Shares of Livongo Health (LVGO), which provides a cloud-based platform to help improve the lives of individuals with chronic conditions, jumped higher on Tuesday. The stock was up about 17% as of 10:05 a.m. EDT.
The growth stock's gain follows the company's announcement of its preliminary second-quarter revenue, which was far ahead of average analyst estimates.
Livongo said it now expects its second-quarter revenue to be between $86 million and $87 million, crushing analysts' consensus forecast for revenue of about $75 million. Management was previously guiding for revenue between $73 million and $75 million.
Highlighting how fast Livongo is growing, this revenue is up from $40.9 million in the year-ago period. Growing demand for remote care during the COVID-19 pandemic and for the company's whole-person approach to care is helping drive sharp revenue growth, management explained in a press release about the preliminary results. Member enrollment and retention have also been higher than expected, Livongo said.
Management did notably say $2 million to $3 million of its revenue during the period was non-recurring in nature. But even when excluding these items, revenue was much higher than expected.
Investors will look for more strong growth from Livongo throughout 2020. Before this preliminary revenue was released, analysts were expecting full-year revenue to increase 77% year over year. Following this outperformance, however, analysts will likely lift their outlook for Livongo's total 2020 revenue.