What happened

Shares of Babylon Holdings (BBLN) had skyrocketed by 15.2% as of 11:38 a.m. ET Thursday. The big gain came after the digital healthcare company announced its first-quarter results before the market open.

Babylon's Q1 revenue of $266 million was more than 3.5 times higher than its top-line result in the prior-year period. It also blew past the analysts' consensus estimate of $234.6 million. The company posted a loss of $95.1 million, or $0.24 per share. But the analysts' average estimate had been for a loss of $0.26 per share.

So what

It's not surprising that Babylon's shares soared considering its Q1 outperformance. However, the even better news in the update was management's improved outlook for 2022. 

Babylon increased its full-year revenue guidance to $1 billion or greater. It had previously forecast that its 2022 revenue would land in the $900 million to $1 billion range. The company also now expects an adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) loss of no greater than $295 million. 

A laptop, a stethoscope, and lighted images in the foreground.

Image source: Getty Images.

Now what

Around 83% of Babylon's value-based care membership is made up of Medicaid recipients. Look for the company to diversify its membership base in the future. 

However, it remains to be seen if the stock will be able to maintain this upward momentum. Even after Thursday morning's gain, Babylon's shares are down more than 75% year to date.