Teladoc announces sudden CEO departure, shares dip

Teladoc Health

05/04/2024 14:14

** Teladoc Health's  TDOC.N  shares edge down 1.2% to $14.08
premarket after virtual healthcare provider says long-time CEO
leaving the firm
    ** Co early Fri announces Jason Gorevic departing firm,
effective immediately
    ** Co says board has appointed CFO Mala Murthy as acting CEO
while it searches for Gorevic's permanent successor
    ** “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" - board chairman David
Snow, Jr
    ** Alongside announcement, co reiterates guidance for Q1 and
FY 2024
    ** In flash note to clients, KeyBanc analyst Scott
Schoenhaus, who rates TDOC "sector weight", says management
shakeup could be viewed as potential positive given recent
execution challenges over the last several years
    ** Schoenhaus says he hopes new permanent CEO will shift
focus away from online mental health platform, BetterHelp, and
re-accelerate its core integrated care platform and recreate
value around its chronic care offering in light of its obesity
and weight management expansion
    ** TDOC's stock slumped 24% on Feb 21 after co's downbeat
2024 sales forecast on sluggish demand for BetterHelp business
    ** Shares, down nearly 50% over the past 12 months, are
sitting at 8-yr lows

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))