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Teladoc Gaining Scale in Telehealth Market, Risk Remains
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We initiated coverage on telehealth company Teladoc Inc. (TDOC - Free Report) on Jul 13, 2016. The company is engaged in offering consumers virtual visits with physicians through voice or video. It connects patients with doctors via phone or video over a smartphone or computer. The company went public last July and got listed on NYSE. The company’s service is accessible perpetually.
Teladoc is seeing its business growing steadily with insurers and customers increasingly embracing telehealth. The company’s revenues have grown at a CAGR of 98% from 2013–2015. This revenue growth came from an increase in visits which increased 93% year over year in 2015 to 576000. The first quarter of 2016 marked the thirteenth consecutive quarter in which the number of telehealth visits increased faster than its member base, which reflects a trend of rapidly increasing adoption of this service. For 2016, the company expects visits to grow to the range of 915,000 to 945,000.
Teladoc is also making a considerable effort to grow inorganically. It has completed four acquisitions – Stat Health Services Inc, Compile, Inc. “BetterHelp”, AmeriDoc, and Consult A Doctor – since its inception, which has expanded its distribution capabilities and broadened its service offering. This month, the company announced that it will acquire HealthiestYou, which is expected to boslter its leadership position in the telehealth industry.
Nevertheless, Teladoc has incurred significant losses in each quarter since 2013. As of Dec 31, 2015, the company had an accumulated deficit of $130.5 million. These losses and accumulated deficit reflect the substantial investments made by the company to acquire new clients, build its proprietary network of healthcare providers and develop its technology platform. For full-year 2016, Teladoc is expected to report a net loss per share of $1.22 to $1.27. The company’s prior losses, combined with its expected future losses, have had and will continue to have an adverse effect on its stockholders’ equity and working capital.
The telehealth market is in an early stage of development. It is competitive and Teladoc might find it difficult to sustain its leadership.
Teladoc carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the space are Biocept, Inc. , CareDx, Inc. (CDNA - Free Report) and Charles River Laboratories International, Inc. (CRL - Free Report) .Each of these stocks carries a Zacks Rank #2 (Buy).
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Teladoc Gaining Scale in Telehealth Market, Risk Remains
We initiated coverage on telehealth company Teladoc Inc. (TDOC - Free Report) on Jul 13, 2016. The company is engaged in offering consumers virtual visits with physicians through voice or video. It connects patients with doctors via phone or video over a smartphone or computer. The company went public last July and got listed on NYSE. The company’s service is accessible perpetually.
Teladoc is seeing its business growing steadily with insurers and customers increasingly embracing telehealth. The company’s revenues have grown at a CAGR of 98% from 2013–2015. This revenue growth came from an increase in visits which increased 93% year over year in 2015 to 576000. The first quarter of 2016 marked the thirteenth consecutive quarter in which the number of telehealth visits increased faster than its member base, which reflects a trend of rapidly increasing adoption of this service. For 2016, the company expects visits to grow to the range of 915,000 to 945,000.
Teladoc is also making a considerable effort to grow inorganically. It has completed four acquisitions – Stat Health Services Inc, Compile, Inc. “BetterHelp”, AmeriDoc, and Consult A Doctor – since its inception, which has expanded its distribution capabilities and broadened its service offering. This month, the company announced that it will acquire HealthiestYou, which is expected to boslter its leadership position in the telehealth industry.
Nevertheless, Teladoc has incurred significant losses in each quarter since 2013. As of Dec 31, 2015, the company had an accumulated deficit of $130.5 million. These losses and accumulated deficit reflect the substantial investments made by the company to acquire new clients, build its proprietary network of healthcare providers and develop its technology platform. For full-year 2016, Teladoc is expected to report a net loss per share of $1.22 to $1.27. The company’s prior losses, combined with its expected future losses, have had and will continue to have an adverse effect on its stockholders’ equity and working capital.
The telehealth market is in an early stage of development. It is competitive and Teladoc might find it difficult to sustain its leadership.
TELADOC INC Price and Consensus
TELADOC INC Price and Consensus | TELADOC INC Quote
Teladoc carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the space are Biocept, Inc. , CareDx, Inc. (CDNA - Free Report) and Charles River Laboratories International, Inc. (CRL - Free Report) .Each of these stocks carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>