Teladoc's long-time CEO is out, and the stock bounces off an 8-year low
By Tomi Kilgore
Jason Gorevic is leaving company after 15 years as CEO, and current CFO Mala Murthy was named acting CEO
Shares of Teladoc Health Inc. rose Friday, after the telehealth provider said its long-time chief executive, Jason Gorevic, was leaving the company, effective immediately.
The company named Chief Financial Officer Mala Murthy, who has led the company's finance organization for the past five years, as acting CEO while the company searches for a permanent replacement.
The stock (TDOC) climbed 1.7% in afternoon trading, after closing Thursday at the lowest price seen since June 27, 2016.
It has plunged 32.8% year to date, highlighted by the 23.7% tumble on Feb. 21, after the company warned of a wider-than-expected first-quarter loss and provided a downbeat revenue outlook. At that time, CEO Gorevic noted the market was already "fairly well-penetrated," as most U.S. healthcare consumers have access to virtual urgent care.
On Friday, the company affirmed the first-quarter and full-year guidance it provided in February.
"As with any management change, we view the...guidance reiteration as an important positive as Teladoc makes this transition," wrote BofA Securities analyst Allen Lutz, in a note to clients.
The stock was trading at a fraction of its Feb. 8, 2021 record close of $294.54, when the COVID-19 pandemic provided a boost to revenue. But even then, the company continued to report net losses.
Gorevic had been CEO since 2009. During his tenure, Teladoc's annual revenue rose from $4 million to $2.6 billion in 2023.
He was in charge when Teladoc went public on July 1, 2015, at an initial public offering price of $19. The stock closed Thursday 25% below the IPO price.
-Tomi Kilgore
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04-05-24 1608ET
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