Teladoc Health Inc. signage on the floor of the New York Stock Exchange on Dec. 31, 2024.
Michael Nagle | Bloomberg | Getty Images
Virtual care provider Teladoc Health, which has seen its market value plummet over the past five years, said Wednesday that it acquired mental health company UpLift for $30 million in cash.
Teladoc said the acquisition will help the company build out its struggling BetterHelp mental health segment. Revenue at BetterHelp declined 10% to about $250 million in 2024, and has faced challenges since the economy started reopening after the Covid pandemic.
UpLift, which offers virtual mental health therapy, psychiatry and medication management services, generated around $15 million in revenue last year, Teladoc said.
“BetterHelp was founded to remove the traditional barriers to therapy and make mental health care more accessible to everyone,” BetterHelp President Fernando Madeira said in a statement. “We believe joining forces with UpLift will help us advance that mission — especially for those seeking to use their coverage benefits — while also driving topline revenue growth that will help sustain and expand our impact over time.”
Teladoc said the deal closed Wednesday, and UpLift will be factored into the BetterHelp segment going forward.
Shares of Teladoc fell more than 2% in extended trading. The company also announced its first-quarter results after market close, reporting revenue of $629.4 million, down 3% year-over-year. Teladoc reported a net loss of $93.0 million, or a 53-cent loss per share.
The UpLift acquisition comes two months after Teladoc announced plans to buy preventative care company Catapult Health, which offers an at-home wellness exam, for $65 million.
Teladoc CEO Chuck Divita has been working to turn the company around after four-straight quarters of declining revenue and an extended slump in the stock price. When Teladoc acquired digital health company Livongo in 2020, it had a combined enterprise value of $37 billion. In early 2022, Teladoc took a write-down of about $6.6 billion tied to the Livongo deal.
Teladoc now has a market capitalization of just over $1 billion. The stock has fallen about 20% this year.
WATCH: Interview with Teladoc CEO
