Teladoc Health (NYSE: TDOC) is doubling down on growth by expanding its virtual mental health platform, BetterHelp, into the employer and health plan markets. After skyrocketing from $100 million to $1 billion in revenue over the past three years, BetterHelp is now aiming to make Virtual Mental Health Services for Employers a cornerstone of its long-term strategy.
Speaking at the 42nd Annual J.P. Morgan Healthcare Conference, Teladoc CEO Jason Gorevic emphasized the company’s plan to bring BetterHelp’s services directly to businesses and organizations.
“We are looking at opportunities to bring BetterHelp’s capabilities more and more into the B2B side of our business,” Gorevic said. “We’re … selling BetterHelp directly to employers, organizations, associations and we see more opportunity to do that.”
BetterHelp’s B2B Playbook
BetterHelp’s pivot reflects the growing demand for Virtual Mental Health Services for Employers, particularly as mental wellness becomes a central concern in employee benefits packages. By partnering with businesses and health plans, Teladoc aims to create stable, recurring revenue streams while expanding access to care for millions of workers.
This strategy mirrors the path of Talkspace (Nasdaq: TALK), which saw B2B payer sessions more than double in 2023. That shift helped make B2B the majority of Talkspace’s revenue—and played a key role in the company reaching positive cash flow.
Teladoc is betting that BetterHelp’s size and infrastructure can drive even greater results in the employer market. Gorevic described BetterHelp as “the largest virtual care provider in the mental health space,” and believes it’s uniquely positioned to lead in Virtual Mental Health Services for Employers.
Direct-to-Consumer Still Thriving
Despite its B2B expansion, BetterHelp isn’t abandoning its consumer roots. The direct-to-consumer (DTC) model remains a healthy revenue stream with solid margins.
“We continue to see a tremendous amount of opportunity in direct-to-consumer mental health care,” Gorevic said.
One standout metric: BetterHelp currently maintains a 1.5 to 1 ratio of gross profit to advertising spend—meaning the company earns $1.50 in profit for every dollar it invests in marketing. This strong return supports continued investment across both DTC and employer-focused channels.
Differentiating Through Scale and Data
A big advantage for BetterHelp is its network of over 30,000 licensed clinicians and its data-driven infrastructure. This combination powers more effective therapist matching, better outcomes, and an improved user experience—key elements that can enhance value in Virtual Mental Health Services for Employers.
Gorevic also pointed to ongoing innovation around retention, lifetime value, and advertising channel mix—all designed to optimize growth while improving bottom-line performance.
“We innovate every year to improve retention rates, to improve the lifetime value of a member, to improve our revenue yield per dollar of customer acquisition spend,” he noted.
Reframing Growth Expectations
Some investors have wondered whether BetterHelp’s growth has peaked after its explosive performance in 2020 and 2021. Gorevic acknowledged that 2022 and 2023 presented tough comparisons, especially given disruption from what he described as an “irrational and, it turns out, illegal competitor” affecting ad spending patterns.
Still, he emphasized that BetterHelp is now focused on “profitable growth,” particularly through expansion into Virtual Mental Health Services for Employers.
“We’ll spend to grow profitably,” he said. “Specifically through our B2B expansion plans.”
The Future of Mental Health at Work
BetterHelp’s move into Virtual Mental Health Services for Employers is more than a revenue strategy—it’s a reflection of where the industry is headed. As more organizations look for scalable, accessible solutions for workforce mental health, BetterHelp’s blend of technology, clinical reach, and consumer experience makes it a compelling partner.
In a labor market where mental health benefits can be a key factor in retention and productivity, employers are increasingly looking to virtual solutions. BetterHelp’s entrance into this space could redefine how Virtual Mental Health Services for Employers are delivered at scale.
As Teladoc continues investing in data, partnerships, and B2B distribution, BetterHelp is well-positioned to become a top choice for employers seeking comprehensive and convenient mental health care solutions.
