The Doctor Care Anywhere Group Plc (ASX: DOC) share price has slipped into the red in early trading on Wednesday. Today's dip comes as the company released its quarterly results this morning.
Let's examine Doctor Care's results in a bit finer detail.
But first – a bit more on Doctor Care
Doctor Care has expertise in providing digital healthcare and telehealth services to patients.
It has a network of insurers, healthcare providers and corporate customers designed to connect with patients.
The company has a market capitalisation of $279 million at the time of writing.
Doctor Care's quarterly results
The company recorded unaudited revenue of $8.9 million this quarter, a 78% year-on-year increase.
It also delivered 89,400 consultations across the quarter, a healthy expansion of 69% from the year prior.
Doctor Care's "recruitment drive" also added 71 new GPs to its platform, with a further 100 in the pipeline.
As a result of these additions, the company hopes to provide "up to 45,000 appointment capacity" per month by the end of Q3.
Diagnostic referral volumes were also up 34% from the previous quarter and broad strengths were underlined by "continued demand as the UK economy unlocks".
While people entitled to use the company's services remained flat from the previous quarter at 2.4 million, its "activated lives" — or people signing up for the service — grew 12.7% quarter-on-quarter and 90% from the year prior.
Additional takeouts
With respect to guidance, Doctor Care reinstated its FY21 estimates of "revenue growth of at least 100% above FY 2020".
For reference, Doctor Care recognised revenue of $11.6 million for the FY 2020 and made a loss of $31.3 million.
Commenting on the performance this quarter, Doctor Care CEO Dr Bayju Thakar stated:
Our outlook for 2021 remains positive following a robust performance in a quarter during which patient demand has continued to grow rapidly… Nevertheless, this has been a quarter of significant challenges as a result of the demand on GPs to deliver the national vaccination programme.
The company's chair Jonathan Baines added:
The UK primary health care system will continue to remain under extreme pressure, contributing to significantly increased demand for our service as demonstrated by the growth in activated lives and record number of daily consultations this quarter. We remain confident in our guidance for year on year revenue growth of at least 100% above FY 2020.
However, investors seem to view the results unfavourably and are selling Doctor Care shares in droves this morning.
After earlier trading down ~11% on their opening price, Doctor Care shares are now changing hands for 80 cents, an 8.5% drop at the time of writing.
Doctor Care share price snapshot
The Doctor Care share price has posted a year to date loss of almost 34%, extending the previous 12 months' loss of close to 15%.
These returns have lagged the S&P/ASX 200 Index (ASX: XJO)'s return of ~23% over the previous year.
