Stock Notes for 1/16/21

Teladoc (TDOC)

Telaldoc Health presented at the J.P. Morgan 39th Annual Healthcare Conference this week. Here’s some tidbits that I found interesting:

  • Increasing adoption: >80% CAGR in visits, >40% CAGR in paid memberships; approaching 50% of Fortune 500 employers; and broke awareness barrier in virtual care in 2020
  • Revenue growth: >70% CAGR of which >80% recurring revenue
  • Delivering value: Platform delivers low cost of care across all portfolio services, which drives down cost of healthcare; leverage data science to give behavioral nudge to members, just in time insight to consumers and physicians to improve care
  • Opportunities:
    • Hospital at home – discharging consumers from the hospital with connected devices (blood pressure monitor and scale) so they can intervene when necessary
    • 50% of consumers don’t have a primary care physician – they’ll seek convenience when looking for sone, so Teladoc is well positioned to capture this base
    • Bi-partisan support for continued reimbursement of fee for service (Medicare), access to mental health virtually, and return to normal HIPAA enforcement. Anticipate that policies from the new administration will accelerate telehealth, if anything.

Teladoc is positioning itself around its Primary 360 strategy, building a platform that uses data science to leverage insight and drive behavioral change to consumers (e.g. those with chronic conditions such as diabetes) to improve care. In terms of adoption and how consumers are using the platform, I’m glad to see that there’s been a shift from using the platform just for infectious diseases like the cold/flu to adopting more than one product. This creates stickiness for the Teladoc platform and increases engagement.

Trulieve Cannabis Corp (TCNNF)

Edan piqued my interest into the world of cannabis. I’ve for the most part ignored this industry because I have very little domain experience - I like to invest in companies/industry that I know. But never say never. 😅

Square (SQ)

ARK Invest commented on Square’s rising transaction margin due to the increase of closed-loop transactions.

Closed-loop transactions, where payments between a consumer and a merchant are transacted within the Square ecosystem, is the holy grail to disrupting companies like Visa and Mastercard. The missing piece to this puzzle is shifting consumer behavior to using Cash App for payments. I believe Cash App’s boost program is a key component to this as users need to activate boosts periodically for discounts. Square will eventually integrate the boost program with Cash by Cash App for payments between Cash App users and Square merchants.

In other news, Jamie Dimon is well aware of the competition:

https://twitter.com/ChrisErice/status/1350256304007204864?s=20