LVGO Earnings Surprise

repeating LVGO info… from what I posted on TDOC thread…

LVGO is up double digits today… market seems to be catching up to this hidden gem.

Another smaller player in tele-health, Catasys (CATS) came up last week confirming they see upto 5x increase in new members signing rate. CATS did $35M last years, very small player but growing extremely fast. They were forecasting to go to $90M this year… more than 100% growth… before accounting for pandemic’s effects.
It does have some debt on balance sheet, so do you DD before jumping in closed eyes.
(Disclosure: I have small trial position).
https://finance.yahoo.com/news/catasys-telehealth-enabled-on…

LVGO summary

  • TTM revenue is $170M (so >5x of CATS size)
  • grew 138% last quarter… (compare to <30% for TDOC)
  • At the beginning of March, management guided March quarter to grow >90% before the pandemic became clear (so I am assuming upside from pandemic is not accounted for in that 90%+ growth outlook)
  • addresses two critical markets - diabetes care AND mental health care…
  • has established ties with insurers…
  • 73% gross margins

And at ~$27, even after today’s 10%+ bump, it is trading at 15x PS
which is very low for such a high growth company and potential acceleration due to pandemic.

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https://www.cnbc.com/video/2020/03/30/livongo-health-founder…

It’s impotent to add why LVGO is up so much today. Seems to be another play on coronavirus.

Yes their numbers were solid last quarter and they were looking like a solid investment before this virus hit. I think it’s a smart investment going forward as the healthcare system and how we see doctors and are monitored during illness is going to be very different then it was prior to this outbreak.

TMB
Long LVGO

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