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In response to the company reporting third-quarter earnings, shares of Livongo Health (LVGO +0.00%), a provider of real-time health coaching for chronic diseases, rose 15% as of 3:02 p.m. EST on Thursday.
Livongo's third-quarter numbers looked great:
Image source: Getty Images.
Management also shared upbeat guidance with investors:
Given the expectation-topping results and guidance, it isn't hard to figure out why shareholders are having a good day.
There's a lot going right at Livongo Health today. Revenue is growing rapidly, gross margin is strong, the net loss is shrinking, and the opportunity ahead of the business is huge.
There's no doubt that the stock is pricey -- shares trade for more than 18 times trailing sales -- but the triple-digit growth more than justifies the premium. I think this is a growth stock that's easy to root for, and investors should get to know it.