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Size Analysis: The industry's market capitalization stood at $304 billion at the end of the quarter, reflecting an increase over the quarter and a slightly lower valuation relative to 2022 Q1. However, there was a decline in the number of public companies operating in the space, decreasing from 133 to 123. The number of transactions in the industry, as well as the transaction value, increased drastically during the quarter. Notably, activity in the space has been relatively low since 2022 Q1, with transactions typically below $10 billion, except for a peak in 2022 Q4 when it reached $18 billion.
Public Market Dynamics: While the performance of the industry improved during the quarter, it still significantly lagged behind the broader market, although the top 20 companies outperformed. This underperformance relative to the SPY has been consistent since 2021 Q2. The median debt-to-equity ratio declined relative to the last quarter, with a slight decrease in the interest expense-to-revenue ratio. Revenues experienced a slight overall increase during the quarter.
Transaction Trends: A total of 87 transactions occurred in the industry during the quarter, with one IPO announcement. M&A transactions, private placements, and public offerings all experienced slight declines over the quarter. Notably, there were more private placements relative to public offerings.
Dispersion Insights: North America emerged as the major contributor to revenue, followed by Africa and Asia. M&A activity was highest in North America, followed by Asia and Europe. Private placements were highest in North America, followed by Africa while public offerings were highest in North America, followed by Oceania.
We screened CapitalIQ using its industry classification and Business Description. Transactions were filtered by announced date within the last 3 years. Companies were filtered by having a public company type. The main industry selected was "Healthcare". The keywords "telehealth", "telemedicine", "digital care" and "telecare*" were used to screen the database. "Telehealth has been kept for only category. The keywords have been used to determine our sectors.
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