DCGO - Earnings call transcript Q1 2022

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Operator

Greetings, and welcome to the DocGo First Quarter 2022 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. I would now like to turn the conference over to your host Mr. Advisors. LifeSci of Halper Steven Please go sir. ahead,

Steven Halper

Thank operator. you,

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

Stan Vashovsky

everyone results call. conference our quarter you, first And joining Thank for thank to Steve. you XXXX

about financials, a will turn then questions. your factors, few and the to over take our other then As we Andre to review make business I'll call the remarks

to were momentum exited we quarter During we the XXXX, fiscal sustain XXXX. first able the of which with

by division, XXX% with related COVID over XX.X QX of growth revenue the again of of million of XX on Of DocGo XX.X generated down of our was this operating million increase approximately year first is over XXX% the of ago. million, of health Approximately which $XXX of first total the million Revenue to expanded we $XX.X million, a an testing, a in contracts. is which came revenue in XXXX. more XX% XXXX. driven revenue or revenue quarter, extended was mobile growth generated customers from mobile quarter quarter the of terms XX million representing than from health For 'XX QX

base hard We cultivate long-lasting a have worked customer to relationships. to build broader,

over revenue first generated first generated EBITDA adjusted adjusted Our the million, XX.X%, significant of improvement million a in increase quarter a quarter over QX EBITDA first that XXXX million the million and representing of improvement substantial of margin an solid we was year. last quarter of XX% 'XX. profitability year XX XX.X XX.X transport in We've a X.X period. of was ago of Adjusted over in EBITDA

three next to our EBITDA XX% the to expect to continue margins five to its We over adjusted years. expand

medical a million, significant of quarter income the net year. to a loss was mobile continues improvement Finally, last of net first DocGo compared services. in first $X for a $X.X to a the million position of quarter also retain as provider as leadership

related some the related new COVID term During to with began and existing quarter, we of work customers. non-COVID services first longer the transition

as Our make goal seamless transition this is as possible. to

into are of revenue. and by was XXXX are again markets robust growth there the contributing and implemented driven in new existing now making signing and progress. throughout new revenue our we're challenges, great contracts, contracts that extension expansion by the of A up services While fully the

Delaware. offer to As licenses Maryland and acquired we medical services XXXX, of assets and XX, in March transportation

XX X.X QX, our with have the the two representing services interacted business divisions, same Today, and Kingdom. in XXXX. we in million clinicians provided between increase an period Our states XX% in over United patients

while We have both significant opportunity in states in entering existing further ones. new us of front to expand

together, this is Since of listening as story we new review conference to to the we are be X% that our may DocGo minutes call less story. few markets penetrated it anyone public estimate would than the Taken thought second who a only take today. be that our for beneficial a company, benefit and

us treatment medical and are medical a patients States. physician physicians’ across deliver our growth a use most. clinicians quality in to delivery of services highly costs the doctor's where assistants office workforce trained at a has cost cost patients the be or model to We traditionally medical service system. patients are medical and is the our care Many has quality, where host to in brings services settings. This by our lower a to facilitate scale business enabled lower of What last Transportation. of network efficient in We companies not to facilitate provided This high significantly scope driver Mobile significant they to may of perform health labor This provide at our license innovative work range of need the workforce wide traditional distinct provider mobile a are allows practical differentiates DocGo two who Health to us in a of under to United we medical a it than Medical enabled visit operate model. high large affordable nontraditional and practices of hospital and divisions, highly expensive much a patient meaning approach up that health leading nurses, interventions paramedics person nurses to overall healthcare broader Health to most they treatments necessary. mile that healthcare care build when healthcare licensed doctors. Mobile more our

to doctors procedures our and provide range to addition visits emergency acuity or their and assistants, hundreds to also their we employs homes, of rooms. In care costly patients. LPNs settings, in a patients practitioners, medical workforce and to our and hospitals By nurse provide this nurses, other to to in offices and higher nontraditional registered physician's DocGo paramedics, of help services avoid leveraging unnecessary

include and have worth are is employees better of gives Most insurers medicine of not helps reiterating rating leading and agencies, ultrasounds, It on their company We our leads various our more our services rarely the We we to Hundreds believe fee customers. Glassdoor portals. monitoring, service. Our our industry. X.X to majority our and revenues model for care better hospitals, contract services government rating employ mobile us EKGs, more satisfied for a patients. our to on We allows costs, ultimately along for ratings opportunity our and increases mitigate that key enjoy employees our left corporations, Stella customers on clinician practitioners, working DocGo’s employment volume to experience procedures, contractors. administration, This health pass with directly us work Indeed, for paid impressive their for our cost scores vaccinations, A employee metric X.X is basis. on with demonstrates much and align and of us and risks constituents. and our bedside internet is preventative satisfaction loyal care, they to of that and more. we then directly provide do a this

DocGo demand on we the new direct most services offering. our about excited is of consumer are to One

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

in learnings EMRs its existing a offering the be have and families, used records with this known that from IT in DocGo we better health of is We other information core ability this ensuring expand the integrates and and competitive and piloting providers that plants single and leaders It future. the healthcare a and of the health by that sustainable benefits. to these are coordination service provides take to is of among seamlessly BXC EMR into a technology their backbone systems patient repository. with in care advantage. provide complex platform electronic significant plugs well functions markets the field, our and our many The early these from to believe purpose-built all interface The patients in services facilities stages that number care, of designed pilot into mobile a systems

offering settings. other pre-scheduled to basically Uber-like transportation, which clinical refers providing medical demand between Our is on transfer solutions patient ambulance

we number small well a high for five the lease margin, with for ambulances, providers UC partnerships some Health, maintain no industry, HCA. year healthcare as the highly capital money have medical and long We model sedans and through in of vehicles Jefferson, our term as developed wheelchair our we down. vans regarded of multi-year flight Northwell XX% largest over [indiscernible] terms GE where comes including with revenue of We a CapEx While and ambulance from transportation transports.

enable creates Greenfield business. just mobile least to patients At how away of this in point, but few from like with and box dedicated significant are provide XX is January We one front health on additional, and outside hour interest additional vehicles, this develop still key in DocGo. company. transportation it think touched model. of example presence increasingly from quarter, for unique revenue scaling mobile our fee worth His model our in experience as a recapping. healthcare a and market our to has a last we the lives, England, this multi-year creating We us perspectives including and and mobile Kingdom home last of million their states predictable contracts. healthcare Google, across fee provide Operating will with home advantage and a a announced senior in in In that upon Lee contracts for at business this the to episodic I'd including to for staff footprint are members territories, expanded our while proven into new services to grow operational has opportunity have the increase at York is Lee of resources, customers at service gross while our With customers only This pending. medical We Our does traditional customers quarter. provide where moving untapped further but hit highlights strong services performance value daily currently management licenses we X.X Jersey. Aetna, introduce help for it the Chief These we England the margin bolstered Not gives emergency to and towards a new the equipment, the hiring recurring we by expanding solutions best three expand opportunity the track profitable our spent New United record services, care. technologies. at East with provide and of us to introduce DocGo's Officer. New our Greater businesses us various Manchester. to and services units new range our Medicare years health provide Bienstock initiatives contract footprint, Commercial growth. to and This ranks XX our Central We

completed Mobile, our key and with providers ambulance customers a a medical we acquisition, had we transportation footprint in patient and this in XXXX, our in United medical step first international patient states. and medical period Carnival Delaware sizeable Emission driver expanded untapped by York zero total X.X the with additional represents QX transport Additional HC. the in of adding hospital transportation of makes company acquired we We service in relationship our in XX This market in increase growth Jefferson and our as the businesses. electric those mobile U.S. partnership and new ships Pennsylvania. Maryland debuted while expanded Alabama. in missions even a XX and million of the new to an beyond over We fleet Health treated we have is for this across launching to International to We an all unveiled interactions, initiative the our convert first electric to patients saw Zero remain which In work in additional DocGo services growth health With same all largely Corporation, areas. year patients pursue expansion facilities, XX% marks an we We at our XXXX. healthcare vehicle XXXX. Auto licenses what transportation New first market. largest This the the States, will U.S. of both Show, one

to currently able market U.S. Now, by untapped. that services delivered will care care for up to February with XXXX. and $XXX in billion have medical we home believe Oberholzer healthcare the technology I'd A and investments settings, be that we shift call facilities to indicated market Andre? in believe I quarter, & to this significant our last our non-traditional Clearly, care people, our made, like companies as the in particularly shift. have advantage. we DocGo among our the by the the But other competitive homebased provide scratched in the to to and we to to biggest are we of a McKinsey beneficiaries Company and report point, significant XXXX addressable over the have financials. surface. review turning turn At this like created largely CFO, barely concludes Andre is opportunity,

Andre Oberholzer

increasing business to transportation that important segment. and QX million amounted in million million XX COVID contracts. approximately X.X QX T of XXXX quarter the Stan. in years, Thank core of first reported XXXX extended by of XXXX approximately morning. related contribution million the XX.X growth of Mobile in million, revenue as to to combined the testing was in revenue patient revenue total million X.X times 'XX health, XXXX. and XXX% Year-over-year quarter representing Mobile to amounted XX% revenues QX from XXXX. new for 'XX, XX.X approximately is momentum from Total consistent approximately Good Health XXX%. note of XX.X revenue in for of Health our mainly growth million the to our in several to up growth XX.X as mobile first year-over-year, up quarter QX the for revenue strong a cancer Medical increase from COVID amounted to amounted QX grew market compared as QX XX% Mobile by Health of of you, during QX first reminder. XXX.X QX the XX% prior testing million this million driven year revenue excluding XX% compared versus XX It's X.X of in with total generated to a includes of during revenue year transportation to Revenue UK this by X% recorded first of of net million first million adjusted increase in the Net approximately the represent and proportion year, in over costs the from the loss substantial $X that resulted improvement certain strong quarter the XXXX amounted Net in growth. a year. which the in leverage increase improvement revenue. $X.X income revenue investments the quarter representing quarter total of of Adjusted a provided grew quarter income in overhead infrastructure prior the infrastructure of in not EBITDA million XXXX, revenues during to with $X.X legacy even versus same EBITDA did as in expansion year and prior of made regional first $XX.X to of additional period. million both

was transportation subcontracted value contracts, fees. somewhat based of cost of supplies. incurred positive quarter As Margins able gross interest, a compensation, And generated a margin or segment a by earnings income. reconciliation gross contracts. increase EBITDA average QX increased offset break higher for by the transportation were year. at markets compared daily an of earnings the increases drive XX.X% despite EBITDA from labor XX.X% that by this refer to XX.X% time, the increase factors, during gross a fuel. margin non-GAAP the in adjusted X.X% improvements, in of gross combination as a impact our XX.X% previous wages cost evaluation improvement margin amounted release via driven quarters, the during to of the to prior hourly reminder, the segment, increase is to improvements the Please our certain constant a representing note Health liability, and gross number higher It public reduction nonrecurring measure margins gross induced on hourly year, increased higher of and [indiscernible] 'XX These Total warrant DocGo was before of important driven negative margin costs stock with as inflation connection other both number to based year-over-year of year, in medical margin improvements higher sales expenses by but the taxes, adjusted total cost including effects Mobile the our over during net to during prices and and depreciation, certain listing. from during last were in and Health labor by margin Mobile test of were items. percentage in QX to amortization, XX.X% The

million March cash of 'XX. XX, of period. to first XXX.X by during December for in equivalents cash of totaled million important that As activities XXX.X XX.X to 'XX, and It's positive 'XX, quarter a as a amounted as million to of note cash prior XX, our use the operations million net provided cash compared operational X.X versus

year of this provide we beginning regarding [indiscernible] cost impact of terms impact the certain inflation the labor of of In on assumptions have where expense and significantly results. of the included major it impact on inflation, two our fuel. may inflation categories,

quarter was cost the per the gallon hourly the XXXX, of below average approximately rate at in at our During was our average first while labor actual forecast assumptions, fuel guidance increase rates.

year XX earning a The which the this these of into million to of in of of impact of obtaining fourth gain year. 'XX. the $X loss the During evaluation warrants the $XX,XXX in quarter fiscal warranty call, the resulted approximately discussed evaluation, we one of amounted

our XX% be our the confirm we with we to we or million 'XX the to midpoint. to be $XXX and mobile XX% call, anticipate approximately Adjusted We EBITDA strong to at outlook. million, for services. anticipated growth $XXX revenue to the $XX health and fourth Consistent guidance provided quarter of both XXXX 'XX million approximately over million transportation during guidance representing X.X% of $XX conference turning to is revenues 'XX. Now that our from customers demand anticipate introduced

only the As and guidance. are quarterly providing providing we annual in guidance not past, discussed

the the accuracy, Although, new quarterly to operational is annual comfortable our contract with with new are it of and wins execution we difficult related predict contracts. guidance,

revenue wind transition transition is half first health the calculates revenue testing activities is year $XXX.X $XXX million. and range, a services. the new that other average At to as this of In revenue cleared, as of down the midpoint addition, mobile from annual guidance the we quarterly million,

We an was at expectation average of the that that average, the million, the expected above is QX below the there this there evident $XXX.X QX is a track above-mentioned which which a would revenue $XXX.X would when revenue case will with be actual be quarter that, million.

we approximately testing decline continue discussed, $XX the QX to million COVID QX. previously to expect to in revenues generated $XX compared million to As

to testing health quarter After over mobile existing no a in it is mobile longer a As company QX decline separate since health contracts revenues the another testing will a expansion contracts. expected contracts much mobile of services with result, service. and is or of track transition be testing as to replace COVID percentage health just QX, contracts, number, new revenue more becoming with are invaded as related a the

our In terms point, expect will with prepared mobile the of segment as remarks. At operator health to approximately continue transportation XX% segment open questions. that That the of concludes to revenues, Back remainder. operator. XX% to the contribute call to we the the medical revenues I'll ask this to

Operator

Instructions]. Thank you. [Operator

question with Close line of Please is ahead. from Richard Canaccord. go first Our

Richard Close

Andre, if we COVID the testing. over go just I was wondered could

housekeeping our models so correct from perspective, are Just a for XXXX.

So XXXX? first COVID still I revenue for million guess XXX the is testing

Andre Oberholzer

disclosed, estimate. number If we XXX an that's that the it's million,

the commingling there's think past discussed of we a lot I of in that, contracts.

with, we estimate, XXX that up million. came So

Stan Vashovsky

XXX are for surpass first which XXXX Let quarter million clarify and XXXX second me just the the patient. anticipate we and XX million in was between the

Richard Close

breakout give so we the us the on basis? the have and apples-to-apples terms now quarter so for quarter and in of third quarter that can just an what second is you fourth XXXX, we're then first just And

Andre Oberholzer

And testings the COVID expect around given, estimated X, be then to the was assume July testing, zero. COVID will that be we With starting guidance XX million. QX we

Richard Close

of quarter second of testing? breakout So COVID is the third XXXX, what quarter and

Andre Oberholzer

provided second longer quarter not last We the year, no year basically are past in that and relevant. quarter third last and the have

million. So July, is XX guidance. given assume the testing guidance the for And in no we is QX starting COVID

Richard Close

I I Mobile growth. the had just Correct. sure wanted to Health ex-COVID make

also you mentioned, the you of guys present the a definitely But Stan, little talk So you guys does there. long-term about conversion having some work? I'll then it move are bit said, COVID Can you to challenges. progress some contracts on.

has with respect metrics, And talk the curious that can book like the about converted, type book, the COVID how if then been that. anything you maybe much and just you convert? challenges. I'm of have to discussions And to just that So of success any like a still provide percentage

Stan Vashovsky

Well, the really challenges timing. is just about

are working COVID that people on have contracts. We

and make of we book people where it challenge. then We well, we I and to classroom good business. assigned the fortunate come contracts. mean, back We're that's the into people’s a have want to sure COVID get we training additional are business, a need timed new healthy get contracts they

We've avoid new second new COVID group same job to done personnel. people, then quarter. timing want of starting to getting in do, executed have And in people, demonstrated off project. to processes quarter We follow agreements. that have having take people We've new about It's in about those great we're for it's the contracts, is quarter. and and that sure know that of first that What ready executing lay finishing just to one we we agreements, a working contracts customers exact training to the We timing. it. how the the project first have are we we're the already customers, going what do and them the really while new making want and that next don't that hiring towards group of we

lot to addition customers that In or we for. actually offer COVID municipalities same did contracts of the a our same that, testing

are wind that we have with that So the same as testing COVID new programs startup. down, customers

then So classroom, the it's classroom, one and them people XX X, project, to a project. back of assigned wrapping a XX, in a getting days matter just up getting new into a

Operator

from Northland next Mike with Our question is capital. Latimore

Mike Latimore

quarter at headcount How -- end? the the what provider was many final

Stan Vashovsky

I headcount about employees, the couple the agencies anticipate of from help are that use of the some XXXX personnel. XXXX We of overwhelming a are have the I Which probably process the way clinical in somewhere more are year. and These majority to providers. XXX total employees. full end agencies converted of to being our time by mean, over still of

Mike Latimore

to of a the you it new Is talk the from on transitioning mobile grew same total as then, customers up? testing contracted COVID is transition? about been What's the service, kind strength the And about services. new amount revenue health initial it -- transition to

Stan Vashovsky

run plus simple or Depending model. per rate, clinical I'd a nominal daily per like test that. procedure fairly the have a we fee a business to that need, professional say you on above we

So you involved variation they testing really services. transition don't between see of out very and COVID doing get much The similar. are testing they fees in as other

depending supplies, may small most part. but You have variation, on it's very insignificant, for the

So Monday vital bloodwork if pretty the doing revenue maybe and EKGs, practitioner on but it's say now same was would and is, XX%, they're I testing, practitioner identical. COVID that on Friday, signs model much doing or the

Mike Latimore

the it of absolute the or -- expand what you've does that contracting does is shrink terms amount relative testing the seen is for, it so customer far? In it to dollar COVID

Stan Vashovsky

have the services. doing an the clinical daily if pretty a same consistent, they part, amount For that other change testing most clinician, RN pretty same. RN, doesn't for The flat, COVID mean, almost so model doing much. it's I

Mike Latimore

And transport, we just nice medical can that on upon mobility, as of a you sort new sequential in forward? quarter the medical build Should going think there. which growth last baseline of

Andre Oberholzer

And it's markets some totally also sequential. New New not some just York new example. York, in additional We [indiscernible] we for Delaware. was like added some in going had upstate I launch we special upstate to say, projects also services, and

of some run QX. indicator revenue projects rate your an in potential extra those in it's of from not terms basically So

more for transportation around guidance on past, the XX% was pay the So annual average in that's same basis. the [indiscernible] and full

Operator

Barclays. question Our next from is Sarah James of with line

Sarah James

consensus. internal and about playing for EBITDA quarter revenue the the think how of good out year? rest wondering, of it we a for your how should to in first came expectations I'm the seasonality a compared amount

Stan Vashovsky

are we is we we and internally. when really sure proper Teamwork the make new implement is make happy Sarah, to accounts. as conversions hard, timing

it was yes, quarter. a So, good

say can't are we You shocked.

operations is maximized. record of forward. that beating expectations where good on team things getting We and can and going EBITDA, have doing especially And maintain a our I'd our making wonderful profitability that a fine-tuned we hope to, and like strong sure job,

little In terms mobile and about doing say of it's good, of bit we mean, to a rapid growing, us. are seasonality, which healthy a at to business, growing such now. just mean, very new our part only is and health, quite it's I for three I it is pace. right fast years hard now, a

us So early it's predict seasonality. just for to a little bit

from that, non-COVID addition converting I testing. accounts to are COVID In testing what would traditional call to we

We are doing excellent really right job that it's working an at and well. now out

definitive our expect into QX year. experience trend enough to estimates. moment and think we to I that rest We the of at really But the the continue have don't for be in seasonality

Sarah James

those And then live Can on on and now. has guys how you months uptake a think services the what the Aetna or contract, of for couple se? been you have about you been talk engagement about adoption per

Stan Vashovsky

Yes.

We company coming that ancillary perfect model. that services. offering. Severs provide That but and agreements learn urgent business several to companies. our at other still amount providers to is BXC nicely. at along of with care by The Aetna, all what development in towards with program business Aaron our headed we we've tremendous have have is really healthcare with signed signed Those are We also call home

have mentioned for we direct-to-consumer we As do into any in quarter, XXXX. our last revenue built models not

learning So everything of we offering still those go preparation of to our front we do. services really But a positive. have to lot Preliminary are for doing testing long do successful. to really expect ways on that been have be is and We a very XXXX. in direct-to-consumer

Operator

Bank. with Chickering is question Pito from next Our Deutsche

Kieran Ryan

Kieran Thanks on my for question. This Pito. is for Ryan taking

growth seems about was a on and rates. just I in ask like maintained, to slight change to First, the guidance, was wanted I see there the XXX the language but XXX

little I think the bottom a end bit. moved

there I revenue something wanted to nothing that's out around there. else? was So just estimates the make sure Whether or to COVID call

Andre Oberholzer

million. is million The unchanged, range XXX to so XXX

Kieran Ryan

XX to moves to XX XX XX to XX. range from to The growth from or XX,

Stan Vashovsky

the just rounding we did and calculation. That the

So we're XXX still million year. at XXX million to for the

Kieran Ryan

And couple may guess a been hit have on. I already then of

success that any if about to municipalities wanted just on with replicating your views just in you So New see updated of York City. have discussions kind

transportation about with be out? but talked you're special and this any would helpful. that just continuing projects how would quarter the a helped, be It having on any other discussions to play municipalities couple You size that's

Stan Vashovsky

going of lot without detail. into mean, I a

one We continue municipal those medical COVID municipalities to have markets. clinical several the all that the if we And we that good public we we're goes if homelessness services from homeless to be discussions in will have HC. the services. a new add also two the healthcare areas doing services is really And well, specifically We've that public for with I really that But in same is other and on. grown municipalities And able should come we're market, doing to in engagement properly, niche about another areas should work timed transition as other of goes one services gotten niche work that testing schools. schools. it we've good in off, on

have others, continues to wonderful in a really And significant with similar rapid relationship to providers for conversation developed now very, expand cruise program. We several we're a that Cruise Carnival pace. Line. do And program at very

the we've good growth it's deals and then execution we've some fronts about for So year and additional closed got deals, the of on for rest us. multiple to all close

Operator

from is question next Our with Needham. Ryan Instructions] [Operator MacDonald

Ryan MacDonald

to want with I COVID on clarifying start revenue. the question a just

of the supply over demand versus in transition? transition So balancing way of interested Is it making to more problem right will, ways going sure the sort of that of think headcount that a like if right as now, a COVID of kind that to replace revenue a finding investing more maybe you're is not sounds act this you about COVID on during you that customers. a what's to issue, of from

Stan Vashovsky

in it, services gotten XX customers us correctly. definitely little group XX testing we are then be out personnel working with from customers. just in of contracts, make become sure I to new a QX, QX, of because a work. we prepare existing down smaller feel we're a by demonstrated quickly And But million, QX. for going it a to matter several COVID can good in for that it's we act, kind concluding the projects make about starting as to them new And bucket good testing actually and that patient, business And Ryan, we medical balancing that now we've programs. need Demand just of pretty think get these are new new with a XX very transition their we us that articulated these pretty of of strong assigned It's to at seamlessly. million available that easier as on them million should COVID and they're can conversion Yes, timing got do. you're working confident of dealing that bit with

Ryan MacDonald

look three throughout this more sort York is with more groups, Jersey. a to as little how a New more already the deal you 'XX announced us payers, give And and in wanted New you of how recently but structure? we with remainder win you've a a start also penetrate then Aetna As opportunity on think structured? of follow-up, PMPM do and as obviously, X.X-million-member beyond? success the recent color the we this Empire that about had across to of on just touch talked Would traditional we Can of

Stan Vashovsky

actually we've that more for perform. with. it's a fee companies service than Those to contract mean, have Aetna we agreements just and visit, that are are other I There Empire. negotiated

the care taking center sent building, the with services, will technology, a strong very, course basically the with And speak. we've provide the receives at ramped business And medical of someone currently that what in place we start. opportunity to we tests XXXX the good business way we the Just we we off medical someone their home Overall, making services. fee the there's into when intent for and processes negotiated program. side very a really of testing They walks procedure. into that of services. lot offering is similar to when push feel or similar think similar the operational direct-to-consumer during get year home urgent of those The on structures, by offering to are urgent marketing reimbursement of side and bullish And us up conducted very our care we're of very a to just a continue conduct. to clinical as

now We have assigning them place. in are contracts to these

billing integration. the system test can we So

kind the through all So we testing in flows the of going XXXX. integration, operational EMR test can and

to off arise, a we're races productive XXXX, So the very in in manner.

Operator

Our Canaccord. next from Close with question Rich is

Richard Close

Andre, a the just and thanks the if quarter. mobile bit, gross both it broke I for us the transportation was follow in my wondering And just you longer-term? remind the you health of could again side, up over can up. gross targets a Yes, for then go margins, On little little bit. margin talk

Andre Oberholzer

Sure.

'XX last QX XX.X% margin year this versus XX.X%. gross total at Actually, was during So was about of XX.X%. year QX

And that business. So of gross by in Mobile it the of most margin. a X.X% segment that was given increase Health was our

more So in business, at hourly contracts up segment of able were the higher base Mobile we to the sign Health rates.

historically We those the also lab to we higher did contracts, as top-line total our with of But and drive In improvements did fees or some obviously both you higher based some labor. that fuel, average terms we this plan cost costs in higher last those overall, had prices. offset margin. business increase same of Plus in we on in improvements well those of was fairly well But purchase But as daily of by able paid transportation the year for in expensive. as year. of guidance. labor X.X, plan inflation. we QX offset the by were hourly improvement, will the cost improvement also in gross that, transportation, year, as last on savings in were So some XX.X%

new as We the parts, because the guidance a segment. In the quarterly on guidance, revenue terms margins. We gross of and contracts, and market given XXXX, part same lot that thing we 'XX of really gross by quarterly, the transition. and lack track do of internally have margin of EBITDA there by is are moving not did

So, we target moving same know kind the earlier. with exactly the markets. I margins, said a in quality the as that items it's But of each one of our

that not transition keeping of this at is this planning in There lot year. are time. a point We on

the obviously as well manage. It's with combination items. SG&A manage as a comfortable that cost feel You of gross margin we that we

Richard Close

you Health, the the Is on But in still gross margin. Mobile something I target? about XX% long-term Okay. that past said a a think

Andre Oberholzer

one. that missed I sorry, -- So

we aiming So that, margins. are also is mobile that's on we for health XX% XX% to of the XX% side, guidance, then margin stated for our have to And terms XX% margins. future guided we in that [target] on long-term transportation

Operator

Ladies to would and reached we session. have And call the for remarks. to like gentlemen, back end the Vashovsky turn of Stan the closing I question-and-answer

Stan Vashovsky

with Clearly, our and We we’ve expanded the businesses. – majority lock-up our across the Thank XXXX started our testing, Canada, this overall the expired, very this about lock-up set new feel momentum expanded morning. for looks healthy call the rest the into for very you. of we That contracts, confident and and year. you I'm business year guidance concludes executed look Thank update significant next quarterly forward our direct-to-consumer we has the everybody to had we for the we that optimistic successful of stage in joining. I August.

Operator

Thank you. concludes today's conference. This

disconnect your time. may You your participation. Thank this lines at you for

DocGo (DCGO) 14 May 222022 Q1 Earnings call transcript