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Livongo, a digital health specialist that raised more than $350 million in an initial public offering last year, continues to blow investors away. The Mountain View, CA-based company said its 4Q19 revenue was $50.2 million a significant increase over its 4Q18 revenue of $21.2 million.
Despite beating Wall Street expectations, Livongo has yet to make a profit. The company lost about $6 million for the quarter and about $55 million for 2019. However, that will come, said Lee Shapiro, Livongo’s CFO.
"I also feel confident reaffirming our commitment to profitability in 2021 on an adjusted EBITDA basis,” Shapiro said, according to a transcript of the call from Seeking Alpha. “Simply stated, this business continues to perform ahead of my expectations.”
Revenue guidance for 2020 is expected to be between $280 million to $290 million and this represents growth of 65% to 71% over 2019.
Livongo was founded in 2008 and is a data-based health coaching program that enables people with diabetes to share blood glucose records with Certified Diabetes Educators. It has hit all of the right notes.
The firm not only promotes patient empowerment, but it combines two of the hot topics in healthcare that often score well with investors - diabetes management and artificial intelligence. In addition to operating in these two areas, Livongo has secured key agreements with Blue Cross Blue Shield of Kansas City and their Federal Employee program, as well as by the New Jersey State and School Employees' Health Plan and scored key partnerships with some of the major continuous glucose management (CGM) manufacturers.
According to a Seeking Alpha transcript of the call, Livongo’s President, Jennifer Schneider, said “We recently announced our partnership with leading CGM maker Dexcom where we will, at the request of our members, stream data from their Dexcom G6 to our data engine to better inform Livongo's full 24x7 member support. This is just the first step in what we see as an expanding relationship with more data, better insight through our AI+AI engine and strong support.”
“Our progress on all these fronts gives us confidence in our 2020 plan,” Livongo’s CEO Zane Burke said according to a Seeking Alpha transcript. “Moreover with more than 147 million Americans living with a chronic condition and 40% living with more than one, we have plenty of room to grow our addressable market.”