DocGo (DCGO)2025-02-27 21:33Financial Performance - For the year ended December 31, 2024, the company recorded net income of 10.0 million in 2023 and 616.6 million, a decrease of 19.7 million, or 4.4%, to 12.0 million, or 6.6%, to 13.4 million, an increase of 10.0 million in 2023[361]. - The provision for income taxes increased to 6.2 million in 2023, primarily due to higher pretax income[380]. Revenue Segments - The company derives revenue primarily from two segments: Mobile Health Services and Transportation Services[351]. - Mobile Health Services revenues increased to 116.9 million, or 35.9%, primarily due to service expansion in the government customer sector[386]. - Transportation Services revenues reached 66.9 million, or 58.3%, driven by a 15.8% increase in trip volumes[387]. Expenses and Costs - Total cost of revenues decreased by 403.0 million, with cost of revenues as a percentage of revenues decreasing to 65.4% from 68.7%[365][366]. - Operating expenses increased by 184.9 million, with operating expenses as a percentage of revenues rising to 30.0% from 28.9%[369]. - The company focuses on managing working capital and operating expenses, with significant costs in labor, medical supplies, and vehicle-related expenses[336]. Acquisitions and Investments - The company completed three acquisitions in 2023 for an aggregate purchase price of 89.2 million, reflecting an increase of 70.3 million, a significant increase of 64.2 million in 2023[415]. - The Company’s total working capital as of December 31, 2024, was 13.9 million or 8.2% compared to $168.8 million in 2023[413]. Market Conditions and Risks - The company operates in a competitive environment influenced by macroeconomic conditions, including interest rates and inflation[332]. - The company expects general and administrative expenses to increase as it scales its business and complies with SEC regulations[353]. - The company anticipates that revenues from migrant-related projects will be significantly lower in 2025 compared to 2024 and the second half of 2023[348]. Customer Concentration - One customer accounted for approximately 38% of revenues and 39% of net accounts receivable for the year ended December 31, 2024[458]. - Another customer accounted for approximately 28% of revenues and 37% of net accounts receivable for the same period[458]. Credit and Interest Rate Risk - The Company does not believe it is exposed to significant credit risk due to the financial strength of the depository institutions[457]. - The Company has not utilized interest rate hedging or other strategies to mitigate interest rate risk[454]. - A hypothetical 10% change in interest rates during the year ended December 31, 2024, would have had a neutral net impact on the Consolidated Financial Statements[454].