The Noom digital platform, founded in 2008, invites its clients to change their behavioral habits to achieve their wellness goals. Although the first challenge the developers focused on was weight loss, the platform is currently helping to treat anxiety, hypertension, and even diabetes. Within the framework of the application, the client can be offered coaching based on psychological motivation, as well as recommendations on nutrition and physical activity. Noom is one of the most downloaded health apps in the world for both Android and iOS. The app is the first virtual healthcare provider to be certified by the CDC, including a diabetes prevention program. Noom relies on a three-factor model that intertwines psychology, technology, and coaching throughout the entire user experience. Noom's mission is to ensure that Noomers, that is, Noom customers around the world, can look after their health.
Noom works like this. After the user has downloaded the application and answered a series of questions, the platform's patented algorithm creates a unique therapeutic plan for the client and appoints a supervising specialist. The dietary plan uses a unique system based on a traffic light analogy. Red light means stop, yellow light warns, and green light allows action. All foods are divided into red, yellow and green categories based on their calorie content. The visual system provides immediate feedback to help users make more informed meal decisions. Noom has won high nominations in the Best Employer category by various publishers for many years, for example, in 2019, the company entered the Top 100 Jobs by Glassdoor and was ranked 54th in the Fortune Best Jobs. In 2020, Noom's CEO was named Entrepreneur of the Year by Ernst & Young. In 2021, Noom was named one of CNET's Best Weight Loss Programs.
Noom has a customer base of 45 million users. In 2017, the company's revenue amounted to $ 12 million. In 2018, Noom managed to increase the figure 5 times to $ 61 million.At the end of 2019, the company's revenue increased to $ 237 million, and already in 2020 the figure reached $ 400 million. In May 2021, Noom officially achieved unicorn status, completing $ 540 million in fundraising in Round F. The company was valued at $ 3.7 billion. The company's top investors include names such as Serena Ventures, Silver Lake and Sequoia Capital. Starting in 2020, Noom has been exploring opportunities to enter the IPO market. Noom has yet to file an S-1 form, but the company is known to have hired specialists from Goldman Sachs to oversee and advise on the initial listing process. It is likely that Noom could conduct an IPO in early 2022 with an estimated valuation of $ 6-10 billion.
Among the main risks, we see high competition in the sector, and there are applications that are more cost-effective, but they do not have a scientific and medical consulting base. An important factor in supporting Noom's business is that during the pandemic, many people gained weight due to inactivity as they were at home. The CDC estimates that over 40% of American adults are obese. In the United States alone, the obesity treatment market is valued at $ 75 billion and is growing at a rate of 4% annually. Noom has attracted the attention of many investors due to its rapid growth and its ability to generate bottom line. The presence of health consultants sets the company apart from the competition. The company can use the funds raised during the IPO for scaling its business, marketing activities and geographic expansion.