Digital health start-up Livongo files to go public

Livongo's founder Glen Tullman

Livongo

Digital health start-up Livongo filed its S-1 for its initial public offering on Friday.

Livongo, which is one of the first companies to exit in the burgeoning health-technology sector, reported $68.4 million in revenue for the full year of 2018. But its revenue growth is accelerating, with $32.06 million in revenue for the first quarter of 2019, versus $12.46 million in revenue in the year-ago quarter. However, losses are growing too. Livongo reported a net loss of $14.96 million for the first quarter of 2019, versus a net loss of $4.22 million in the year-ago quarter.

The company also said it had 164,168 enrolled diabetes members for the glucose monitors and test strips it provides as of March 31, 2019. That's up from the 68,536 enrolled diabetes members it had in the year-ago quarter.

The digital health sector has seen a massive uptick in venture investment, as more investors see opportunity to bring modern tools to the $3.5 trillion medical sector. But it's been notoriously challenging for these companies to exit, so the industry will be closely watching Livongo's initial public offering.

The company got its start in 2012 with an offering that included glucose monitors and test strips for people with diabetes. It has subsequently expanded its scope to other medical conditions, including behavioral health and weight loss. It has previously said that it has more than 600 self-insured employers and health plans signed up as customers, who cover the cost of the service for their members.

More than 32 million Americans have been diagnosed with diabetes.

The company was founded by the venture firm General Catalyst's Hemant Tanea, who is also an early investor in Snap, and former AllScripts CEO Glen Tullman. Its CEO is Zane Berke, a former executive at health IT company Cerner.

The start-up reportedly hired Morgan Stanley, Goldman Sachs and JPMorgan Chase & Co as underwriters for its IPO.

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