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Don’t Give Up on Teladoc Health Just Yet

Despite seeing revenue grow even as the pandemic eases, Teladoc Health is finding it difficult to translate revenue into profits. However, with severa…

July
29, 2021

5 min read

This story originally appeared on MarketBeat

If you’re ready to throw in the towel on Teladoc Health (NYSE:TDOC), I can’t say I blame you. TDOC stock gapped down in after-hours trading after the company delivered a mixed earnings report. On the top line, Teladoc continues to show real growth. But that is not translating to the company’s bottom line.  
In fact, the expectation for a larger-than-expected EPS loss in 2021 is the main catalyst that the stock fell over 10% after delivering its earnings report. That would be one thing. However, Teladoc stock is down over 25% in 2021. And looking at the stock through a wider lens of 12 months shows a loss of over 30%. 
As I said, I understand if you want to give up on the stock.  
However, as my headline suggests, I think it’s too early to give up on TDOC stock. And investors may be getting an opportunity to buy the dip.  
A 360-Degree View of Patient Health 
Teladoc is not simply attempting to recreate the in-person doctor-patient experience via the internet. It’s using AI and other tools to create a fully integrated approach to mental and physical health. That’s the premise of the company’s Primary360 product which launched in the second quarter.  
According to Teladoc, the goal of Primary360 is to put together “a full virtual care team for the consumer and integrating into the physical delivery system to get consumers the right care at the right time.” 
Although the company did not name names, it said that they have already signed a contract with a national payer to use Primary360. Investors will certainly want to hear more specifics of this contract as well as on the other contracts that the company implied were in the works.  
Revenue is Growing, But Profits Are Not 
The bearish case for Teladoc is simple enough to understand. The company continues to add users. And revenue is increasing on a quarterly and an annual basis. But Teladoc remains unprofitable. Let’s look at both facts separately. 
On the revenue front, Teladoc is benefiting from an increase of 500,000 members in the quarter. That brings total U.S. paid membership to 52 million.  
But investors don’t have to look too far down the report to see why the stock gapped down. Teladoc had a larger than expected net loss of $134 million. That was significantly higher than the $26 million loss it posted in the prior quarter. 
However, some of that loss was due to expenses related to its acquisition of Livongo Health. And that is starting to pay off.  
Acquisitions Are Creating Sticky Revenue 
The company’s flagship service is conducted on demand. If the service is covered by insurance, patients may not pay anything out of pocket at the time of service. However, as software-as-a-service (SaaS) companies have shown investors, recurring (i.e. sticky) revenue is a bullish sign. And that’s a reason for investors to keep their eye on Teladoc.  
Teladoc acquired Livongo Health in 2020 which is turning out to be one of their key growth markets.  Teladoc reported that access fee revenue for the quarter was 138% higher year-over-year and was responsible for 86% of total revenue. The primary driver for this revenue gain was the acquisition of Livongo as well as InTouch Health. Both companies charge subscription access fees for a majority of revenue.  
This growth in subscriber base revenue is also occurring in the area of mental health which both Livongo and InTouch Health offer on a subscription basis.   
In addition to the revenue Teladoc is getting from Livongo’s organic services, they also launched myStrength Complete, an integrated Teladoc-Livongo product that focuses on providing mental health services.  
Add to Your Position in Small Bites 
Nine analysts have either lowered their price target and/or changed their rating of TDOC stock since the earnings announcement. But overall, the sentiment is still bullish on Teladoc stock. The consensus of 27 analysts gives Teladoc a price target of $226.56 which is a gain of over 52% from the stock’s current level.  
In the short term, Teladoc gapped down to a defined level of support and is bouncing back in midday trading. With the stock drawing a high degree of interest from institutional investors, now is an ideal time to initiate or take out a small position while volume is still light.  
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Simone Biles withdrew from Tokyo 2020 for mental health, how do you know if it's time to prioritize personal care over success?

July
29, 2021

9 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Opinions expressed by Entrepreneur contributors are their own.

American gymnast Simone Biles shocked the world for the second day in a row during the Tokyo 2020 Olympics . Yesterday she withdrew from the team competition due to physical problems, and on Wednesday announced that she will not participate in the individual women’s all-around , USA Gymnastics reported. The athlete’s decision is driven by “mental health” reasons, which again puts a question on the table: how do we know that it is time to pause our quest for success to prioritize self-care? ¿ At 24, Biles made it to the Tokyo Olympics as the highest-profile athlete on the United States team. He is the face of the Games for NBC, he must fulfill the obligations of several sponsors, and he was also a central figure in the case against Lawrence G. Nassar, a doctor for the American gymnastics team accused of abusing several athletes, including Simone. Of course, she was also the big favorite to win the gold in the individual gymnastics all-around , which would take place this Thursday, the same competition in which she swept in Rio 2016. It should be remembered that that year Simone Biles was crowned the American gymnast with the most gold medals achieved in a single Olympic Games, after winning four gold medals: team all-around, individual all-around, jump and floor. However, this time he took a step back. “After further medical evaluation, Simone Biles has withdrawn from the individual women’s all-around competition at the Tokyo 2020 Games , in order to focus on her mental health,” USA Gymnastics announced in a statement via Twitter. “Simone will continue to be evaluated on a daily basis to determine whether or not she will be able to participate in next week’s apparatus finals. Jade Carey , who obtained the ninth best mark in the qualifications, will participate in her place in the all-around,” announced the organization. “We fully support Simone’s decision   and we applaud your courage in prioritizing your well-being. His courage shows, once again, why he is a role model for so many, “the statement concludes. After further medical evaluation, Simone Biles has withdrawn from the final individual all-around competition. We wholeheartedly support Simone’s decision and applaud her bravery in prioritizing her well-being. Her courage shows, yet again, why she is a role model for so many. pic.twitter.com/6ILdtSQF7o – USA Gymnastics (@USAGym) July 28, 2021 “We have to protect our mind and body and not just do what the world wants us to do,” says Simone Biles. While the news was confirmed by USA Gymnastics, Simone Biles is not the type to keep quiet and explain her decision. “After the performance I did, I did not want to continue. I have to focus on my mental health. I think mental health is more present in the sport right now ,” Biles said after the United States team will be in second place, surpassed by the Russian Olympic Committee. “We have to protect our mind and our body and not limit ourselves to doing what the world wants us to do,” stressed the gymnast, who could barely compete in horse jumping in the team session before leaving to be treated. Her score was just 13,766, the worst among the members of the US team. Minutes later, it was made official that Simone Biles was withdrawing from the final and would be replaced by Jordan Chiles . Later, the gymnast gave an account of her feelings with a post on her social networks. “Sometimes I really feel like I have all the weight in the world on my shoulders. I know I forget and make it look like the pressure doesn’t affect me, but damn it’s hard sometimes hahaha! The Olympics are not a joke! ”He wrote. Simone is now classified to compete in the jump, uneven bars, floor and balance beam finals on August 1, 2 and 3, but will remain under evaluation to determine whether or not to participate. Olympic glory or mental health? This is the dilemma The pressure to give a perfect performance and meet expectations has weighed on the gymnast long before reaching Tokyo 2020 . On Tuesday, Simone revealed that she started “fighting all those demons” , couldn’t contain them and felt like she had lost her way, to the point of wondering why she was here. His participation in horse jumping, where he failed to make the number of turns he had planned, made it clear that something was wrong. So, the contemporary gymnastics star walked off the stage and quit the competition, saying she was mentally unprepared to continue. Biles said he loves racing, but ” felt like he was still doing it for other people .” And he added: “It hurts my heart, because somehow they have taken me away from doing what I love to please other people .” Thus, Simone Biles joins other athletes of her generation who prioritize mental health above the expectations of others. According to Steven Ungerleider, a sports psychologist from Oregon, United States, the postponement of the Olympics increased the stress on athletes by changing their routines and life plans from one moment to the next. “You keep your pace because you know that the fourth year is the Olympic year. […] You prepare yourself psychologically, emotionally and physically and, suddenly, someone decides to postpone them and you sit down to bite your nails while you think: ‘I have to wait another year’. A lot of anxiety accumulates , “the specialist told The New York Times, adding that the absence of the public is also a demotivating factor, since as an athlete ” you feed on that, “he said. In his remarks, Biles said that he reached the Olympics in good shape, but was dealing with some problems that were getting more difficult every day. He explained that therapy and medications generally work, but that high stress situations make him scared and unable to handle his emotions. The gymnast confessed that four or five years ago she would have competed despite the risk of injury or ignoring her mental state. However, maturity changed his perspective. “Today something happened to me like: you know what, no, I don’t want to do something stupid and hurt myself , ” explained Simone Biles . “It’s just not worth it, especially when you have three amazing athletes who can step up and do it. It’s not worth it ” . Mental health is ALWAYS a priority For many people, whether they are entrepreneurs or employees, it is easy to ignore the signs that something is wrong emotionally, and focus on achieving their professional or business goals. They think that it doesn’t matter much how they feel, as long as they keep doing ‘productive’ things. Some signs that you should give more importance to your mental health and perhaps pause on your way to success are: You find it difficult to focus on your tasks and that has reduced your productivity. Thinking about your work to do causes you panic or anxiety attacks. You are no longer excited about new projects in your area. Every morning you have a harder time getting up, especially when you think about going to work. You just stopped being happy with what you do. Knowing when to retire to take care of your mental health is not a failure , it is just a respite to reorder and move on, even if it means changing course. The name of Simone Biles is already written in golden letters in the history of the Olympic Games, gymnastics, sports and the United States, she has nothing more to prove. His decision teaches us that perhaps the true success is in being happy with the medals won, and not in sacrificing mental and physical health to go for one more.