Sixth up in "10k in 10 tweets" is Teladoc!
[THREAD]
[THREAD]
1/ Teladoc is "Zoom for Doctors"
It's the leader in telemedicine.
It's the leader in telemedicine.
2/ Teladoc's primary sales motion is B2B. Its customers are big employers, hospitals, and financial services companies that want to save money.
For a small check-up, mental health consultation, prescription fulfillment, etc. telemedicine is cheaper.
For a small check-up, mental health consultation, prescription fulfillment, etc. telemedicine is cheaper.
3/ Contracting with the health plans gives the company more distribution power.
It has also partnered with CVS to create a D2C offering.
It has also partnered with CVS to create a D2C offering.
4/ Members are the employees of the Clients. The Clients (employers) are Teladoc's customers, but the Members are the ones actually utilizing the service.
5/ The revenue arrangements aren't always standard. Some Clients put more responsibility on the Members to pay per visit. This likely lowers the Client's cost but also makes Members not as happy.
6/ The two revenue segments are:
1. Subscription access fees (paid by the Client)
2. Visit fees (dependent on the Client's agreement but in some cases, all of the fee falls on the Member)
84% of total sales (when you add domestic and int'l) are recurring from subscriptions
1. Subscription access fees (paid by the Client)
2. Visit fees (dependent on the Client's agreement but in some cases, all of the fee falls on the Member)
84% of total sales (when you add domestic and int'l) are recurring from subscriptions
7/ The company has a history of being acquisitive.
They have acquired multiple companies that have a lot of contracted doctors.
The strategy has been: build the tech, buy the doctors
They have acquired multiple companies that have a lot of contracted doctors.
The strategy has been: build the tech, buy the doctors
8/ Gross margins have fallen from 70% to the low 60%'s because of the acquisitions. More doctors to pay, means higher COGS.
With so many doctors on the platform now, Teladoc has a lot of leverage as a distribution channel for a doctor's expertise.
With so many doctors on the platform now, Teladoc has a lot of leverage as a distribution channel for a doctor's expertise.
9/ To finance the acquisitions, the company had a high debt load. However, due to its rising stock price, Teladoc has been selling a lot of stock.
Dilution has been VERY high, about a 13% CAGR over the past 4 years. But now the company has a net cash position.
Dilution has been VERY high, about a 13% CAGR over the past 4 years. But now the company has a net cash position.
10/ Obviously the company has very big tailwinds right now.
High end of guidance for next quarter is 73% revenue growth, a 24% increase sequentially.
While there is a decent amount of competition, Teladoc has a strong brand, a huge supply of doctors and a lot of big Clients.
High end of guidance for next quarter is 73% revenue growth, a 24% increase sequentially.
While there is a decent amount of competition, Teladoc has a strong brand, a huge supply of doctors and a lot of big Clients.
