Teladoc’s stock is down more than 67% this year — and 90% from its peak price in February 2021.
“We continue to take a disciplined approach,” Gorevic said when asked about marketing. “So we are not going to overspend our way through that and follow the lead of irrational competition.”
Gorevic noted that increased competition for telehealth services “has created noise in the marketplace” and that “in the near term we expect this noise to persist.” But he maintained that Teladoc can be the “long-term winner” in virtual health.
But it may take time for Teladoc to get back on track.
Gorevic conceded that as many American workers have begun to return to offices, corporate human resources departments “are getting squeezed … dealing with the Great Resignation and all of the hiring and allocating resources to talent acquisition and retention,” he said.
As a result, Gorevic said many companies are choosing to focus on existing health insurance plans for workers rather than expanding telehealth options from independent providers like Teladoc.
Wall Street is worried too. At least fifteen analysts slashed their price targets on Teladoc Wednesday and Thursday following the earnings report, according to data from Refinitiv.
One of those analysts, Citi’s Daniel Grosslight, wrote in a report Thursday that “increased competitive intensity is weighing on growth and margins” adding that “we are doubtful that we will see the competition-driven headwinds abate anytime soon.”