Teladoc Health made headlines as CEO Jason Gorevic’s sudden departure was announced after a notable stock plunge of 22% in February.
The company’s board of directors swiftly appointed Mala Murthy, the chief financial officer, as the interim CEO while actively seeking a permanent successor.
David Snow Jr., the board’s chairman, expressed gratitude for Gorevic’s 15-year tenure, stating, “We thank Jason for his many achievements and contributions during the 15 years he led Teladoc Health. We wish him success in his future endeavors,” in a press release.
Founded in 2002 in Purchase, New York, Teladoc Health emerged as a pioneer in telemedicine within the United States.
Gorevic’s leadership since 2009 propelled Teladoc’s stock to record highs during the Covid-19 pandemic, capitalizing on increased demand as healthcare providers adopted telehealth amid social distancing measures.
Despite a national decline in virtual doctor visits post-peak pandemic, Teladoc reported hosting 18.4 million visits in 2023, a substantial 65% surge from 2020, according to Quartz.
However, Teladoc’s recent quarterly earnings fell short of investor expectations. Revenue for the quarter ending Dec. 31, 2023, grew by 4% year-over-year to $660.5 million, failing to meet Wall Street’s projection of $670.8 million per FactSet data. This underperformance led to a 95% drop in the company’s stock since its peak of $294 in February 2021.
Following Gorevic’s departure, Teladoc shares experienced a modest 3% increase, reaching approximately $15 on Friday. Nonetheless, the stock remains down by roughly 33% year-to-date.
The fourth quarter of 2022 witnessed a significant 45.8% decrease in telehealth visits, plummeting to 41.5 million from 76.6 million in the second quarter of 2020, based on Trilliant Health’s market research.
Recent data from the Centers for Medicare and Medicaid Services mirrors this trend, indicating a continued decline in telehealth usage in 2023. The number of Medicare beneficiaries utilizing at least one telehealth service fell by 73% to 2.8 million in the second quarter of 2023, down from a peak of 10.2 million during the same period in 2020.
