How is telemedicine benchmark teladoc health growing in the United States?

Wen Jie Chen Peng On January 12, 2020, teladoc health, a leading us telemedicine company, announced the acquisition of InTouch health for us $600 million InTouch health is the leader in telemedicine solutions for emergency care, working with more than 450 hospitals and medical systems around the world, with more than 14500 doctor users In addition, InTouch health has more than 130 health systems and 2135 care locations, supports more than 40 clinical use cases, and has been named the world's largest virtual care platform by KLAS research for two consecutive years After the acquisition, teladoc health will become the only telemedicine enterprise covering all areas of care in the world Its business will range from intensive care, chronic disease to daily care, and even more in home, pharmacy, retail, doctor's office, ambulance and other scenarios This increases the chances for teladoc health to work with healthcare systems seeking a single solution for telemedicine In addition, the acquisition is expected to help teladoc health achieve long-term revenue growth This positive news was quickly reflected in the shares of teladoc health (NYSE: tdoc) On January 13, teladoc health's shares opened at $89.04, peaking at $98.975 on that day, and finally closed at $95.97, up 12.7% from the closing price of $85.16 on the previous trading day (January 10), creating a record closing price for teladoc health The trading volume of more than 4.25 million shares on that day is also the eighth highest in the stock's history, which fully reflects the confidence of investors On January 30, teladoc's closing price rose further, reaching a record high of $104.75 Teladoc health closed at $101.99 as of February 3, 2020 Eastern time, the last trading day of this article Stock price trend of tdoc since its listing Tdoc's share price trend since 2018 On February 27, 2018, teladoc health released its 2017 annual report, reflecting strong growth Investors heard the news, but by today's standards, the share price was not high at that time, closing at only $37.3 However, since then, teladoc health's shares have shown a steady upward trend, closing at $50.6 on May 24, 2018, breaking the 50 mark for the first time, and reaching the peak of this round on September 28, closing at $86.35 However, the rally did not last long For a year, teladoc health's share price has been fluctuating between $50 and $75 Of course, compared with the previous share price of less than $40, the share price at this time has achieved a jump On October 31, 2019, the closing price of teladoc health reached $76.6, 10.7% higher than the previous day's share price of $69.2, breaking through $75 for the first time in nearly a year From this point on, teladoc health's share price once again opened a rising channel, and finally reached a record high of $96.87 not long ago In addition to the positive news from the purchase of InTouch health, the financial information disclosed by teladoc in its current report released at J.P Morgan medical conference on January 13 was also an important reason for the stock price to soar According to the financial report, the revenue of teladoc health in the first quarter of 2019 is expected to reach US $155-156 million, up from the previous estimated revenue of 149-153 million; meanwhile, the number of service visits is expected to be higher than 1.2 million, up from the previous estimated service visits of 1-1.2 million Teladoc health's recent financial statements (in millions of US dollars) Looking at the financial statements of the past two years, it is not difficult to find that the company's operation in the past two years has been quite stable, and its revenue and customer scale have continued to grow On an annual basis, revenue in 2019 is expected to reach US $552-553 million, which is more than double the revenue of US $233 million in 2017 - in this sense, the increase of teladoc health's share price is matched Teladoc health quarterly report in recent years (unit: million US dollars or million times) From the fourth quarter of 2017 to now, teladoc health's revenue has continued to grow: revenue in the fourth quarter of 2017 was $77.1 million, and revenue in the third quarter of 2019 reached $137.9 million According to the official forecast, the revenue in the fourth quarter of 2019 will be between $155-156 million, and the quarterly revenue will double Of course, teladoc health is still in a loss state, but in terms of the current scale, the loss is still controllable Teladoc health lost $97 million in 2018 Although the 2019 financial report has not been released yet, according to the data of the first three quarters, the loss is US $79.8 million, slightly higher than US $72.3 million in the same period of 2018 As a result, the full 2019 loss should remain at 2018 levels Because the financial deduction of each company is different, the adjusted EBITDA data of different companies can not be compared, but the data of different periods of the same company still have certain reference In 2019, teladoc expects the adjusted EBITDA to be $28-32 million in profit, a significant increase from the adjusted EBITDA of $13 million in 2018 According to officials, the company's operating cash flow reached $12 million in the third quarter of 2019, and its total assets reached $1.5 billion as early as 2018 According to the most conservative forecast of the growth rate in previous years, it is not a big problem for its total assets to exceed 2 billion US dollars in 2019 In general, teladoc health has been doing well in the past two years Teladoc health is able to grow rapidly, and high-intensity acquisitions are one of the important reasons From 2013 to the end of 2017, teladoc health completed 8 acquisitions In the nearly two years since 2018, teladoc health has completed four more acquisitions and investments, which is a true reflection of "greedy snake" On May 31, 2018, teladoc health pocketed advance medical, a Spanish telemedicine service provider, for $351.7 million In its second quarter results released in August 2018, the company generated $62 million in revenue for teladoc health in the quarter The acquisition allowed teladoc health to expand into Latin America and Asia, in line with teladoc Health's exploration of the global market at that time saw a significant increase in its international member revenue and number of international visits at this stage - the international member revenue increased from $10.7 million in the first quarter of 2018 to $24 million in the third quarter, and the number of international visits increased rapidly from more than 1000 times that could be ignored in the first quarter to 166000 times in the third quarter On March 19, 2019, teladoc health acquired m é decindirect, a French telemedicine service company The company has more than 40 insurance partners and accounts for nearly half of France's 30 largest private health insurance companies The acquisition allowed teladoc health to expand into one of Europe's largest markets and serve as a fulcrum for the European market After the acquisition, teladoc health's international member income and visits increased to some extent In the third quarter of 2019, the revenue of international members reached 27 million US dollars, a record high; the number of international visits also increased and stabilized at 244000 In June 2019, teladoc Health announced the c-round financing of Vida health, with a financing amount of US $30 million Vida health is a telemedicine platform that provides customized medical services for mental and physical health, especially for chronic diseases Through the investment in Vida health, teladoc health can quickly supplement its own layout in the management of mental diseases and chronic diseases According to statistics, 60% of American adults have one chronic disease, 40% of them even have two chronic diseases; more than 68% of Americans have at least one potential mental disease Shortly after investing in Vida Health, Teladoc Health announced the launch of Teladoc Medical Experts for complex mental and physical health In January 2020, teladoc Health announced the acquisition of InTouch health The acquisition, which cost $600 million, is the largest in the company's history InTouch health is the head enterprise of telemedicine solutions for emergency care, and its scalable platform can provide care for any use case under any circumstances With more than 450 hospitals and medical systems around the world, it has more than 14500 doctor users The company has more than 130 health facilities and 2135 care locations, supporting more than 40 clinical use cases The acquisition is expected to be completed in the second quarter of 2020 At that time, teladoc health will become the only telemedicine enterprise covering all areas of care in the world Its business will include care from intensive care, chronic diseases to daily care, even in more scenarios such as home, pharmacy, retail, doctor's office, ambulance, etc This will make it the preferred partner for healthcare systems seeking a single solution for telemedicine In general, teladoc health has continued to make significant acquisitions in the past two years This is also an important reason for its rapid growth In addition to the big acquisitions, teladoc health has also focused on the improvement of product strength in the past two years, launching a number of products and services First, in April 2018, teladoc Health launched the behavioral health navigator service in the United States, which is an integrated mental telemedicine consulting service Users consult with experts on mental health through remote access In August 2018, it launched the partners healthcare on demand service in cooperation with partners healthcare to provide users with emergency care video services In September 2018, the company launched the teladoc global care service to provide services for global users - the company's main customers, overseas residents of multinational enterprises, are the main beneficiaries of this service This service is also part of teladoc health's global strategy, enabling the company to achieve rapid growth in its global business In January 2019, teladoc Health launched the teladoc back care service in the United States, which is an online treatment service for back pain The goal is to treat back pain, the third most expensive disease in the United States According to statistics, patients spend up to $87 billion a year on back pain In February 2019, its platform launched a new function called clinical workscope This function allows medical institutions to add many customized functions for telemedicine, so that they can deal with complex scenarios such as patients' discharge and re-entry and chronic disease management Clinics connected to the teladoc health platform can also access the image and laboratory testing services provided by certification testing institutions such as labcorp and Quest Diagnostics through the platform, thus greatly improving the ability of clinics to deal with complex diseases In March 2019, teladoc Health launched the teladoc telemedicine service in Canada This telemedicine service is the first telemedicine service that can provide 24 × 7 convenient and high-quality medical services in Canada It provides a good medical solution for a country like Canada with a small population Subsequently, the company further strengthened its presence in Canada In September, it partnered with the Johnston group to enable teladoc health's services to reach more than 30000 small and medium-sized enterprises managed by the Johnston group As one of the most famous third-party management and Payment institutions in Canada, Johnston group's chambers of commerce group insurance plan is Canada's leading employee benefit plan for small businesses Teladoc heal, March 2019