Livongo Reports Second Quarter Financial Results
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Livongo Reports Second Quarter Financial Results • Second quarter Total Revenue of $40.9 million, up 156% year-over-year • 192,934 enrolled Livongo for Diabetes Members, up 140% year-over-year with 38,170 new Livongo for Diabetes Members in Q2
Download a full copy of the Livongo Q2 Earnings Report here.
Mountain View, CA - September 5, 2019 - Livongo Health, Inc. (NASDAQ: LVGO), a leading Applied Health Signals company empowering people with chronic conditions to live better and healthier lives, today announced financial results for its second quarter ended June 30, 2019. “Our impressive second quarter results reflect the growing appeal of our Applied Health Signals platform,” said Zane Burke, Chief Executive Officer of Livongo. “Livongo delivers a novel, consumer-first experience that our Members don’t just like, but love. This leads to clinical outcomes for our Members at scale, lower costs for our Clients, and a compelling return on investment.”
Second Quarter Fiscal 2019 Financial Highlights:
- Revenue: Total revenue for the quarter was $40.9 million, up 156% year-over-year, driven by the continued adoption of our Applied Health Signals platform.
- Gross Margin: GAAP gross margin of 68.5% and non-GAAP gross margin of 69.4%.
- Net Loss: GAAP net loss of $14.2 million, and net loss per share attributable to common stockholders of ($0.76) on a diluted basis; and non-GAAP net loss of $8.7 million, and non-GAAP net loss per share attributable to common stockholders of ($0.46) on a diluted basis.
- Adjusted EBITDA: ($8.1) million in the second quarter of 2019. “Livongo serves the whole person across multiple chronic conditions by uniquely combining technology and data science with a human touch. This empowers our Members to manage their chronic conditions on their own terms” said Livongo President, Dr. Jennifer Schneider, M.D., M.S. “During the quarter Livongo continued to demonstrate the rigor and discipline required to produce academic studies that prove the effectiveness of our clinically-based programs and ability to drive meaningful behavior change in our Members.”
Second Quarter Fiscal 2019 Client and Member Metrics:
- 192,934 enrolled Livongo for Diabetes Members, up approximately 140% year-over-year.
- 720 Clients, up 92% year-over-year organically.
- Total Contract Value of $74.2 million, up from $24.8 million in the second quarter of 2018.
“We are pleased with our second quarter performance,” commented Lee Shapiro, Livongo’s Chief Financial Officer. “Our rapid growth in sales, which includes impressive acceptance of our hypertension offering, along with our Per Participant Per Month subscription model and improving margins gives us strong confidence in our future.”
Third Quarter and Fiscal 2019 Outlook
- For the third quarter, the company expects revenue in the range of $42 million and $43 million, and adjusted EBITDA in the range of ($13) million and ($12) million.
- For 2019, the company expects revenue in the range of $159 million and $162 million, and adjusted EBITDA in the range of ($41) million and ($39) million.
Additional information on Livongo's reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, are included in the financial tables within the full report here.
The forward-looking non-GAAP financial measure contained in the section titled "Third Quarter and Fiscal 2019 Outlook" excludes (i) depreciation and amortization, (ii) amortization of intangible assets, (iii) stock-based compensation expense, (iv) acquisition-related expenses, (v) change in fair value of contingent consideration, (vi) other income, net, and (vii) provision for (benefit from) income taxes. We have not reconciled adjusted EBITDA guidance to GAAP net income (loss) because we do not provide guidance on GAAP net income (loss) or the reconciling items between adjusted EBITDA and GAAP net income (loss) as a result of the uncertainty regarding, and the potential variability of, certain of these items. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.
Quarterly Conference Call The second quarter 2019 earnings conference call and webcast will be held Thursday, September 5, 2019 at 8:00 a.m. Eastern time. Livongo management will host the call, followed by a question and answer session. The conference call can be accessed by webcast or by dialing 866-951-8133 for North American participants, or 270-215-9499 for international participants, referencing “Livongo 2019 Second Quarter Earnings Conference Call”. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call at https://www2.livongo.com/investor-relations/, and will remain available for approximately 90 days.
About Livongo Livongo offers a whole person platform that empowers people with chronic conditions to live better and healthier lives, beginning with diabetes and now including hypertension, weight management, pre-diabetes, and behavioral health. Livongo pioneered the new category of Applied Health Signals to silence noisy healthcare. Our team of data scientists aggregate and interpret substantial amounts of health data and information to create actionable, personalized and timely health signals. The Livongo approach has demonstrated that it can deliver better clinical and financial outcomes while creating a different and better experience for people with chronic conditions. For more information, visit: www.livongo.com or engage with Livongo on LinkedIn or Twitter.
Non-GAAP Financial Measures Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "About Non-GAAP Financial Measures."
*Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Livongo’s future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “going to,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern Livongo’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Livongo’s ability to grow and expand its platform, number of clients and number of members, the success of Livongo’s new partnerships and integrations, the adoption of Livongo’s solutions, and Livongo’s future financial and operating performance, including its outlook and guidance for the full year 2019. Livongo’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding Livongo’s ability to retain clients and sell additional solutions to new and existing clients, Livongo’s ability to attract and enroll new members, the growth and success of Livongo’s partners and reseller relationships, Livongo’s ability to estimate the size of its target market, uncertainty in the healthcare regulatory environment, and Livongo’s future financial performance, including trends in revenue, costs of revenue, gross profit or gross margin, operating expenses, paying clients, and free cash flow. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Livongo’s filings with the Securities and Exchange Commission, including Livongo’s prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on July 25, 2019 and in Livongo’s Quarterly Report on Form 10-Q that will be filed following this earnings release. The forward-looking statements in this release are based on information available to Livongo as of the date hereof, and Livongo disclaims any obligation to update any forward-looking statements, except as required by law.
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