Tag: Teladoc

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Business Analysis of Teladoc: Live Long, Livongo

Business Analysis of Teladoc should consider the impact of the Livongo acquisition
Cash Flow Analysis of Teladoc

Here are our key takeaways from the business analysis of Teladoc:

  1. Teladoc reported 9.6 losses as impairment due to the Livongo acquisition. But it is noncash, an ‘unreal’ loss, and just an assumption.
  2. Teladoc stock price falls more than 90% from its all-time high at 292 levels (July 2021) to 32 (August 2022). With its advantage as a prime mover, many investors assume that Teladoc is an opportunity.
  3. We beg to differ. The problem of Teladoc is in its underlying business, not Livongo. Livongo is okay, but the acquisition of Livongo can’t help Teladoc cope with the main problem.

Lets elaborate.

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The Economy of Scale Analysis: Physical to Apps

In Moat versus growth investing, companies could be classified into growth categories or moat categories. Investors need to be very careful in this field.
Economy of Scale
source: freepik

Online-ing physical business doesn’t necessarily translate into financial profit. Teladoc, Uber, Doordash, and even the European counterpart Justeat Takeaway1 still recording losses. Investors may believe once economies of scale are reached – the long-awaited profit will be materialized. Here we perform an economy of scale analysis to get deeper into that issue.

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  1. even when we expand the territory to the Asia Pacific, the result will be the same [↩]