Revenues in 1H 2019 - 1H 2020
Invest in IPO Eargo
Eargo is an American hearing aid manufacturer. The company was founded in 2013 in San Francisco. The company also offers online hearing screenings and virtual support, so customers don’t need to have an in-person visit. It offers rechargeable hearing aids that can be controlled with a smartphone.
Its innovative product and go-to-market approach address the major challenges of traditional hearing aid adoption, including social stigma, accessibility, and cost. Consumers can purchase online or over the phone and get personalized and convenient consultation and support from licensed hearing professionals via phone, text, email, or video chat. The Eargo solution is offered to consumers at approximately half the cost of competing hearing aids purchased through traditional channels.
Hearing loss is a natural consequence of aging and has a significant impact on quality of life. Globally, hearing loss is one of the most prevalent health conditions, and it is the third most common medical condition in the United States — more prevalent than both diabetes and cancer.
Eargo estimates that in 2019, 37 million individuals over the age of 50 in the United States had mild to moderate hearing loss. Of these 37 million, its initial marketing efforts are focused on individuals with annual incomes above the median household national average. The company estimates that this group consisted of approximately 14 million people and represented an initial target market of over $30 billion in 2019.
Eargo is an early-stage company with a history of net losses. They expect to incur operating losses in the future and may not be able to achieve or sustain profitability.
The company operates in a highly competitive industry, and competitive pressures could have a material adverse effect on its business.
Eargo is deploying a new business model in an effort to disrupt a relatively mature industry. In order to successfully challenge incumbent business models and become profitable, it will need to continue to refine product and strategy.
Eargo (EAR) intends to raise as much as $105 million in an IPO of its common stock at about $570 mln valuation, at a price range of $14 to $16. The company has raised a total of $207 mln in venture funding over three rounds.
It booked $48 million in revenue for the last 12 months ended June 30, 2020. The company is growing rapidly with revenue growth of 98% YoY. Eargo can be compared to other public fast-growing medical equipment manufacturers, which recently went public — Outset Medical (OM, is trading at 34x sales), Inari Medical (NARI, is trading at 40x sales) and Livongo Health (LVGO, is trading at 54x sales). Eargo is going public at 12x sales, which in our opinion represents a meaningful discount to market valuations. The expected return on investment is high — more than 40%.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.