As more patients turn to digital tools during the Covid-19 pandemic, remote patient monitoring companies are getting a boost. Mountain View, Calif., Based Livongo, which provides solutions for the management of diabetes, hypertension and other chronic diseases, has raised its forecast for the end of 2020.
The company expects to generate between $ 290 million and $ 303 million in revenue for 2020, an increase from its previous forecast of $ 280 million to $ 290 million.
CEO Zane Burke said regulatory changes regarding reimbursement for telehealth, along with an increase in the number of patients using these tools, mean “the genius is out of the bottle in terms of remote patient monitoring.”
“It will be part of the future health system as it progresses,” he said on a call for results on Wednesday.
In the quarter ending March 31, Livongo had 328,000 registered members, double the previous year. The company also more than doubled its revenue, which rose from $ 32 million last year to $ 68.8 million. Livongo recorded a net loss of $ 5.6 million in the first quarter.
Livongo has also attracted some big customers this year.
In early April, Livongo entered into a contract with Kaiser Permanente to give its members access to Livongo’s behavioral health solution. The company also recently signed one of its largest contracts to date with the Government Employee Health Association (GEHA), adding around 2 million members.
Lee’s Summit, Missouri, GEHA offers health plans for federal employees. The company offers Livongo’s diabetes, hypertension and diabetes prevention solutions.
Similar to the GEHA contract, companies are starting to buy more Livongo solutions, CFO Lee Shapiro said. About 20% of Livongo’s customers have purchased multiple solutions from the company.
âWhat’s interesting is that we’re starting to see customers signing contracts for multiple solutions,â he said. âAnd we see it in many of our new contract signings. We also re-integrated our existing customer base and sold through more solutions.
In total, Livongo had 1,252 customers at the end of March.
One challenge Livongo will face, like any business selling to health plans, is that many companies have laid off or laid off some of their staff in recent months. With more than 33 million people applying for jobs in the United States since the start of the pandemic, Livongo said he had forecast possible cuts in his forecast for 2020.
So far, the company has not yet been much affected, as most employers who have put workers on leave continue to cover their benefits. Other companies that have laid off workers have always structured ongoing benefit payments to cover them for a period of time, Shapiro said.
Livongo’s stock was valued at $ 52.56 when market opened on Thursday, up 12% from the market close on Wednesday.
Photo credit: Livongo