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Teladoc Health Inc TDOC

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Teladoc Reports Record Virtual Visits Despite Easing of Restrictions; Shares Remain Undervalued

Dylan Finley, CFA Equity Analyst

Analyst Note

| Dylan Finley, CFA |

No-moat Teladoc reported mixed second-quarter results, exceeding expectations on revenue but trailing consensus on earnings per share. We are maintaining our $210 per share fair value estimate, a 35% discount to the company's share price after trading hours. Despite the easing of social restrictions and sharp decline in COVID-19 cases in the U.S. during the quarter, Teladoc reported a record number of telehealth visits--over 3 million in the U.S. and just under half a million internationally. However, long-term growth for the company hinges on its success in cross-selling services and the rollout of offerings in non-acute telehealth venues--such as primary care (Primary360) and B2B behavioral health (myStrength Complete). While these areas are relatively less commoditized in nature than acute care, the company's ultimate value proposition remains its breadth of services available to payers and self-insured employers. 

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Company Profile

Business Description

Teladoc Health is a virtual health provider with a telehealth platform delivering 24-hour, on-demand healthcare via mobile devices, the Internet, video, and phone. It also offers remote patient monitoring programs for chronic care management. Its platform connects members with a network of physicians and behavioral health professionals. Most of the company’s revenue is generated from access fees on a subscription basis (per member, per month). The balance comes from visit fees and equipment rental and sales to hospital systems. Since inception, Teladoc has primarily partnered with employers, health plans, and health systems to offer network access to their members; it has also started to market directly to consumers while expanding its service portfolio.

2 Manhattanville Road, Suite 203
Purchase, NY, 10577
T +1 203 635-2002
Sector Healthcare
Industry Health Information Services
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 4,400