DCGO - Earnings call transcript Q4 2024

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Operator

Good afternoon, ladies and gentlemen, and welcome to the DocGo Fourth Quarter and Full Year 2024 Earnings Call. [Operator Instructions] This call is being recorded on Thursday, February 27, 2025. I would now like to turn the call over to Mike Cole, VP of Investor Relations. Please go ahead.

Mike Cole

Thank you, operator.

over remarks I concerning call make like the following the forward-looking turning to would management, to Before statements. forward-looking All call statements are other conference statements. than statements made of historical in this fact expect, could, may, words design, believe, target, may similar will, and potential, be identify intend, The statements. goal, used confidence, guidance, to plan, anticipate, outlook, aim, other expressions project estimate, such forward-looking are outcomes, you and statements. assumptions, realize guarantees timing These many our materially future performance, from which risks, of results differ intentions, assure or to which are our may cannot or actual cause the or achieve those not outcomes substantial outcomes of beyond our or are that contained statements statements will forward-looking and our forward-looking we or we results to expectations.Â Forward-looking of inherently results control plans, in and subject uncertainties implied assumptions reports not our annual risks, but quarterly XX-K, risk DocGo which These materially XX-Q directed.Â Actual or and these your and statements results to, in report and results attention timing by expressed with elsewhere factors statements. to include, and in of outcomes is or outcomes DocGo's what and other on those forward-looking the may Form the from discussed or differ is reports uncertainties filed by SEC are Form on limited

contained the Investors website, directly to call that earnings date of with references part as docgo.com of is is our report measures comparable release, on today's circumstances undertake most after to on the Form Reconciliations time. information the included in or not are to our now a by the or as assume financial should which to or call discussed. contains occurrence At law. of of accurate this DocGo. call non-GAAP my as this reflect call ahead. directly no time, CEO filed over X-K provided the discussed reflect is the current turn to Bienstock, unanticipated as in earnings well this our this call addition, except and financial only new go will We of on please the SEC.Â The or In to information includes Lee, remain non-GAAP the as operative information statements financial pleasure posted later events extent required this or these that to Mr. to measures. release in Lee of any GAAP call obligation relevant at events, date it measures update

Lee Bienstock

investment marked to our response thank closure all customers. joining of period and aggressive we Mike, our a fourth you, you as build for continue from strong demand quarter footprint Thank today. out to in us The gap care

support continue we addition, customer across current in next leg management growth structure the our In operational verticals. and to invest our to of

next results we talent investments phase the with regularly with expenses review necessary of the ensure particularly base of to headcount, progress thrilled come that to want on a growth. be for our are impact near-term and also our programs, respect will for non-field gains, we the these our retain but both with We these that profitability.Â While the we efficiency

potential patients fundamentally points, value have value care and accessible XXX-year high-quality, bringing this to we our vision, to we creation see Our all. resonates serve.Â Based vital tremendous is mission achieve our with transforms company from customers data it to that the build efforts. achieve care is of our that a and delivered a our clearly on highly defined proposition health early goal To is how

making investment. this continue So, we to plan

XX considerably tech what X.X proprietary across X.X I'm how calculated base. patient assigned health recognized across needs across the DocGo's California. health our XX,XXX testament looking programs, with of thousands patients fourth proud quality via over quality of behavioral customers we In our a York with XX XX. of Net programs screenings. year quarters.Â When provided XX in to estimated don't accelerate working scale over program, are our of we alone, substantial excellent quarter to value and mobile a top in hundreds to they the just hard-to-reach above platform children, into gap so services health we at engage clinicians miles told, XXXX U.S. of the of and scale and their pitching care.Â Last scaled to care us to interactions. personnel over This XX,XXX traveled depression of as our for on setting customers.Â Our provide our customers, highly patients. A these and gap The experienced applications million XX partners, closure to this significantly and to adding a operators, rapidly high-quality, of of and in go clinicians minute scope a care and our XX delivered. work Both the over We we deliver in DocGo and is not facilitate Score coming in enhancements the closure considerable care times XXXX would health our top-shelf We translates million All and the corporate organic to and is make from offer support to platform was in are see the a deemed expand costly plans making sticky over are both million vaccinations continuing begin our patients means a as for accomplish of a was examples. see stack seeking accessible a To care U.K. can coordinating of that network we impact that inorganic put to evidence provide gap and customer opportunity one this to and above we New continue fact programs states over relationship sales specific customers, the care health DocGo as insurance clinical a tech our is in to perspective.Â I take many from and testament on adults growth very to and that join from our like Promoter care, care job in our delighted received to health leverage market alone, our us and care the our or vendor. for deemed look strong is us we all. These of good, arrival are is world-class. with innovators partners strong number facilitating XX,XXX their few in specific is offering for health places included program growing NPS, staff to above given relationship mission both perspective, in a that but plan

with wants and communities million into targeting include members services, provided area wants number for care a assigned clinics Coast it considering to that tri-state of underserved. care services. health the DocGo's to PCP of services.Â Second, to payer to expand in relationship that we payer to major with mobile on that closure also in substantial to that the access lives gap members from specifically would increased for that utilizing their clinics, services XXXX transition West million benefit care care now bring expand PCP, us and care advised a now X X had mobile our mammography, unattached they're are major a gap First, mobile populations closure And

they that from payer East hypertension.Â A New thresholds, and high-risk On XX,XXX another quality that in expanding ratings. began care customer are with care populations reach these include to measure discharges Medicaid it management and all members that their expand Coast program laser-focused XX,XXX bone hospitals is care with harder year. and volume gap across it now downward customers to cover wants West immunizations at lives million X initiatives major pressure are a and in indicated of macro unengaged patient consistently payers, with list to our closure to the country Another chronic diabetes as with our quality to payer assigned XX,XXX hospital places Coast is significantly level for this with transition to density X million a members share York plans' X harder which of well. scan as And making the looking highest region add their program states members CMS on on

In addition programs building flurry has roster that base, vertical, solutions, based a company. both looking payers broader believe We of is as to also of attributed our of earlier home an on mobile base a a our example be of care PTI's have. To grow can there closure in appreciation from acquired continue phlebotomy medical been can we this existing existing services for impact a to care this which that inbound customer interest. in the as well Health, our can gap the customers PTI we expressing inquiries great scope this but considerably recently, for demand acquisition month, and

of anticipate that our XXXX. with paid to associated to first of that Our we to Hospitals, HPD mid-December. in national migrant-related the immediate vertical, concluded health a partner needs work this fully these the New of City contract lab be programs half meet geographies largely major in the receivables under by are plans down government contract to population York the additional York New continue wind year.Â Regarding and In market We with our that capabilities the expect Health end contract QX will expand our follow. with migrant-related to in of

improving the these will accounts has business and the flow associated $XX under significant at the will access facing. migrant-related examinations cash while of front, contracts totaled year-end, work all challenges receivable mid-XXXX.Â On Under veterans contracts, million for progress approximately create development subcontracted for considerable to remove due approximately which we vital Our to facilitating of backlog at million that payables the programs have of system $XXX we secured care made our be expect we have been with through federal level a tailwind as help X and VA. subcontractors,

pleased Dr. help in year. company's vertical. ideally x-ray also I'm our VA, mobile on to the our positioned in to has expand program needs and efforts completed the drive now Secretary X,XXX former and care and York since late of guide growth the that Shulkin, New health mobile the VA, are inception to delivery model to the we report brought serve leverage last images We help the to David continues over of population

transportation, care perform in expansions to continued predominantly us vertical, signed of an facilities services launching are X-year in Nashville markets extension care strategy in a system customer. and which key serve X-year a our to their leading customer services anchor providing the major medical keeping Texas Tennessee well that hospital that area, system signed to with Chattanooga, several a Tennessee-based contract customer with we markets. launch that entering health contract in Worth a services continue is We enabled We with Dallas-Fort announced with Our with region. just in to health

We system our are also expanding care relationship in New the health largest State. with York

continue Norm, to as hand maintain I at level quarter to and ahead. was important greater opportunities we chose I year-over-year. while prepare of than percentage and our substantially to revenues in next to able note that were the Before the in periods. it's it SG&A same We recent gross in infrastructure the growth to invest choose fourth think maintain margins will for to a

Given of critical in comes case. complement M&A inbound anticipate that in this to value a of to been existing build be becoming revenue migrant-related in return more not making care underway we exceptional pipeline Norm mass more financials. has the the factor our view able to strongly this be line obvious that the a period. If we that temporary to to maintaining higher a level revenue during could inquiries This highest with continue please point, pass believe quality customer accretive I'll that revenue, but all we accessing home the we expansions lies expedited this would and ahead. with the us transitionary to At in and lot be is go in never as do the allow opportunities already to base. in pace quality deliver higher SG&A drop growth the bring a cuts ahead, will being to levels, leverage not that about opportunity We lost substantial difficult-to-reach not field, is we while significantly and of base, get Norm, them invest what percentage and to will is future, the cover time of in preventative with a excited to increasingly traditionally stronger. ahead. historical it our that in over populations The general and strategic the customers

Norman Rosenberg

Thank and you, afternoon. good Lee

$XX fourth the quarter against The performance the by area of fourth compared recent results of in results, run like most particularly below in we when were I results our November, short Before EBITDA, quarter to fell implied fourth announced in where from all our quarter discussing back back through guidance I'd the guidance range to adjusted about range million November. guidance. by actual start our our

at the revenues sites some about to X% more Looking orderly down were as as of shortfall revenues revenue curtailed $X all some an migrant-related contributing million the shortfall that shortfall. wind at EBITDA $X.X forecast factors, a and with the adjusted schedule remained below on This our our million to services sites expedited of were entirely executed attributable that we translated operational. or

contributing and Also insurance SG&A our to business, $X.X are shortfall, care self-insured. spread of approximately we gap of in closure unanticipated there cost income sold $X.X of were the the the lines investments addition, expenses incremental where to statement. across of goods areas million both In million into relates

now let's which in operations the actual turn for year Total a the year-over-year the $XXX.X quarter revenue decline XX% entirety related of the was from quarter projects. fourth and to XXXX. of to for fourth the decrease So, of $XXX.X full million, was revenue of results XXXX The migrant million XXXX. fourth quarter

and began we several New May As have the XXXX fourth in the Hospitals HPD of of down quarters, be with over migrant-related the remaining expected year. exited the the end to our midpoint of City-based York is completed Health substantially XXXX, sites exit peaked and documented had with by from the New XXXX York in to the City all quarter past By of this work sites. migrant wind work we and the

fourth of from million Health in For XXXX $XXX.X revenue the the of was migrant-related down XXXX. XXXX, was quarter business. XX% full our X% from peak down year, were the million, XXXX, which revenues $XX.X for of fourth Mobile quarter the

revenue Health million XXXX XXXX, level. $XX.X the Mobile we year, Medical revenues $XXX.X increased were million the For the of from in QX X% of about transportation revenues from X% down to the past annual the fourth Transportation up of quarter X X% over they in higher XXXX a XXXX, XXXX. in at growth recorded and years. than have rate were of XX% increased revenues for compound transport

and net net the XXXX QX We and million gives robust We have XX% wins $X of revenue recorded beyond. $X.X XXXX. confidence quarter annual us that of for in of contract several recent a our fourth a pipeline expectation loss in XXXX with income in growth million compared

XX% the for million of For year's EBITDA $XX.X full rose million last in from income Adjusted year, $X.X to XXXX to fourth $XX net million XXXX. fourth quarter million in $XX.X XXXX, was the up in quarter. compared

margin, from XXXX fourth full adjusted Total the For of The adjusted in depreciation The up EBITDA identical gross which quarter XXXX, adjusted during from the XXXX. amortization in XX.X% $XX quarter margin for gross a million, margin adjusted was the X.X%, million was percentage was was full increase XXXX fourth EBITDA quarter XX.X% the $XX.X XXXX. the the fourth in down year XXXX. year of to XX% of XXXX. X.X% recorded quarter and the full for removes year, in of gross fourth margin the XX.X%, from of the of impact GAAP

margins fourth the quarter XX.X% benefited our XXXX Health XX.X% in fourth from Transportation was segment, markets. Transportation were XXXX, QX several costs for one the impacted the down adjusted in QX XXXX, During gross gross In had larger of were subcontractor QX in residual adjusted from of XXXX. from segment items. in of the XX.X%, still margin one-time by margins which up of quarter in Mobile XX.X%

able we quarter a been had these newly nearly fourth via gaps However, costs as subcontractor personnel. fill staffing were came field eliminated hired close, as to the to

fourth SG&A percentage Looking as at of to of up the from amounted quarter XX.X% operating in costs. total of XXXX, a fourth quarter XXXX. revenues XX.X% the in

absolute fourth in terms, from year's last XX% However, dollar declined SG&A quarter.

total a XXXX. margin of revenues, declined increase second early revenues seen and percentage As the as half operating in expansion second of in we XXXX SG&A we saw half of over the had reversing the XXXX,

additional addition, personnel services. payer up expenditures for equipping and the we In health personnel, aggressively areas our locations technology marketing, earlier, of billing, invested in those markets. and setting came and as These mentioned vertical credentialing, mobile our in Lee in base

levels in QX Since lower the X% XX%. In QX As the sequential by of we pause trend a temporary. a QX above, In SG&A costs from to mentioned to QX we QX due declined about SG&A. in by SG&A of of in would QX albeit sequentially XX%. QX result, migrant-related have that by of overall of when concurrent, and our experienced XXXX, XXXX. our a another witnessed be items our SG&A XX% decline SG&A declined XXXX, expect In another XXXX, levels increased by from smaller revenues of however, the QX, peaked,

in we the in While quarterly XXXX. of our that will continue we growing SG&A to in lines, business invest do expect will sequential QX resume declines

role let's Now XXXX has strides our deliver growth made ability where will in and play we the balance which in to that outlined. our a turn key sheet, just great to Lee initiatives

XX, nearly very an despite $XX.X cash and Health. in December We $XX our million cash was additional in in flow the $XX.X cash significant in of XXXX, generated our from million operations turnaround increase year-over-year. from when XXXX total and restricted operations of investment compared on to flow from an $X a end negative to our including million XX% million million. cash build We spending million $XX.X cash, equity cash XXXX equivalents, position was stock buybacks in Firefly as to close XXXX, up XXXX, a able were as As of $XXX.X of

our below Housing payment Preservation HPD. was a quarter York City's own fourth Development, the in operations from and New with flow of experience expectations, cash slower-than-expected Department the reflecting However,

to fourth not. we the $XX during approximately invoices Specifically, but there expected were monthly quarter had two collect that million totaling did

We to from significant our balance, have in far HPD cash expect thereby and capital. collected which outstanding, further will continue collect to everything XXXX so bolster sums investment is that our we increasing

continued of the receivable net down decline decrease to DSO, the nice end in to years. in outstanding, XXXX. we second XXXX, of sales accounts XXX the at the days million million, reflecting fact of from that the days that At the witnessed a migrant-related were the both revenues same receivable from XXXX $XXX.X XX% Consequently, over $XXX.X larger the of end our and Our at days due accounts were our XXX XXXX. year-end, invoices end essentially collections improvement revenues half was of at despite

to remains XXX-day bring larger goal the invoices. midpoint by of Our and older collect we into consolidated range XX- to municipal DSO the our XXXX around as

customers and to large come that accounts are us have convert continue receivable Our this paying largest week we payments including our regularly we cash. received several in, to payments as

Finally, outlook and turning XXXX. to guidance for our

further continue remain expect expect We million. $XXX $XXX range gross to in of revenues in that million full or We line year slightly better than margins the with of those to will XXXX.

for Given in digits. be that ongoing in margins will anticipate our we the the investment EBITDA new lines, expectation business mid-single

with I'd over accounts receivable that the $XX we will XXXX. we Operator, back point, expect the as collections, drive please operations to higher than significantly the like in shrink million ahead. to from to for Q&A. continuing turn this cash However, operator flow call large go XXXX generated At we our base in be from operations

Operator

Chickering [Operator Bank. comes first Your from Pito from question Instructions] Deutsche

Pito Chickering

with quarter, assuming Or of migrants you the $XX be a said fourth million is $XX you business base to Are million faster -- in $XXX XXXX? migrants growing thinking base guidance, would still business are migrants in revenue for the the million in the the 'XX? with quarter. winding XXXX million down faster you that of last the lot that On $XXX

Lee Bienstock

the for Thanks question. Absolutely.

as at situation million to we moment. quite shared migrant now that So, $XX expected that were fluid to on right is call, last migrant this safe and revenues for you our mentioned, say year. It's be, the dynamic the

it's year, it has base our but revenues. we possible for as migrant-related the are revenues so, I guidance to that move do business And over been entirely think keeping same the continues this shift from revenue to

migrant-related And revenues be migrant-related we business possible would base definitely in growing below so, our over that be any the those business to million experiencing the range. it personnel is and forecast, that now. revenues right can revenues when that operations by base we're replaced And revenues $XX move

Pito Chickering

sort pretty think just growth $XX a and months mean, November? I in So, through the I mean, $XX that way we of to the X mean up year. I almost guided million pick that's we you million, beyond of business do can of of extra base $XX business. big really here sort the are base million, an --

Lee Bienstock

business the excited Yes. right now. base We're is very where about

our As mentioned, quite an example, you pipeline for is since base our business robust.

contracts, deals in XX the municipal health XX system have deals We almost XX pipeline the about -- pipeline. for in

provider have We and over payer XXX deals.

of we company to something evergreen been pipeline, was more So, and a call. the out as working we detailing in year we have the the migrant-related on over of very robust last municipal transition as I has all contracts earlier as transition work,

robust mode a customers we now. pipeline. in right have A of are So, very lot our expansion

investing into we're As I mentioned, that.

so, migrant-related good to the are down, feel And revenues. a that to and business is staff growing And field pipeline. about that over transition our we winding base personnel of lot budding as the those corporate goal projects very

Pito Chickering

versus sort from are of -- XX% going investments to of guidance $XX order new in I in revenues amount to million so exactly million $XX Okay. looking same. pretty about the on the guess to today, order November the the in margin to seems go looks in then are investments investments to it It order that X% substantial X%. where a keep And of at just the of grow?

think didn't give us few sort spend can spend of you more months today to need a you ago? versus of that a So, you'd that exactly details of you why

Lee Bienstock

Yes.

stack. some the investing off, and the we continue buckets, tech invest in are think big first of I to

bookings mentioned things gap we last for the care automated that closure to that a patient call, week of we rate came year. and X,XXX of visit the I very engagement out increase our business QX care exit the did close we process, programs. to end close is on the on our One at significantly gap allowed the our to us

to going tech investments on to we're the make So, continue stack.

to We closure personnel, wide very well-trained procedures go set. XX in continue the home. do skill Those different training personnel, field for LPNs we field very, care. into to deliver and over We particularly the are gap home bring a the care on

so, clinicians our customers. this for trained to being very our are that of And scope wide is practice attractive

So, deliver our sure we I'll our the personnel personnel move of the as are equipped forward. well we've also an pretty to want say these to proper investing some experience in proper heavily to make field in pipeline are exceptional training to investing that. that as with technology drive been the business deals field, and and we the development continue in

to the so, And are training of areas. field as as well we're the corporate staff our staff. big in going investments well making as Those continue the

Norman Rosenberg

that look we're going of people these Realistically, reluctant seeing to talking growth types SG&A certain spent we've areas about Norm. and these to that, out a Lee close quarters it's doing. in a are and add just corporate his are take that the though, who Lee as few about. it we of We've rightsize this need the in was what discretionary that Yes. because mean, it talking we're where been to on I'll what costs this part relates spending infrastructure remained percentage to overhead programs touching the our to to been some big of revenue so relatively had saying. be we're comments, I some of a alluded past. of of it, to through

-- cost so, And like certainly cutting. we not haven't it's on given the up we've

We the of through doing But in see measured you're and way. it go more to a deeply in a we're are And here as it. engaged that we deeply it, deeply, in fruits engaged maybe XXXX. going is everybody

margin And of so, what EBITDA the those why in trajectory trajectory costs had the think of corporate in large the one will be ago. or that we few we is from that a months reasons the different thought change decline overhead the

Pito Chickering

migrants question, We're some mean, the of just million sort running revenues. before go that of was maintaining first numbers sort Okay. back 'XX. I of to here. I my target $XX if in

more going just of $XX base we're sort better. November. closed in of I'm business pulling the the Are offset, where So, base those this out is point? getting the saying I number already to that's XX% about of If deals versus at at margin than XX% mean, at again, this already have are closed we already leverage margin you leverage where with are down, these this we were like point SG&A looking closed deals we say, business and been November? today this in have year, of gross that, like the mean, coming I as increase the I'm we here, at and point? a were million deals

Lee Bienstock

Yes.

We the we forward. to year XX% start more then last continuing and year have out additional closed of And this deals closed the deals have at we're pipeline those year. we that as in the as push well

Operator

Fitzgerald. comes with question Sarah James Cantor next from The

Gaby

the on 'XX? visibility you unanticipated repeat falling Gaby Can expenses on won't wanted Sarah. short. for on that to have talk the million I you $X.X that, what touch in is EBITDA This of about

Norman Rosenberg

are, by Look, to if predict the are is were premium large. to what know numbers uncertainty self-insured where be say as and there's we going insured going opposed be year-to-year. there's completely the just you're we're then regular to those of great going premium, And from bit we to trying when no premium a about just a it's is manner a the first like be paying question. Norm. Yes, in Hey, where what we about what little Gaby, as that it you're a is question that thing it's to -- I'll

we are are self-insured, reported. come claims obviously, were it, There's or are what Here, of being in. of that but anticipation yet there the to lower level in than in going claims at piece so are reserved There is the for. claims that a not that which going come to IBNR incurred higher had

can be up, going are of always go number happen regard. that down. There that there's in to number And a So, that go lot can can that fluctuation. a things

quarter, we I So, millions, it's not it do things that would properly probably you're if discuss the likely, company. insurance at least by basis, won't quarters. in is one in if point part be the a way thing as you're one monthly auto I'll we of captive reserving say out, our repeat. we But estimate, the and of maybe like and couple next are even The it's that for comp, health internally, hard here having reserved workers' to the insurance reserving going $XX on million to saving, a our year above something

an that well. like as cyber moving of auto In or potentially the use fact, working us. the and it and if And our as on just to experience It's out would than other I'll what very, what expensive has been it of be insurance lines part market. tends that of and better the general be. insurance in worked there ambulance speaking, part it we well liability place Generally anything, And very liability it the professional overpriced. comparing found into consistently for we're are is to we're example, substantially prices liability, very that

fluctuation cost. to willing accept we're some in that So,

This of basis, than it an would on been. But it. ongoing quarter, the lower downside we it's saw have

at ahead still definitely it. look on basis project of it we a well when So, we're across time,

Gaby

remarks XXXX. dollar-based you just prepared could a SG&A percentage? decline I of I thought a as quarters be then throughout mention in in one Okay. the a Great. that heard sequential more. And I the sneak or if on Would metric in

Norman Rosenberg

Yes.

we I base down dollar on on was as we a and basis So, I we down basis, QX a percentage in be What seen QX QX SG&A than expect had XXXX, we in that it and in QX. with actually, that QX, up XXXX. my saying past will terms, a in XXXX, in this mentioned in would in decline -- I'm sequential point lower that dollar that was a had QX, came just of QX popped reported. fully start what was expect came high When it is which

big going Now obviously in say revenue year, calculating likely revenues percentage, to out that way of as the as I be that far that's terms the the represents. are based of and to percentage the trending, on look a most SG&A deal I would if

that to going of as had level closer revenue get this QX. that will once to was about prior So, seen percentage get level higher say QX, be into to year maybe we're as we I comes you lot that alluding QX of than on QX, technically will some in that in would we a a QX better then and But earlier. to QX QX same basis. be Lee the saw

will So translate those contract wins into revenue. actual

terms declines dollars, in sequential absolute absolute expect we of see -- In throughout that dollar year. we would the SG&A would the

Operator

Richard with The next comes from question Canaccord. Close

Richard Close

to what million in like I Lee, quarter you tell met the the the to looking revenue Just type million full were was trying if that fourth of late. year? can $XXX migrant us the and that $XXX you see core for. specifically jumped on number guys

Lee Bienstock

Absolutely. Hi, Richard.

hit that approximately $XX about the and the it year, did We we base answer And to range previous migrant we base in business $XXX did on for revenue So, the million million. million, be million. for $XXX was QX the hit our -- $XXX guidance expected range. total were revenues business shared our question, your to for call to had that

Norman Rosenberg

Yes, million we that million, in $XXX were about area. $XXX

Richard Close

Okay. Great.

And I sorry to And I'm any late a my whatnot insurance on guidance through on here be notes of just Norman, ago, something say. is jumping what this like remember trying years don't this didn't call doing quickly, couple but the -- to want conservative, we on up way going there. didn't pop so pop you're like prevent based this have up? something to there to and with more for

Norman Rosenberg

things and couple mean and long. sure accident, I up, to have different years to mature, it looking way the we all see then have now. pop insurance old something for you're as taking two, see game is having develop, in of an In insurance myself works claim example, the not popping conservatively captive up like couple far stuff it. pop develops prevent the that typically the reserved I'm you not how that like this good But if as year at the that at get being we -- a Well, is can is, from this. have best one, ago. been things -- a years. like forward and about think not What very It's we we what to and looking severity I don't referring And it again as more there, we as things, up very year different a We're you've some been of about, goes things will on guy way team change. ambulance-related that claim the frequency for timing time, over the got of like

that to happened, build in, out when claims then simply accounting sort in. simply allows claims IBNR where it So, smooth more claims come to an record we situation to that us as come about being reserving opposed it's timing subject haven't make a of for I you're to -- in as it. And and as as that the of the the use conservative get we sure we

So, out would as is towards long go. hope this the would exactly us insurance take doing costs to of that, we thing, way smooth a I which very sort

Richard Close

obviously, it? people you that on these guys if units One The and making no of have you're you're to your seems guys guys robust you Is in you been bucket of of upfront divisions successful if -- there investments. is, about investments I guess, another thinking sort to like have the investments business. now, the are but pipeline, pipelines or shortage signing the how X had going new then of you new you're Okay. you since have have And given pipeline in thing that all think them. on in with there's public executing a Just future do that? execute are win to business, all problem in costs

Lee Bienstock

Richard. great It's Absolutely. a question,

we've perhaps company right? a frankly, of foremost, changed oriented the lot crisis that of we're as pursuing, winning we heavily and and bit towards ambulance response, crisis DNA, essentially response the a deals our projects and pursuing municipal related. and pipeline So, a our first really part have very emergency health mobile was were evolved, think we are the of of I ethos

then -- And were they start, sunset, they they start they a as and they so, result, sunset investments. and requires

right really is evergreen opportunities. on now Our pipeline focused

care here business is our today. closure So, gap

be year. here will of We the end the towards

In always patients issues, fact, year. they are plans have go the as that there as access then as more unattributed, health try make And unfortunately, year have throughout are chronic increases unengaged, more progresses the conditions. progress and it again, to

next year so so lists seen they're PCP from we've patients, as into to on. we already and primary last and care us. convert provider a from where the patients one become year those on to an this And carry and year long-term those And now so evergreen for business

can and at side health opportunities providing municipal in not located evaluations, we our to care. preventative necessarily but health screenings but other the we're well, patients disabled looking be communities, as crisis where to services On that are veterans, hard-to-reach rather response,

those really So evolution care. to and started building and -- is starting really of very, sort And we're year, come of last preventative that the long-term excited it's at the towards really about company year we've moving last are proactive this of the year, and to the end into fruition that. pipeline very

so, I out build to us to continue And you're see going think that pipeline.

will see those of and pour and build going invest. will less of migrant-related get to the more then will evergreen and we're more our investment frees be work, from our pipeline I into we going to And those going. As the sort and require stop there. to from opportunities, start and up bandwidth think do you're resources

new fleet care here. we'll there. vehicles accessible veterans able as see contracts, evergreen to provide be ADA win ADA part are gets, an just our style going be big we an to but to As that supporting expansion example, these as vehicles. how We will we're of veterans acquire of acquired And disabled a programs -- where our to

pipeline greatly types which evergreen and So, think company the will of be the very that I are from. we're and pursuing, those an opportunities pipeline, will benefit

Richard Close

about maybe transportation. growth you business? my are thinking part How question, of on of final long-term guys like in terms that transportation the the of And rate Okay.

Lee Bienstock

excited for about the transport space. growth very We're the opportunities

Norm annually system over have, X growing lot mentioned, deals for those the do As just been transport-related of XX that about past pipeline. mentioned, years. -- business are about A the I contracts. we've as in XX% compounded health We

opportunity to to And so, grow. business that continue we think has

we a on sort one. come one in a where on to we next considerably of XX% then we target the will large work then go them have on new and growth the bring that We systems does and I and top-line that add and adds growth function there we then rate and step-wise business. sign say health that

signing on. are health as so, bring we systems, we And them these

that. doing I think our team is a job wonderful on

platform, the think, in tech frankly, is, industry. our -- I best the have We

of field because is with that's platform team fleet of essentially the but is manage to closure platform our that service A, tech at vanguard work and just We our also tech have being growing field these what's programs. want the that the to really in systems us, handling spectacular, health we're quality the And developed care in the industry. also in utilizing gap the our

of that the the in I care end that the the business manage we're the going really a at done call we have, That's now field. with out gap job last They're the was diagnostics right from year patient expanding do side just as of transport platform units need, a great -- I at closure, where field, we the mobile So, year. week trained as health we've symphony, right for the right great closure we X,XXX closed of about clinician in a gap in care mentioning, the out the tech lot right sure to X to quality making the it visits service.

just And the platform take the and excited to the apply it platform developed we that so, side, side, surface. scratched on tech that tech that we've health really very, opportunity we're utilizing very mobile transport think the about which we and only we're to

it continue the as excited we cars, manage will the business transport platform leverage grow. in to field, the ambulances very think about now again, I the which, space, we're I fly the the tech appreciate I'm leverage very in health them market we that to now to surface. healthcare space opportunity mobile to opportunity. in but the scratching the call much So, the will as And on field into only the platform mobile the tech the expand think

Richard Close

X.X%, like quarter quarterly was X% we and 'XX? at Because third if or like the growth, here in So, it should quarter. Norman, I'm to be looking if the looking you're expecting at second progression X% XX% in right, how fourth a

Norman Rosenberg

Yes.

would there we of look, it's State that a now And linear. somewhat think to I are are at linear, the that I hospitals of say So, that very New couple sounding say, because, risk in going York servicing. I I'll say in, be

We the sign-off, out for because but waiting we're yet release haven't already put activity started. has press the

the and then will we're as So, but at in. have work where a we're that a And in QX. obviously begun to and will those -- QX be QX those line we and there we will probably go. ramp we are sometime event, into hit that think ramp probably line X-yard There X-yard QX hospital are going systems with, not or couple

you just you're looks So QX. based to that on pipeline like, to QX, get what the of once going get full and especially QX benefit the

higher on in sort I QX, anticipate in year. and XXXX. of and will throughout sequentially QX we I QX would so forth its up so QX, that revenues So, the that, transport work way expect and would exit as in higher and QX

Operator

The & next question with Company. from comes Needham Ryan MacDonald

Matthew Shea

is This Ryan. for Shea Matt on

wind outlook. accelerated down that revenues. here? I is And visibility to of risk getting remaining trying the that or down risk able that with good to replace from impact But winds given for and there's the the gets on if you'll further the while the that core XXXX, EBITDA pretty cost it weighing portion faster, appreciate you migrant accelerated be transition, gauge any further there revenues On

Lee Bienstock

I'm to intimately very in as I've whole Lee. it's question Matt, Yes. the here. happy take involved that obviously process been

administration yes, could than landscape. and less in considering going political I think, the it's that be current $XX possible million the what's the absolutely on it

at would remarks. that down, last are opportunities we prepared absolutely personnel, it's the the year the transition of particularly EBITDA than to end so, possible that we And adjusted be as So, this we right? it say we're basically that margin million. opportunities, And part in that's on EBITDA it I less lower gave guidance I for that's would -- could $XX why outlined us it we will that why cost lower guide call. and from to the transition, with the it to new just mentioned, accounting some margin cost investment and you staff with in that that will adjusting

Matthew Shea

run into then. targets in the to think, the care care virtual given captured where in outlook on Do about get XXXX, any XXXX, business I to faster now for, Okay. the thinking XX,XXX targets those love closures that X,XXX the care could could It mentioned hoping how you payer gap end gap business. I update expansion rate know previously set payers, for your and still XX,XXX on primary rollout? and sounds up payer would get it's to like the that XX,XXX patients you care you're management. Or patients are accelerating stand? Maybe the

Lee Bienstock

Yes.

still We'll stand. those the think I progress So, throughout update year them targets here. we as

it I think a few we in about think ways.

the will year So health year. as week now over of so the matching our out week scale help came the visit for year rate cadence. yes, XXX start address you this to a Currently, we're period about The that have to we the plans rate give last We a exit seasonally at of plans, health their year. of the right is indeed very to at the for that think end still per and the X,XXX be we close introductory end the for sort sense visits open gaps. and we're patients of XXX close per run to the year visit year beginning a week of X,XXX

the and we'll and absolutely the now family. phlebotomy ways into So, looking of we that visits visits the say step up their think we them brought care the expand to continue mobile doing PTI at we're the I'd scope services gap Health home, is care also goal. on also brought in DocGo we that's that that gap XX,XXX to

to continue we'll So, metrics. those update

gaps. Our as well contracting the provider plans to into with is as health PCP progressing care the evolve closing

our mentioned, XX,XXX goal to as enroll well. there so, XX,XXX And And we PCP patients remains as monitored patients. as about well the same

sign So, as contracts. we'll we to continue update

guidance we this to As continue this But to for we ramp included was we and targets and scale, our year. continue mentioned, as we'll of as a pipeline lot gave those. update

Matthew Shea

this Maybe business. on Lee. question. one municipal guess last that, one X I parts to just the Appreciate

initiative the start Anything to goal XXXX that maybe First, think benefit called from subcontracting identifying was is last to large quarter, early might know with you Project Prime some health we it of can population talked DocGo. see on contractors I you progress. about, might that? comment where I

love the in federal your in any changes general. there. influenced the to just So on business municipal impact would or muni just dollars, just be your given thoughts would second, love business broadly, Washington government policy And hear then could potentially update programs can and by how I

Lee Bienstock

Absolutely.

are Prime, the such is our already contracts existing you to partnering So, going well. municipal Project mentioned, signing entities where providers VA we service as with and as

to signed As current to contractors I providing or provide are services contracts mentioned, we services X that the VA. subcontractor

And space. mentioned, of signed contracts So team, and other again, that's kind we are I we're opportunities has into as we how X that a pipeline that our ramping working of on.

So, it is progressing.

to did as mentioned, sign to As X and there we as already part I contracts well. invest of going that initiative, we're continue

And the so goal. that's

the for for been messaging care programs for are In that and believe other pipeline and medical continue bipartisan, ones of are go so goal it's Washington, opportunities over of will our to progress are has the a care those ones, been type really providing decades, the we decades, example. evergreen-style of to terms the right examples now, veterans. there a pretty municipal imperatives the be veterans exactly out our of for have start in to think municipal we providing is our will But after political great those we pursuing. the believe as ones really It has share an as be government coming good the been that future example, opportunities and there I evergreen through. where We'll we're

to are I have now don't access on populations also a side. view focused We where do progressing cost-effective right to of our in of as more tremendous which ROI, terms to We're messaging where way, on a of think total the the that municipal health care. result, dynamic we're lowers right which bringing cost that's with better aligns actually now, cost-effective care improving outcomes, the do care. care underserved and providing it good we of in way ROI essentially things some bringing populations in a out coming again, more Washington where it

So, we're the really the side trend on we of like feel right here.

Operator

with Larsen next question BTIG. David comes from The

David Larsen

$XX in said revenue million there the you migrant think I was quarter. of

base So, if base in If revenue, it the you're you that And million $XX looks I revenue. for million to around quarter. was like at migrant add million maybe that, up that your $XX the million I puts $XXX then year. annualize $XXX in for

I think the guide like is million. $XXX

gap So, visits a million, million there's another a around capture. million. of pop, or think $XX $XX X,XXX a delta $XXX $XXX $XXX If I means assume million of week there that's to care revenue at which there's we like

that or million any yes, -- it $XXX like of how for of any CRM. that, much that's you go Just is very Any you around, under to We're that's of win identified. million late-stage discussions more got contract Just sort for in be $XX color like provide the already conviction of half helpful. would now? versus can It's in signed? that

Norman Rosenberg

start Norman. of the can you it's I'll David, Lee, in some maybe and fill blanks.

at $XXX next year. place start million on the did is transport we the would business, million. $XXX So, about first for where We're about I looking

we We currently good we ought to So line, line that's to a to about think, look I that at really $XX million contracted that get be increase. that, number. everything feel that's able them by about if number. Taking

is or that's up some of going kind volumes for. contracted. that's called some That's depend to course, in ramp able increase of that the but to of the Now subject how thing, quickly to right?Â Everything we're on places, of

and In in that alluded be in fact, the the not was some $XXX of pipeline if stuff anything, incremental to million that. that Lee to would

around businesses bit number. little get we already would municipal point some would of side general say different in is be potential HPP upside we health have, which for than your would of there. say our little the meaning $XX the closed.Â I million $XX So, of if in places, it I aren't or $XX million, certain Otherwise, combined contracts some the we accounted the higher obviously, that in, fees, other can covered that payer maybe so there then And bit on where They're that in those came there. came probably have program, things by range so, there's just higher your million than the terms a could mobile largely to company or yet. the a PTI contracted is I where those most still in, with

So, we're we're cognizant year. the months of X fact into already the

that kind mobile probably is So, we'd situation. that of go-get space I within health be municipal in have to in $XX say would maybe million particular. the But the

Operator

question with comes Michael next from Northland Latimore The Capital.

Aditya Dagaonkar

Latimore. is of of operations operations? from cash This Mike the Aditya you to on color on you behalf cash flow flow expect Could some what Like from give percentage the be a EBITDA? as do

Norman Rosenberg

Sure.

So, back this at look and year. say well, I would let's go

million, EBITDA. operations, XX-K, release, it's that about flow you'll which So, of million $XX well, filed this in the from year, the about which we $XX compares as in cash our was and see and to

fact from the our adjusted an million sort a where is but year-over-year. just capital obviously receivables we this had operations that and by idea of that working we some for of a flow had EBITDA because the cash good proxy year cash number. it you outstripped receivables about flow, So, $XX is proxy down went of EBITDA EBITDA collections or gives movements

got more in some of than that how able we that's the our about there thing and at fully which expect even here, we fact million generate the as some from Housing script significant talked which we've that able to EBITDA operating And $XX this a $XXX migrant XXXX. out the outstrip earnings So, be York accounts the the expect migrant to we to generate about is were did flow.Â One is guess, are, migrant lot that we million about number there, programs million. that in we that release cash we so the margins would about -- Preservation that we mentioned where out those and of point a bit AR flow cash little our with operations in is prepared out regardless end City to will of significant started of because simply comments, $XX we year, was flow. well, the receivable to had revenue And in I from expect HPD, New H&H, than Development, between more

that, X in $XXX And them, about million. about the between of So, against $XX we have payable. accounts million

to that that's us cash operating flow in So, of be collecting there help out big the process that able there's we should higher. a are that drive number

Aditya Dagaonkar

what of Got percentage was it. expense the And labor subcontracted a as total?

Norman Rosenberg

down peak was quarter fourth come a That At bit. of and number that's XX%. year. So point, labor. is at height look I our the at projects, think probably say the was If quite I it was one would of probably W-X about I over That I the get migrant were would to number with speed still trying while company, across we our up XX%. the to say own last the

So, it's dropped pretty, pretty significantly.

costs health Now on I labor subcontracted side. transport both the the did mention, we and have mobile

one than little in higher should it was that side, markets. of transport been our the On have a

the would are side for by the say, otherwise, transport I XX%. to being anymore. quarter, margins, closer But suppressed Those that not on XX.X% in that's there So would now. been probably subcontractors of have gone instead

as So, revenue. to of expect percentage QX. XX% will that, revenue I will a decline would under that continue subcontractor of into It be

Operator

The next question Stifel. comes from David Grossman with

Aidan Conniff

Conniff year. some on OpEx I your David. assumptions additional detail for total for was Aidan you is This just for the if on wondering could provide

Norman Rosenberg

percentage did look in let's think to it at And is is in back the look I of we at Again, as QX it of also, revenue, and figure and it what into context it to how quarters. which we're prior Sure. the way out. in a trying

similar pretty year to saw will gross that we assumption be our So, XXXX. is in margins full what

XX.X%. year So, about we that of to a a there different be to the We get higher, think number XX%, maybe at did the suppressing us are XXXX, were full notch we'll given for things couple that that XX.X%.

gross a has the think down. number that seen the be not that even revenue natural his deterioration in the should did XX%.Â Important as we have margin we comments, to Lee in come as number So, note,

mean or we're hanging certainly basis, about If in X% that we're then So it, and there think that's pretty let's variable the well. a EBITDA on margin, digit, XX%. cost doing talking case, a would mid-single marginally and we call about

about on. of be revenue went So, SG&A would XX% as the on the average year

For as number all different revenue migrant in, sequentially kicks that higher with you this then mentioned on in quarter, more a of we percentage, revenue. And a even starts we full year, would investments had basis, we about revenue about, as in be down, let's going really as at core think number about some where at XX.X%. of well context, bit fourth lower. third it if percentage saw should as move growth the where QX its under in back will QX top that year to XX% look below the move will would we where little this a higher, But be then of I quarter, as the that come half get are the things of those with probably year into that because quarter.Â So, added the I say, in in the some decline at QX some away. XX% stuff in and of that of business this think the in of of be we level definitely were that we're We and talked than we've to trended, were but some this

Aidan Conniff

That for then the come was pipeline. time? details helpful. And How guys the how of about over thinking course you just in are thanks deals conversion Great. the just pipeline on and the that over year of

Lee Bienstock

absolutely. Yes,

do vertical, see we sort customer So, the on depend it the does vertical. really of

activity the year, side. we the flurry last in end saw deals of I of think at payer on a

unattributed that we're and of out closing plans close to our do again I focus to And this deals now. end really that gaps think year. the I operationalizing some We anticipate the their really on right care members, also year. their the have we year, start members, at think really unengaged

So they're on. that's where measured

come the start at deals of year. that push the that at will well, pipeline. successful QX an big think a then see uptick gave I of the to in for top to We have again start of we QX, really we filling as And So, sort some year. funnel continued doing and to of end were in this last the

On the transportation pretty it's the hospital side, medical system year. and throughout consistent

and be is or smooth with to And to number services a prime side, that on have we about already start or ramp work and mode. And the yard they're where of as help to smooth vendors so and contracts tends opportunities the deals the in in the at work are that the speak, expansion one pipeline the we to of hospital year.Â And maybe We that Prime field. go in side, going medical are and that municipal them very, line particular transportation system it's is we feel to already confident as now. municipal help right signed mentioned, we've Norm Project very very of lumpy. out, our expand to that sort more one RFP-driven binary providing uniform of pretty As the throughout goals out us

of part that's So that initiative.

the some think to the see continuing year, and I to towards activity year, of as the aggressively smoothing end a start of pipeline. we're this and continue We're of of the can. top pipeline to flurry beginning of the work opportunities going So, signed we possibly we'll to towards as that we funnel, add

Operator

this no are at There further questions time.

sir. call Please the over to Lee turn Bienstock, me ahead, Let go CEO.

Lee Bienstock

and well. Thank Thank for you joining us, so much. be everyone you to

Operator

and Ladies you today's call. gentlemen, this participation. conference concludes your Thank for

You may now disconnect.

DocGo (DCGO) 27 Feb 252024 Q4 Earnings call transcript