Teladoc (NYSE: TDOC) is undoubtedly the leader and largest company in the telemedicine space, expanding its reach with the acquisition of Livongo in 2020. Teladoc forecasts revenue growth of over $1 billion for fiscal 2020 with total visits expected to be between 10.4 and 10.6 million.
COVID-19 has acted as a catalyst for growth, and the market is set to grow at a compound annual growth rate of 40% to reach $194.05 billion by 2023. In an industry with exciting prospects, we take a look at Teladoc’s competitors.
Amwell (NYSE: AMWL) formerly known as American Well, is a telemedicine company founded in 2006 and went public in 2020. It is currently the biggest competitor to Teladoc in the telehealth space and has experienced significant growth in recent times.
Amwell entered into a strategic partnership with Google Cloud to collaborate on technology and innovation, and Alphabet invested $100 million. It also has a partnership with Apple. These partnerships validate the business and are a positive sign for investors.
Amwell reported strong Q2 2021 results with $60.2 million in revenue, down from the $68.5 million it earned in the year-ago period. Roughly 90% of revenue is recurring, which provides a consistent revenue stream. Its gross margin increased 44% of revenue, versus 38% in Q1. Its net loss decreased to $38.1 million, compared to $39.8 million in Q1.
Anthem is its largest customer and makes up a significant portion of revenue which is a risk to the business.
1life Healthcare Inc operating as One Medical (NASDAQ: ONEM) is a membership-based primary care company that provides both in-person and virtual care for an annual subscription fee of $199. It went public in 2020 and is not a pure-play due to its 103 medical offices but capitalizes on the telemedicine trend.
In Q2 of 2021 revenue was $120.4 Million, a 54% increase year-over-year. However, it is unprofitable reporting a net loss of $41.3 million, or 34% of net revenue but has a strong balance sheet with $653.8 Million in cash and short-term marketable securities.
Membership Count increased by 31% YoY to 621,000, excluding any short-term customers.
Amazon (NASDAQ: AMZN) may seem like an unlikely addition to the list, but it has made forays into both the healthcare space and telehealth space which warrant its addition. In 2018, Amazon acquired PillPack as part of its push into the online prescription market and rolled out Amazon Pharmacy.
Amazon has not always been successful and recently ended its joint ‘Heaven’ venture with Berkshire Hathaway and J.P Morgan Chase & Co. Even though the mission was not successful, the knowledge gained through this venture proved to be beneficial as Amazon went to expand its Amazon Care.
Amazon Care provides virtual and in-person care with a mobile app that facilitates remote video chat with physicians. Follow-up visits and prescription delivery are also offered through the app. In March, it announced its plans to expand these services to all its U.S. employees this summer whilst making them also available to other companies.
Perhaps Amazon’s most significant advantage is the large cash pile it can put into the business as it continues to enter the space. In Q2, it had over $12 billion in cash on its balance sheet which leaves ample funds for future expansion into the telemedicine space.
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Contributing Writer at MyWallSt
Colm's favorite stock is Virgin Galactic as it is representative of his visions for our world in the future.