Covid-19 has turned many businesses upside down. Most of the industries have been hit hard. For instance, like Tourism, Hotel, Auto. There is a big list of companies that are going out of business or letting go of most of their employees. Survival has been their biggest concern. But the same Covid-19 has flourished many industries and Social distancing has been a blessing for them. The telehealth industry has been among them. We believe this industry has all essential ingredients to become the next multi-bagger over the long term.
Teladoc Health Inc
Teladoc Health, Inc. provides virtual healthcare services. The Company provides virtual access to care with a portfolio of services and solutions, which includes various medical subspecialties from non-urgent, episodic needs, such as flu and upper respiratory infections, to chronic, complicated medical conditions, such as cancer and congestive heart failure. It provides virtual healthcare services on a business-to-business (B2B) basis to its clients and provides services to consumers directly and through channel partners. The Company’s consumer brands, including Teladoc, Advance Medical, Best Doctors, BetterHelp and HealthiestYou, provides access to advice and resolution to a range of healthcare needs. Its technology enables consumers to manage their own electronic medical records. It also provides access to a message center, provider finder, image upload capability and enables real-time sharing capabilities with providers that include visit scheduling.
Teladoc Health broadly divides its services into six categories: platform and program services, guidance and support, expert medical services, mental health services, telehealth, and integrated virtual care. As a software company, Company is also involved with artificial intelligence, analytics, and licensable platform services. The company primarily uses telephone and videoconferencing software to provide on-demand remote medical care with patients able to log on to the service at any time and be connected with a board-certified, state-licensed physician within several minutes which makes them in a sweet spot in a current busy world.
The company’s physicians treat non-emergencies such as the flu, pink eye, infections, sinus issues, mental health issues, and dermatological conditions, among others. The company has an expert network of 55,000 involved in 450 medical subspecialties. While medication can be prescribed remotely,
Contracting largely with insurers and large employers, Teladoc Health generates revenue through a yearly or monthly fee charged per subscriber, as well as a fee for individual consults. Some companies waive or subsidize the consult fee for their employees. Teladoc Health has around 3,100 licensed physicians and nurses and services offered in about 30 languages.
Teladoc generates revenue in two ways. First, the company charges per-visit fees for customers who use its services. Second, Teladoc charges fees to insurance companies that offer telehealth services to their clients as part of their policies. The more insurance companies Teladoc can get on board, the better will be the profitability.
Marekt Cap – $ 13.16B
Revenue CAGR – 76% for last 5 year
Paid Members – 22.8 Million unique U.S paid member
Located – 130 Countries / Language – 30
Employer Clients include 40% of Fortune 500 companies
Teladoc Inc daily chart,
The year 2020 has been a blessing for Teladoc Inc as Social distancing has pushed people to find alternatives to visit doctors personally. Telehealth Industry is firing all cylinders. Being a leader Teladoc has shown best quarter growth and we believe that momentum will continue for the coming quarters as well. Price has outperformed major indices and almost doubled since the beginning of 2020. But we believe that this is just beginning of the long bull market of Telehealth industry. A shift in consumer behavior and alternative option to Social distancing has opened new doors for the company.
In short, telehealth industry is on the cusp of a major bull markets. A shift in consumer attitude towards telehealth industry and easy as well as convenient options to access the services has the potential to create a significant size of the market of their own. We believe that Teledoc Inc is in a perfect place to capitalize on the opportunity and windfall gains are yet to be make!