A large portion of the U.S. population has access to Teladoc Health's (TDOC 6.94%) telehealth programs, as insurance companies have increasingly covered its services. But with growth accelerated due to the pandemic, where does that leave Teladoc's long-term future?
In this video from Motley Fool Live, recorded on March 1, Fool.com contributors Brian Orelli and Keith Speights discuss the difference between membership and people who actually use the company's services. Growth in the latter is set to increase revenue going forward.
Brian Orelli: Then U.S. paid membership at Teladoc has reached 51.8 million, that was up 41%. Throw in another 21.3 million people who use the fee-only visits, some of those are probably repeat customers, but we're talking about a pretty large portion of the 330 million or so U.S. population that has access to Teladoc services. Where do you think the future growth is going to come from?
Keith Speights: For one thing, I think Teladoc has a pretty good opportunity to grow with their existing clients. I was looking at some of their numbers from January and these numbers might have changed over the last couple of months. But as of January, Teladoc was saying that they had 65 million or around 65 million potential users, not active users, at their current Teladoc clients. That's a big opportunity just there, just to try to get more users at the companies and organizations that already do business with Teladoc Health. That's one big opportunity.
The other thing is there are around 170 million Americans that aren't using Teladoc. So even though they've made great strides, like you said Brian, at gaining a big part of the market, there's still even more people out there in the US that don't use Teladoc for telehealth or any of its other products and so that's a big opportunity.
They also acquired Livongo Health last year. Livongo's products which help manage chronic diseases like diabetes and hypertension. They're around 18 million telehealth users who have diabetes or hypertension who are candidates for Livongo's products. That's another market opportunity for them.
Then there are a lot of, of course, other Americans who have those chronic diseases that Teladoc could target as well. We've just been talking about the U.S. There's still a great potential to expand more internationally. Teladoc does have an international presence through some acquisitions it's made. I think there's still a lot of room for growth for this company, even though it's generated tremendous growth over the last few years.
Orelli: I'm not sure that we have to worry too much, although I think the growth isn't going to come from the potential users, it's going to come from the actual users and I don't know they really disclose that amount -- you know and how many of the people that are getting paid memberships are actually using their services, but I think that's going to be where the revenue growth comes from.