The U.S. healthcare industry is ripe for disruption, with roughly one-fifth of the national GDP spent on healthcare. These two companies are leveraging telehealth to grow and disrupt and are a top investment today.

Hims & Hers Health: Bull v.s. Bear arguments: 

Hims & Hers Health (NYSE: HIMS) is a multi-specialty telehealth platform that provides over-the-counter prescription drugs and personal care products online. This company's stock price is sitting below the $10 per share that it went public at in its $1.6 billion SPAC merger in 2021.

Hims & Hers has a mission to "eliminate stigmas and make it easier for people to access care and treatment", particularly for conditions that people feel embarrassed about, such as sexual health, hair loss, among others. Its telehealth platform has been key to growth, allowing access to healthcare through licensed professionals and facilitating telehealth visits in all 50 states. It is primarily targeting Millenials and currently has 453,000 subscribers and a net promoter score of 65.

It continues to impress financially with 69% revenue growth year-over-year in Q2 2021, reaching $60.7 million, with 78% gross margins and no debt. The majority of this revenue is subscription-based, and management also raised fiscal 2021 guidance. Beyond digital, it was recently announced that Walgreens is also carrying its products in 7,000 stores. There is a colossal opportunity with management estimating its market opportunity to be in the region of $65 billion.

Despite its rapid growth, its net loss also surged to $9.2 million, and competition is rife from all angles. Hims & Hers has also reported lower guidance since going public, which may cause concern. 

Doximity: Bull v.s. Bear arguments: 

Doximity (NYSE: DOCS) is a digital platform that allows doctors to connect and collaborate with colleagues, offer telehealth visits, coordinate patient care, and more. The company doubled after going public in 2021, but its stock has since retreated. 

Doximity has 1.8 million medical professionals and is the "leading digital platform" with 80% of U.S. medical professionals on it. This creates a network effect and is a competitive advantage with its users also rating the platform highly on the iOS App Store with 4.8 stars out of 5. 

The company primarily makes money by selling subscription-based advertising to pharmaceutical companies. It reported revenue growth of 76% YoY to $45.1 million and a 173% net revenue retention rate in fiscal Q2 2021. It is also profitable, with a net income of $36.1 million.

It estimates that its total addressable market is $18.5 billion and growing. One area where it has experienced rapid growth is telehealth which was only launched in 2020, where it facilitated 63 million visits in fiscal 2021 and now has 330,000 physicians. This should enable it to grow its ecosystem and engage its users. 

The large number of medical professionals on its platform means that the company will continue to upsell and attract advertisers to drive revenue growth. The company has also hinted at expanding into other areas, presenting both an opportunity and execution risk.

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