LVGO - Embedded Expectations Analysis - 2020 05 21
Livongo Health, Inc. (LVGO:USA) currently trades above historical averages relative to UAFRS-based (Uniform) assets, with a 16.8x Uniform P/B. At these levels, the market has bullish expectations for the firm, but management may be concerned about coronavirus, member growth, and revenue guidanceSpecifically, management may lack confidence in their ability to sustain quarterly estimated value of agreement improvements, expand gross margins, and maintain their cash liquidity. In addition, they may have concerns that their diabetes and hypertension clients are among the populations most vulnerable to coronavirus, about the impact of coronavirus on the healthcare system, and about the length of the emergency waiver period for all inpatient facilities to use their diabetes meter. Furthermore, they may lack confidence in their ability to meet increased 2020 revenue guidance of $290mn-$303mn and sustain quarter-over-quarter member increases
Livongo Health is engaged in Applied Health Signals, which is involved in the management of chronic conditions. The company's platform provides cellular-connected devices, supplies, informed coaching, and data science-enabled insights and facilitates access to medications across multiple chronic conditions. The company provides the following solutions: Livongo for diabetes; Livongo for hypertension; Livongo for prediabetes and weight management; and Livongo for behavioral health by myStrength.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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