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Better Buy: Teladoc vs. Amwell

By Neil Rozenbaum – Aug 23, 2021 at 10:15AM

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At least one telehealth provider is here to stay, regardless of the pandemic.

In this video I will be going over Teladoc's (TDOC 0.69%) recent earnings and comparing it to one of its competitors, Amwell (AMWL 1.59%). While one's business has been improving, the other's has been declining. You can find the full video below. 

Teladoc vs. Amwell

Teladoc Health's organic revenue grew by 41% vs. 69% sequentially. The company reported total revenue of $503 million, up 108.7% year over year and 10.8% quarter over quarter.

  • U.S. revenue grew 120% YOY while international revenue grew 26.6%.
  • U.S. paid members came in at 52 million, up 4% YOY and 1% QOQ.
  • Total visits increased 27.2% YOY and 10.9% QOQ to 3.5 million. 

The company expects Q3 revenue to come in between $510 million and $520 million, a 78% YOY growth at the midpoint, and total visits to be between 3.4 million and 3.6 million, a 23.5% YOY growth at the midpoint.

Amwell reported total revenue of $60.2 million, a 12% decrease YOY and a 5% increase QOQ.

  • Subscription revenue was $26.8 million, compared to $24.6 million.
  • Visit revenue was $27.5 million, compared to $27.8 million.
  • Total visits decreased QOQ from 1.6 million to 1.3 million.
  • Gross margin was 43.7%, compared to 38% last quarter.

The company lowered Q3 guidance for visits from between 1.5 million and 1.7 million visits to between 1.4 million and 1.5 million visits.

So what

Teladoc stock is down 30% this year while Amwell is down 61%, but as the numbers above show, Teladoc is not only growing but is also outgrowing its competitors. While Amwell is seeing a decline, Teladoc is seeing an increase across the board. And now, fears of the delta variant might bode well for both companies. 

For the full insight do watch the video below. 

*Stock prices used were the closing prices of August 20, 2021. The video was published on August 22, 2021.

Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amwell and Teladoc Health. The Motley Fool has a disclosure policyNeil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Teladoc Health Stock Quote
Teladoc Health
$29.20 (0.69%) $0.20
Amwell Stock Quote
$3.83 (1.59%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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