In its second earnings call as a public company, Livongo was able to report strong financial and operational numbers and raise its revenue guidance for the year from $7 million to $9.5 million. CEO Zane Burke also shared that the company's diversification beyond diabetes is making progress: more than 20% of the company's estimated value from new partnerships is from non-diabetes business.
This quarter, the company raised $46.7 million in revenue, a 148% year-over-year jump from Q3 2018. However, despite overperformance, the company still isn't operating in the green. It posted a loss of $3.9 million in the quarter.
Livongo also boasted 207,815 enrolled Livongo for Diabetes Members, up about 118% from this time last year and 771 clients, up 121%. Finally, in the third quarter they signed 255 agreements estimated at $85.5 million in value.
ON THE RECORD
"As we look forward, we’re focused on delivering a seamless whole person platform for members," Livongo President Dr. Jennifer Schneider said on the call. "This is important given the comorbidity rates across conditions and the fact that data from any one chronic condition can help inform how you address another. In addition to diabetes, we now offer solutions for hypertension, pre-diabetes, weight management and behavioral health."
The company highlighted a number of contract wins on the call. This quarter the company expanded its relationship with CVS to include more conditions, signed a new undisclosed integrated delivery network onto its behavioral health program, and expanded its agreement with Blue Cross Blue Shield of Kansas City to include its fully-insured book of business.
"Getting into the fully insured book of business is a major validation, since it requires intensive testing and due diligence of our solutions by the client," Burke said. "We see this as a first in a number of wins with the Blues plans across the country."
The company also signed a major deal with the Federal Employee Health Benefits Platform and another with VSP Vision Care, which brings in 60,000 new covered members.
Moving forward, Livongo hopes to see sustained growth from its whole person strategy as well as from new partnerships that expand the features available to members, like the company's recent agreement with Doctor on Demand and MDLive. Additionally, Schneider said on the call that the company expects to roll out the first phase of its MyStrength behavioral health integration in time to roll out it out to clients at the beginning of 2020.
"In summary, we are very excited about the progress we are making and the opportunity ahead," Burke said. "We are seeing significant traction across our business throughout the healthcare ecosystem, including fully insured and government. We believe this sets us up very well for 2020 and beyond."