Teladoc Health, Inc.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
Teladoc provides virtual healthcare services in the U.S. and internationally through Business-to-Business (“B2B”) and Direct-to-Consumer (“D2C”) distribution channels. The Company offers its customers various virtual products and services addressing, among other medical issues, mental health through its BetterHelp D2C product, and chronic conditions.
On April 27, 2022, Teladoc announced its first quarter (“Q1”) 2022 financial results, including revenue of $565.4 million, which missed consensus estimates by $3.23 million, and “[n]et loss per share of $41.58, primarily driven by [a] non-cash goodwill impairment charge of $6.6 billion or $41.11 per share[.]” Additionally, the Company revised its FY 2022 revenue guidance to $2.4 – $2.5 billion and adjusted EBITDA guidance to $240 – $265 million “to reflect dynamics we are currently experiencing in the direct-to-consumer (D2C) mental health and chronic condition markets.” On a conference call with investors and analysts that day to discuss Teladoc’s Q1 2022 results, Defendants largely attributed the Company’s poor performance, revised FY 2022 guidance, and $6.6 billion non-cash goodwill impairment charge to increased competition in its BetterHelp and chronic care businesses. On this news, the price of Teladoc shares declined by $22.48 per share, or approximately 40.15%, from $55.99 per share to close at $33.51 on April 28, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) increased competition, among other factors, was negatively impacting Teladoc’s BetterHelp and chronic care businesses; (ii) accordingly, the growth of those businesses was less sustainable than Defendants had led investors to believe; (iii) as a result, Teladoc’s revenue and adjusted EBITDA projections for FY 2022 were unrealistic; (iv) as a result of all the foregoing, Teladoc would be forced to recognize a significant non-cash goodwill impairment charge; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
