LVGO raised their Q1 guidance this morning.
From the PR-
Q1 revenue in the range of $65.5M to $66.5M, versus prior guidance of $60M to $62M
Bnh
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Out of interest, does anyone know why companies sometimes pre-announce like this ? Is there a legal requirement if they are going to be significantly over guidance ?
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The upper end of their revenue guide has revenue growing 107% YOY.
If it holds, that’s 9 quarters in a row of >100% revenue growth.
Their revenue growth (%) looks like this:
2018: 152 127 115 109
2019: 157 156 148 137
2020: 107(est)
Along with the updated revenue guidance, Livongo announced they added 620 customers on top of the 804 they had at the end of Q4 2019. That’s a 110% increase of customers from Q1 of last year and nearly double (85%) the number of customers they had the prior quarter. Q1 is by far their biggest quarter for signups so don’t expect this quarter over quarter growth to continue, but this is fantastic.
Their customer growth (%) looks like this:
2018: 89
2019: 144 126 121 95
2020: 110
Gross margins have been improving to 74% that last two quarters (excluding one time events).
Non-GAAP operating profit/loss showed improvement through 2019 and swung to a profit in Q4: Q1 (9,855)…Q2 (8,858)…Q3 (4,773)…Q4 574
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…and along with the incredible growth numbers they’ve posted, investors seem to be taking note as the stock is up over 80% in the last month from their lows below $20 to over $35 today!
Also, they have recently gotten some press as a beneficiary of the coronavirus pandemic since the groups they monitor (those with diabeties, high blood pressure, hypertension, etc) find themselves vulnerable and at risk during this time and who benefit from the health tracking and nudges that LVGO can provide.
LVGO president Dr Jennifer Schneider gave an interview on Yahoo Finance 4 days ago discussing these benefits for those at risk patients and how LVGO can help them (a short, 5 minute video, worth the listen if you’re interested in the company).
https://finance.yahoo.com/video/livongo-health-remotely-moni…
This was a medium sized position for me but has grown to #6 in my portfolio of 18 stocks with it’s recent rise. I’m definitely getting more confident with this one as more members of this community add it to their portfolios and help in tracking it’s progress. I plan to continue to add to it as opportunities present themselves. Current P/S is around 18, but they’ve had triple digit rev growth for two years, with last quarter at 138% and the recently increased guidance for Q1 still in the triple digits.
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