Jul 1, 2019 - Economy & Business

Diabetes coaching startup becomes health tech's big IPO test

Livongo Health CEO Glen Tullman

Livongo Health CEO Glen Tullman. Photo: Kimberly White/Getty Images for TechCrunch

Livongo, a health tech startup that provides diabetes coaching, filed papers for its initial public offering on Friday, a move that's seen as a test for how well such startups may do in public markets, Stat reports.

Between the lines: This new generation of buzzy, venture capital-backed health care companies hasn't produced an IPO since 2016. A second digital health company, Health Catalyst, filed to go public on Thursday.

  • Business Insider reported that the company could be valued at up to $2.5 billion.
  • But while it brought in $68 million in revenue last year, it posted a net loss of $33 million.

Backdrop: Livongo's main source of revenue is self-insured employers, which hire it to monitor and coach employees with chronic diseases — especially diabetes.

  • It said in an SEC filing that its services save over $1,900 a year in gross medical expenses for diabetes patients.
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