Teladoc acquires mental health startup UpLift for $30M to strengthen BetterHelp amid declining revenue

Teladoc Health is doubling down on mental health. The virtual care company announced Wednesday it has acquired UpLift, a digital therapy and psychiatry platform, for $30 million in cash.

The move comes just two months after Teladoc revealed plans to buy Catapult Health, a preventative care startup offering at-home wellness exams, in a $65 million deal.

CNBC reports that the acquisition is aimed at shoring up Teladoc’s BetterHelp unit, which has been under pressure. The online therapy platform brought in around $250 million in revenue last year—a 10% decline—as it continues to face headwinds in the post-pandemic shift back to in-person care.

UpLift, which provides virtual therapy, psychiatric support, and medication management, generated roughly $15 million in revenue in 2023. Teladoc said the acquisition closed Wednesday and that UpLift will be folded into BetterHelp moving forward.

“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.”

Investors didn’t seem thrilled. Teladoc shares slipped more than 2% in after-hours trading following the news. The company also reported first-quarter earnings, with revenue down 3% year-over-year to $629.4 million and a net loss of $93 million, or 53 cents per share.

CEO Chuck Divita has been trying to steady the ship after a string of rough quarters. Teladoc’s big bet on Livongo in 2020, which gave the combined company a $37 billion valuation, hasn’t panned out. Just two years later, Teladoc took a massive $6.6 billion write-down tied to that deal.

Now, Teladoc’s market cap has shrunk to just over $1 billion, and its stock is down about 20% in 2024.

Founded in 2002, Teladoc still operates one of the largest virtual care networks globally, facilitating millions of digital doctor visits in over 175 countries through its own medical group and a wide range of partners. J.D. Power has ranked it the top direct-to-consumer telehealth provider.

Uplift