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Teladoc Q1 Preliminary Results Gain From Coronavirus-Led Demand
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Teladoc Health, Inc. (TDOC - Free Report) provided its preliminary first-quarter 2020 results, buoyed by the spike in its telehealth services amid the coronavirus outbreak.
Teladoc Health now anticipates revenues for the first quarter of 2020 to be in the range of $180-181 million, up 40% year over year. Adjusted EBITDA is expected in the band of $10-11 million compared with $1.2 million in the first quarter of 2019. Total visit volume is expected to exceed 1.8 million visits in the first quarter of 2020, representing growth of approximately 70% year over year.
The company also expects to incur additional expenses of $4 million related to its incremental investments in its physician network in response to the widespread COVID-19 outbreak.
Teladoc Health emerged a clear winner from the pandemic-triggered lockdown and social distancing, which drove demand for remote monitoring of health. Therefore, the company witnessed more than 100% surge by handling in excess of 20,000 virtual medical visits per day.
Its stock price also mirrors its business strength. Year to date, shares of the company have skyrocketed 105.2% against its industry’s decline of 16.4%.
Though the company’s service portfolio was gradually spurring demand in recent years, the COVID-19 breakout further ballooned it with an unprecedented surge for its telehealth services. Also president Donald Trump’s initiative to make remote healthcare more accessible to the public during this distress time bodes well for the company’s business.
Also, public-health systems are adapting to telehealth services, realizing immense potential of the same. In fact, just last month, the Centers for Medicare & Medicaid Services (CMS) expanded its access to Medicare telehealth services for nearly 60 million seniors in the country. The policy changes were developed on the basis of regulatory flexibilities granted under Trump’s emergency declaration.
Per Markets and Markets, the global telehealth market is projected to witness a CAGR of 16.9% during the 2020-2025 forecast period, touching $55.6 billion by 2025 from $25.4 billion in 2020.
Teladoc Health is the only listed company in the U.S. providing health and medical consultation services via telephone and video calls. It clearly enjoys the first-mover advantage in the telehealth industry and commands a scale and size which is unparalleled to other players in the industry. The company is thus well-poised to reap benefits from the spike in demand for its services.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Shutterstock
Teladoc Q1 Preliminary Results Gain From Coronavirus-Led Demand
Teladoc Health, Inc. (TDOC - Free Report) provided its preliminary first-quarter 2020 results, buoyed by the spike in its telehealth services amid the coronavirus outbreak.
Teladoc Health now anticipates revenues for the first quarter of 2020 to be in the range of $180-181 million, up 40% year over year. Adjusted EBITDA is expected in the band of $10-11 million compared with $1.2 million in the first quarter of 2019. Total visit volume is expected to exceed 1.8 million visits in the first quarter of 2020, representing growth of approximately 70% year over year.
The company also expects to incur additional expenses of $4 million related to its incremental investments in its physician network in response to the widespread COVID-19 outbreak.
Teladoc Health emerged a clear winner from the pandemic-triggered lockdown and social distancing, which drove demand for remote monitoring of health. Therefore, the company witnessed more than 100% surge by handling in excess of 20,000 virtual medical visits per day.
Its stock price also mirrors its business strength. Year to date, shares of the company have skyrocketed 105.2% against its industry’s decline of 16.4%.
Though the company’s service portfolio was gradually spurring demand in recent years, the COVID-19 breakout further ballooned it with an unprecedented surge for its telehealth services. Also president Donald Trump’s initiative to make remote healthcare more accessible to the public during this distress time bodes well for the company’s business.
Also, public-health systems are adapting to telehealth services, realizing immense potential of the same. In fact, just last month, the Centers for Medicare & Medicaid Services (CMS) expanded its access to Medicare telehealth services for nearly 60 million seniors in the country. The policy changes were developed on the basis of regulatory flexibilities granted under Trump’s emergency declaration.
Per Markets and Markets, the global telehealth market is projected to witness a CAGR of 16.9% during the 2020-2025 forecast period, touching $55.6 billion by 2025 from $25.4 billion in 2020.
Teladoc Health is the only listed company in the U.S. providing health and medical consultation services via telephone and video calls. It clearly enjoys the first-mover advantage in the telehealth industry and commands a scale and size which is unparalleled to other players in the industry. The company is thus well-poised to reap benefits from the spike in demand for its services.
Teladoc Health carries a Zacks Rank #3 (Hold). Some better-ranked companies offering telehealth services amid this pandemic situation are Anthem, Inc. , CVS Health Corp. (CVS - Free Report) and Humana Inc. (HUM - Free Report) , each stock carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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