Teladoc and Talkspace are grappling with increasingly sluggish growth in their business-to-consumer offerings, including Teladoc's BetterHelp business.
BetterHelp made $277 million in revenue in Q4, a 29 percent year over year growth, according to a transcript of Teladoc's Q4 earnings call. BetterHelp saw an adjusted EBITDA of $53 million.
Its growth will likely slow now that it is a $1 billion business, Teladoc CFO Mala Murthy said in the Q4 earnings call. Teladoc expects BetterHelp to show continued incremental B2B growth, however.
"I don’t think you’re going to see it return to the type of hyper-growth that this business has seen over the past two years," Ms. Murthy said.
Fellow virtual provider Talkspace has shifted more of its focus toward B2B offerings, with its business-to-consumer user base suffering a 35 percent drop from 2021 to 2022, according to a Q4 earnings call transcript. Talkspace's B2B segment logged 426.4 million sessions, a 56 percent increase from 2021 to 2022.
A majority of the company's revenue now comes from B2B offerings.
After struggling in recent years, the company expects to hit an overall breakeven point in mid-2024. Talkspace saw its net losses continue to mount in 2022, increasing by 27 percent to $79.8 million.