Dive Brief:
- Teladoc Health CFO Mala Murthy is stepping down from her role effective Nov. 21, the telehealth company said Thursday.
- Murthy, who has served as finance chief at the firm since 2019, is leaving Teladoc to pursue an opportunity outside the healthcare sector, according to a press release.
- Alongside the leadership news, Teladoc released preliminary financial results for the third quarter that beat investor expectations on revenue and earnings before interest, taxes, depreciation and amortization. “While news of a CFO departure is typically not well-received by investors, [Teladoc’s] pre-release of in-line Q3 results, [...] should calm investors’ nerves,” Jefferies analyst Brian Tanquilut wrote in a Friday note.
Dive Insight:
In the third quarter, Teladoc’s revenue was $626.4 million and consolidated adjusted EBITDA was $69.9 million, the telehealth company said Thursday. Teladoc also reaffirmed its full-year revenue and adjusted earnings outlook issued this summer. The virtual care firm expects $2.5 billion to $2.55 billion in revenue in 2025, with adjusted EBITDA from $263 million to $294 million.
The results indicate financial challenges didn’t lead to Murthy’s departure, but Teladoc “remains in the midst of a transitional phase—navigating slower growth and a difficult end-market,” William Blair analyst Ryan Daniels wrote in a Thursday note.
Murthy will still present on the company’s third quarter earnings call, which is slated to take place Wednesday, the virtual care giant said in a press release.
Teladoc has also begun a search process to identify its next CFO. The company is putting together an “interim leadership structure,” including key finance leaders that will report directly to CEO Chuck Divita.
The executive shakeup comes as Teladoc has been in the midst of a strategic revamp under Divita, who took the helm at the telehealth company last year after long-time CEO Jason Gorevic left the firm.
Some of Teladoc’s priorities include enhancing assets in its business-to-business integrated care unit, expanding internationally and working to better leverage its position in mental healthcare.
BetterHelp, the firm’s direct-to-consumer mental health business that was once a boost for the telehealth company overall, has struggled in recent quarters, drawing in less revenue and fewer paying customers.
Teladoc has moved to add new payment options and accept insurance for BetterHelp services, in hopes that increasing affordability will encourage more consumers to enroll.
