What led to Livongo Health Inc (NASDAQ: LVGO) stock pressure

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Livongo Health Inc (NASDAQ: LVGO) stock lost over 3.8% on March 3rd, 2020 (as of 10:36 am GMT-5; Source: Google finance) after the company posted lower than expected results for the fourth quarter of FY 19. The company expects full-year 2020 revenue to be in the range of $280 million to $290 million, ahead of the preliminary guidance of approximately $276.0 million.  The Adjusted EBITDA is projected to be in the range of ($22.0) million to ($20.0) million.

The company posted the growth of Livongo for Diabetes members by 96% for the year, adding 109,000 members and ending the year 2019 with 222,700 members. The company had a record Q4 EVA of $76.7 million and ended the year 2019 with 804 clients. The company has experienced a record number of client launches so far in the first quarter with 424 already launched, compared to 231 launches in all of Q1 last year. The company has ended the year 2019 with more than 48,000 members for the other offerings in hypertension and pre-diabetes weight management. Specifically in Livongo for Hypertension, the company has increased the number of potential recruitable members on the platform by 370%, evidence that indicates that the whole person strategy is working. Finally, the company has expanded the strategic agreements with key channel partners to drive continued sales velocity across multiple conditions. Both CVS and Express Scripts now include the solutions for hypertension and pre-diabetes weight management, in addition to diabetes, positioning the company to better to serve their health plan and self-insured employer clients.

LVGO in the fourth quarter of FY 19 has reported the adjusted earnings per share of 2 cents, while adjusted revenue growth of 137 percent to $50.4 million in the fourth quarter of FY 19. This strong performance was mainly on the back of the growth in the core Livongo for Diabetes solution and with meaningful contributions to revenues from the hypertension, weight management and behavioral health offerings. Gross margin in the fourth quarter was 79.2% on a non-GAAP basis

For the first quarter ending in April, Livongo Health expects revenue to be in the range of $60 million to $62 million and adjusted EBITDA in the range of ($5.5) million to ($4.5) million.

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