Livongo, a digital health start-up, is aligning itself for an initial public offering as the company filed its S-1 on last Friday.
Livongo is among one of the first companies that left the rapidly increasing sector of health-technology and for the full year 2018, the start-up has reported revenue of $68.4 million. Though revenue growth of the start-up is increasing rapidly but its losses are escalating too. Firm’s revenue grew to $32.06 million in the first quarter of 2019 from $12.46 million in the same quarter a year ago, while its net loss reached to $14.96 million during the first quarter this year against the net loss of $4.22 million in the quarter a year earlier.
As of March 31, 2019, there were 164,168 diabetes members enrolled with the company for provision of glucose monitors and test strips, and that figure is well above from the number of diabetes members enrolled with company in a year-ago quarter which were 68,536.
The digital health sector is witnessing venture investment rising substantially with more investors seeing opportunity in bringing modern tools to the medical sector having annual turnaround of $3.5 trillion. But exiting the sector has been enormously challenging for these companies which is causing the industry closely observing the initial public offering of Livingo.
Founded in 2012, Livongo commenced its business offering glucose monitors and test strips for diabetics, while subsequently expanding its exposure to people with other medical conditions, including weight loss and behavioral health issues. Livongo was having more than 600 health plans and self-insured employers signed up with the company as its customers for covering the cost of services provided by the company to their members, as previously said the company.
Goldman Sachs, JP MorganChase & Co and Morgan Stanley have reportedly been hired by the start-up as its underwriter for the IPO.