Teladoc’s (NYSE: TDOC) longtime CEO Jason Gorevic has stepped down amid the company’s ongoing struggles on the public market.
The company’s Chief Financial Officer Marla Murthy will step in as acting CEO during the transition period, according to the Teladoc’s board of directors.
Teladoc is one of the largest virtual care companies in the country. The company’s direct-to-consumer digital behavioral health provider BetterHelp has been one of its biggest growth areas over the past few years. The business segment generated over $1 billion in revenue in 2022 and 2023.
However, external factors, including the return to in-person care and the increase in advertising yield have led to a slow down in growth over the last few quarters.
Some analysts suggest this change in Teladoc leadership could come as an overall change in direction for the company.
“The integration of Chronic Care assets has not generated the wholistic benefit as planned, and
the primary growth pillar BetterHelp has been slowing for quarters,” analysts from investment bank Jefferies wrote in a research note. “We have made the case this is not a BetterHelp problem, but an industry problem, and the negative trend has continues again this quarter. While we don’t have details on Gorevic’s departure, the news could be a potential pose as change in strategic direction is welcome.”
Still, even with a new leadership it might be an uphill battle for Teladoc andBetterHelp business in the next few months, according to some analysts.
“Our preliminary 1Q data (Jan + Feb) suggests that BetterHelp and the overall behavioral health market continues to have some utilization challenges on a year-over-year basis,” Jefferies wrote. “Our data shows that BetterHelp website traffic has been ~10% lower in 2024 than it was in 2023, notably below BetterHelp revenue guidance of (3)%-(6)% in 1Q and flat to LSD growth for the full year. However, we take some level of comfort in management’s confidence reiterating guidance after the end of the quarter and so close to 1Q results.”
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