Teladoc Health (NYSE: TDOC), providing remote medical care service, announced its 2nd quarter financial results on July 30th.
Although it had operating loss possibly due to the large amount of advertising expenses, its sales was increased drastically by about 85%.
Teladoc Health is seemingly collecting membership fees or subscription fees in addition to visiting fees which are collected regardless of the customers’ membership. In the 2nd quarter, the membership grew over 90%, and number of visiting users grew over 200%. These trends seem to be continuous even in the regions where expansion of the COVID-19 has been slowed down.
In addition, subscription revenue accounted for over 75% compared to the total sales, making Teladoc Health be classified as a typical subscription-based SaaS (Software as a Service) company, and drastically improving its Cash Conversion Cycle (CCC).
Reflecting such an excellent business model, its current ratio was about 1136%, and the ratio of the shareholders’ equity to gross assets was about 54%.
- Watanabe & Brothers’ Investment is now holding shares of Teladoc Health.
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- This report was prepared on August 5th, 2020.