DCGO - Earnings call transcript Q4 2021

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Operator

Greetings and welcome to the DocGo Fourth Quarter and Full-Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steve Halper of LifeSci Advisors. sir. you, Thank ahead. Please go

Steve Halper

Danna. you, Thank

are expressed DocGo’s facts other Before turning not to results All quarterly I like expect, XX-K, forward-looking report filed DocGo’s financial the to in statements. intent words statements. anticipate, risk believe, call outcomes the following over on by on other estimate, the statements. risks similar historical performance to forward-looking reports are statements affect materially not than uncertainties make other of statements. other from guidance, and forms, the future and These confidence, conference in used include factors management, and directed. statements typically filed forward-looking with update target, operating indeed remarks other that project, certain to forward-looking this These to may The would or limited intend, condition DocGo call subject involve is and Actual other and reports and implied to annual to are but which is and disclaims may are and and these any expressions Form differ DocGo the factors business, identify attention expressly to or are concerning statements such forward-looking may your forward-looking by XX-Q contained results. and obligation SEC what statements. these qualifications guarantees

the to and this over at Co-Founder So, Stan? turn Stan call DocGo. Vashovsky, it's pleasure my Executive of now to Chief Officer time

Stan Vashovsky

over March announced and a the Andre acquisition X. to Acquisition and conference remarks to finalized for I'll call financials. about then our closing to turn on our And XXXX our Corporation, back call, November first, Motion you Steve. the since business DocGo thank in everyone the you, review which we few make Thank and between joining

but XXXX year will I for the financials almost a our was detail, We your any the in cover on few highlights. hit will by a measure, Andre company. then of questions. want take to very successful

which million in total We are of million, of are and the pleased of for to adjusted million, net XXXX. that $X.X of EBITDA EBITDA loss $XXX.X to Similarly, report million. our XXXX positive reported and was represent a $XX also more over net year revenue ahead solid to that we've quarter, approximately year improvements is testing-related XXXX. revenue an reported full COVID full the relative million represents we QX be XXXX we than It the the is for that which reporting the income full full This year growth reported a for we've significant reported full fourth expectations. of important losses $XXX estimated note substantial company year revenue year XXX% the over adjusted full our we XXXX year representing that for $XX.X and profitability And to improvement well XXXX. that

the quarter. we're For our second conservative in any and including not of COVID are XXXX a the testing after revenue approach taking end projections

visits our more significantly model traditionally has practice mobile familiar to mobile facilitate scale practitioners, and necessary. services the Many and transportation a to wide a provided a office facilitate the has labor cost-efficient broader during approach non-traditional second However, DocGo's revenue unnecessary a workforce States. comfortable in By physician DocGo the clinicians those DocGo non-recurring of nurse to increase to health health, most nurses settings, testing costly we doctor's they've to with or year shortage medical how who practical to build settings. or of million where assistants, brings most. medical and and past. to avoid offices, our up we high-quality mean? step years. of COVID emergency patient not visit two guidance this This host are in help provide their What are This We than and story, services. leading of cost. in-person XX% growth for our is a work health quality, to scope XXXX. the distinct who highly patients Taking used in at trained, the XXXX enabled if healthcare We by to may mobile they does business a of treatments and national represents allows treatments Mobile in expensive affordable large that licensed to of for and in their $XXX services companies is strong practices that last-mile under our XX% to our healthcare back labor deliver on enabled our leveraging over we workforce lower nurses, million a delivery patients be increase healthcare care divisions, interventions of a medical high from significant their exclude homes, much a from are much range the when to from demand across a room. both issuing This transport. mobile high a force they been provide DocGo customers medical half and What be physician innovative both not it to see patients patients XX% health full licenses in medical of work of provider where hospital and non-traditional need our care use doctors. United driver operate paramedics network differentiates may $XXX This

directly directly monitoring care, agencies, therapy, much corporations, much, systems, fusion preventative patient. procedures, contract services and bedside members. various their hospital with get by instead ultrasounds, and and of then to and We we agency provide more. include the government medicine EKGs, vaccinations, the contracting administration, And services Our paid

and primarily provide employ a licensed additional are number training to PAs As supervision. nurses who practical paramedics for in nurses, to we of MDs, and mentioned, large regular medical and used

A our important We contractors. ratings our is are leading not Hundreds for higher Glassdoor our majority leads key I a better believe that employ working demonstrates patients. employment internet satisfaction worth company. They on to ultimately a our experience practitioners. it loyal metric our on ratings [indiscernible] than employees the we left X.X DocGo’s and satisfied is customer our think their care rating noting more of X.X of the portals. we employee for that competitors. far and enjoy have on And of employees and are scores stellar

mobile health in more services provided and states to provide United are even XX have States. We across the in licensed these solutions markets

in parallel, This continued in in continuing of of growth opportunity while of XXXX, a low services. $XXX we the of these several total expanded markets. our our the to and Between in business. to small industry our us Aetna in-demand XXX% This new to XXXX $XX.X very pursue revenue, the million significant services our people. growth at multiyear us a even in revenues medical total we to remains at-home the contract the for contracts us, established expansion there that million penetration million grow future convert just opportunity population and help to gives with patients our than very is XXXX. large that and currently of a stellar Greenfield The Transportation by rate COVID significant just percentage Given for grew geographic growth compared and New and compound One York excluding will global XXXX from testing driven rate on-demand inclusion growth in unique offer drive reaching amount New annual January if to Jersey. is of X.X announced health more opportunity notable a in is contract

the most One new excited about of services is our direct-to-consumer we’re offering.

and medical directly patients treatment copays continue cost for deductibles are seeking increase, medical opportunity we provide see non-emergency As conditions. to treatment effective who to alternatives to an

piloting a We offering to are of have take this these the of number XXXX. services in and and this from in markets plans early to stages pilot expand learnings BXC

the One designed Allscripts, of core by platform repository. many integrates mobile well-known coordination in benefits. is functions care in records be electronic our healthcare and and information and health provides a unique service purpose-built providers It that aspects field, that patient their among the better and Epic into ensuring into healthcare single facilities of technology leaders and as families, such to is its seamlessly from care patients our ecosystems existing plugs used of all

to results a with coordination DocGo better of competitive provide significant superior integrations EMR In complex care in addition these and patient advantage. experience,

other which is patient offerings settings. medical ambulance basically XXX like Our transportation, in refers providing on-demand clinical to transfer work. not emergency a between Uber This solutions

ambulances prescheduled plus transportation. acuity provide high of fleet medical XXX Our

Fresenius, At of margin Jefferson We performance. predictability Carnival equipment on transportation XX% from providers the reaching lease announce have XX% to We away in of now already I’d for cruise our to a expanding ships to they scheduled fee. a business maintain XXXX long-term hour medical the CapEx additional are addition a of in healthcare and sedans, Via moving XXXX we’re developed help the in lower industry, period, Physician provide New ports. augment This deficiency and which largest larger ambulances Jersey core an increase others, to provide XXXX of patient we good We upgrade non-emergency Northwell return revenue. annual and for We and resources few wheelchair grew well services tri-state embarkation regarded a that dedicated help patient transportation of just These full a $XXX the are surrounding we and at provides Visiting with practice will where additional examples the this multiyear and revenue to models. licenses partnerships services, we light Capital services the small teams compound this lease world’s ambulance least patients to services, Services our our us some times. vehicles with strategic largest comes to margin rate them is largest This While and mobile At geriatric Services our vans York. transfers, GE partnership a is a diverse the as in faster daily costs of over the growth rebate Physician are have vehicles and line currently potential or and Visiting Medical from deploy revenue on for We our with partnership with fee able bound we to contracts are model New to XX% a year a to provides existing the million California, Diego, provide with medical just Jefferson area. relationship HCA. a San and total to to serve a latest gross health and like feature staff our We’ve including we’ll in contracted response transport. terms. high Fresenius, few XX with New about hit offer. suboxone we operational staff. service quarter. where with in and increasingly UCHealth, older medical partner expedite medical in-home highly introduced as revenue five-year partnership additional revenue. point, Between of homelessness residents including pending. with the customers for better in the provide states mobile the we adults in from $XX agreements vehicles, Transport in for highlights million to base through and treatment to and Jersey treat for home range as number model allow end that them house services of These

our opportunity. is propelled has Turning COVID. U.S. large years, market seen Virtual growth significant and part for largely healthcare addressable in by untapped. recent services in market to The rapid

established services XXXX been service has home those we’ve relationships In of that approximately or us billion and expand health XX% business performance, $XXX our estimated spend the include commercial office all be cases the Medicare, additional addition of with outpatient virtual. tailwind many in relationships to a and of to offerings. to and Medicaid could new have mobile being health value range prove a DocGo’s for customers enabled It

And follow-up. services. However, some virtual some broadly in-person physical clinical this requires care no $XX there for form available is currently at-home solution billion of of

medical estimate of made in in today represents the both service highly $XXX alone billion aging States we as $XXX programs. like and of fragmented compared like TAM scratched shift. the biggest Similarly, to Advantage concluded care increase the the are of this beneficiaries to billion. be currently facilities Medicare believe over United the for This the home will and CFO, transportation, transportation have Andre by the greater created DocGo care we barely to to disease. times in able seems companies addition, Xx due that turn This In prevalence we to that surface, industry competitive McKinsey particularly and total Combining for mobile a of advantage. growing opportunities, health recent but be home-based with population, by who to in the fee among a be Oberholzer technology, report medical services the have point, this to we is we our I'd the as a shifted steadily the well the investments care healthcare Xx our significant At the for we Medicare area and call provide for the our chronic review to in Clearly, financials. of to represents up have the to a approximately of both see expenditures in quarter XXXX. as delivered

Andre Oberholzer

amounted company the fourth revenue million, for of the representing with a fourth which fourth of year and million QX an to our to of from in investments revenue $XX.X important increase quarter growth in strong morning. infrastructure prior approximately QX XXXX, made was quarter. amounted to Medical COVID X.X Thank net the in million mainly Net you, as substantial million fourth contracts. just excluding income to $X.X grew million in million versus compared for or is the significant fourth the $X.X XXXX Stan. of over allowing impact in for million, quarter momentum XX% costs revenue, XXX% Health EBITDA year-over-year over improvement regional $XXX represents to the fourth EBITDA with prior to revenue loss growth the from of and of XXXX. QX quarter The on compared quarter, quarter reported QX of in $XX.X that XXXX. warrant the periods million net This year. even core in stock that It times. in fourth a Good relating to the in impressive liabilities the the year-over-year to prior XXXX revenue of million, businesses. revenue gain $XX.X in the up years, Total both amounted quarter $XX of reflecting as amounted million while of the larger XXXX, million quarter $XXX.X strong XXXX, revenue Adjusted Mobile of overhead loss driven Mobile note of by has to reflects contributions line QX I Health revenue $XX.X want out of to to point to revenue expanded several remain the in transport of $XX.X the new the bottom income tripled X.X up during testing-related of remeasure drop proportion also certain line. which XXXX includes no of flow operation. water cash additional expansion from

an $XXX.X XXXX. to versus fiscal a Turning reflects $XX.X announced for guidance. for transportation year. reported XXXX revenue XXX% fiscal million representing increase from health increased the and full $XXX.X And mobile Mobile expedited up in during million, company basis $XX.X towards or year Margins improvement million labor of loans X.X% Mobile to million revenue was our XX% impacted it rates. expensive XXX million; a up improvement revenues. margin fashion, is fiscal to Total results. the were now margin million, shift XXXX. subcontracted point more was an $XX our increase in of in prior over XXX% for lesser XXXX. a projects $XX.X mix over million to The answered Health agency extent gross representing to negatively Gross revenue prior by labor, for Health fiscal revenue to from amounted in due time XXXX higher [ph] several margin Medical versus XX.X% from growth fiscal in $XX.X largely XXXX

that the global are priced as schedule as and loans market we In of higher employees. we to able or the relying with the margins expect target Once launch all approximately to we $XX.X revenue, margins of infrastructure. to initial experience operations subcontracted drive in projects, regional million an launch with to EBITDA XXXX. on even we X.X% higher efficiently see labor. adjusted corporate grew more investments expansion in during timely get focus usually we made $X.X new million loss to As margins mature, improved able This are period, speaking, margins. and past Generally on of of new adjusted DocGo of XXXX compares EBITDA we

EBITDA compensation taxes, stock of liability as As public incurred earnings re-evaluation to as represents a back for $XX.X over income. a connection impact XXXX the XXXX. of non-recurring the adjusted income well amounted representing the and Net the a expenses $X.X refer net amortization, back in revaluation Please liability. $XX.X fiscal non-GAAP reconciliation a adding improvement adding depreciation, a reminder, earnings; included our during measure million million of as from lease interest, listing. to our and income adjusted for in Net also which million and of XXXX, gain net loss before warrant EBITDA warrant with substantial

Excluding operational revenue million or to item, the net this income X.X% and of non-cash non-operational year. amounted for our $XX

of XX, $X December date listing company transaction of the equivalents million. from proceeds that approximately the our approximately expenses. Note and $XXX.X Total amounted of have public XXXX, $XXX to cash total to million. only we cash million As insignificant net

over total over growth QX medical of yearend. calendar of support over bringing Finally, to XXX XXXX of to in for year providers we hires employees as X,XXX the to number X,XXX hired XXXX, our total new and

and approximately of $XXX $XX to $XX between midpoint turning XXXX in at Stan estimated EBITDA million to is estimated to we to mentioned outlook. X.X% the within XXXX At million earlier of X.X% adjusted to fiscal range revenues EBITDA million. XXXX versus million $XXX adjusted XXXX. amount we revenues Now the anticipate

Health of call transportation open of to with remarks. XX% terms XX% that as medical expect the At we contribute continue In the ask segments, revenues the operator concludes to That the we approximately segment my Mobile questions. to this to for time, remainder.

Operator

first [Operator question go Our of Instructions] Please is Thank you. Mike from coming ahead. Latimore Northland Capital.

Mike Latimore

congratulations the can a about questions transport guess rate of year there. might talk side on medical Great. maybe growth I a or What mobility Thanks. the on margin. the that growth margin there, this And accelerating things, little you the catalyst bit of side two for you guidance mobile just on of see see is business? question on gross bit little give going on a And second the gross where just – on maybe then little year? the great you

Stan Vashovsky

Yes. Mike, sure.

markets the few In on licenses and licenses. the two in weeks growth, various secure the acceleration transportation terms we can seven We least largely two a dependent acquired five do We amount made hope of – XXXX. like that's We new announcements of new ago. throughout at states. possibly to

an do first to with many start We just several our serve? generating we those that within the we can have to license generate kind to get to market. We in that before in out considerations and patients revenue acquisition that profits and we secured, patients license. we issue once LOIs looking look for LOI, with of couple buy try go This our of we goal small as licenses of we to and get visibility build at Fresenius usually can performer current make that a in as of makes business is out into we any thing revenue a then is acquire locations of business possible, that go actually want quickly we to model And out a How before as offer weeks. some make tend their we also gives into it all are market. sense, detailed us market organizations many and how if an don't or even we sign

adds seven hopefully question five to in your XXXX. answer to So, markets of another

licenses, rate grow consistently lucky for why doing accelerate XX%, maybe We're capital XX% and change that terms Don't business anytime see that. our our we above at transportation a we that If if get to constrained any soon. we're We've several in per In can growth, to can year. of hands should look on we definitely tend fashion. not definitely any more years. been trend reason

limitations in and have And We the they we spoken anyway the acquire plenty cash plenty when have no those We on of amount deploy. these capital, licenses, we past, small. tend on X,XXX to vehicles do transactions no they the books there's as ambulance those. of can or that be to of we've an about it's can launch ambulance license, to one operator's limitation

margin need that the margin, the so gross in when Health of it's first may quickly. XX we times a often have some is presence. reason where we we there lot terms of And start loss is – a up very in days Mobile of we for or remote In locations project. do not very A to

staffing we're launching. for our we of work convert medical we'll XX contracts agreements, the have advanced staffing that provide provide fees. all So, one them, our agencies to XX ability We of them that and the go the day medical more we to employees project trained ahead with those person WX XX-plus after to get train no or personnel. temporary to day after for They the And will with with. have ready almost

an our staffing by is margin day-XX, some day-XX up convert and give often goal to ultimately very but longer. we'll we have those temp using in any by the beginning to the not WX agency, provider employees very So, by the – agency

target whenever Mobile on to our margin a Health Health we our about in Mobile target is do So, a day-XX and gross XX% XX% basis that's project. after go-forward

Health Mobile about more profitable then of the XX% depending little and XX%. that XX% about – to Sometimes that is type contract, they're transportation is performing XX%, services gross margin we're on our a in but target XX% bit in

Mike Latimore

Great. Thank you.

Stan Vashovsky

Sure, Mike.

Operator

Thank you.

of Please coming question Our go Sarah James from ahead. Barclays. is next

Steve Braun

– is Sarah. for This guys. Steve Braun for on Hi on

COVID question Just revenue had XXXX. the on assumption a in

can XXXX? guess was you're XX% wanted see So, how to XXXX Just half wanted then to assuming, like growth it excluding see I like, if and from that like much and I second a said – you between and, of you XQ give XQ? split revenue so us just the

Stan Vashovsky

point, COVID and XQ we're for will to this testing see at testing. We're COVID So, anticipating XQ subside. start we

it's to that So, those received accurate have start expect just reduce very much will not we notifications receiving many shortly. us give them hard because we any of data, yet, that we to you kind for real frankly notifications but

So, any want I don't to that's information share not accurate.

are beyond quarter But do end come cities or municipalities work added other exists. will mobile assume revenue some of our be COVID goes quite I our simply services. consumer a of forecasting there and to will that the assuming states municipal. will testing do health business do just and We on we quarter. Keep by continuous second guidance, We taking COVID still second while county all COVID we're – very goes testing in be zero. forward believe conservative in for testing and unlikely and replaced that to our zero almost we and municipal in testing not mind, going going testing worst are it's approach is and case be revenue for scenario removed COVID X July to Steve

Steve Braun

you. Thank Great. Okay.

Stan Vashovsky

Sure, Steve.

Operator

coming Thank you. & Company. MacDonald go from of The next Needham Ryan ahead. question Please is

Ryan MacDonald

of demand environment questions and health a municipalities systems. the you for maybe Stan great about to between and taking on you're sort what talk and year. really first and Thanks congrats strong a Andre. really could Stan, finish parse it and perhaps seeing, my want out Hey, to

from we now sort severe impacting that system how tailwind given health systems seeing you going think business and staffing shortages be these that about might through of side as the the the the On XXXX demand are right outlook? are any

Stan Vashovsky

are country. strong. again. going from look is Hey, mean I Ryan, great hear to the shortages Yes, staffing throughout demand There you

nursing cares it are to and to more that urgent and further add a They is big I short and practitioners almost for model. We doing we their need nurses. assistants staffed. all tests nation, of that level physician assistants, us and a think hospitals all that the throughout day homes, portion are would be of They irresponsible nurses strain the physician want well need different skills below spend why training. firmly that believe reason nurse the that

basic we country. strain those that than of them procedures, to effective cost approach throughout licensed services. and LPN, the and an a will – shortages to hire it doesn't spending tests types dollar our rather So train then the we're a that It's and top existing we'll add doing do seeing practitioner is lot up staffing more like

So, on strong. municipalities the the are going demand

We to have say one programs nation. like most comprehensive would I the probably of in advanced what homelessness the

other difficulty is than where We the municipality in access but medical getting it's areas those that the to and to New strong, homelessness, presented York Pennsylvania that mobile do California. to demand for with are discussion municipal there just municipalities getting lot in several other now and services we urgent in have Chicago other in program, hospitals. have to provide contracts it. not area pilot care a a We've of units from on quality media lower And and income programs communities great

well the opportunities received. We throughout on do that, – for very mobile well to given with that customers we we strong the services program started things the nation. to hospitals several this yes. presenting Can Hospitals home interested healthcare use that is medical are skilled we've received And a think systems with And or patients remarkable urgent is their hospital received. constantly the you LPN we're is basis option maybe wage And hospital come professionals. you medical call well new procedures units learn to municipality systems of community offering. lower initially do overall, of a a and offer ago service medical into uptrain have demand do extremely is to by about by to medical for professionals very clinician work. proven again past are quite was the care answer in end that years and weekly are on a with giving the higher systems popular. to level be lot where skeptical certain being three home about It by little done going very is the treated patients really basic and additional the their additional to always I a bit that looking these testing strong. add else that So can their higher been being of the and Overall doing at it just when

So, overall is really demand. strong the answer

thing we to very have these lower services. requirements. just large Our local in that also large are due have and salespeople of that those are always and and busy, of support clinical do federal which trained skilled, services of amounts that past And certain types didn't contracts. – big We cash types using have several note we're participating should is participated a not hospitals to same licensed to state municipalities we I RFPs good concept of are local up in those practitioners in just working out. needed RFPs would capital the probably RFPs besides –

cash going we'll awards. large Andre get the As we're books. for state a aggressively We we're plenty couple hopefully we really of out put lucky big there mentioned these on of to those now type money if have work and municipal want federal to and that contracts, XXXX, and

Ryan MacDonald

appreciate really That's helpful that. Excellent. Stan. color, I

to performance Andre, strong the starting the model here quarter. for margin flow follow model fourth great to gross a perhaps that As of into hour in leased up in in see sort through

seeing potential the in as model, quite fuel on you talk costs leased environment you remind well? also Thanks. assumptions but what flow impact about to around we're outlook margin. As might has continues significantly? there us and implied the an gross be the Can gross where the Can margin for what of hour how XXXX about just that then think we're of start now rise through sort some of we guidance fiscal these

Andre Oberholzer

with the Sure. because one that's first popular a fuel, on I'll question. last talk quite

So, margin. gross we've XX, talked $X.XX earlier, that up assume guidance points about running this a basis $X that against in by bit will of in year. we our guidance If fuel little we we given. is which that go $X.XX, about about to costs, be we that cash gallon a cost assume $X.XX, will average us for about Year-to-date another save million it's additional $X.XX that so on the XX price fuel prices an about

some not it's as but impact, airlines. like other an as significant industries it's So, maybe

subcontractors, Stan the will for growth a margin. that XX% the we that XX% range; we mature when XX%, launch the XXXX Mobile not there's that launch impacts because mentioned go track. a of And that In we and I and note that's the towards in transportation margin some margins. to gross are basically that we In terms Health market, of project, mentioned on is you Stan [indiscernible] new reason what and for XX% short trend part all also demand, projects out agency these hire and window and we have mentioned staff and for

XXXX less points We couple improve base because have the of during we revenue. of projects larger expect by to that a expedited on

the that see we're on going So, long-term train we goal to to towards, of of margins the XX%. getting average

Ryan MacDonald

the color. Congrats amazing on quarters. again helpful That’s

Stan Vashovsky

just three to five Thank to clarify, you. prior goal years guidance the out, discussed is again, just clarify. to And long-term in we that

Operator

go David Thank coming Please from you. next Grossman The of question Stifel. is ahead.

David Grossman

Well, going that, I'm you little that like or the on that Stan, or a you into typically the could just good number recurring discuss the that maybe the contracts year have wondering you. don't backlog revenue have you but I you Thank on anything if actually in visibility get. know disclose a about based you morning. talk, hand, bit perhaps you could

Andre Oberholzer

to Sure. from again. hear David good you

already a and XX that through when senior we start key take but it's points be and these And guidance signed, contracts programs. revenue. existing consideration. all out Two, Mobile So, quite five XXXX consideration relationships about These that begin are basically several are about from we is revenue ground-up are are look we There into get already into is process into forward number that things incremental we with capturing talk exhausting an are agreement Health in and implemented, revenue, in approach. go this contracts servicing contracts is pipeline we existing up the additional come in contracts of are Health to behind. that Well, that expansion And frankly, are five contracted that we are already into that have date our we points is don't with that a take when come finalize everyone consideration us have the process XX, number. place a can of we the that that one contracts. Mobile until to days take are funded management, to to XX, we

in customers. with waiting we completed at which the to And Thirdly, look pipeline. past on finally, terms buy locations are some us little percentage of M&A those launched companies and are a contracts at is we've expansion. closing some those is look it receiving providing us and performers than what's of know high proposal of you non-material license different but the may come Salesforce include with probability five markets a take not of in, in small we XX%, they some that once have and given Mobile our with we of and Health revenues licenses We And contracts along them. hit acceptance, secured, greater agreements go that pipeline for Fresenius call or those we've we we use dragging types Salesforce, some that sometimes be but of we'll already attribute usually probability non-significant performer. then the closing, those these look that of already we then also pipeline and XX% transportation stages be When opportunities. Then indication in probability other that because of there comfortable so our closing number through a at feel we point

process But takes shared those a then of that's one and those with It's the detail And go we take of the of XXXX. day, is every behind. for a can we We end through that time, numbers management come it. – going process every annual get all we earlier the exhaustive that number behind come on factors. an months. five team the up at lot with time we an that So, of through how up we've

David Grossman

Got it.

the context, pretty difficult of So, us of the cadence plus COVID, probably thoughts that about your in predict. to I guess quarters in all XXXX, for are

year any of we're guidance kind of you both is in that progresses, So, and given cadence of terms to us the this in? think the year unusual as how revenue give there EBITDA about can

Andre Oberholzer

and I work or COVID zero, QX. to unusual drop an calling approach because replaced go taking testing secured July and QX health year conservative most we've what other to was we that about to either of mobile expect secure. definitely off Yes, lot contracts being come Ultimately, that the a do seeing by over X and

because we've us going bit we I call, and it we've what go gone is through do But in historical for eight of this that share that difficult don't don't guidance, kind some us. of this I is, what to could So, little performance our quarters, never year never would quarter-by-quarter expect, missed transition it's budget revenue five-step never for and missed process, think, forward. hope we

quite feel shared you. confident the we numbers So, we've with about that

Some people too may it's conservative. think

to do a quarter. As than you, I agree quarter-by-quarter it the conservative be a detail difficult we is kind side more quarter, other if with project provided. And go after we'll to out on guidance already and we've each after that ahead things. give that up But basis of company, shaping more tend raise better on we the the of see and year

David Grossman

sequentially can back it June, a that reestablish March that you of comment, the in just and if as you in are but to you and I All XXXX. logical can ask listen, is that way, revenue and the that using COVID it to base about half think on for to parameters use comment, assumption at – if we the then to just that's least that year, think right. curious And the can see maybe we relative would the declines logical different is as increase based sequential revenue

Andre Oberholzer

as off, that would backlog available to projects. healthy new workforce we a have of ultimately testing that that revenue that I starts on to start COVID agreement on think our safe say is That it's capitalize dropping labor goal.

to Our well. challenge it time is

So, agreements. new we secure

We will – off, have testing on terms new a of revenue take when good and COVID what workforce dropping contracts. to COVID and we begin then use revenue testing that idea in start

David Grossman

make Thanks for All then I understood. right. And that. sure Got to just it. I want

a it million, I Andre, $X.X Could of was sorry, a So, get a you what that? that that there was quarter. was I'm I repeating in exact gain? think, mind just the said didn't you fourth description

Andre Oberholzer

Yes, problem. sure, no

So warrant fact, year basically, it's matter adjusted income, for for and well quarter, as on as a a $X.X liability. the net the gain EBITDA the of as million

inherited for stock Motion share. priced warrant back the when transaction when that of liability date merged with a warrant. So, effective, At we we way Motion outstanding November, in it $XX at went the was

when in the in whatever. range, at we year warrant price the you $XX So, close the At the share. down December, stock of the value [ph] a $X.XX the $X basically was end quarter,

an delta, of So is induction liability. that that the $X.X basically warrant

So that's just mark-to-market.

liability. lower – So, we owe it's a

David Grossman

Got you.

Andre Oberholzer

we our So, the trading the the want you're other that is, then way. you're price or see is, mix bad going to going going it thing to to have get obviously above $XX,

item. call So an it's non-operational, it's treatment, option a it's accounting stock that non-cash item, like out it just that's just non-cash, a why we

David Grossman

Correct, Correct. correct.

So, when – I think you…

Andre Oberholzer

Sorry, go ahead.

David Grossman

So, you I quarter, going your exceeded think, I January, that. preannounced to you, guess, back

million you pre-announced guess, able the were the difference in What you those came outperform is about what is $XXX and to what what I two reported. think, unexpectedly, that was you between What difference it I So, January? actually between, in numbers?

Andre Oberholzer

new with you your you it's project. that Yes, to what a based so any started collection projects So, that you timeframe, XXX not had project, revenue but we accounting December some have on you on and you don't that would lingo, called you for to November, collect? determine have specific in ultimately a history several, book, know, when new bore calculation

finalizing a we a of experience. estimates lower booking that got as of from the we lower we because some And there audit, and a revenue will collection on be got XXX% we into that project projects. cash paid those made customer, we percentage of of no February, have then instead revenue, had because to that some booked we January, So,

factors into of receivables really That sheet. short reserve was that balance that about receipts major non-payment on talking you it's income. subsequent reserve take you audit the have that now you So potential aside set process, XXX payment, suddenly And that the standard the looking back just at a on calculation. or the

David Grossman

it. Got

Andre Oberholzer

fiscal transaction. a the at year. process not at every quarter of of and standard It's end unusual the an a It's end

David Grossman

I XXXX, in adjustment us share also XXXX use to to you just of you if year, can XXXX, given have could non-GAAP unusual give for of kind And what sense visibility on? one Right. is one, count last extent just a the for it’s the some an

Andre Oberholzer

share is half of we terms public million six count In December, there, of XXX have at and half end warrants. shares is out million about outstanding warrants private the a

we And million. the in So, first on diluted five the related share. time, to XXX that “selling earn the basis, out points, earning a the this be we out a shareholders” price it's if certain about million At point $XX.XX then have hit out then shares. of will fully transaction at think, a million earn reaches five earn I

based to then So, going wasted its project to And five there's all on outstanding shares about year that’s standard of that when tough [indiscernible] not shares. six them. those stock program. Full million we're related million are earn to options

a options. for outstanding six five about warrants million About potential buckets. the future. are now, the six those sure, million then stock million So, XXX And earn-out in million

is some Does and that invested not invested. is Some help?

David Grossman

for about non-GAAP any sense in how the XXXX? adjustments, And those does. it Yes, it. got Okay,

Andre Oberholzer

the going we'll be we still the warrants goes I have So every let's loss, said nice earlier, that's above because expense $XX, stock if quarter. book compensation a always that on an will we balance will be adjustments have as And just sheet. a as price true-up stock It non-GAAP the forward outstanding warrant see. long

We then to that listing in if happy up. be price was is won't related will have other the had forward. We we of the the company. going the And stock adjustment XXXX

warrants EBITDA, plus So, compensation, stock true liability standard it'll option be up. plus

David Grossman

it. guys. All right, very Got Thanks much. Great.

Stan Vashovsky

David. Thank you,

Andre Oberholzer

welcome. are You

Operator

Thank you.

Richard is question Please Canaccord Genuity. of ahead. coming Close go next Our from

Richard Close

to just the for Congratulations wanted $XXX was in question. I XXXX? on say it COVID revenue Yes. strong what million? year. thanks you the Did clarify a was

Stan Vashovsky

So, we...

Andre Oberholzer

ahead. Sorry, go

Stan Vashovsky

Andre. ahead, Go

Andre Oberholzer

a get consumer shift that to say related testing the COVID $XXX don’t shift the why, the know estimated that yes, we a or or almost people we states. you going labor. just municipalities for contracts Stan estimate earlier testing reason mentioned with is don’t We number. we was was about really some paid I whole million. do specific ask XXX% we And for revenue say, because the

So, we whether cases, the little by our on we we one get really don’t other anything in that covered bit and some test a cases, more. margin shift, do or In XX tests shift extra. is get

contracts So, our co-mingles on as adding revenues. of types contracts with vaccines, testing, so multiple there’s testing, and we then our started other started labor vaccines and some then other services,

So, contracts, million was for XXXX. that we had to go through $XXX we about and estimate

Stan Vashovsky

test pre-op but is, we’re work, you’re signs a that only a Richard, try we COVID. the – for do we daily COVID different that at a paid maybe EKG, the has test, blood in one But flat when COVID that to doing the and it’s an upcharges, nominal separate kind a $XX you rate. good it vital that in way have simpler challenging. get do So, a day do of we we COVID just our – has just under we some it’s a things of for doing work out that scenario? you nominal day. if by many service – a And upcharges we do that to $X, can patient’s as It’s bit the the it, of little look feed services structure agreements contract a a by home, how that

a job of good So, it’s and a Andre a team little figure. the think challenging, ballpark but to I did getting

Richard Close

And then half, gave the you’re and testing second on because you said because the Okay. gave guidance the if half. is revenue the be you the exclude what no some expecting just it XXXX you then in you COVID second – from growth the guidance, to clear

want be is what first that out Did in clear, call the just dollars of a number the expecting? half? I for you So, millions you’re to assumption specific COVID

Andre Oberholzer

there But that a the need don’t testing we with substantially when we’re been the decreased, reduced. for volumes And of absolutely have have they staffing the need we basically, not. is is and want The don’t the from COVID an personnel have because reason municipality, in that We to is the of longer numbers, agreement the no not certain ease. a And some phone although get we call frankly, because, know group one, of reduce lowered. numbers asked about. a municipalities set communicate us to

So, going municipalities the doing during on it QX. that beginning it, to of how will we’re the towards the last us are basically during be and saying zero to trajectory professional QX and out be on ultimately reductions more phasing wouldn’t similar half guesses just a be of QX half year. states And of first – in QX. first to But take call to year going as of and

zero of So, a gradual July X. out just come to on we reduction kind internally a budgeted

Richard Close

Okay.

say. Fresenius revenue XXXX? a with hitting expansion XX you associated that bit. Just in your the in associated Fresenius revenue know filings thoughts you for then was of should amount are with or disclosed specifically expecting previously or What client partner, relationship of on little what I XXXX in – the I on that the and that in

Andre Oberholzer

numbers Again, specific the much we would what compared client, to doubled But pretty don’t to disclose is, revenue I a say customer. Fresenius. a XXXX XXXX to the we’ve with

patients we would closely and assume clinics, secure get revenue it very all that continue them that’s can is a as which stretch high love because mean, X,XXX go of strong. relationship love compensated to it’s Fresenius with service they those it’s in to private well degree we service, are amount think steady we have that think I number recurring, don’t They we are accuracy. of what with we’ll hope far in for. our I happen. patients I with by all as We can new certain to states, that and double that. and quite it’s business ambulance the XX long of see forecast The that have year-after-year. going markets, I licenses a

other, transportation There’s health it, some But can In signed services, and a thrilled opportunities that to ongoing. we’ll Fresenius on we’re we a are going are mobile contract not everybody. communicate there’s at that Those that’s until of into other there terms really we and conversations be to just discussion addition call little of beyond bit become patients. until things pilots. opportunities their more that to looking to the deliver in concrete detail transport, with to expansion about go

Richard Close

Okay. just of to And believe be revenue that correct? is I mobility to maybe expected in a XX% clarification. XX% said XXXX. Is Andre

Andre Oberholzer

That’s correct. Yes.

Richard Close

seven to transportation expected Okay. markets five And XXXX. said Stan, then for new you in

Stan Vashovsky

can Richard, repeat you sorry. question? I’m that

Richard Close

seven Did you XXXX? transportation say new five markets to for in

Stan Vashovsky

two We’ve out and dozen probably markets we’ve the Yes. new year. a got on LOIs today. this on early started half secured licenses in to launch soft already We’ve of close kind got that

So, transportation year. seven I think it’s get into of very realistic to assume we’ll by five to markets the more the end

Richard Close

did you Are whatnot? the secured two and and in you Maryland those licenses Pennsylvania acquisition

Stan Vashovsky

Yes. correct. That’s

Richard Close

Okay. thoughts a does called there guess on now integration that or to Cerner integration or matter? Is EMR that With Oracle, out. respect I getting you

Stan Vashovsky

Yes.

would majority deep. have customer some past. We say our a and Epic, Epic depth we’ve large few quite Cerner really that with our What complete with of the needs large are I our and can drives integration they’d the we’ve with but integration integration integration in done just Northwell, level that’s an done customers really, really We customer us demands, We’ve the the deeper, Allscripts. of particularly work product client, is go really them. Epic. customer that see like on done We’ve which Allscripts by with integration dictated got Cerner. there. that is basic of much some the good and to with definitely with EMRs,

one I probably we we’ve wouldn’t desk. reception we representative, that called the to Epic should the that EMR few, integrations hospitals integration. out, are to things with only them call it these actually probably is not if the easy provider make why the on very the contracts and on long-term our accomplished why the of allow call only integrations the own probably reason accomplish. One these an the insist company past we’re and If because The our with been hospitals of to successful not

UCHealth, get Epic, making So, it’s and call the Epic get Jefferson, and completed. that from Northwell. Allscripts that’s And it’s them helps steps when they’re substantial that comes helps that to it’s a completed, steps size up up the being call customer,

our long-term about definitely allowed EMRs, for And different systems we really of with. are we quality have And we’ve or not our IP hospital it’s integration it’s it some mean smaller done relationships own. in-depth that level Epic Cerner. these just these XX I strengthens that have there’s also with So, that ones that integrations.

Richard Close

base that called the channeled Okay. or payer who Aetna, to in that’s new the side. I you a new for And you question guess, with respect guys, customer out

And so, a go-to-market about associated business that’s Can your revenue costs or should health business. of about than there? I think the how sort that, assume talk mobile ramp there’s driving with normal on some marketing we and revenue you little that onboarding different to profitability bit

Stan Vashovsky

to he question, a Well, of, offering. one-offs provided success Aetna DXC executive of of entire is it, for call concierge very really That testing satisfaction yet agreement us a headed pay Canada. We that that we is program. that I the first, copays, being can a lots great, signed leading one is have a and well, us. major in Preliminary our share home. States. The feedback information great of of it, of the is market groundwork see services super company, the entire XXXX behind is we’re and the service we don’t launched the something entering like pilot that is DXC lot the now Richard. mean, a service Aaron amount good customers at most high we things and proven that that United get about high is, an Aaron type We offering have him. call with serviced by with selecting is initiative reality contract out with doing The excited Severs the levels. in And about that deductibles. I’m their laying nominal to launch We’ve is partnership in consumers high willing a be direct-to-consumer

tap forward. So, many to be offering. to goes lot a TAM is what we direct to to going if be for that a into program that for into the a we’re consumer development foundation – company seeing tapping There’s There’s you of will learning. future of basically successful, going are that huge going the that going lot are years a huge, benefit

we publicly national signed we of that the have in other don’t offering. is that information for And large one all can the several on ongoing we we in we Other much preparation service United definitely yet. conversations have direct-to-consumer we’ll pilot, launch with share that of that ready are first as than, Aetna get results share beyond to in And payers we as officially you. more the offer to get States, with. that we service the that we’ll out with And Canada that with our share everyone. it definitely program, So,

Operator

Thank we turn over I time. to you. as This Vashovsky for would brings to session back Mr. us question-and-answer out of the end of closing are to the our floor like comments.

Stan Vashovsky

Well, be and we hope in this informative. We were beyond. to our you. for our enthusiasm concludes year found you Thank morning. Yes. conveying successful that the We call hope for call the

for a our great Have have and opportunities significant thank in year. call and I conclude day, us, forward really front We want a everyone everyone. to of and exciting going successful to look very joining. This is to

Operator

and interest DocGo. thank gentlemen, for Ladies you your participation in and

or your rest lines day. webcast disconnect may this time and You the the log at your off of enjoy

DocGo (DCGO) 15 Mar 222021 Q4 Earnings call transcript