Teladoc Health Inc. (TDOC) shares plummeted 8.27% in Tuesday's trading session, despite reporting better-than-expected second-quarter revenue. The significant drop in share price suggests that investors may be focusing on other aspects of the company's financial performance and future outlook.

According to the latest financial results, Teladoc Health reported Q2 revenue of $631.9 million, surpassing the IBES estimate of $622.7 million. This revenue beat demonstrates the company's ability to generate strong sales in the telehealth sector. However, the positive revenue surprise was not enough to prevent the stock's sharp decline.

The company also provided guidance for the third quarter, projecting adjusted EBITDA in the range of $56 million to $70 million. This outlook may have disappointed investors, potentially contributing to the stock's negative performance. The market's reaction suggests that analysts and investors might have been expecting more robust guidance for the upcoming quarter, despite the solid Q2 results. The telehealth industry's competitive landscape and concerns about Teladoc's profitability and growth trajectory could be factors influencing the market's pessimistic view, leading to the significant sell-off despite the revenue beat.