Risks remain. Lutz notes that only 10% of Teladoc’s members use the service, which could be a problem for the portion of Teladoc contracts that are based on per-visit fees. Lutz writes that the company may need to spend more on marketing. He also noted that the company had faced scrutiny in recent months around the vetting of the mental-health professionals available through its services.

Still, he is bullish, particularly on the promise of the company’s digital therapy offerings. He said that if the company executes well, BetterHelp could grow to more than $200 million in revenue by 2022. “Based on our conversations with management and our analysis of the industry size, we believe the trajectory of revenue growth over the next few years will depend largely on how aggressively Teladoc markets the business, as the addressable market is quite large.”