Despite a somewhat challenging 2022, Teladoc Health Inc.’s (NYSE: TDOC) direct-to-consumer behavioral health subsidiary, BetterHelp, achieved a major milestone: over $1 billion in revenue. This represents a $300 million increase from 2021, reflecting the growing demand for accessible Digital Mental Health services in the U.S. and the expanding role of telehealth platforms in meeting that need.
Teladoc CEO Jason Gorevic revealed at the JP Morgan Healthcare conference that more than 1 million individuals received therapy through BetterHelp in 2022. The platform logged over 50 million interactions between patients and therapists, supported by a network of more than 25,000 licensed professionals. “This is an incredible scale and incredible impact. More than 50% of people in this country who are in need of mental health don’t get it,” Gorevic said. “And BetterHelp is a better modality. It’s more accessible, and it breaks down barriers to getting care that people need.” This growth highlights the increasing reliance on Digital Mental Health services to bridge the accessibility gap.
Scaling Digital Mental Health Services for Greater Impact
BetterHelp’s success illustrates how large-scale Digital Mental Health services can transform the therapy experience. By serving millions of patients and compiling vast amounts of interaction data, the platform can better match therapists to individuals, improving outcomes and retention. “More data, more innovation leads to better matching between a therapist and a consumer, which we know drives better outcomes and stickier relationships,” Gorevic explained.
The platform’s scale benefits both patients and Teladoc’s business model. With more interactions and a larger network of therapists, BetterHelp can maintain high-quality standards while achieving sustainable revenue growth. CFO Mala Murthy emphasized this: “The way we approach this business is in a way that we will drive sustainable revenue growth – and at attractive margins. We do so taking advantage of our scale, our experience. And importantly… with our high-quality standards.”
Challenges and Competition in the Digital Mental Health Landscape
While BetterHelp has grown substantially, 2022 was not without obstacles. Teladoc faced difficulties in advertising yield, attributing some of the challenge to competitors in the behavioral health space making “economically irrational decisions” regarding advertising. In addition, the D2C platform does not prescribe medications, which introduced competition from new services combining therapy with prescription options. Despite these hurdles, BetterHelp’s focus on accessible, quality Digital Mental Health services has enabled continued growth and sustainability.
Since acquiring BetterHelp in 2015 for $17.2 million, Teladoc has successfully scaled the platform into one of the largest digital therapy networks in the world, offering a model of how Digital Mental Health services can be both clinically effective and financially viable.
Navigating Economic Pressures
Looking ahead, 2023 presents a mixed outlook. On one hand, economic uncertainty and inflation may push more consumers toward BetterHelp’s affordable mental health options. On the other hand, tighter personal budgets could limit discretionary spending. Murthy described this as a “double-edged sword” for the business. Even in such conditions, the accessibility of Digital Mental Health services positions BetterHelp as a cost-effective alternative to traditional in-person therapy.
Integrating Digital Mental Health Services into Whole-Person Care
Teladoc is not only focused on direct-to-consumer growth but also expanding Digital Mental Health services in its B2B offerings. The company recently announced a new app integrating behavioral health and primary care, providing a seamless experience across its full spectrum of services. “This is where it all comes to life in a single experience for the consumer. And most importantly, it delivers better clinical outcomes, because it’s all together in one experience,” Gorevic said.
This approach aligns with Teladoc’s broader vision of whole-person care, addressing both physical and mental health. By combining Digital Mental Health services with chronic care management, Teladoc can enhance outcomes for patients managing complex conditions. Engagement in mental health programs has been shown to improve weight loss by nearly 2% and significantly impact A1C levels for diabetic patients, highlighting the critical role of mental health in overall wellness.
Looking Forward
BetterHelp’s performance in 2022 demonstrates the growing importance of Digital Mental Health services as a cornerstone of accessible, scalable therapy. With continued innovation, integration into B2B offerings, and a focus on outcomes, Teladoc is shaping the future of behavioral health care. The company’s dual approach—direct-to-consumer therapy and integration into chronic care programs—positions it as a leader in delivering high-quality, accessible mental health solutions.
By leveraging scale, technology, and evidence-based methods, Teladoc is setting a new standard for Digital Mental Health, ensuring that more people can access the care they need without the barriers of traditional therapy.
