After a little more research - DOC is certainly operating in the right space. SaaS is in high demand, and is leading to big gains for tech stocks. In such a way, DOC is both a tech company and a Healthcare company. It is likely that everyone will have their own opinion as to which category it belongs - but I would value it more like a tech stock operating in a niche area. Well, perhaps not so niche anymore.
Of note, it lost some momentum recently because it announced a bought deal offering at a price of $0.70 per share, and future warrants at $1.00 per share. Nothing to be alarmed about, high-growth stocks will tap into the equity markets several times to build liquidity and fund expansion. The best time to do this, is when the stock is in a strong uptrend.
Shopify has done this many, many, times on its way to doubling in price every year. In fact, one could argue it is a sign of astute management.
The company's proprietary product CLoudMD is quite impressive. From streamline back office logistics (booking, chart reviews, patient history) to the provision of services (chat, telemedicine, device monitoring) it provides a wide-range of attractive features for clinics, pharmacies and health care providers.
Over the years, it has made a few acquisitions to and competes with WELL in the EMR area - Cloud Practice. With only 24 providers, it is tiny in comparison to OSCAR - the third largest EMR product in the country.
The most exciting aspects of its products - is the use of AI. Its AI-powered medical office assistant (MOA) could be a game changer. Family Medicine Physicians have significant overhead in private practice, and this could save them significant time and money. It is unclear if the product is in actual use, but this is where i see the most potential and adoption.
On to financials. The company doesn't have much of a history to go off of, but it does expect revenue to jump to $57 million in 2022, up from $11.5 million in 2019. That is an impressive 3YR CAGR of 70%. EBIDTA is expected to see exponentially higher growth with a CAGR of 227% over the same time frame. This will be largely a result of higher revenue and margins which should increase to 37% from 12% in 2019.
The company trades at only 5.4 times sales and is only trading 1.5 times forward sales (2021). Compared to other tech companies, the company seems quite attractive. In comparison, WELL is trading at 10 times sales and 6.3 times forward sales.
Granted, this all hinges on DOC's ability to meet targets. There are no analysts covering the company, and i have no historical presentations to determine if it has a history of meeting expectations. This is the gamble with micro-caps - more often than not its a bet on management execution.
Overall however, I'd say it looks like an attractive company that is operating in a space that is getting plenty of attention right now.
Mat