(VIEW LARGER IMAGE) 

Background

The street reacted negatively to the Teladoc - Livongo merger yesterday. Both stocks had performed well into the deal and traded at multiples that some might consider extreme. On the other hand, estimate trends that accelerate against the backdrop of a massive TAM, multiples have a way of melting up to meet the narrative. At some point we can imagine the TDOC-LVGO merge becoming a massive short, but we think that point won’t be for some time in the future. Over the coming months and quarters, we have tools to map adoption and utilization which we are assembling to present on a call next week.

Monitoring Tools

• Medical Claims | We’ll present Livongo and Teladoc claims volume by procedure and diagnosis code
• App Downloads | Both downloads and user metrics are useful markers of enrollment, volume, and competition
• US Customs Data | Livongo imports scales, Welcome Kits, and blood pressure cuffs
• Estimate Vectors | Our proprietary quantitative analysis of estimate trends that flags inflection points

(VIEW LARGER IMAGE)

All data available upon request. Please reach out to HealthCareTeam@Hedgeye.com with any inquiries.

Thomas Tobin
Managing Director
Twitter
LinkedIn

William McMahon
Analyst
Twitter
LinkedIn