Summary
Telehealth's popularity is rising in the app economy. It offers solutions for less cost and friction than traditional care.
Teladoc is the market leader in telemedicine and has recently increased its offerings, international footprint and talent pool.
CVS Health recently announced it will make video visits available nationwide this year via Teladoc Health services.
Teladoc has yet to turn a profit, but its 39% organic revenue growth and leading position in a booming market are appealing.
Despite a rich valuation at about 13 times FY18 sales, Teladoc could prove to be a healthy investment for investors with a decade-long horizon.
Image Source: Teladoc
Global telemedicine market size
Telehealth encompasses a broad variety of technologies to deliver virtual medical services. The concept still faces a lot of prejudice. People refer to it as the “uberization” and dehumanization of health, unlikely to provide the same quality as traditional care. In fact, telemedicine is a new way to bring patients and caregivers together in a highly organized network with good traceability.
It’s an under penetrated and growing market. According to Statista, telemedicine is expected to grow to more than $40 billion until 2021, close to 15% CAGR.
