Operating Margin: -7.5% (YoY +44.7%, QoQ -8.6%) | EBITDA: $50.3M, EBITDA Margin: 7.9% | Net Income: -$48.4M, Net Margin: -7.6% (YoY -67.6%, QoQ -45.5%) | EPS: -$0.28 | Cash Flow: Operating cash flow $85.9M; Free cash flow $56.3M | Capex: -$29.6M | End Cash: $1.30B | Net Debt: $286.3M | Current Ratio: 1.77; Quick Ratio: 1.73; Cash Ratio: 1.38 | Debt: Total $1.584B; Long-Term Debt $1.024B | Shares Outstanding: 172.8M (diluted) | FCF per share: $0.326 | Price to Sales: 2.47; EV/EBITDA: 37.17; P/B: 1.06; P/CFO: 18.45; P/FCF: 28.17
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
640.49M |
-3.03% |
0.00% |
| Gross Profit |
451.56M |
-3.33% |
-2.00% |
| Operating Income |
-48.22M |
44.67% |
-8.59% |
| Net Income |
-48.41M |
-67.56% |
-45.48% |
| EPS |
-0.28 |
-64.71% |
-40.00% |
Key Financial Ratios
operatingProfitMargin
-7.53%
operatingCashFlowPerShare
$0.5
freeCashFlowPerShare
$0.33
Management Commentary
Transcripts for the quarter were not provided in the data set. As a result, management quotes or themes from an earnings call could not be extracted. In a normal cycle, investors should expect management commentary on revenue mix, progress against profitability targets, customer/payer mix, patient engagement, and cost-control initiatives tied to the platform strategy. Without transcript content, the highlights below reflect implied priorities from the financials and the broader telehealth context.
Forward Guidance
No explicit forward guidance was included in the provided data set. Given the quarterly metrics, the near-term emphasis appears to be on converting improved gross profitability into positive operating leverage and free cash flow, while continuing to rationalize SG&A and increase the contribution from higher-margin services and digital health platforms. Investors should monitor: (1) trajectory of Integrated Care and BetterHelp revenue mix and pricing power, (2) sustainability of gross margins as cost inflation and mix effects evolve, (3) cadence of operating expense leverage, (4) international expansion and strategic partnerships, and (5) working capital dynamics and cash conversion. In a macro environment of selective reimbursement risk and competitive intensity in telehealth, achieving break-even operating profitability and stable FCF generation would be key drivers of long-term re-rating.