Watchlist: $HEC - Virtual Therapy
Lockdown = mental health tailwinds
$74M revenue / 63% Gross Margin
2M members served
Below NAV
No moat
I have a soft spot for $HEC because my own mental health has suffered in 2020; so I want to highlight companies in this sector
Lockdown = mental health tailwinds
$74M revenue / 63% Gross Margin
2M members served
Below NAV
No moat
I have a soft spot for $HEC because my own mental health has suffered in 2020; so I want to highlight companies in this sector
Disclaimer - against my investing principles
For one, this is a space that online players like $TDOC can easily enter
There is not much of a moat for $HEC; it is simply a pure-play online therapy platform
That being said, the valuation is not outrageous at 11.2X 2021 sales
For one, this is a space that online players like $TDOC can easily enter
There is not much of a moat for $HEC; it is simply a pure-play online therapy platform
That being said, the valuation is not outrageous at 11.2X 2021 sales
Mental health tailwinds are strong
Covid-19 has brought with it isolation, anxiety, depression. These statistics are rising as the Pandemic lengthens
More frighteningly, the Pandemic has disrupted mental health services globally
See below worrying attachments..
Covid-19 has brought with it isolation, anxiety, depression. These statistics are rising as the Pandemic lengthens
More frighteningly, the Pandemic has disrupted mental health services globally
See below worrying attachments..
We need more virtual mental health services
It might be a crowded space, but these growth companies are nowhere near servicing their TAMs. Especially for areas that need them
$HEC tackles this:
>2M total members
31K active members
68% of members saw improvements
It might be a crowded space, but these growth companies are nowhere near servicing their TAMs. Especially for areas that need them
$HEC tackles this:
>2M total members
31K active members
68% of members saw improvements
$HEC 's performance is decent
60% CAGR
63% Gross Margins in 2020
2023 estimates:
Revenue: $285M
Active members: 85K
B2B covered lives: 175K
EBITDA: (Positive) $42M
60% CAGR
63% Gross Margins in 2020
2023 estimates:
Revenue: $285M
Active members: 85K
B2B covered lives: 175K
EBITDA: (Positive) $42M
Key driver: B2B expansion
The B2B segment is crucial for lowering cost barriers for individuals to access $HEC .This will drive overall customer metrics
A key B2B client segment is colleges/universities. Gen Zs are among the hardest hit in terms of mental health
The B2B segment is crucial for lowering cost barriers for individuals to access $HEC .This will drive overall customer metrics
A key B2B client segment is colleges/universities. Gen Zs are among the hardest hit in terms of mental health
$HEC Conclusion
Remember to check in with your loved ones in this period
Also, a company with no moat can still succeed if they:
Capitalise on early mover advantage
Rapidly build penetrate rate in key markets
Provide stellar value (i.e make switching costs high)
Remember to check in with your loved ones in this period
Also, a company with no moat can still succeed if they:
Capitalise on early mover advantage
Rapidly build penetrate rate in key markets
Provide stellar value (i.e make switching costs high)
Use this to retweet the whole DD chain or simply to get back to the start! https://twitter.com/RiskRewardCap/status/1387435176288915457