I’m still long LVGO/TDOC, I know Saul and others are not (kinda disproves yesterday’s point of us being sheep eh…). I’m sure there are a lot on this board that are still holding.
BEAT & RAISE
Both companies ACCELERATING!!
TDOC
Revenue 109% from last Q’s 85%! Estimates were 104%
Guiding around 100% growth for Q4.
LVGO
Smaller revenue acceleration to 126% from 124%. Estimates 112%
Didn’t see guidance numbers
Thanks for sharing this. I am curious why both stocks are down after hours by around 5% as of now.
It was down by more than 8% right after the market closed.
I think there’s chance that people/funds sold off in order to prevent from loss from any in expected results.
Also, AHM fluctuates quite hard, as you know and we should not give too much weight to it.
I sold out of TDOC a while back but have dove back in this week and will add tomorrow. The more doctors’ offices I visit the more physicians I have seen that are all virtual. I have also seen more offices closing their doors as of late. I believe TDOC taking on the mental health platform is also VERY big. Most psych offices see follow up patients just so they can refill medications. These visits have shifted to telemed at about a 60% clip.
I stayed in LVGO when the deal was announced. I have moved all of my own personal checks ups online. Helps a great deal not to have to go and sit in the doc offices for an hour while I can sign in and continue working. I believe longer term this will be the way of the future as more and more patients go in only when really necessary and do a lot more virtual care.
I also picked up a starter position in AMWL their competitor. Will review their results in November to decide if I upscale that position.
Great numbers for Teledongo. > 100% YoY revenue growth for both companies. TDOC giving Q4 guidance of 94% rev growth - if they are guiding 94%, it could easily end up being over 100% again.
I don’t understand why so few people on this board like the combo.
I have not listened to the call yet, but Richard tweeted that the TDOC CEO made a comment during the call that he just got handed a note that they closed another LVGO cross-sell right then. Could be theatrics, IDK, but I am more excited about these companies right now than any others I own. LVGO has been by far the best investment of my life. I will miss her when she’s gone, but I’m glad she’s marrying a fine upstanding young man with a bright future.
Long LVGO 19%
Down because they said that losses will widen next quarter, although they did raise guidance.
Long TDOC
TMB
Was not expecting this type of reaction after that report. Probably not a good sign for alot of these growth stocks if the market is disappointed in the results and guidance from TDOC/LVGO. Accelerating triple digit growth doesn’t get you a bump on a stock that has been flat for months?
Bought my first shares of TDOC today to add to my longtime LVGO shares
Bnh91
Was not expecting this type of reaction after that report. Probably not a good sign for alot of these growth stocks if the market is disappointed in the results and guidance from TDOC/LVGO. Accelerating triple digit growth doesn’t get you a bump on a stock that has been flat for months?
Bought my first shares of TDOC today to add to my longtime LVGO shares."
I’m not worried about what happens in one day. I wonder if it’s in this price range waiting for the merger to be final. IDK, but I’m comfortable holding this long term. It probably won’t be going up 100% per year, but that’s ok.
I too bought some TDOC recently. I like to have round numbers of shares, so I bought enough TDOC to get to the next higher round number after the merger closes and my LVGO converts to TDOC.
FWIW ARK bought TDOC again today in 3 of their funds. They have bought 29 times since 5/11/20 when I started tracking their daily purchases. It is the 2nd largest amount of any stock they have bought during that time on a total $ basis across all funds. As I’ve said before, this alone is not a reason to buy a stock - just one piece of info. Smart people scaling in over time in a big way.)
Finally, here is a link to a good thread from Richard that he tweeted today with some thoughts from the TDOC ER.
https://twitter.com/richard_chu97/status/1321844040040677383…
Very long LVGO/TDOC
Hope it is not offtopic
Tullmann (Former Chairman of LVGO) already planing his next IPO (4. IPO Overall) and it Looks promising too 
In the SEC document, company executives said Livongo and chronic disease management are “just the beginning” of their vision.
“We want to create the conditions for 1,000 Livongos to bloom,” the executives said.
This growth in the digital health sector is only set to increase with the tailwinds presented by catalyzing events, including the COVID-19 pandemic, evidenced by a record-setting $5.4 billion of digital health venture funding in the first half of 2020," the executives said.
Read more here:
https://www.fiercehealthcare.com/tech/former-livongo-execs-f…
It was pointed out last week after the TDOC/LVGO earnings that both companies beat and accelerated their revenue growth rates. Thought I would give a little more details on those trends these 2 (now merged) companies have shown.
Here are their revenues, sequential rev growth, and YOY rev growth, for the last 2 years.
LVGO Revs Seq Rev Growth YOY Rev Growth
1Q19 $32 51% 157%
2Q19 $41 28% 156%
3Q19 $47 14% 148%
4Q19 $50 8% 137%
1Q20 $69 37% 115%
2Q20 $90 30% 120%
3Q20 $106 18% 127%
**4Q20 $115 8% 127% No guidance provided, same 8% seq growth as last year from Q3 -> Q4.**
TDOC Revs Seq Rev Growth YOY Rev Growth
1Q18 $129 5% 43%
2Q18 $130 1% 37%
3Q18 $138 6% 24%
4Q18 $156 13% 27%
1Q19 $181 16% 40%
2Q19 $241 33% 85%
3Q19 $289 20% 109%
**4Q19 $299 3% 92% Midpoint of guidance provided.**
**4Q19 $326 13% 109% Same 13% seq growth as last year from Q3 -> Q4.**
The bolded fourth quarter numbers are either guidance or my estimates based on last years seq increase from Q3 to Q4.
I know when the merger was announced 3 months ago, some folks said this is no longer a hypergrowth opportunity. In case it’s not obvious, I’d like to point out that both companies are hypergrowth, and accelerating. Yes, they’ve got Covid tailwinds, well so do ZM, PTON, DOCU, etc.
I also firmly believe that next quarter will also be triple digit growth for both companies (although since they’re now merged, I’m not sure whether they’ll split their metrics out separately as now). So LVGO and TDOC are the fastest growing companies discussed here outside of ZM (300+%) and PTON (200+% estimated this quarter, we’ll see in a couple days, fingers crossed 
).
DDOG and CRWD are not in the top 3.
I realize that rev growth isn’t the only metric to look at, and that there are other numbers that LVGO/TDOC don’t stack up as well against say DDOG and CRWD, gross margin, for instance, although even those aren’t that bad (LVGO is 76%, TDOC is 63%). But I remember someone (don’t remember who, sorry) posted a study (or did one themselves) that showed that rev growth rate was the single most important factor in future stock price appreciation for high growth stocks.
So why did TDOC drop after the earnings release? (I don’t know) And has continued to drop (that one’s easier, because all the hypergrowth names have dropped). Also, I assume some LVGO holders that now have TDOC shares in their brokerage accounts and have sold it as they didn’t want to hold it. That’s OK with me, I’ve added more TDOC and happy to have it my largest position (followed by ZM, CRWD, and DDOG).
I believe the new TDOC company has a good chance of gaining 50% just from a P/S expansion perspective, as the combined entity now has a P/S of around 25 (while growing triple digits!), as Bert would say, well below it’s cohort. After next quarter, the P/S drops to 21 (again, still with triple digit growth!). I don’t expect it to have a P/S of 60, but it sure seems like 30-40 would be more reasonable for the growth they’re showing.
And where’s the continued growth coming from? New chronic conditions to treat, international expansion, cross selling between the 2 companies (which we’ve just started to see the benefits of), and how about the telehealth sector growth expansion itself into one of the largest markets around (healthcare).
I still think quite a few folks here held one or the other, and many probably will continue to hold the new company. I think that’s a smart move, especially at the bargain price you can get it at currently.
Full disclosure, I’m long all companies mentioned above (LVGO/TDOC, ZM, CRWD, DDOG, PTON, among others), and very excited about their futures!
Does anyone know when the LVGO shares in an account will actually be replaced by TDOC shares? Will this happen passively, automatically?
BLancaster
Your brokerage account should handle all of it automatically.
I had LVGO shares in both an Etrade account, and a TD Ameritrade account, the Etrade account has converted the shares to TDOC already (although the cost basis is not correct yet, nor the dividend/cash portion of the deal), whereas the TD Ameritrade account is still showing the LVGO shares and has not yet added the TDOC shares.
I’m assuming (hoping) that by the end of this week, everything should be correct in the brokerage accounts. If not, I’ll start calling them and asking what’s up next week.
I wrote to Ameritrade yesterday and here is what they said:
"Thanks for reaching out today - I hope your Monday morning is going great so far!
We anticipate receiving the TDOC shares from the transfer agent today, so your shares should show tomorrow if all goes according to plan. Unfortunately, we cannot update your account any sooner than when LVGO’s transfer agent actually gives us the new shares, which is why your account hasn’t already been updated."
As of now my TDOC shares still have not shown up.
I just got an email back from TD Ameritrade support. Now they’re claiming the shares should be posted to customers’ accounts sometime tomorrow (Wednesday). They’re waiting to receive the shares from Teladoc.
Eric
I contacted TDOC investor relations and got an email saying brokers will have the shares by midweek and shortly thereafter they should appear in my account.