Shares of Livongo Health (NASDAQ:LVGO), a digital health company, jumped 49.8% in May, according to data from S&P Global Market Intelligence. A glowing first-quarter earnings report provided investors all the encouragement they needed last month.
In the first quarter of 2019, before its initial public offering, Livongo lost an adjusted $0.49 per share. The stock soared last month because instead of another expected loss, the company actually earned an adjusted $0.03 per share during the first three months of 2020.
Remote patient monitoring is quickly becoming standard care for treating chronic conditions, and Livongo is leading the charge. The number of enrolled Livongo for Diabetes members at the end of March rose 100% year over year.
Investors were also encouraged to see the company hasn't been cutting prices to gain all those new members. Revenue rose 115% compared to the previous-year period.
Livongo expects revenue to rise from $68 million in the first quarter to between $73 million and $75 million in the second quarter.
For 2020, Livongo raised its outlook to account for faster-than-expected adoption of its remote monitoring services, largely as a result of the COVID-19 outbreaks and social distancing efforts to contain them. Now the company expects revenue to grow between 70% and 78% in 2020 to a range between $290 million and $303 million.
There are around 147 million Americans living with a chronic condition, and two-fifths have more than one. The company's most popular service, Livongo for Diabetes, had around 328,000 members at the end of March, so there's still a lot of room to grow.