Livongo Health, Inc., a digital health startup based Mountain View, California, has publicly submitted documents for a proposed initial public offering (IPO) of its common stock. The company provides a software platform and hardware technology for people with chronic diseases, such as diabetes.
Livongo filed a registration statement with the U.S. Securities and Exchange Commission (SEC) on Friday, June 28. It plans to list its stock under the ticker symbol “LVGO” on the Nasdaq exchange. The company has not determined the price range for its IPO and the number of shares it will offer.
The digital health platform was founded 5 years ago by Glenn Tullman, former chief executive officer of AllScripts Healthcare Solutions, Inc (NASDAQ: MDRX). It primarily targets diabetes patients, but also has other programs for hypertension, behavioral health, and weight management.
“Livongo uses technology to transform the experience of living with a chronic condition. We’ve done this by creating a consumer-first, data driven digital health platform that is personalized and empowering. Our solutions use smart connected devices, personalized digital guidance and 24×7×365 access to health professionals, making it easier for people to stay health,” the company said in its prospectus.
Livongo generated revenue of $68.4 million for the full year of 2018 versus $30.9 million revenue for the full year of 2017. In the first quarter of calendar 2019 the company reported revenue of $32.06 million compared with $12.46 million revenue during the same period a year ago.
However, like most fast-growing tech startups, Livongo is continuing to lose money as it ramps up efforts to expand its user base. In the first quarter of 2019, the company posted net losses of $14.96 million compared with net losses of $4.22 million in the first quarter of the previous year. Net losses for the year ending 2018 came to $33.4 million versus $16.9 million for the full year of 2017.
Livongo has raised roughly $237 million privately, and most recently had a valuation of $800 million. Notable venture-capitalist investors backing Livongo include General Catalyst, Kinnevik Online AB, Kleiner Perkins, Merck Global Health Innovation Fund, and 7Wire Ventures.
Livongo intends to use the proceeds from the IPO for general corporate purposes such as working capital, capital expenditures, and operating expenses. It may also use a portion of the proceeds to acquire businesses, technologies, products, or services.
The startup has hired Goldman Sachs Group Inc., JPMorgan Chase & Co., and Morgan Stanley to serve as book-running managers for the offering. SVB Leerink LLC and Piper Jaffray Co s. are coleading as managers for the public offering, while KeyBanc Capital Markets Inc., Needham & Co. and Canaccord Genuity Group Inc., are co-managers.
