Teladoc Disrupting Doctor Offices

I believe Bear brought this company to the board’s attention. Anyway, here’s an article providing a bullish overview of the company:

Teladoc is disrupting the traditional doctor’s visit, with behavioral health, dermatology, and non-urgent medical matters accounting for most of telehealth traffic. No longer do patients have to call in, schedule an appointment, drive to the office, wait, wait some more, and then finally see a doctor. Teladoc’s website boasts that a Member (i.e. patients using the platform) can “visit” with a doctor in less than 10 minutes from request to interaction. That’s not bad, especially if the waiting room is your very own living room.

The platform has been resonating with patients. Almost 1 million Members completed a telehealth visit in 2016, up from 576,000 just a year before. The number of yearly medical care visits is nearly 1.5 billion, according to Teladoc, so this could just be the beginning of a disruption to in-person medical care.

Teladoc’s revenue grew 60%, 78%, and 119% in 2016, 2015, and 2014, respectively. Teladoc has two revenue streams: subscription revenue from Clients and revenue from each visit by a Member. Interestingly, revenue from individual visits only makes up 18% of Teladoc’s total revenue versus 82% from subscriptions – meaning that the Clients are Teladoc’s true target customers. Teladoc is able to reach 20.1 million Members with just 7,500 Clients.

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