Shares of Livongo Health (NASDAQ:LVGO), a digital healthcare company, soared 40.2% in April, according to data from S&P Global Market Intelligence. The company hasn't reported official first quarter earnings yet, but preliminary figures released last month encouraged the market to drive the stock higher.
Despite state lockdowns to prevent more COVID-19 outbreaks, Livongo will beat its own forward estimate with topline revenue in a range between $65.5 million and $66.5 million. Previously, the company guided first quarter revenue to a range between $60 million and $62 million.
Unlike a lot of stocks that fell hard in March, Livongo shares stayed relatively buoyant during the coronavirus-fueled market crash. The company's remote monitoring services for people with diabetes, hypertension, and weight management appear more popular than ever.
An estimated 78% of COVID-19 patients that reach intensive care units have at least one chronic condition. Livongo's services weren't designed to facilitate pandemic-inspired isolation, but they are helping physicians safely manage chronic health conditions during this one.
During the first quarter, Livongo launched services for 620 new clients, which was a mighty big accomplishment for a company that had just 820 clients at the end of 2019. Some of that growth can be attributed to a partnership with DexCom (NASDAQ:DXCM) that began in January. The partners are working together to allow Livongo Diabetes members a way to sync data from DexCom's popular G6 continuous glucose monitors.
In addition to signing new clients, individual patients with multiple chronic conditions are making use of multiple services, which could inspire Livongo to raise expectations for the rest of 2020. Management will hold a conference call with analysts to discuss official first quarter numbers on Wednesday, May 6, 2020 after the closing bell.