Twilio (TWLO) announced on Wednesday that it will power Zocdoc’s new telehealth online video service, which helps connect more doctors with patients during the coronavirus pandemic.
The terms of the agreement were not disclosed. Twilio will be offering three months of free use of its video product for healthcare customers as well as for those in education and nonprofit sectors if they sign up before June 30.
“Zocdoc’s new telehealth solution makes it easier for healthcare professionals to utilize video visits in a time where providers and patients need virtual care most,” said Susan Collins, global head of healthcare services at Twilio. “Twilio Programmable Video’s software agility and cloud scale enabled Zocdoc to make remote visits available in a matter of weeks.”
Twilio disclosed that it has seen a surge in usage across its video platform in response to COVID-19, including a more than 850% increase in peak concurrent participants on its video products and a more than 500% increase in daily video minutes compared with pre-February levels. Usage of Twilio’s platform across its healthcare customers is up more than 90% since its February pre-coronavirus averages.
Shares in Twilio have skyrocketed over the past month almost doubling in value after the company posted strong sales figures as the coronavirus-related stay-at-home orders fueled demand for its cloud technology solutions.
After talking to Twilio management, five-star analyst Ittai Kidron at Oppenheimer came back with a bullish outlook and reiterated his Buy recommendation on the stock with a $160 price target.
“Management maintained a cautious tone on 2H as the effects of COVID-19 on customers/activity are not yet fully understood,” Kidron wrote in a note to investors. “We continue to see Twilio as a foundational vendor enabling enterprise digitization activity, closer businesss-to-consumer relationship, and business activity in times of social distancing.”
Looking ahead Kidron sees several opportunities for Twilio that can contribute more meaningfully in 2021 and thereafter, including telehealth video services and in areas of healthcare.
Turning now to the rest of Wall Street analysts the Moderate Buy consensus is split into 12 Buys and 6 Holds. Given the recent rally in the stock the $157.50 average price target implies 15% downside potential in the next 12 months. (See Twilio stock analysis on TipRanks).
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