What happened
Shares of Teladoc Health (TDOC -0.07%) were moving higher today after the telehealth provider updated its fourth-quarter guidance, lifting the bottom end of its revenue range ahead of its presentation at the annual J.P. Morgan Healthcare Conference today.
As of 11:33 a.m. ET, the stock is up 6.8%.
So what
In a filing, Teladoc said that it expects its 2022 revenue to come in at $2.403 billion-$2.41 billion, as opposed to its earlier guidance of $2.395 billion-$2.41 billion. For the fourth quarter, it raised the bottom end of its guidance range from $625 million to $633 million.
More than $1 billion of that revenue is expected to be from the company's BetterHelp mental health product, which is emerging as its biggest growth driver.
On the bottom line, it maintained its adjusted EBITDA forecast of $240 million-$250 million.
Now what
Teladoc's gains today come as tech stocks are rising broadly in response to Friday's jobs report, which persuaded investors that the economy could see a "soft landing" and avoid a significant recession.
Teladoc shares fell sharply last year, so there's an opportunity for a rebound if market sentiment shifts. The better-than-expected revenue in the fourth quarter is a good sign, as is the strong performance from BetterHelp.
The health tech company has grown largely through acquisitions, and BetterHelp was one of its earliest, for which it paid $4 million back in 2015. Though others, notably Livongo, have flopped, BetterHelp could be the success story that justifies the company's mergers and acquisitions (M&A) strategy, as it's set to drive close to half of Teladoc's revenue in 2022. Additionally, management has said BetterHelp is also boosting the company's margins.
Keep an eye on analyst notes coming out of today's conference as well, as they could also give the stock a boost.
