What happened

Shares of Livongo Health (NASDAQ:LVGO) were up 11.8% as of noon EDT on Thursday. The big jump came after the company announced its first-quarter results following the market close on Wednesday.

Livongo's quarterly revenue rose 115% year over year to $68.8 million, well above analysts' average estimate of $65.8 million. The company also reported adjusted earnings of $3.9 million, or $0.03 per share. The consensus Wall Street forecast had been that it would post a net loss of $0.04 per share.

So what

Beating Wall Street expectations is usually a sure-fire catalyst for a share price boost, and it was this time for Livongo Health. But there are even more reasons to be upbeat about this healthcare stock.

The COVID-19 pandemic appears to be creating a significant opportunity for Livongo. CEO Zane Burke said that the pandemic "has accelerated the need for new virtual care delivery models" like those that his company provides. Livongo's technology platform enables individuals to more effectively manage chronic conditions such as diabetes and hypertension, and includes remote monitoring and real-time personal coaching. With many people now hesitant to visit doctors' offices, Livongo's approach is more attractive than ever.

The company's numbers support Burke's optimistic view. Its diabetes membership more than doubled year over year in the first quarter to over 328,000. Its client base in Q1 jumped 44% from the previous quarter to 1,252. Burke also announced that Livongo is partnering with the Government Employees Health Association to provide its platform for diabetes and hypertension to federal employees, retirees, and their dependents.

Now what

Livongo Health's financial fortunes should keep on getting better. The company expects second-quarter revenue of between $73 million and $75 million. It also raised its full-year revenue guidance to a range of $290 million to $303 million; previously it had forecast revenue of $280 million to $290 million.