1. Teladoc Health (TDOC) — J.D. Power Results, an Approval and a Partnership
J.D. Power surveyed nearly 5,000 consumers about their usage of telehealth over the last 12 months. As you may have expected, adoption from these patients skyrocketed with 36% of them reporting utilization of virtual care services during the period. This compares to 9% in the previous period.
Among direct-to-consumer brands, Teladoc received a consumer satisfaction score of 874 (on a scale of 1,000) which was the highest in the group and beat the mean by 28 points. Teladoc also outperformed every single competitor in all subcategories.
This could be because the most common complaint among telehealth users was the limited services provided. Teladoc is actively aiming to fix that pain point with its whole-person care approach.
Teladoc has now won this award twice since J.D. Power created the category 3 years ago, and in a field where some commoditization is likely coming, scale and customer service are vital. Teladoc has both.
In other news, the company was named as a vendor by Canada Health Infoway to bring its whole-person care services to the roughly 21 million Canadians that Infoway covers.
The busy week did not end there for Teladoc. The company also inked a new partnership with Philips. Together, the 2 organizations will pool their virtual care capabilities to offer a “scalable, end-to-end service” to health systems in Australia and New Zealand. Philips claims to have a suite of virtual care products using its AI and analytics capabilities that cuts a patients stay by 30% while reducing patient mortality by 26%.
2. SoFi Technologies (SOFI) — New Debt Offering
SoFi announced a $750 million convertible note offering during the week before raising that amount to $1.1 billion.
These notes carry an interest rate of 0.0% but that’s entirely due to the conversion rights of the holders. The holders of the notes will be able to convert the debt instrument to equity until the maturity date in 2026. The conversion rate is 44.615 shares per $1,000 in debt principal which represents a price per share of roughly $22.41.
If SoFi’s common stock exceeds 130% of the $22.41 conversion price, the company can redeem these notes for cash at the conversion rate at various points throughout the debt’s schedule.
SoFi’s net proceeds are expected to be roughly $1.08 billion and it will use $104.3 million of this amount to enter into capped call transactions. These capped call transactions work to reduce possible dilution rising from the conversion of debt to shares by placing a finite ceiling on the number of new shares that can be issued from the offering.
Interestingly — upon the closing of its anticipated bank charter — SoFi will be expected to infuse $750 million into Golden Pacific Bank (the bank entity it purchased). Perhaps the original plan to raise $750 million was a sign that the banking charter is a done deal and soon on the way.
This is virtually identical to Upstart’s (UPST) debt offering from a couple months ago.
Click here for my broad overview of SoFi’s business.
3. GoodRx (GDRX) — New Partner
GoodRx signed an exclusive deal to become the sole prescription savings provider for Fetch Rewards. Fetch is the largest rewards app in the United States with a user base of 10 million active consumers and 1.8 billion total receipts submitted. Now a Fetch user will be able to access GoodRx’s savings within the app.
In recent interviews, Co-CEO Doug Hirsch has spoken at length on the importance of business to business (B2B) deals like the ones GoodRx signed with DoorDash and USAA. He also explicitly told us that more of these deals were on the way. Clearly, he was right.
Click here for my broad overview of GoodRx’s business.