Few trends are as easily identifiable as the structural opportunity in the telehealth space. We have undergone a transformative experience as a society over the past year, with so many taken-for-granted facets of daily life halted, rearranged, and rebuilt in what ultimately may be a superior form.
That has enormously implications for a number of themes set to dominate growth investing over the next decade, including work-from-home HR tech, blockchain payment solutions, ecommerce shopping, and perhaps most powerfully, telehealth as a healthcare framework.
We aren’t going back to life as it was in 2019 in terms of delivering healthcare to consumers. The pandemic broke the seal of regulatory reform in the space, collapsing the system down to its new and more efficient format. There’s no going back.
As a consequence, companies now specializing in the new framework set to dominate healthcare going forward may offer investors a prime growth opportunity.
With that in mind, we take a look here at a collection of interesting stocks with a head start in the space, including: Teladoc Health Inc (NYSE:TDOC), 1Life Healthcare Inc (NASDAQ:ONEM), ISW Holdings Inc (OTCMKTS:ISWH), and American Well Corp (NYSE:AMWL).
Teladoc Health Inc (NYSE:TDOC) covers various clinical conditions, including non-critical, episodic care, chronic, and complicated cases like cancer and congestive heart failure, as well as offers telehealth solutions, expert medical services, behavioral health solutions, guidance and support, and platform and program services. Its platform enables patients and providers to have an integrated smart user experience through mobile, Web, and phone based accessed points.
This is one of the core plays in the space at this point given its prior commitment to the Telehealth revolution ahead of the advent of the pandemic.
Teladoc Health Inc (NYSE:TDOC) most recently reported strong financial results for the fourth quarter and full year ended December 31, 2020, including Q4 revenue up 145% year-over-year to $383.3 million, total visits up 139% to 3.0 million, full year revenue up 98% year-over-year to $1,094.0 million, and total visits up 156% to 10.6 million.
“As virtual care shifted to become a consumer expectation in 2020, Teladoc Health not only met the rapidly growing demand, but we transformed our company to define a new category of whole-person virtual care,” said Jason Gorevic, chief executive officer of Teladoc Health. “By accelerating our mission to transform the health care experience, we exceeded our fourth-quarter and full-year 2020 expectations and see strong momentum across our global business in 2021 as the market embraces the breadth and depth of our unique capabilities.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 3% in that timeframe. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -34%.
Teladoc Health Inc (NYSE:TDOC) managed to rope in revenues totaling $383.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 145%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($786.6M against $332.6M).
1Life Healthcare Inc (NASDAQ:ONEM), also known to many as “One Medical”, promulgates itself as a membership-based and technology-powered primary care platform with seamless digital health and inviting in-office care, convenient to where people work, shop, live, and click.
Headquartered in San Francisco, 1Life Healthcare, Inc. is the administrative and managerial services company for the affiliated One Medical physician owned professional corporations that deliver medical services in-office and virtually. 1Life and the One Medical entities do business under the “One Medical” brand.
1Life Healthcare Inc (NASDAQ:ONEM) most recently announced its financial results for the fourth quarter and full year ended December 31, 2020, including a membership count as of year-end of 549,000 compared to 422,000, a 30% increase, and Net Revenue of $121.8 million compared to $77.4 million, a 57% increase.
“At One Medical we are advancing on our vision to delight our communities, our members, and our enterprise clients with better health and better care, while reducing costs,” said Amir Dan Rubin, Chair & CEO of One Medical. “We have continued to see our human-centered and technology-powered model deliver impacts at scale–expanding to serve 549,000 members and more than 8,000 employer clients, and enabling more than 5 million digital and in-person interactions during 2020. Our continued momentum is further reflected in our financial results, with full year 2020 net revenue of $380 million up 38% year-over-year.”
And the stock has been acting well over recent days, up something like 3% in that time.
1Life Healthcare Inc (NASDAQ:ONEM) generated sales of $121.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 20% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($683M against $117.4M).
ISW Holdings Inc (OTCMKTS:ISWH) is a speculative name, and far more early-stage, but presents an interesting dual opportunity, with established commercial operations in both telehealth and cryptocurrency mining and mining equipment.
The company has a telehealth subsidiary called Telecare Home Health, which books revenues through a joint venture with its partner, Paradigm Home Health. That segment has strung together now seven consecutive quarters of sequential growth, and recently projected a forward 12-month run-rate of over $1.5 million on the topline from its home healthcare and telehealth division, which represents very strong year-over-year growth.
ISW Holdings Inc (OTCMKTS:ISWH) announced news this morning that suggests this projection possibly sharply underestimates where things are headed. Specifically, the company announced the beneficial restructuring of its relationship with Paradigm Home Health, which will increase the company’s share of revenues from related operations by up to 40% going forward.
“We are proceeding full-steam ahead with our telehealth and home healthcare segment, and this Agreement represents a very productive step in assuring our long-term viability in delivering shareholder value through related operations,” commented Alonzo Pierce, President and Chairman of ISW Holdings. “This segment has driven positive growth for the Company over the past seven consecutive quarters, and this restructured Agreement should increase the impact of those operations going forward. We are also in negotiations toward the potential acquisition of a telehealth resource for the rapidly growing autism therapy market, and we hope to have more details on that soon. This is an additional direction we are interested in, but we can’t claim anything definitive at this point.”
According to the release, prior to the new agreement, the company booked 50% of all sales in the home healthcare operations joint venture. Following this renegotiation, the company will now book 70% of all sales from the same home healthcare operations going forward. The company will also now apparently have the ability to book in-house sales of home healthcare services through Medicare subsidies.
ISW Holdings Inc (OTCMKTS:ISWH) has demonstrated strong growth, with seven consecutive quarters of sharp sequential growth. As noted above, its most recent quarter put the company on an annual run-rate to pull in more than $1.5 million in revenues, which doesn’t count its strong ramp in crypto mining operations or its new renegotiated telehealth partnership. The stock has been on fire in 2021, up as much as 5,000% since late last year.
American Well Corp (NYSE:AMWL) trumpets itself as a leading telehealth platform in the United States and globally, connecting and enabling providers, insurers, patients, and innovators to deliver greater access to more affordable, higher quality care. Amwell believes that digital care delivery will transform healthcare.
The Company offers a single, comprehensive platform to support all telehealth needs from urgent to acute and post-acute care, as well as chronic care management and healthy living. With over a decade of experience, Amwell powers telehealth solutions for over 2,000 hospitals and 55 health plan partners with over 36,000 employers, covering over 80 million lives.
American Well Corp (NYSE:AMWL) most recently announced it will become a founding member of Moving Health Home (MHH), a coalition working to advance care delivery by making the home a clinical site of care. Amwell will work with a diverse group of industry leaders from across the health care ecosystem to shape the future of care, working to unite key industry stakeholders to make the home a sustainable site for care delivery.
“We’ve long believed that one of telehealth’s greatest opportunities is its ability to move care into the home, not only altering the way patients receive care but also creating a care experience that is more holistic and improves quality of life, especially for older patients and those who require frequent care,” said Ido Schoenberg, Chairman and co-CEO, Amwell. “85% of seniors have at least one chronic health condition1 and 40% of ages 85+ live alone2, highlighting the need for leaders to come together to address this growing challenge. Additionally, the pandemic has ushered in a new understanding of what’s possible in the home, leading to a convergence of care settings; and we believe this new hybrid approach is the future of care delivery. We’re honored to join this impressive group of healthcare leaders as we work to meet the demands of patients and providers.”
The stock has suffered a bit of late, with shares of AMWL taking a hit in recent action, down about -9% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -32%. American Well Corp (NYSE:AMWL) managed to rope in revenues totaling $62.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 76.6%, as compared to year-ago data in comparable terms.
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