I’m assuming this will be added in one of the next few batches, but I can’t see a thread for this yet
I figured I should make more of an effort when I kick off a thread so…
Who are Livongo Health:
Livongo Health provides a technology platform that helps its users manage chronic diseases. It was initially dedicated to helping users with diabetes but now it’s expanding into hypertension, weight management, diabetes prevention, and behavioral health. Their digital technology platform uses advanced data sciences to provide personalised actions for users.
Since its IPO in July 2019 its risen from 25.22 to 71.42 on the NASDAQ (ticker LVGO).
Why should you care:
There are 147 million people who live with 1 or more chronic diseases in the US alone. The market is huge and its increasing!
Of this 147 million, 34 million have diabetes. Currently Livongo has just over 328,000 diabetes members, approximately 1%. Another 40 million people have hypertension. Together this amounts to an addressable market of over $49 billion - remember this is just in the US.
What do the fundamentals say:
Source: Genuine Impact
Sales in Q1 of 2020 rose year over year by 115% to $68.8 million and they recently revised their fiscal 2020 expected revenue up by $13 million to $303 million. Livongo delivered profitability for the first time in Q1, with profits on $0.03 per share - beating analysts expectations.
One area of concern is the price-to-sales ratio, which is comparatively high at 21.
Market analysts appear bullish, albeit marginally less than 30 days ago.
Personally I really like this stock and I bought some yesterday. I don’t envisage selling it anytime soon
That’s a solid return. The shares have soared more than 200% from their March low.
Digital health is a good niche during these times, and probably for good even after lockdown!
The main downside for me is the negative EPS at -$0.50.