Specialist
Former VP at Teladoc Health Inc
Agenda
- US telehealth market overview, highlighting Teladoc Health's (NYSE: TDOC) competitive positioning
- Expansion strategy and scaling efforts, including ability to lower SG&A costs
- Growth channels for legacy business including attractive ancillary add-ons
- Go-to-market strategy, focusing on customer acquisition and business model adaptation
- 2022-23 outlook – key success drivers and business risks, including integration timeline for Livongo acquisition
Questions
1.
What key trends and developments have you been following in the telemedicine space over the past 12 months or so?
2.
You referenced the telemedicine demand boom during the pandemic. What is your updated assessment of longer-term adoption and utilisation? How long might this tailwind last for Teladoc, considering coronavirus implications, increasing healthcare digitisation, and shifting consumer attitudes towards virtual care?
3.
How much additional room is there for Teladoc to continue to grow its membership base? Management have discussed a runway for 65 million additional members. What metric do you think is realistic and why?
4.
How would you assess Teladoc’s relative organic growth outlook in the core telemedicine acute care
business vs the B2B behavioural health business?
5.
What are your thoughts on Teladoc’s sales force and commercial efforts to continue adding users to the platform? What levers is the company pulling to recruit new members and build its brand?
6.
How material are Teladoc’s SG&A costs to margin expansion? The company seems to burn more cash the larger it gets. How much of a problem is this for the company and what levers can it pull to reduce SG&A costs?
7.
How much in-sell or cross-selling ability does Teladoc have to leverage the breadth of offerings to capture additional revenue from existing customers? How would you assess its execution in this area?
8.
How much further opportunity is there for Teladoc to expand its B2B per-member per-month fees, perhaps through expanded adoption of Primary360, MyStrength Complete, Livongo or other services?
9.
What other margin expansion opportunities are accessible for Teladoc? The company has trimmed its margin expectations this year. How viable is increasing its profitability and which avenues might it come from?
10.
Do you think go-to-market and SG&A costs of entering international markets would be equal to if not
higher than in the US? What’s the rationale that Teladoc could be margin-accretive internationally if
expansion in the US has created pressure on the bottom line?
11.
Are there other margin expansion opportunities for Teladoc agnostic of international expansion?
12.
Could you elaborate on Teladoc’s strategic partnership with CVS-Aetna to build out a virtual primary care solution? What strategic advantages can Teladoc leverage from the JV, and how much revenue opportunity is there?
13.
How much of a differentiator are Teladoc’s tech infrastructure and innovation efforts?
14.
On its recent analyst day, Teladoc’s management said they expect a 25-30% CAGR over the next 2-3 years, expecting to clear USD 4bn in revenues by 2024. Do you think this revenue target is attainable and what are the major risks to growth over that span, in addition to some of our SG&A commentary earlier?
15.
How do you assess Teladoc’s relative positioning against Amwell, Cigna’s MDLive offering, and other competitors? How do they compare in breadth of offerings and market share? Is there any name that you think has a superior business model, and if so, why?
16.
What competitive threat might Doximity pose? The company is building out telemedicine capabilities and boasts 80% US provider utilisation on its platform
17.
What are the main synergies across the legacy telehealth business and the Livongo acquisition to get into chronic care management? What advantages can be leveraged from referral pathways, customer acquisition, cross-selling or elsewhere?
18.
What has been Teladoc’s typical approach to integration and how would you assess its efforts to bring Livongo into the fold? Are there any major hurdles you’d highlight integrating such a large tuck-in?
19.
How aggressive might Teladoc be in pursuing further strategic M&A to continue add adjacencies to its core offerings as the Livongo integration becomes fully realised?
20.
Could you elaborate on Teladoc’s executive team? What strategic acumen do they bring to the table and do you think the company has the right leadership to hit some of the lofty growth benchmarks?
21.
Is there anything else that might be especially important to highlight when evaluating Teladoc?
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