Company Updates 2024 Revenue Guidance to $720-$750 Million, Introduces 2024 Adjusted EBITDA Guidance1 of $80-$85 Million
Management to Host Conference Call and Webcast Today at 5:00 PM Eastern Time
NEW YORK–(BUSINESS WIRE)–DocGo Inc. (Nasdaq: DCGO) (“DocGo” or the “Company”), a leading provider of technology-enabled mobile health services in 30 states and the UK, today announced financial and operating results for the quarter and year ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights
Total revenues for the fourth quarter of 2023 were $199.2 million, compared to $108.8 million in the fourth quarter of 2022, an increase of 83%.
Gross margin for the fourth quarter of 2023 was 33.5%, compared to 39.0% in the fourth quarter of 2022. While gross margins improved sequentially, they were lower on a year-over-year basis, reflecting ongoing start-up costs related to the rapid growth on projects in the second half of 2023.
Net income was $8.0 million for the fourth quarter of 2023, compared to net income of $7.1 million in the fourth quarter of 2022, an increase of 13%.
Adjusted EBITDA2 was $22.6 million for the fourth quarter of 2023 compared to $6.8 million for the fourth quarter of 2022, an increase of 232%.
Mobile Health Services revenues in the fourth quarter of 2023 were $150.4 million, compared to $71.8 million for the fourth quarter of 2022, an increase of 110%.
Transportation Services revenues in the fourth quarter of 2023 were $48.8 million compared to $37.0 million for the fourth quarter of 2022, an increase of 32%.
Full-Year 2023 Highlights
Full-year 2023 revenues increased to $624.2 million, compared to $440.5 million for the full-year 2022, an increase of 42%.
Gross margin for 2023 was 31.3%, compared to 35.1% in 2022, reflecting significant project start-up costs, particularly in the first and third quarters of the year.
Full-year net income for 2023 was $10.0 million, compared to net income of $30.7 million for the full-year 2022, a decrease of 67%. The decline in net income in 2023 was due to the increase in non-cash, stock-based compensation and the recording of an income tax provision in 2023, compared to an income tax benefit in 2022.
Full-year 2023 adjusted EBITDA2 was $54.0 million compared to $41.3 million for full-year 2022, an increase of 31%.
Mobile Health Services revenues were approximately $442.8 million in 2023, compared to $325.9 million in 2022, an increase of 36%.
Transportation Services revenues were approximately $181.5 million in 2023, compared to $114.6 million in 2022, an increase of 58%.
Cash Collections
As of December 31, 2023, the Company held total cash and cash equivalents, including restricted cash, of $72.2 million, compared to $67.3 million as of September 30, 2023 and $164.1 million as of December 31, 2022.
Subsequent to year end, the Company has bolstered its balance sheet by receiving approximately $120 million in payments from January 1, 2024 to present.
Subsequent to the end of the fourth quarter, the Company’s line of credit was paid down in full.
2024 Guidance
Full-year 2024 revenues are expected to be $720-750 million.
Full-year 2024 adjusted EBITDA1 is expected to be $80-85 million.
Full-year 2024 cash flow from operations is expected to be $65-$75 million.
Select Corporate Highlights for the Fourth Quarter 2023 and Recent Weeks
Launched care gap closure services in Michigan with one of the nation’s largest insurance companies during the fourth quarter.
Doubled the number of patients seen under our care gap closure programs in the fourth quarter of 2023, compared to the third quarter of 2023.
Received positive results from the initial phase of our innovative Transitional Care Management program with LA Care, with statistically significant data showing that our program reduced 30-day hospital readmissions compared to the control group. With these results, the Company is now planning an expansion of this program.
Signed first payer partnership with one of the nation’s largest insurance companies that includes the option to share risk in a value-based care arrangement.
Expanded vaccination and public health initiatives in Arizona through a new contract with the Department of Health in Santa Cruz County, Arizona.
Entered a new agreement with a large cardiology practice in Chicago to provide CIED (Cardiac Implantable Electronic Device) monitoring, RPM (Remote Patient Monitoring) and VCM (Virtual Care Management).
Announced share repurchase program for up to $36 million, which the Company intends to commence promptly following the opening of its trading window in early March, subject to prevailing market conditions and other considerations.
Lee Bienstock, Chief Executive Officer of DocGo, commented, “I am extremely proud of our operational execution during the fourth quarter across all three of our key market verticals. Our payer relationships continue to expand with commercial rollouts in Michigan, Connecticut and New Jersey in late 2023. Our work with major hospital systems has continued to grow as well, and we operate government population health programs in Arizona, California, Michigan, New York, and Tennessee.” Bienstock concluded, “While our business continues to deliver for underserved populations like the homeless and asylum seekers, our impact and reach extends far beyond that, providing medical transportation for hundreds of hospitals, deploying vaccination programs in multiple states, monitoring tens of thousands of cardiac patients, closing care gaps for bed bound chronically ill and so much more. In summary, our goal remains the same, to continue bringing healthcare to people where and when they need it and to help keep them out of the hospital, and we are seeing great success with this effort.”
Norm Rosenberg, Chief Financial Officer and Treasurer of DocGo, also commented, “Within our 2024 guidance, we have assumed some moderation in migrant-related revenues as the year progresses. At the same time, we expect to see the significant startup costs associated with recent migrant-related program launches continue to abate. We are seeing a variety of forces come together to drive increased profitability, and we expect that trend to continue over the coming quarters. Our agency labor and overtime utilization rates have begun to moderate after a surge to support the strong revenue growth we experienced in the second half of 2023. There is typically a slight lag as these leading indicators transition to improved profitability, and we observed that play out late in 2023 and early in 2024.”
1.
Adjusted EBITDA is a non-GAAP financial measure. We have not reconciled adjusted EBITDA outlook to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measure (net income). Forward-looking estimates of adjusted EBITDA are made in a manner consistent with the relevant definitions and assumptions noted herein.
2.
Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” below for additional information on this non-GAAP financial measure and a reconciliation to the most comparable GAAP measure.
Conference call and webcast details:
1-877-407-0784 – Investors Dial
1-201-689-8560 – Int’l Investors Dial
Conference ID – 13743132
To access the Call me™ feature, which avoids the need to wait for an operator, click here.
The webcast can be accessed under Events on the Investors section of the Company’s website, https://ir.docgo.com/.
About DocGo
DocGo is leading the proactive healthcare revolution with an innovative care delivery platform that includes mobile health services, remote patient monitoring and ambulance services. DocGo disrupts the traditional four-wall healthcare system by providing high quality, highly affordable care to patients where and when they need it. DocGo’s proprietary technology and dedicated field staff of certified health professionals elevate the quality of patient care and drive business efficiencies for facilities, hospital networks and health insurance providers. With Mobile Health, DocGo empowers the full promise and potential of telehealth by facilitating healthcare treatment, in tandem with a remote physician, in the comfort of a patient’s home or workplace. Together with DocGo’s integrated Ambulnz medical transport services, DocGo is bridging the gap between physical and virtual care. For more information, please visit docgo.com.
Forward-Looking Statements
This earnings release includes 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, regarding, among other things, the plans, strategies, outcomes, and prospects, both business and financial, of the Company. These statements are based on the beliefs and assumptions of the Company’s management. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, the Company cannot assure you that it will achieve or realize these plans, intentions, outcomes, results or expectations. Accordingly, you should not place undue reliance on such statements. All statements other than statements of historical fact are forward-looking, including, but not limited, to statements regarding the Company’s future actions, business strategies or models, plans, goals, future events, future revenues, future margins, current and future revenue guidance, future growth or performance, financing needs, business trends, results of operations, objectives and intentions with respect to future operations, services and products, and new and existing contracts or partnerships. In some cases, these statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “might,” “will,” “should,” “could,” “can,” “would,” “design,” “potential,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or the negative of these terms or similar expressions.
Forward-looking statements are inherently subject to substantial risks, uncertainties and assumptions, many of which are beyond the Company’s control, and which may cause the Company’s actual results or outcomes, or the timing of results or outcomes, to differ materially from those contained in the Company’s forward-looking statements, including, but not limited to the following: the Company’s ability to successfully implement its business strategy; the Company’s reliance on and ability to maintain its contractual relationships with its healthcare provider partners and clients; the Company’s ability to compete effectively in a highly competitive industry; the Company’s ability to maintain existing contracts; the Company’s reliance on government contracts; the Company’s ability to effectively manage its growth; the Company’s financial performance and future prospects; the Company’s ability to deliver on its business strategies or models, plans and goals; the Company’s ability to expand geographically; the Company’s ability to deliver on its margin normalization initiative; the Company’s ability to maintain and roll out its backlog; the Company’s M&A activity; the Company’s ability to retain its workforce and management personnel and successfully manage leadership transitions; the Company’s ability to collect on customer receivables; the Company’s ability to maintain its cash position; risks associated with the Company’s share repurchase program; expected impacts of macroeconomic factors, including inflationary pressures, general economic slowdown or a recession, rising interest rates, foreign exchange rate volatility, changes in monetary pressure, financial institution instability or the prospect of a shutdown of the U.S. federal government; potential changes in federal, state or local government policies regarding immigration and asylum seekers; expected impacts of geopolitical instability; the Company’s competitive position and opportunities, including its ability to realize the benefits from its operating model; the Company’s ability to improve gross margins; the Company’s ability to implement cost-containment measures; legislative and regulatory actions; the impact of legal proceedings and compliance risk; volatility of the Company’s stock price; the impact on the Company’s business and reputation in the event of information technology system failures, network disruptions, cybersecurity incidents or losses or unauthorized access to, or release of, confidential information; and the ability of the Company to comply with laws and regulations regarding data privacy and protection and other risk factors included in the Company’s filings with the Securities and Exchange Commission.
Moreover, the Company operates in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this earnings release. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results or outcomes could differ materially from those described in the forward-looking statements.
The forward-looking statements made in this earnings release are based on events or circumstances as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this earnings release to reflect events or circumstances after the date of this earnings release or to reflect new information or the occurrence of unanticipated events, except as and to the extent required by law. The Company’s forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
—tables to follow—
DocGo Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
December 31,
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
59,286,147
$
157,335,323
Accounts receivable, net of allowance of $6,276,454 and $7,818,702 as of December 31, 2023 and December 31, 2022, respectively
262,083,462
102,995,397
Assets held for sale
–
4,480,344
Prepaid expenses and other current assets
17,499,953
6,269,841
Total current assets
338,869,562
271,080,905
Property and equipment, net
16,835,484
21,258,175
Intangibles, net
37,682,928
22,969,246
Goodwill
47,539,929
38,900,413
Restricted cash
12,931,839
6,773,751
Operating lease right-of-use assets
9,580,535
9,074,277
Finance lease right-of-use assets
12,003,919
9,039,663
Equity method investments
553,573
597,977
Deferred tax assets
11,888,539
9,957,967
Other assets
2,565,649
3,625,254
Total assets
$
490,451,957
$
393,277,628
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
19,827,258
$
21,582,866
Accrued liabilities
91,340,609
31,573,031
Line of credit
25,000,000
–
Notes payable, current
28,131
664,913
Due to seller
7,823,009
26,244,133
Contingent consideration
19,792,982
10,555,540
Operating lease liability, current
2,773,020
2,325,024
Liabilities held for sale
–
4,480,344
Finance lease liability, current
3,534,073
2,732,639
Total current liabilities
170,119,082
100,158,490
Notes payable, non-current
41,586
1,236,601
Operating lease liability, non-current
7,223,941
7,040,982
Finance lease liability, non-current
7,896,392
5,914,164
Total liabilities
185,281,001
114,350,237
Commitments and contingencies
Stockholders’ equity:
Common stock ($0.0001 par value; 500,000,000 shares authorized as of December 31, 2023 and December 31, 2022; 104,055,168 and 102,411,162 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively)
10,406
10,241
Additional paid-in-capital
320,693,866
301,451,435
Accumulated deficit
(21,394,310
)
(28,972,216
)
Accumulated other comprehensive income
1,484,905
741,206
Total stockholders’ equity attributable to DocGo Inc. and Subsidiaries
300,794,867
273,230,666
Noncontrolling interests
4,376,089
5,696,725
Total stockholders’ equity
305,170,956
278,927,391
Total liabilities and stockholders’ equity
$
490,451,957
$
393,277,628
DocGo Inc. and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
Year Ended
December 31,
2023
2022
2021
Revenues, net
$
624,288,642
$
440,515,746
$
318,718,580
Expenses:
Cost of revenues (exclusive of depreciation and amortization, which is shown separately below)
428,906,225
285,794,520
$
208,971,062
Operating expenses:
General and administrative
137,152,512
103,403,416
74,892,828
Depreciation and amortization
16,431,892
10,565,578
7,511,579
Legal and regulatory
13,082,569
8,780,590
3,907,660
Technology and development
10,858,724
5,384,853
3,320,183
Sales, advertising and marketing
2,801,740
4,755,161
4,757,970
Total expenses
609,233,662
418,684,118
303,361,282
Income from operations
15,054,980
21,831,628
15,357,298
Other income:
Interest income (expense), net
1,684,399
762,685
(763,030
)
Gain on remeasurement of warrant liabilities
–
1,127,388
5,199,496
Change in fair value of contingent liability
1,437,525
–
—
(Loss) gain on equity method investments
(343,336
)
8,919
(66,818
)
(Loss) gain on remeasurement of operating and finance leases
(866
)
1,388,273
—
Gain on bargain purchase
–
1,593,612
—
Gain from PPP loan forgiveness
–
–
142,667
Loss on disposal of fixed assets
(852,544
)
(21,173
)
(34,342
)
Goodwill impairment
–
(2,921,958
)
—
Other expense
(686,865
)
(987,482
)
(40,086
)
Total other income
1,238,313
950,264
4,437,887
Net income before (provision for) benefit from income tax
16,293,293
22,781,892
19,795,185
(Provision for) benefit from income taxes
(6,244,965
)
7,961,321
(615,697
)
Net income
10,048,328
30,743,213
19,179,488
Net income (loss) attributable to noncontrolling interests
3,189,873
(3,841,285
)
(4,564,270
)
Net income attributable to stockholders of DocGo Inc. and Subsidiaries
6,858,455
34,584,498
23,743,758
Other comprehensive income
Foreign currency translation adjustment
743,699
773,707
16,038
Total comprehensive income
$
7,602,154
$
35,358,205
$
23,759,796
Net income per share attributable to DocGo Inc. and Subsidiaries – Basic
$
0.07
$
0.34
$
0.30
Weighted-average shares outstanding – Basic
103,511,299
101,228,369
80,293,959
Net income per share attributable to DocGo Inc. and Subsidiaries – Diluted
$
0.06
$
0.34
$
0.25
Weighted-average shares outstanding – Diluted
105,617,817
102,975,831
94,863,613
DocGo Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended
December 31,
2023
2022
2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
10,048,328
$
30,743,213
$
19,179,488
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation of property and equipment
4,829,780
4,114,346
2,312,437
Amortization of intangible assets
5,249,358
3,214,814
1,845,193
Amortization of finance lease right-of-use assets
6,352,754
3,236,418
2,913,925
Loss on disposal of assets
852,544
21,173
34,342
Deferred income tax
(1,981,519
)
(9,957,967
)
–
Gain from PPP loan forgiveness
–
–
(142,667
)
Loss (gain) on equity method investments
343,336
(8,919
)
66,818
Bad debt expense
3,601,520
3,815,187
4,467,956
Stock-based compensation
20,969,174
8,054,571
1,376,353
Loss on remeasurement of operating and finance leases
866
(1,388,273
)
–
Loss on liquidation of business
70,284
–
–
Gain on remeasurement of warrant liabilities
–
(1,127,388
)
(5,199,496
)
Gain on bargain purchase
–
(1,593,612
)
–
Goodwill impairment
–
2,921,958
–
Change in fair value of contingent consideration
(1,437,525
)
–
–
Changes in operating assets and liabilities:
Accounts receivable
(160,524,934
)
(8,415,793
)
(57,996,613
)
Asset held for sale
–
190,312
–
Prepaid expenses and other current assets
(10,843,890
)
(4,181,035
)
(961,165
)
Other assets
1,059,605
1,557,655
(2,490,564
)
Accounts payable
(1,780,403
)
3,637,305
11,879,850
Accrued liabilities
58,968,844
(5,964,064
)
20,766,723
Net cash (used in) provided by operating activities
(64,221,878
)
28,869,901
(1,947,420
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment
$
(7,584,561
)
(3,198,234
)
(4,808,409
)
Acquisition of intangibles
(2,541,661
)
(2,299,558
)
(1,849,136
)
Acquisition of businesses
(20,203,464
)
(32,953,179
)
(1,300,000
)
Equity method investments
(298,932
)
–
(655,876
)
Proceeds from disposal of property and equipment
747,088
3,000
74,740
Acquisition of leased assets
–
–
(50,504
)
Net cash used in investing activities
(29,881,530
)
(38,447,971
)
(8,589,185
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit line
$
25,000,000
–
8,000,000
Repayments of revolving credit line
–
(25,881
)
(8,000,000
)
Repayments of notes payable
(25,926
)
(925,151
)
(604,826
)
Due to seller
(13,590,382
)
(2,535,521
)
(595,528
)
Earnout payments on contingent liabilities
(5,266,681
)
–
–
Noncontrolling interest contributions
–
2,063,000
333,025
Proceeds from exercise of stock options
1,581,183
1,980,585
628,592
Acquisition of UK Ltd remaining 20% shares
–
–
(479,331
)
Payments for taxes related to shares withheld for employee taxes
(2,308,954
)
–
–
Common stock repurchased
–
(3,731,712
)
–
Equity costs
–
(19,570
)
–
Payments on obligations under finance lease
(4,270,553
)
(2,985,568
)
(2,216,309
)
Issuance costs related to merger recapitalization
–
–
(19,961,460
)
Proceeds from issuance of Class A common stock, net of transaction cost
–
–
178,102,313
Net cash provided (used) in financing activities
1,118,687
(6,179,818
)
155,206,476
Effect of exchange rate changes on cash and cash equivalents
$
1,093,633
761,232
(21,414
)
Net (decrease) increase in cash and restricted cash
(91,891,088
)
(14,996,656
)
144,648,457
Cash and restricted cash at beginning of period
164,109,074
179,105,730
34,457,273
Cash and restricted cash at end of period
$
72,217,986
$
164,109,074
$
179,105,730
Year Ended
December 31,
2023
2022
2021
Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest
$
250,100
$
197,005
$
315,272
Cash paid for interest on finance lease liabilities
$
600,239
$
559,596
$
525,476
Cash paid for income taxes
$
4,251,658
$
1,505,235
$
615,697
Right-of-use assets obtained in exchange for lease liabilities
$
7,621,538
$
5,035,201
$
5,271,662
Fixed assets acquired in exchange for notes payable
$
–
$
923,377
$
1,113,102
Gain from PPP loan forgiveness
$
–
$
–
$
142,667
Due to seller non-cash
$
–
$
–
$
434,494
Acquisition of remaining FMC NA through due to seller and issuance of stock
$
7,000,000
$
–
$
–
Acquisition of CRMS through issuance of stock
$
1,000,000
$
–
$
–
Receivable exchanged for trade credits
$
1,500,000
$
–
$
–
Accruals of stock based compensation
$
565,892
$
–
$
–
Reconciliation of cash and restricted cash
Cash
$
59,286,147
$
157,335,323
$
175,537,221
Restricted cash
12,931,839
6,773,751
3,568,509
Total cash and restricted cash shown in statement of cash flows
$
72,217,986
$
164,109,074
$
179,105,730
Contacts
DocGo Investors:
Mike Cole
DocGo
949-444-1341
[email protected]
[email protected]
Steve Halper
LifeSci Advisors
646-876-6455
[email protected]
[email protected]
DocGo Media:
Michael Padovano
5W Public Relations
[email protected]
[email protected]