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26 February 2021

Teladoc Shares Take A Tumble

The last 12 months have been a bumper year for all things virtual and incumbent industry leading businesses have had the great opportunity to flex their technological might at delivering services into our homes. Not least Teladoc, which is poised to capture this growth with its telemedicine platform. The concept connects medical experts with patients who need specialist advice and provides all at with the convenience of staying at home.

This all seemed like a recipe for success, however, Teladoc announced on Wednesday 24th February that it generated US$394m in losses during the fourth quarter of 2020. This fell short of analyst estimates; which expected adjusted losses of US$0.25 per share vs a reported US$0.27. Shares dipped slightly in after hours trading.

Meanwhile, Teladoc exceeded revenue estimates by US$2.9m on the quarter, which is a positive indicator relative to profit and loss when it comes to early stage, high-growth companies.

For some background on the company, Teladoc provides convenient access to quality medical care which assists millions of people globally. Teladoc allows patients to organise on-demand or scheduled visits with qualified doctors which offer an extensive range of specialist expertise. The virtual services on offer from Teladoc appear to be impactful, with “92% of patients reporting resolution.” Teladoc invests significantly in technology to offer a seamless service to ensure efficient end-to-end capabilities for its clients, which can exceed 20,000 vistitors on some of the company’s busiest days. The medical professionals accessible through Teladoc have more than 450 medical specialties among them.

Essentially, this business model of medical services through a virtual platform is successful due its convenience. This can have long-term advantages for patients, as access to medical advice no longer requires an in person consultation. On top of this, due to the company’s technological base, data analytics, can be utilised to increasingly providing a better quality of service, tracking areas for improvement and analysing the range of medical concerns. It goes without saying, but in a world where COVID-19 is a major risk to peoples’ health, access to medical care from the comfort of your own home is immensely beneficial when it comes to advising on conditions which maybe have taken a backseat relative to the Coronvirus.

Please note that investments and income arising from them can fall as well as rise in value. This communication is for information only and does not constitute a recommendation to buy or sell the shares of the investments mentioned.
 
Teladoc Shares Take A Tumble
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