Solid Financial Results - Nothing too breath-taking, enoughWe knew Q3 was not going to be a big month as acquisionts mostly closed during Q3 and therefore the consolidated earnings count for weeks/month.
Had my calculations was to hope for a 4-5 M$, but looking at the dates of closing of acquisitions, this doesn't make any sense.
5 big acquisitions all closed after October 26th... that explains.
It is hard for DOC to be profitable with a revenue run-rate of 13M$. Now that it has breached the 35 M$ as of today, this is good news for Q4 and Q1 2021.
Key points that I was happy to see :
- 50% gross margins are possible and most likely to occur in the upcoming Quarters, this is quite important in a case of a takeover, this will likely benefit a higher valuation.
- There's always a period of consolidation following acquisitions, meaning management have to implement new processes and reorganize financial reporting, etc. In the upcoming Quarters, there will be synergy in the operation.
- DOC is copying the WELL model of sperating the different revenue-streams. DOC will gradually increase each division/whatever you want to call it, and grow that way.
Q3 is JULY-AUGUST-SEPT, probably the worst months for telehealth as people were enjoying the little last breath of freedom and vacation.
Everything indicates to hold your shares.
US Congress will meet regarding Telehealth as a new way of providing healthcare services.
Canadian Corporations are reaching for these types of tools DOC is offering to get a better grasp of the mental health of their employees, offering virtual doctors and many other professionnals.
This is the beginning of something great, it will take time.
Cheers