February 22, 2023 06:43 PM<\/span>
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Teladoc\u00a0Health posted a $13.6 billion loss in 2022, largely attributed to charges tied to its 2020 acquisition of Livongo\u00a0for $18 billion.<\/p>\n

The annual loss reported Wednesday, which translates to $84.60 per share, compares with a loss of $428.8 million, or $2.73 per share, in 2021. For the fourth quarter, the Purchase, New York-based telehealth company said it lost $3.8 billion, or $23.40 per share, compared with a loss of $11 million or 7 cents per share in the year-ago period.<\/p>\n

Over the course of the year, Teladoc recorded $13.4 billion in non-cash goodwill impairment charges related to the Livongo acquisition. That included a charge of $3.8 billion in the fourth quarter.<\/p>\n

Teladoc\u2019s shares sank 8%\u00a0in after-hours trading\u00a0from its market close of $26.70 per share. As the company has struggled financially, its stock price has fallen from its high of $296.66 a share in February 2021.\u00a0<\/p>\n

On the earnings call with investors, Teladoc\u00a0Chief\u00a0Financial Officer Mala Murthy said the non-cash goodwill impairment doesn\u2019t affect the company\u2019s cash or liquidity. The company reported free cash flow of $16.5 million for 2022 compared with\u00a0$130.1 million in 2021. \u00a0The company said its cash, cash equivalents short-term investments equal $918 million. \u00a0<\/p>\n

The Livongo acquisition hasn’t gone according to plan for Teladoc. Livongo lost Cigna as its preferred digital health tool <\/a>for chronic care conditions in December 2021. In January, Teladoc laid\u00a0off \u00a0300 non-clinical employees, or 6% of its workforce<\/a>.\u00a0<\/p>\n

CEO Jason Gorevic said during the earnings call\u00a0that broader economic challenges have led the company to focus on profitability rather than revenue growth.\u00a0<\/p>\n

\u201cGiven the current operating environment, as well as the larger scale at which we now operate, you should expect us to balance growth and margin with an increased focus on efficiency going forward,\u201d Gorevic said.\u00a0<\/p>\n

Teladoc\u00a0reported\u00a0a 41% increase in revenue for its BetterHelp consumer segment, from $720 million in 2021 to $1 billion in 2022. However, the company said the consumer segment is unlikely to return to the rapid growth of 2020 and 2021.<\/p>\n

\u201cI don\u2019t think you\u2019re going see it return to the hypergrowth that this business has seen over the past few years where it grew well over 100%,\u201d Murthy said. \u201cBut we think there remains a long runway for growth in this market. If you think about virtual therapy, it\u2019s still underpenetrated.\u201d\u00a0
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