DocGo (DCGO) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $120.8 million, a 39% decrease from$ 199.2 million in Q4 2023 [32] - For the full year, revenues were $616.6 million in 2024, down 1% from 2023 [34] - Net loss for Q4 2024 was$ 7.6 million, compared to net income of $8 million in Q4 2023 [35] - Adjusted EBITDA for Q4 2024 was$ 1.1 million, down from $22.6 million in the previous year [35] - Adjusted EBITDA for the full year was$ 60.3 million, a 12% increase from $54 million in 2023 [36] Business Line Data and Key Metrics Changes - Mobile Health revenue for Q4 2024 was$ 71.8 million, down 52% from Q4 2023 [34] - Medical transportation revenue increased to $49.1 million in Q4 2024, up about 1% from Q4 2023 [34] - Transportation revenues for 2024 were 7% higher than in 2023, with a compound annual growth rate of 32% over the past three years [34] Market Data and Key Metrics Changes - The company provided services across 31 states in the U.S. and the UK, facilitating over 1.5 million patient interactions in 2024 [13] - The company was recognized as one of the top innovators in healthcare, receiving over 40,000 job applications from healthcare clinicians and corporate staff [14] Company Strategy and Development Direction - The company aims to build a 100-year company that transforms healthcare delivery and provides high-quality, accessible care [10] - Investments are being made in technology, experienced operators, and sales personnel to support growth [11] - The company acquired PTI Health, a mobile phlebotomy company, to expand its service capabilities [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a near-term impact on profitability due to aggressive investments but sees strong growth potential in the future [10] - The company anticipates a significant cash flow tailwind from accounts receivable related to migrant programs, expected to be fully paid by mid-2025 [22] - Management expressed confidence in achieving a 15% annual revenue growth expectation for 2025 and beyond [34] Other Important Information - SG&A as a percentage of total revenues was 39.7% in Q4 2024, up from 27.6% in Q4 2023 [38] - The company generated$ 70.3 million in cash flow from operations in 2024, a significant turnaround from a negative cash flow in 2023 [42] Q&A Session Summary Question: What is the 2025 revenue guidance considering the migrant revenue situation? - Management indicated that the migrant revenue could be less than the previously expected $50 million, but they are transitioning personnel to growing base business revenues [51][113] Question: Can you provide details on the$ 3.2 million of unanticipated expenses? - Management explained that being self-insured introduces uncertainty in expenses, but they are working on better reserving practices to mitigate future fluctuations [72][75] Question: What is the status of the municipal business and Project Prime initiative? - Management confirmed that Project Prime is progressing well, with contracts signed to provide services for existing contractors to municipal entities [121]