Why Has Livongo's Stock Rallied Over Recent Months?

Livongo Health (LVGO) is a health services company that sells devices that help in managing chronic ailments like diabetes and hypertension in patients through their ability to store and analyse patient data.The company went public in July 2019. The company’s stock has rallied nearly 30% in the last 45 days on account of better than expected Q3 results. The company surpassed consensus estimates on non-GAAP EPS basis, with EPS coming in at -$0.05 while the estimate was -$0.13. Revenues too outperformed by $4 Mil clocking in $46.7 Mil (148% growth year on year), instead of an expected $42.6 Mil.

Notably, the company’s stock had tanked more than 40% in September after investors expressed concerns over the fact that its strong Q2 revenue growth was not reflected in its bottom line. Since then, the Federal Employees Health Benefits Program’s decision to offer Livongo a contract for the program’s 5.3 million members in early November and the strong Q3 results have helped Livongo’s stock swell more than 60% in less since early October.

We step back from these recent swings to review Livongo Health’s performance over the last few years, as a context for what might come next. Our interactive dashboard – Exploring Reasons For The 27% Jump in Livongo Health’s (LVGO) Stock Since Early November, reviews the near term reasons and the big picture.


The context for the last few years:

A closer look At Livongo Health’s Total Revenues over the last few years and the outlook

Total Revenues for Livongo Health jumped from $30.9 Mil in 2017 to $68.4 Mil in 2018; an increase of 122% (on account of sale of more devices). We expect Total Revenues to grow by 147% to $168.9 Mil in 2019.


A closer look At Livongo Health’s Total Expenses over the last few years and the outlook

Total Expense for Livongo Health substantially increased from $47.7 Mil in 2017 to $101.8 Mil in 2018; an increase of 113%. We expect Total Expense to grow by 104% to $207.2 Mil in 2019.


How does Livongo Health’s Revenue Growth compare with rivals?

For more information on how Livongo Health’s revenue growth compares with Health Catalyst, InMode and Progyny, view our interactive dashboard analysis.


How has  Livongo Health’s  LBT trended?

LBT for Livongo Health nearly doubled from $16.9 Mil in 2017 to $33.4 Mil in 2018. We expect LBT to be $38.3 Mil in 2019.


How has Livongo Health’s Net Income and EPS trended?

For more details about Livongo Health’s Net Income and EPS, view our interactive dashboard analysis.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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