This Palantir SPAC Demo Will Blow Your Mind
Babylon Health is one of the most interesting SPACs Palantir has invested in. The company uses AI to change the way telehealth is conducted. Companies like Teladoc have proven that there is a model for insurance providers to use Teladoc's platform in order to conduct virtual sessions with patients, saving them time and scheduling hurdles to actually get advice from a clinical professional.
Babylon health wants to use the telehealth model but take it one step further in terms of how actual sessions are conducted. Using AI, the company actually allows patient-doctor sessions to track every question asked by a doctor and answer given by a patient.
As a result, the software is able to create a comprehensive understanding of what issues are going on based on interpreting the conversation the doctor and patient have in real time virtually. It's honestly one of the most amazing uses of AI I have ever seen, take look below for 2 minutes of how this happens:
When you see technology like this, you start to wonder what type of growth the company can have as a result of outstanding software.
It turns out, Babylon health is growing, and they are growing fast. Their stock price has been hit due to them being a SPAC and a growth stock, but their progress is outstanding.
From January of 2022 -
- Babylon January 2022 revenue grows significantly to over $80m
- Babylon also increases full year 2022 revenue guidance to between $900m and $1 billion
- 88,000 new full value based care members added organically through the signing of new agreements
This is a company that has a roughly $2B Market Cap and is expecting to bring in 50% of its market cap in yearly revenues. Growth stocks have been hit due to value compressions across the entire market - as investors feared interest rates would go up, the cost of borrowing money would increase, and growth stocks that are valued on the future cash flows they will bring in began to decline since the cost of bringing those future cash flows would be more expensive due to higher rates.
But bringing in 50% of your market cap in yearly revenue? Wow.
The CEO Had Some Words To Say
"Once again, Babylon continues to build strong momentum as support in our approach to re-engineer every touch point in the healthcare continuum increases amongst partners and members alike," said Ali Parsa, Founder & CEO of Babylon. "While our continued growth may seem extraordinary in the healthcare universe, it is not unlike the levels of the many well-known disruptive digital innovators such as Amazon, Netflix, Tesla, or Airbnb, who also experienced similar growth in their `take-off' years.
"As happened in those sectors, it is clear we are witnessing the dawn of a structural digital overhaul in healthcare. We believe that with each new member we serve, we are demonstrating that we not only have the ambition, determination and single-minded focus, but also the track record to benefit from this transformation and in return, deliver an excellent value proposition for our patients and partners."
The ambition is clearly there - the CEO acknowledges that their growth may seem extraordinary in the healthcare sphere, but his bar is not within the healthcare industry. He compares Babylon's growth to companies like Tesla and Amazon that are expected to grow at amazing rates due to their unique ability to differentiate from the rest of the marketplace.
Babylon & Palantir
Foundry is utilized within Babylon as a part of Palantir's SPAC investment. The AI being used to conduct telehealth conferences likely is powered in some part by the analytics capabilities of Foundry and serves as a testament to how the partnership is moving forward.
The increased growth in Babylon suggests that they are not only executing, but have the tools in place within the product to generate stronger business intelligence in order to make decisions that allow them to grow at such exponential rates. If Babylon turns out to be a major winner, Palantir will have an equity stake. Babylon (NYSE: BBLN) is currently down 56% year to date.