Did Teladoc Just Take a Big Step Towards Profitability?
One of the biggest things weighing on Teladoc Health (NYSE: TDOC) is the company's lack of profitability. Teladoc's shares plummeted 74% last year after the telemedicine giant moved farther away from the goal. What happened? Teladoc announced two, billion-dollar non-cash goodwill impairment charges. They were linked to an acquisition.
Investors like Teladoc's investment in growth -- but only if they still can see a path to the company actually generating a profit from it. Chief Executive Officer Jason Gorevic may be about to deliver. Gorevic recently announced cost cuts, including a 6% cut in the workforce. Is this truly a big step toward profitability for Teladoc? Let's find out.
First, a bit of background. Teladoc's business took off during the earlier stages of the pandemic. People preferred staying home to crowding into medical offices -- and in some instances, those offices were closed. As a result, Teladoc's revenue and visits increased in the triple digits.
Source Fool.com
