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IPO – Most Anticipated Companies in 2020  


craig
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1. Postmates is a delivery company. Delivers everything from food to furniture. The company was founded in 2011, and the idea of Postmates was developed
in 2005 when Bastian Lehmann moved from Munich to London. He ran into a problem
transporting things and looking for a simple solution. He later met with his future partners, Sean Place and Sam Street, and in 2011 the year the courier service was launched. Currently working in more than 3000 cities of the USA and carries out about 5 million deliveries per month.

Established: 2011
Employees: 5341
Total attracted: $ 903 million
Latest valuation: $ 2.4 billion
Revenue 2018: $ 1 billion
2018 growth rate: 74.7%


2. Palantir – one of the most classified and expensive Silicon Valley startups. The company is
a software developer for analyzing big data for security purposes. The main customers are US intelligence agencies, investment banks, hedge funds. The company became famous after working together with the Pentagon and the CIA in Iraq and Afghanistan, and according to unofficial data, played an important role in the capture of Osama bin Laden.

Established: 2009
Employees: 2580
Total raised: $ 3 billion
Latest valuation: $ 21 billion
Revenue 2018: $ 1 billion


3. Airbnb is a platform for searching and renting housing around the world. Company
provides services in 191 countries of the world and already helped find housing more than 400 million guests since launch. In total over 17 different companies have acquired a history for the development and promotion of business. Among the investors are Sequoia Capital funds, TCV, All Blue Capital, CaptalG, Backet Capital and Andreessen Horowitz. The company’s management has already confirmed that it is preparing for deployment in 2020.

Established: 2008
Employees: 9869
Total raised: $ 3.5 billion
Latest valuation: $ 31 billion
Revenue: $ 3.6 billion
2018 growth rate: 38.46%


4. Robinhood is a brokerage application, which provides access to financial markets. The platform allows customers to buy and sell stocks, ETFs and options in the USA with zero commission. The trading platform also aims to ensure that people it was convenient to store money. The company was founded in 2013 and is a registered SEC broker-dealer and member FINRA and SIPC.

Established: 2013
Employees: 908
Total attracted: $ 912 million
Latest valuation: $ 7.6 billion

 

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ruslan
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I will bet on airbnb definitely. It really offers value and can skyrocket after release. 

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craig
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IPO US LBM Holdings

Ticker: LBM
Exchange: NYSE
Range on IPO: –
Volume for placement: $ 100 million
Underwriters: Barclays / Credit Suisse / RBC Capital Markets / Citigroup / SunTrust Robinson Humphrey / Wells Fargo securities

On November 26, US LBM Holdings, which is one from the leading suppliers of building materials in the USA. The company has a representative office in 32 states and serves more than 30 thousand construction contractors.

1. The company is one of the leading distributors of specialized building materials in the USA. The product portfolio includes windows, doors, carpentry products, roofing, lining materials, wood products. Since its inception in 2009, US LBM Holdings has acquired more than 50 companies and expanded its geographical presence to 32 states.
The company’s base includes more than 30 thousand construction contractors.

2. Potential market . Construction market of materials in the U.S. is highly fragmented, operating on it a lot of small and big sellers. Key growth drivers of market is the construction of new houses and commercial buildings. Currently, the construction market after the recession for the period 2007-2011 is in the growth phase. In 2018 on
one family accounted for 70% of the new housing market construction, which is below the industry average since 1970 for 15% of the year. Analysts expect that within 5-10 years the given the indicator will return to the average of 1.03 million houses. What
as far as the commercial construction market is concerned, it’s on the
10% below the historic average market level of 1.3 billion square feet per year, but the market also continues to grow on the back of rising government spending, falling interest rates and increased project financing.
3. Stable gross margin and operating growth margins. Company growth rate drops from 16% in 2017 to 8% in 2018 and 3% for 9 months of 2019. The decrease is due to wood price deflation.

 

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craig
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IPO 1Life Healthcare (ONEM)

has filed a prospectus for a $100M IPO.

The San Francisco, CA-based company has developed a membership-based primary care platform that provides around-the-clock access to digital health services paired with in-office care in convenient locations. It currently has 397K members and 77 physical offices across nine U.S. markets.

2019 Financials (9 mo.): Revenue: $198.9M (+29%); Net Loss: ($33.1M) (-27%); CF Ops: ($24.1M) (-111%).

Quick Take

1Life Healthcare (ONEM) has filed to raise $100 million in an IPO of its common stock, according to an S-1 registration statement.

The firm is developing a network of subscription-based retail medical clinics.

ONEM is growing at an accelerating rate but so are operating losses and cash burn.

Company & Technology

San Francisco, California-based 1Life was founded to offer common medical care services via walk-in retail-oriented medical clinic locations in the United States.

Management is headed by Amir Rubin, who has been with the firm since 2016 and was previously an EVP at UnitedHealth Group and president and CEO of Stanford Health Care.

Below is a brief overview video of retail health clinics:

 

 

Source: Blue Cross Blue Shield of Michigan

The company partners with all major components of the healthcare delivery system, including employers, providers, insurers, and health networks.

ONEM has facilities in nine U.S. major market areas, with a total of 77 physical offices covering nearly 400,000 members representing 6,000 enterprise clients.

1Life has received at least $402.5 million from investors including The Carlyle Group, Benchmark Capital, Oak Investment Partners, Thomas H. Lee, M.D., DAG Ventures, GV (GOOGA), J.P. Morgan, and Maverick Fund.

Customer Acquisition

The company acquires customer directly via its website, through direct sales efforts to employers, and through offering its services via health network organizations.

ONEM generates revenue from multiple sources, including consumers, employers, health networks and insurers, both on a subscription basis and on a per-visit basis.

Sales and marketing expenses as a percentage of total revenue have risen to 14.5% as revenues have increased, as the figures below indicate:

 

Sales & Marketing

Expenses vs. Revenue

Period

Percentage

Nine Mos. Ended Sept. 30, 2019

14.5%

2018

12.1%

2017

10.8%

Source: Company registration statement

The sales & marketing efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of sales & marketing spend, grew to 1.5x in the most recent reporting period, as shown in the table below:

Sales & Marketing

Efficiency Rate

Period

Multiple

Nine Mos. Ended Sept. 30, 2019

1.5

2018

1.4

Source: Company registration statement

The firm said that for the twelve months ended September 30, 2019, it had a 97% retention rate for its enterprise clients and an 89% retention rate from its consumer members.

Market & Competition

According to a 2017 report by Grand View Research, the market for retail healthcare clinics is expected to grow sharply through 2025, as the graphic shows below:

Growth is projected to be at a CAGR (Compound Annual Growth Rate) of 20% through 2025.

The main drivers for this expected growth are easy access to care, and lower costs compared to existing options. However, the perception that these services are of lower quality may contain growth at a lower level it otherwise would be.

Major competitive vendors include:

  • Walgreens Boots (WBA)
  • CVS (CVS)
  • Walmart (WMT)
  • Bellin Health
  • Rediclinic
  • Kroger (KR)
  • Aurora Health Care
  • Kaiser Permanente

Management says its most direct competition is from primary care providers who are affiliated with or employed by health networks. Other retail clinics are competitive, although management believes they serve fewer stakeholders. The firm expects new competitors to enter the space over time, creating increased competition and marketplace noise.

Financial Performance

1Life’s recent financial results can be summarized as follows:

  • Growing topline revenue, at an accelerating rate

  • Increasing gross profit & gross margin, also accelerating

  • Growing operating losses

  • High and increasing cash used in operations

Below are relevant financial metrics derived from the firm’s registration statement:

As of September 30, 2019, 1Life had $170.3 million in cash and $180.3 million in total liabilities.

Free cash flow during the twelve months ended September 30, 2019, was a negative ($72.4 million).

IPO Details

1Life intends to raise $100 million in gross proceeds from an IPO of its common stock, although the final amount may differ.

Management says it will use the net proceeds from the IPO as follows:

…we currently intend to use the net proceeds to us from this offering for general corporate purposes, including working capital, research and development, business development, sales and marketing activities and capital expenditures. We may use a portion of the net proceeds from this offering to make scheduled principal and accrued interest payments due under the LSA. As of September 30, 2019, the outstanding principal amount under the LSA was $4.4 million. […] We may also use a portion of the net proceeds for acquisitions or strategic investments in complementary businesses, services, products or technologies. However, we do not have agreements or commitments to enter into any such acquisitions or investments at this time.

 

Management’s presentation of the company roadshow is not available.

Listed bookrunners of the IPO are J.P. Morgan, Morgan Stanley, Allen & Company, Citigroup, Piper Jaffray, Wells Fargo Securities, William Blair, Baird, and SunTrust Robinson Humphrey..

Commentary

1Life is seeking expansion capital to continue its growth initiatives.

The firm’s financials indicate its revenue and gross profit growth is accelerating, but operating losses are also growing as is cash burn in operations, so the firm is spending a lot of money for that growth acceleration.

Sales and marketing expenses as a percentage of total revenue have grown but not inordinately; its sales & marketing efficiency rate rose to a respectable 1.5x in the most recent nine-month period.

The market opportunity for alternative care modalities in the U.S. is large and expected to grow at a high rate (20%) through 2025 as consumers and businesses seek more streamlined care options for common health needs.

However, competition exists within the space with many options for consumers through retail providers such as Walgreens and CVS and other health networks, which may attenuate ONEM’s growth trajectory at some point.

ONEM has produced strong and accelerating growth, but it has come at an increasing cost, with no discernible path to profitability yet.

I’ll provide an update when we learn more about the firm’s IPO assumptions.

Expected IPO Pricing Date: To be announced.

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craig
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Posted by: @craig

IPO 1Life Healthcare (ONEM)

has filed a prospectus for a $100M IPO.

The San Francisco, CA-based company has developed a membership-based primary care platform that provides around-the-clock access to digital health services paired with in-office care in convenient locations. It currently has 397K members and 77 physical offices across nine U.S. markets.

Congratulations on successful IPO 1Life Healthcare (ONEM) deal

Profitability + 57.64%, + $ 8.07 earnings per share, current share price $ 22.07

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