Teladoc Health, a standout in the telehealth industry, has seen its shine fade after reporting its first-quarter earnings. Despite experiencing rapid growth during the pandemic, the company’s stock value has decreased significantly since then. Following the release of its financial results after market hours on Thursday, Teladoc’s stock price dropped more than 2%, in contrast to the S&P 500 index’s 1% increase.

Despite a 3% increase in revenue to $646 million for the period, Teladoc reported a deeper net loss according to generally accepted accounting principles (GAAP), amounting to almost $82 million. Analysts had mixed expectations for the company, anticipating slightly higher revenue of over $637 million but a slightly narrower net loss of $0.46 per share.

Teladoc’s integrated care division saw an 8% increase in revenue to over $377 million, while BetterHelp experienced a 4% decline to $269 million. The company’s guidance for the second quarter fell short of analyst estimates, with revenue expected to range between $635 million to $660 million and a per-share net loss between $0.35 to $0.45, lower than the average analyst projections of nearly $663 million for revenue and $0.29 per share for net loss.

Despite these challenges, Teladoc Health continues to navigate the telehealth industry with investors closely monitoring its performance in changing market conditions.