Teladoc Health: (NYSE: TDOC) Shares have been bleeding for most of the year, losing more than 50 percent of their value since February, when it rose to $ 308 a share. The company has even captured a community of dedicated retailers, although it has released impressive quarterly growth results. As a result, about 12.5% of the flame is sold short.
Skeptics see a bleak future for the company as the epidemic ends and patients return to clinics. Do you have to worry about the fear, the uncertainty, the suspicion that Teladok has?
Nothing big pyramids
At first glance, it seems that bears have a point. The use of telemedicine has decreased by 37% of the highest rates of the epidemic. However, it is still 38 times higher than before COVID-19, the numbers have stabilized.
During the second quarter of 2021, the total number of Teladoc members remained almost unchanged for the year – 52 million. However, compared to the previous quarter, the company increased its revenues by 109% to $ 503 million. This was largely due to the increase in the use of the platform, which increased from 16% to 21.5%. Signing up for Teladoc Health Plan costs $ 12.95 per month, and not all members apply for counseling during the year.
His subsidiary Livongo, which runs a digital healthcare program that improves the management of diabetes, has done a great job. During the same period, it added more than 200,000 members, for a total of 715,000. Patient satisfaction remains high at both Teladoc and Livongo. Both apps were rated 4.8 out of 5 stars by approximately 340,000 reviewers Apple Appendix: Shop.
Recent studies have shown that patients who use telecommunications tend to have acute, low-intensity conditions that often resolve on their own or seek treatment for chronic illnesses. It’s all up to Teladoc’s expertise. In addition to primary care, Teladoc offers a telemedicine platform that treats a variety of conditions, including anxiety, depression, and relationship conflicts. 76% of patients say they feel better after being consulted, according to the company.
Moving forward, enterprise healthcare solutions will become one of the two major catalysts for growth. More than 40% of Fortune 500 companies use Teladoc for their employees as part of health insurance packages. The availability has a great value proposition as online consultations are much cheaper than the general ones.
Another area where Teladoc could be expanded is telecommunications. The company does not currently distribute drugs on its platform. it focuses on counseling աճ achieving growth in chronic disease management. But both services will work well together with the idea of becoming a telecommunications company, as the regulation will allow inpatients to prescribe medication through the National Performance Center, rather than requiring individual pharmacies to be involved after visits.
A powerful Teladoc gauge was nailed
In my opinion, it is not the increase in the total visits of the company, the level of use or the income of the investors that should be encouraged. It is a profit. During the quarter, Teladoc provided $ 39.56 million in free cash flow, the highest in history. Many old-school investors have shunned Teladoc for years because of its lack of profitability, questioning how it can continue to raise the pay of its doctors to grow users and even to do so. But fortunately, the sharp increase in usage solved that problem. This should solve the problem for now.
With all of this in mind, I expect Teladoc to sustain its growth through integration ման expansion into almost all areas of healthcare. It’s a solid health resource – buy at a depreciation even 11.5 times the next income. This is higher than the industry average, but the company has earned it by boasting higher revenue growth rates than competitors, including Amvel and Ontrak.
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