Teladoc Health: The Growth Is Here To Stay

May 25, 2020 4:57 PM ETTeladoc Health, Inc. (TDOC)28 Comments
WG Investment Research profile picture
WG Investment Research


  • Teladoc Health recently reported impressive Q1 2020 results and management provided strong full-year 2020 guidance.
  • This "new" market darling has a strong bull case and the company's growth profile keeps getting stronger.
  • We are long Teladoc Health, and we plan to stay long the stock.

Teladoc Health's (NYSE:TDOC) stock has significantly outperformed the broader market on a year-to-date basis.

ChartData by YCharts

Teladoc is currently being viewed as one of the few companies that have actually benefited from the current health crisis, and rightfully so, but I believe that some pundits are still downplaying just how promising this telehealth company's long-term business prospects are. Yes, Teladoc's business has seen increased demand as a result of the spread of COVID-19 but let's also remember that the impressive growth profile was already in place well before the outbreak (although not as impressive as today).

I believe that the stock still has room to run, especially if you are willing (and able) to hold on to shares for the next few years. This current market darling has a bullish long-term story to tell - and Teladoc's recently reported results (and management commentary) prove it.

Image Source

The Latest, The Numbers Tell The Story

On April 29, 2020, Teladoc reported Q1 2020 results that missed on the bottom-line but were in line with analyst's top-line estimates. The company reported an adjusted loss per share of $0.40 (missed by $0.04) on revenue of $180.8mm.

Source: Q1 2020 Earnings Slides

The strong revenue growth was impressive, but it was the operating metrics that stood out the most.

Source: Q1 2020 Earnings Slides

As shown, Teladoc exceeded over 2mm total visits over the first 3 months of 2020, which was a new milestone for the company. Additionally, management mentioned during the conference call that the company onboarded over 6mm new paid members in the U.S. and they anticipate having other 6mm-7mm members in Q2 2020. Moreover, new registrations increased 125% YoY and outpaced member growth for the quarter, which is meaningful from a long-term growth/engagement perspective.

It also helps the bull case

This article was written by

WG Investment Research profile picture
Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long TDOC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (28)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.