Teladoc Health Inc. (NYSE: TDOC), a telemedicine provider, plans to invest in and expand this year. There will be no immediate financial results from this, but long term, the business will benefit. The number of visits is expected to be between 12.5 million and 13.5 million, and sales could surpass $ 2 billion, revenues could increase by 85 % this year. The number of visits increased to 10.6 million by 2020, when telemedicine was the talk of the town.
A year after its rally, Teladoc Health is now trading 50% below its 52-week highs. Many investors probably expected telemedicine demand to decline after the outbreak of the pandemic. Finances suggest otherwise according to the company’s performance. Revenue at Teladoc Health surged by 151 % YoY in the first quarter, and total visits increased by 56 % to 3.2 million. As a result, it can be said that Teladoc’s popularity and services were not directly affected by the pandemic. This trend is consistent with the general expansion of remote assistance in medicine.
A Teladoc Health executive stated that the current year is a period of investment. New product launches and new markets will be launched along with the final integration of Livongo’s chronic disease platform.
Recent developments in the primary care sector have led to several Fortune 1000 companies signing agreements with Teladoc Health. However, the new programs will be available in all states starting in the first quarter of next year.
Teladoc Health is expanding its offering through the integration with Livongo. Notably, it has resulted in a tripled increase in the number of chronic disease patients enrolled in more than one treatment program and has accelerated enrollment across multiple treatment programs since last year. As Livongo’s programs are sold in hospitals, management says that the company expects to grow and has already signed several deals in this market.
The growth of Teladoc Health is unlikely to be as rapid in 2021 as it was in 2020. Telemedicine, however, is expected to grow in the long run. It is possible that Teladoc Health, a market leader, will benefit most from this initiative.
TDOC’s shares were sold at an auction on May 14 for $ 139.68.