General telemedicine provider Teladoc Health has released its Q1 earnings results for 2022. For the period, the company has reported a net loss per share of USD 41.58 compared to a loss of USD 1.31 in Q1 2021, missing analyst consensus of USD 0.56. This substantial change in performance is attributable to a non-cash goodwill impairment charge of USD 6.6 billion in relation to its Livongo acquisition in 2020. 

The firm's quarterly revenue, however, achieved growth of 25% YoY to USD 565.4 million from Q1 2021. The increase in revenue was driven mainly by growth in the platform’s access fees and visit fees, which grew by 29% YoY and 12% YoY, respectively. 

The gross margin for Q1 2022 experienced a slight contraction to 66% from 67% in Q1 2021 while the quarterly adjusted EBITDA margin fell to 9.6% in Q1 2022 from 12.5% in Q1 2021. Adjusted EBITDA for the period of Q1 2022 was USD 54.5 million, within the company’s expected range of USD 51– USD 55 million. 

The company has revised its 2022 earnings outlook downwards mainly citing higher advertising costs generating lower-than-expected yields on marketing expenditure in the D2C mental health market and elongated sales cycles in the chronic care space as health plans and employers evaluate their long-term strategies to offer benefits and service.

The company projects that it will be able to achieve revenues of USD 580–USD 600 million during Q2 of 2022, implying a growth rate of 15.3%–19.3% YoY and USD 2.4–USD 2.5 billion (implying a growth rate of 18.1%–23.0% YoY)  for the full year of 2022. Projections for adjusted EBITDA are between USD 39 million and USD 49 million for Q2 of 2022 and between USD 240 million and USD 265 million for the full year of 2022. The net loss per share is expected to widen to USD 43.50–USD 43.00 for the full year 2022.