Weekly Equity Idea Highlight - 2020 06 15
The market is expecting LVGO to see impressive expansion in returns and growth goingforward, but even at current market expectations, the market does not fully capture the
company's potential.
LVGO has a unique subscription-based business model for the chronic healthcare space
that is accelerating aggressively as telehealth needs surge. Its subscription model means
that as it scales into its impressively large total addressable market, which currently is only
diabetes and high blood pressure but could expand significantly, it will drive not just
growth, but expansion in returns that could lead to massive earnings growth.
The company has the right management team in place to execute on the strategy, with
significant historical experience with the world of healthcare data. They can correctly
partner and integrate data to enable the company to scale.
Also, on the most recent earnings call, management showed confidence about the
longer-term opportunity in the business, and how the company's investments to fuel
growth are helping accelerate growth.
Considering the company's strong growth trends, robust business model that is seeing a
bullish inflection, massive incremental growth opportunities, well-positioned management
team, and growing confidence about the business outlook, LVGO looks compelling.
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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