Livongo Files for IPO, Offering Digital Diabetes Management to 164,000 Users

On June 28, 2019, VCBeat (WeChat ID: vcbeat) learned that digital health company Livongo announced its filing for an initial public offering (IPO), with the number of shares to be issued and the pricing yet to be determined.

Livongo was founded in 2014, with its headquarters located in Mountain View, California, USA. Glen Tullman is the founder and Executive Chairman of Livongo, holding an 11.7% stake in the company. His son, Sam, was diagnosed with type 1 diabetes at the age of eight, and since then, he has been a member of the team developing Livongo’s diabetes products.

Livongo is a company that leverages advanced technology for chronic disease management. It combines hardware devices, AI-driven data analytics, and professional health coaches to help individuals manage chronic conditions, offering patients a diabetes management platform. This platform consists of two components: blood glucose monitoring and professional guidance. Currently, Livongo has expanded its services to include blood pressure monitoring, prediabetes management, and mental health support.

Livongo’s mission is to optimize the lives of people with diabetes by providing a cellular-enabled blood glucose meter that supports software updates and offers unlimited free testing. Research data indicates that annual medical costs for chronic diseases reach as high as $3.3 trillion, while the company plans to save diabetic patients $88 per month within one year.

Livongo’s revenue grew by 122% from 2017 to 2018, reaching $68.4 million. In the first quarter of this year, it increased by 157% year-over-year to $32 million, but losses also widened. The majority of the company’s revenue comes from its diabetes program.

“We focus on accumulating expertise in diabetes care, fostering trust between the company and its users, and have achieved very high customer satisfaction,” said Tullman.

Livongo has amassed 164,000 active users through partnerships with 679 enterprises, with clients paying an average of $75 per employee per month. Although there is no precise data yet to demonstrate the efficacy of digital health approaches, Tullman disagrees with the “pay-for-performance” model adopted by competitors such as Omada Health, Virta, and Vida Health, under which payment is tied to performance outcomes.

“Livongo has developed high-quality hardware for patients with diabetes and hypertension to optimize the user experience. If someone offers better hardware, we are happy to integrate it into our system,” said Tullman. Currently, Livongo users can connect the app to smartwatches from Apple, Fitbit, and Samsung.

(Compiled by Cheng Tao)