Leaders at Teladoc Health Inc. are testing a weekly pricing structure for its direct-to-consumer behavioral health product BetterHelp as they look to return that offering to growth.
Chief Financial Officer Mala Murthy said at a recent conference hosted by investment bank Piper Sandler that the experiment aims to expand access to BetterHelp, which accounts for about 40 percent of Purchase, New York-based Teladoc. Murthy said the trial produced “some encouraging signs early on” and that she, CEO Chuck Divita and their team will continue to monitor progress.
A Teladoc spokesperson said the company launched the pricing experiment in September and has not yet decided on an end date. The weekly pricing structure, which has the same monthly rate as the company’s top monthly plans, was first made available to members in the United States, but has since expanded to international markets.
Weekly pricing is offered to subsets of new users, as well as existing users who were leaving BetterHelp. The spokesperson said user numbers have expanded since launching in September.
An increase in BetterHelp membership and usage would be good news for Divita and Murthy: For the first nine months of this year, BetterHelp’s revenue fell 9 percent to $773 million and its adjusted EBITDA fell by more than a quarter part to approximately $56 million as the number of average monthly paying users fell 13 percent.
Reporting those numbers and Teladoc’s third-quarter results more broadly in late October, Divita said its team is “moving with urgency and making changes to more effectively leverage our leadership position in complex and dynamic markets.” those we serve.” Looking to 2025, he said Teladoc has “an important year of repositioning” ahead.
Teladoc Stock (Ticker: TDOC) closed trading on December 19 at $8.97, giving the company a market capitalization of just over $1.5 billion. Over the past six months, the stock, which was an investor favorite during the telehealth boom amid the COVID-19 pandemic, has lost about 11 percent of its value.
