Livongo Health (NASDAQ:LVGO) is coming off an incredible month of July where its stock rose around 70%. Its year-to-date returns are now more than 400%, making it one of the hottest stocks on the markets this year, which is saying a lot given that the S&P 500 is up around 1%.
The digital health company will discuss its second-quarter results on August 6 but investors are already expecting big things from Livongo. On July 7, the company released preliminary results for the quarter. In Q2, it expects revenue to come in between $86 million to $87 million. That’s a significant jump from the guidance it issued earlier in the year that projected the quarterly revenue to come in no higher than $75 million.
At $87 million, that would be more than double the $40.9 million that Livongo generated during the same period last year. And in the first quarter, it also generated revenue growth of 115% from the prior-year period. Livongo’s rapid growth has generated lots of bullishness surrounding the company, which aims to help people with chronic conditions, including those with diabetes.
The one knock on the company right now is that it continues to incur losses. However, the good news is that it’s at least making some progress in the right direction. In Q1, it recorded a net loss of $5.6 million – down from $14.4 million in Q1 of last year.
There’s lots of potential left for Livongo and the stock could continue to deliver strong returns for investors who buy shares of the company today.
