What happens if a customer or prospect develops your ability to sell on your own or through the acquisition of your competitor?
That’s the question JPMorgan healthcare services analyst Lisa Gill asked Teladoc CEO Jason Gorevic, who sees the company’s stock soaring in 2020 before taking a big hit in 2021.
Gorevic’s answer during Teladoc session The all-virtual JPMorgan Healthcare Conference on Monday morning showed that, in at least one prominent example, it can boost your bottom line.it’s him Cigna acquires MDLive.
“In terms of payers, this is an interesting dynamic because Other payers are not interested in relying on competitors to play this strategic role in their product portfolio,” he said. “So when I think about Cigna, for example, buying MDLive – It’s actually very positive for us, because it opens up a lot of MDLive’s customer base, the payers, who are looking for a more neutral solution because they don’t want to use Cigna as their virtual care provider.so We’ve actually seen growth and takeaway opportunities from this move. “
He added that Teladoc has strong relationships with payers such as Aetna and UnitedHealth Group, which owns Optum and is known for having a large network of doctors.
“Most other payers don’t have that footprint,” he said, referring to Optum’s strength. “And we also offer multiple products and services across many of United’s divisions, and we’re going to continue to actually grow our revenue and the roles we play across multiple divisions of United’s portfolio. So we feel about the relationship very good.”
Overall, Gorevic emphasized that competition is a boon, not a hindrance, to Teladoc’s growth, as their presence confirms the fact that telehealth will become a permanent feature of American healthcare.Gill also pointed out Tradock Is “the largest virtual end-to-end care platform in the US today,” and Gorevic, who is bullish on the company’s future, sees it as a leader in an increasingly competitive market, not only domestically but globally.
While the stock had far better days — it rose from a high of $298 in February 2021 to a close of $82.18 on Monday, it didn’t appear that it took a hit because ofHis procurement, which the New York-based firm has yet to execute. Teladoc reported third-quarter 2021 revenue growth of 81% year over year to $522 million and updated its full-year revenue forecast to $2.025 billion from $2.015 billion. It also established “On a $2 billion basis, revenue growth will be 25% to 30% annually over the next three years,” Gorevic said.
To maintain telehealth leadership, Teladoc continues Expand products to customers and consumers, take advantage of acquisitions like it Merger with Livongo for $18.5 billion In 2020, help it add new customers and retain existing ones.
For all the confidence Gorevic has shown at JPMorgan, it’s anyone’s guess whether he won the hearts of investors. Analysts said the sluggish share price was the result of Wall Street’s changing view of Teladoc. It was seen as a good option during the pandemic as Covid-19 drove hordes of patients to virtual care, but it’s less valuable now. Vaccines are out and people have resumed in-person doctor visits, although Omicron may change some of that.
Photo: elenabs, Getty Images
