Teladoc (NYSE: TDOC) saw its stock lose about half its value after announcing a $6.6 billion impairment charge amid a challenging integration of Livongo and its health management app.
TDOC shares today are still trading around $30 apiece, down 50% from where they were before yesterday’s Q1 earnings announcement.
Teladoc closed its $18.5 billion purchase of Livongo in November 2020 in a merger that held the promise of creating a telehealth behemoth. Livongo’s offering could help people better manage chronic conditions such as diabetes. If they needed help from a healthcare professional, Teladoc was there.
But as Business Insider related in a feature story a year after the acquisition closed, some of Teladoc’s health insurer customers did not respond well to Teladoc trying to sell them on Livongo services, since they were developing their own health management programs. There were also internal integration challenges and culture clashes. In addition, many of Livongo’s senior leaders exited after the merger.
During yesterday’s earnings call, Teladoc CEO Jason Gorevic said the company is still deep in the process of integrating Livongo products into Teladoc’s whole-person care experience.
“We’re committed to completing the integration, really delivering a unified multidimensional, multi-condition solution to the market. And we’re going to continue to invest in that,” Gorevic said during the call, transcribed by The Motley Fool.