Telehealth’s tightrope

Digital health’s publicly-traded company cohort saw some shake-ups in Q1 2024, and things are still feeling unsteady for virtual care players on the NYSE and Nasdaq. Teladoc announced the departure of its longtime CEO after the company missed its fourth quarter 2023 earnings estimates and lowered projected revenue for 2024. Amwell, another telehealth giant, is on delisting watch after trading near $1 per share for several weeks, far from its peak of more than $42 per share.

Teladoc’s and Amwell’s situations tell a bigger story about the state of virtual care. While consumer adoption is high, the market is well penetrated, which translates to limited growth potential for players selling basic telehealth solutions—as well as valuation cuts for pandemic-era companies that overestimated market size. Competition is tight between virtual care players, and it’s compounded by other convenience-focused healthcare alternatives like retail clinics, which also often offer virtual care. For telehealth platforms, the pressure is on to diversify their offerings, expand into higher-value therapeutic areas, and build momentum around new consumer value drivers


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Recent Funding

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