Close

Livongo Health (LVGO) Tops Q4 EPS by 7c, Revenues Beat; Offers Q1 & FY20 Revenue Guidance Above Consensus

March 2, 2020 4:18 PM EST

Livongo Health (NASDAQ: LVGO) reported Q4 EPS of $0.02, $0.07 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $50.2 million versus the consensus estimate of $49.27 million.

Fourth Quarter 2019 Highlights:

ASC 606:

  • Revenue: Total revenue for the quarter was $50.4 million, up 137% year-over-year.
  • Gross Margin: GAAP gross margin of 78.3% and non-GAAP gross margin of 79.2%, which reflects continued scaling in the delivery of our offerings and includes an adjustment related to capitalization of device costs for certain solutions.
  • Net Loss: GAAP net loss of $6.0 million, and net loss per share attributable to common stockholders of ($0.06) on a diluted basis, which includes an adjustment related to capitalization of a portion of sales commissions; and non-GAAP net income of $2.3 million, and non-GAAP net income per share attributable to common stockholders of $0.02 on a diluted basis.
  • Adjusted EBITDA: $1.6 million in the fourth quarter of 2019 compared to ($10.2) million in the fourth quarter of 2018.
  • Livongo for Diabetes Members: 222,700 Members as of December 31, 2019, up 96% year-over-year.
  • Livongo Clients: 804 Clients as of December 31, 2019, up 95% year-over-year.
  • Estimated Value of Agreements (EVA): $76.7 million, up from $56.1 million in the fourth quarter of 2018. It consists of the estimated value of agreements signed in the quarter with new Clients or expansions entered into with existing Clients.

ASC 605:

  • Revenue: Total revenue for the quarter was $50.2 million, exceeding our guidance range of $49.0 million to $49.5 million, and up 137% year-over-year. This was driven by the continued adoption of our Applied Health Signals platform.
  • Gross Margin: GAAP gross margin of 78.2% and non-GAAP gross margin of 79.2%.
  • Net Loss: GAAP net loss of $6.0 million, and net loss per share attributable to common stockholders of ($0.06) on a diluted basis; and non-GAAP net income of $2.3 million, and non-GAAP net income per share attributable to common stockholders of $0.02 on a diluted basis.
  • Adjusted EBITDA: $1.6 million in the fourth quarter of 2019 compared to ($10.2) million in the fourth quarter of 2018, and exceeding our guidance range of ($5.5) million to ($5.0) million.

“Livongo finished the year with excellent momentum, exceeding all of our guidance metrics, achieving record signings in the fourth quarter, and expanding our reach to over 30% of Fortune 500 companies,” said Zane Burke, Chief Executive Officer of Livongo. “We enter the year well positioned to continue driving rapid growth with our extension into the fully insured health plan market and our expanded strategic partnerships with CVS Health and Express Scripts, positioning us to better serve their health plan and self-insured employer Clients.”

“While only recently introduced, we’ve seen strong interest in our whole person solution, which supports multiple chronic conditions in one seamless Member experience, all personalized by our AI+AI data engine,” said Livongo President Dr. Jennifer Schneider, M.D., M.S. “In addition to integrating new products, such as behavioral health, we’re adding partners across the healthcare ecosystem to drive greater data insights. Our recently announced agreement with Dexcom is an example of how we will now integrate continuous blood glucose readings into our platform to deliver more targeted and personalized Member insights along with our 24/7 support.”

GUIDANCE:

Livongo Health sees Q1 2020 revenue of $60-62 million, versus the consensus of $57.78 million.

Livongo Health sees FY2020 revenue of $280-290 million, versus the consensus of $277.82 million.

  • For the year 2020, the company expects revenue to grow between 65% and 71% to the range of $280.0 million to $290.0 million, ahead of our preliminary guidance of approximately $276.0 million. Adjusted EBITDA is expected to be in the range of ($22.0) million to ($20.0) million.
  • For the first quarter of 2020, the company expects revenue in the range of $60.0 million to $62.0 million, and adjusted EBITDA in the range of ($5.5) million to ($4.5) million.

“2019 was a banner year for Livongo, with a noteworthy expansion of Members using our Livongo for Diabetes solution, meaningful contribution from our newer solutions, and sustained margin improvement,” said Lee Shapiro, Livongo Chief Financial Officer. “As we turn to 2020, we are focused on driving rapid growth in our solutions to address the needs of Clients and Members, while we continue to grow our investments to address this massive market opportunity.”

The revenue and adjusted EBITDA outlook provided above is based on revenue and results recognized under the new accounting guidance under ASC 606, Revenue from Contracts with Customers (“ASC 606”). Please refer to the tables attached to this press release for a reconciliation of ASC 605, Revenue Recognition (“ASC 605”), to ASC 606 for our 2019 financial result.

For earnings history and earnings-related data on Livongo Health (LVGO) click here.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Corporate News, Earnings, Guidance, Hot Guidance, Management Comments

Related Entities

Earnings