Livongo Health (NASDAQ:LVGO) reported its first-quarter numbers Wednesday, and the company continues to amaze. Revenue growth more than doubled yet again, up 115% to $68.8 million from $32 million a year ago.
Even bigger news is the company is now profitable. Analysts were expecting a loss of $0.04 a share, but the company delivered profits of $0.03 a share and adjusted earnings of $3.9 million. Not even COVID-19 can slow this company down.
Livongo provides a virtual assistant for people who have chronic conditions like diabetes or hypertension. After the COVID-19 crash sent Livongo's stock into negative territory for the year in March, the stock shot higher in April when the market realized that our national quarantine would have very little effect on this digital healthcare provider. The share price has now more than doubled year to date.
Indeed, CEO Zane Burke believes the pandemic is advancing the growth of virtual healthcare. "There is no question in our mind that this pandemic has accelerated a more extensive virtual care delivery model. Remote monitoring is here to stay, and we expect it to become the standard of care for the most vulnerable and expensive populations."
Livongo Health's digital "nudges" help people improve their own healthcare, and keep chronic conditions from deteriorating into something worse. Burke also believes that "broad population surveillance will become critical going forward as an early warning and monitoring system for the healthcare system at large."
While individual privacy is extremely important in healthcare, Burke's comment suggests that Livongo Health's overall database of patient information is highly valuable to big players like hospitals, insurance companies, and Medicare. The stock was trading up 14.5% at 3 p.m. EDT Thursday.