The Doctor Care Anywhere Group PLC (ASX: DOC) share price is up more than 4% this morning after revealing a healthy update.
Doctor Care Anywhere’s update
This is a UK-based telehealth company that aims to deliver quality patient and clinical care through its digital platform.
In the first quarter of 2021, it reported underlying revenue of £4.4 million, up 16.5% on the fourth quarter of 2020.
Eligible lives represents the number of people who have an entitlement to use the company’s services. It reported that its eligible lives statistic rose 7% quarter on quarter to 2.4 million. It saw ‘activated lives’ of 0.5 million, up 7% quarter on quarter.
It reported that in the first 2021 quarter, there were 90,500 consultations – up 21.9%. Over 34,000 consultations were delivered in March 2021, up 32.3% compared to the best month in the fourth quarter of 2020.
FY21 revenue is expected to at least double compared to FY20. This will be driven by growth in telehealth lives, activations and consultations together with the ability to grow the parts of the business hurt by the lockdowns.
The balance sheet is in a solid position with £35.1 million as at 31 March 2021.
Management comments
Doctor Care Anywhere CEO Bayju Thakar said:
“The perennial demands on traditional health systems combined with government imposed lockdowns which are now easing in the UK, have fostered a level of adoption and acceptance of telehealth services in the past twelve months, by both patients and clinicians, that might previously have taken five years.
“The speed of the UK vaccine rollout will allow our secondary care services, such as diagnostics, to open and this will further support our growth as hospital availability returns to normal.”
The CEO went onto say that the business has considerable confidence that the business can continue to grow rapidly in both the UK and international markets.
Summary thoughts on the Doctor Care Anywhere share price
The gross profit margin has been temporarily impacted because of increase demand on the doctors and services to deliver on the national vaccine rollout. It expects this reduction to be temporary and that the margin will normalise.
The company pointed out that the global telehealth market is estimated to have been worth US$5.3 billion in 2019 and reach US$14.9 billion by 2024, growing at a compound annual growth rate of 23.1%. That gives the company plenty of organic and acquisition growth opportunities as it seeks to grow internationally.
I think the Doctor Care Anywhere share price is definitely one to watch if it can keep growing. It’s a huge addressable market to grow into.
