Company Significantly Expands Operations on the
West Coast to Support New Payer Programs, Increases Full-Year
Guidance for Cash Flow from Operations
Management to Host Conference Call and Webcast
Today at 5:00 PM Eastern Time
DocGo Inc. (Nasdaq: DCGO) (“DocGo” or the “Company”), a leading
provider of technology-enabled mobile health services, today
announced financial and operating results for the quarter ended
September 30, 2024.
Third Quarter 2024 Financial Highlights
- Total revenue for the third quarter of 2024 was $138.7 million,
compared to $186.6 million in the third quarter of 2023, a decrease
of 26%. The decline was primarily due to the planned wind down of
migrant-related programs. For the first nine months of 2024, total
revenue was $495.7 million, compared to $425.0 for the first nine
months of 2023, an increase of 17%.
- GAAP gross margin (which includes non-cash depreciation
expenses) for the third quarter of 2024 was 33.0%, compared to
27.2% in the third quarter of 2023.
- Adjusted gross margin1 for the third quarter of 2024 was 36.0%,
compared to 29.5% in the third quarter of 2023.
- Net income was $4.5 million for the third quarter of 2024,
compared to $4.6 million in the third quarter of 2023, a decrease
of 2%. For the first nine months of 2024, net income was $21.0
million, a substantial increase compared to $2.1 million for the
first nine months of 2023.
- Adjusted EBITDA1 was $17.9 million for the third quarter of
2024, compared to $16.7 million for the third quarter of 2023, an
increase of 7%. For the first nine months of 2024, adjusted EBITDA1
was $59.2 million, compared to $31.5 million for the first nine
months of 2023, an increase of 88%.
- Mobile Health Services revenue for the third quarter of 2024
was $90.7 million, compared to $139.3 million for the third quarter
of 2023, a decrease of 35%. For the first nine months of 2024,
Mobile Health Services revenue was $351.3 million, compared to
$292.3 million for the first nine months of 2023, an increase of
20%.
- Transportation Services revenue in the third quarter of 2024
was $48 million, compared to $47.2 million for the third quarter of
2023, an increase of 2%. For the first nine months of 2024,
Transportation Services revenue was $144.4 million, compared to
$132.7 million for the first nine months of 2023, an increase of
9%.
- As of September 30, 2024, the Company held total cash and cash
equivalents, including restricted cash, of approximately $108.5
million, compared to $85.8 million as of June 30, 2024.
2024 Guidance
- Full-year 2024 revenue guidance range has been tightened to
$620-$630 million, compared to the previous estimate of $600-$650
million.
- Full-year 2024 adjusted EBITDA2 is now expected to be $70-$75
million, compared to the previous estimate of $65-$75 million.
- Full-year 2024 cash flow from operations is being increased to
$90-$100 million, compared to the previous estimate of $80-$90
million.
2025 Guidance
- Full-year 2025 revenue is expected to be $410-$450
million.
- Full-year 2025 adjusted EBITDA margin2 is expected to be in a
range of 8%-10% of total revenue.
Select Corporate Highlights for the Third Quarter 2024 and
Recent Weeks
- For the second consecutive quarter, the Company more than
doubled the number of patients assigned by its insurance partners
for care gap closure services when compared to the end of the prior
quarter, and is now in excess of 500,000.
- Significantly expanded the Company’s geographic footprint
across the west coast in support of its care gap closure programs,
which will enhance healthcare access for hundreds of thousands of
Medicaid recipients in California.
- Driven by demonstrating an over 50% reduction in ED admissions
for L.A. Care - a major California payer with 2.5 million members -
the Company signed a contract expansion to extend its transitional
care services, add care gap closure services, and help manage some
of the payer’s most complex, high-risk member population.
- Healthcare visionary Dr. Stephen K. Klasko joined the Board of
Directors as Chair. Dr. Klasko was previously CEO of Jefferson
Health.
- Secured $4 million contract extension to continue providing
vital 911 basic life support services for Atlantic City, New
Jersey.
- Launched Well Child Visits program with a major payer to help
eliminate barriers to pediatric preventive care and advance health
equity for children & families.
- In Dover, Delaware, launched 911 emergency medical services and
renewed our partnership with Bayhealth to provide non-emergency
medical transportation services for another three years.
- Signed a new contract to facilitate in-home medical services
for members of Firefly Health, an employer-focused health plan
provider.
Lee Bienstock, Chief Executive Officer of DocGo, commented, “Our
business continues to perform well across all customer verticals.
We are seeing especially strong demand for our care gap closure
programs with substantial increases in all leading indicators as
well as doubling the average weekly number of care gap visits
completed when compared to our average weekly run rate from last
quarter. We are rapidly building out the infrastructure to support
continued growth in these programs across California and in the
Northeast as well.”
Norm Rosenberg, Chief Financial Officer of DocGo, also
commented, “We continued to see a significant increase in our cash
balance and generated over $31 million in cash flow from operations
during the period. Throughout 2023 and early 2024, we had a
considerable working capital outlay to support our migrant related
programs. As these programs wind down, we are seeing that trend
reverse and are recognizing strong cash flow as a result which
should continue over the coming quarters. Our strong balance sheet
gives us the ability to support our growth initiatives, make
additional share repurchases, fund new strategic relationships and
repay our line of credit.”
- Adjusted gross margin and adjusted EBITDA are non-GAAP
financial measures. See “Non-GAAP Financial Measures” below for
additional information on these non-GAAP financial measures and
reconciliations to the most comparable GAAP measures.
- Adjusted EBITDA and adjusted EBITDA margin are non-GAAP
financial measures. We have not reconciled adjusted EBITDA outlook
or adjusted EBITDA margin outlook to the most comparable GAAP
outlooks because it is not possible to do so without unreasonable
efforts due to the uncertainty and potential variability of
reconciling items, which are dependent on future events and often
outside of management’s control and which could be significant.
Because such items cannot be reasonably predicted with the level of
precision required, we are unable to provide an outlook for the
comparable GAAP measure (net income and net margin).
Forward-looking estimates of adjusted EBITDA and adjusted EBITDA
margin are made in a manner consistent with the relevant
definitions and assumptions noted herein.
Conference Call and Webcast Details
Thursday, November 7, 2024 at 5:00 PM
ET
1-800-717-1738 – Investors Dial
1-646-307-1865 – Int’l Investors Dial
Conference ID: DocGo
Webcast:
https://viavid.webcasts.com/starthere.jsp?ei=1691564&tp_key=1abd83f022
The webcast can also be accessed under Events on the Investors
section of the Company’s website, https://ir.docgo.com/.
About DocGo
DocGo is leading the proactive healthcare revolution with an
innovative care delivery platform that includes mobile health
services, remote patient monitoring and ambulance services. DocGo
is helping to reshape the traditional four-wall healthcare system
by providing high quality, highly accessible care to patients where
and when they need it. DocGo’s proprietary technology and
relationships with a dedicated field staff of certified health
professionals elevate the quality of patient care and drive
business efficiencies for municipalities, hospital networks and
health insurance providers. With Mobile Health, DocGo empowers the
full promise and potential of telehealth by facilitating healthcare
treatment, in tandem with a remote advanced practice provider, in
the comfort of a patient’s home or workplace. Together with DocGo’s
integrated Ambulnz medical transport services, DocGo is bridging
the gap between physical and virtual care. For more information,
please visit www.docgo.com. To get an inside look on how the
proactive healthcare revolution is helping transform healthcare by
reducing costs, increasing efficiency and improving outcomes, visit
www.proactivecarenow.com.
Forward-Looking Statements
This earnings release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, regarding, among other things, the plans, strategies,
outcomes, and prospects, both business and financial, of the
Company, including the provision of services under its existing
contracts, including its contract with the New York City Department
of Housing Preservation and Development (“HPD”) and the winding
down of migrant-related services under such contract; the expansion
of the Company’s programs with insurance partners, hospital
systems, municipalities and other strategic partners, including
care gap closure programs,; and the Company’s cash balances. These
statements are based on the beliefs and assumptions of the
Company’s management. Although the Company believes that its plans,
intentions and expectations reflected in or suggested by these
forward-looking statements are reasonable, the Company cannot
assure you that it will achieve or realize these plans, intentions,
outcomes, results or expectations. Accordingly, you should not
place undue reliance on such statements. All statements other than
statements of historical fact are forward-looking, including, but
not limited, to statements regarding the Company’s future actions,
business strategies or models, plans, goals, future events, future
revenues, future margins, current and future revenue guidance,
future growth or performance, financing needs, business trends,
results of operations, objectives and intentions with respect to
future operations, services and products, and new and existing
contracts or partnerships. In some cases, these statements may be
preceded by, followed by or include the words “believes,”
“estimates,” “expects,” “projects,” “forecasts,” “may,” “might,”
“will,” “should,” “could,” “can,” “would,” “design,” “potential,”
“seeks,” “plans,” “scheduled,” “anticipates,” “intends” or the
negative of these terms or similar expressions.
Forward-looking statements are inherently subject to substantial
risks, uncertainties and assumptions, many of which are beyond the
Company’s control, and which may cause the Company’s actual results
or outcomes, or the timing of results or outcomes, to differ
materially from those contained in the Company’s forward-looking
statements, including, but not limited to the following: impacts
related to accelerated wind down of migrant-related services; the
Company’s provision of services under its contract with HPD and its
ability to expand its programs with insurance partners, hospital
systems, municipalities and other strategic partners; the Company’s
ability to successfully implement its business strategy, including
delivering value to shareholders via buybacks, funding new
strategic relationships and potentially repaying its line of
credit; the Company’s ability to grow demand for its care gap
closure programs; the Company’s ability to maintain sufficient cash
balances; the Company’s reliance on and ability to maintain its
contractual relationships with its healthcare provider partners and
clients; the Company’s ability to compete effectively in a highly
competitive industry; the Company’s ability to maintain existing
contracts; the Company’s reliance on government contracts; the
Company’s ability to effectively manage its growth; the Company’s
financial performance and future prospects; the Company’s ability
to deliver on its business strategies or models, plans and goals;
the Company’s ability to expand geographically; the Company’s
M&A activity; the Company’s ability to retain its workforce and
management personnel and successfully manage leadership
transitions; the Company’s ability to collect on customer
receivables; the Company’s ability to maintain its cash position;
risks associated with the Company’s share repurchase program;
expected impacts of macroeconomic factors, including inflationary
pressures, general economic slowdown or a recession, rising
interest rates, foreign exchange rate volatility, changes in
monetary pressure, financial institution instability or the
prospect of a shutdown of the U.S. federal government; potential
changes in federal, state or local government policies regarding
immigration and asylum seekers; expected impacts of geopolitical
instability; the Company’s competitive position and opportunities,
including its ability to realize the benefits from its operating
model; the Company’s ability to improve gross margins; the
Company’s ability to implement and deliver on cost-containment
measures and ongoing cost rationalization initiatives; legislative
and regulatory actions; the impact of legal proceedings and
compliance risk; volatility of the Company’s stock price; the
impact on the Company’s business and reputation in the event of
information technology system failures, network disruptions, cyber
incidents or losses or unauthorized access to, or release of,
confidential information; and the ability of the Company to comply
with laws and regulations regarding data privacy and protection and
other risk factors included in the Company’s filings with the
Securities and Exchange Commission (“SEC”).
Moreover, the Company operates in a very competitive and rapidly
changing environment. New risks and uncertainties emerge from time
to time, and it is not possible for the Company to predict all
risks and uncertainties that could have an impact on the
forward-looking statements contained in this earnings release. The
results, events, and circumstances reflected in the forward-looking
statements may not be achieved or occur, and actual results or
outcomes could differ materially from those described in the
forward-looking statements.
The forward-looking statements made in this earnings release are
based on events or circumstances as of the date on which the
statements are made. The Company undertakes no obligation to update
any forward-looking statements made in this earnings release to
reflect events or circumstances after the date of this earnings
release or to reflect new information or the occurrence of
unanticipated events, except as and to the extent required by law.
The Company’s forward-looking statements do not reflect the
potential impact of any future acquisitions, mergers, dispositions,
joint ventures or investments.
Unaudited Condensed Consolidated Balance Sheets
September 30, 2024
December 31, 2023
Unaudited Audited ASSETS Current assets: Cash
and cash equivalents
$
89,458,388
$
59,286,147
Accounts receivable, net of allowance for credit loss of $6,455,874
and $6,276,454 as of September 30, 2024 and December 31, 2023,
respectively
233,712,723
262,083,462
Prepaid expenses and other current assets
5,154,906
17,499,953
Total current assets
328,326,017
338,869,562
Property and equipment, net
15,284,753
16,835,484
Intangibles, net
34,996,541
37,682,928
Goodwill
47,862,242
47,539,929
Restricted cash
19,120,110
12,931,839
Operating lease right-of-use assets
12,489,767
9,580,535
Finance lease right-of-use assets
14,605,119
12,003,919
Equity method investments
634,100
553,573
Deferred tax assets
17,131,328
11,888,539
Other assets
3,432,562
2,565,649
Total assets
$
493,882,539
$
490,451,957
LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities:
Accounts payable
$
35,141,454
$
19,827,258
Accrued liabilities
59,968,606
91,340,609
Line of credit
30,000,000
25,000,000
Notes payable, current
26,374
28,131
Due to seller
138,275
7,823,009
Contingent consideration
16,744,521
19,792,982
Operating lease liability, current
3,776,159
2,773,020
Finance lease liability, current
4,435,324
3,534,073
Total current liabilities
150,230,713
170,119,082
Notes payable, non-current
21,336
41,586
Operating lease liability, non-current
9,172,259
7,223,941
Finance lease liability, non-current
9,554,694
7,896,392
Total liabilities
168,979,002
185,281,001
Commitments and contingencies Stockholders’ equity: Common stock
($0.0001 par value; 500,000,000 shares authorized as of September
30, 2024 and December 31, 2023; 101,980,995 and 104,055,168 shares
issued and outstanding as of September 30, 2024 and December 31,
2023, respectively)
10,198
10,406
Additional paid-in-capital
321,028,986
320,693,866
Retained earnings (accumulated deficit)
1,860,643
(21,394,310
)
Accumulated other comprehensive income
2,313,518
1,484,905
Total stockholders’ equity attributable to DocGo Inc. and
Subsidiaries
325,213,345
300,794,867
Noncontrolling interests
(309,808
)
4,376,089
Total stockholders’ equity
324,903,537
305,170,956
Total liabilities and stockholders’ equity
$
493,882,539
$
490,451,957
Unaudited Condensed Consolidated Statements of
Operations and Comprehensive Income (Loss) Three Months
EndedSeptember 30, Nine Months EndedSeptember 30,
2024
2023
2024
2023
Revenues, net
$
138,684,814
$
186,552,910
$
495,722,059
$
425,042,373
Expenses: Cost of revenues (exclusive of depreciation and
amortization, which is shown separately below)
88,764,282
131,502,046
322,645,933
296,346,420
Operating expenses: General and administrative
28,784,850
33,619,962
103,716,978
93,637,516
Depreciation and amortization
4,177,534
4,336,267
12,561,973
11,816,657
Legal and regulatory
3,295,139
3,545,820
11,622,438
9,588,997
Technology and development
3,145,834
3,235,301
7,903,752
7,673,269
Sales, advertising and marketing
379,778
1,605,559
1,109,072
2,598,192
Total expenses
128,547,417
177,844,955
459,560,146
421,661,051
Income from operations
10,137,397
8,707,955
36,161,913
3,381,322
Other income (expense): Interest (expense) income, net
(505,085
)
346,376
(1,387,743
)
1,677,420
Change in fair value of contingent liability
(44,520
)
159,974
(370,712
)
159,974
Loss on equity method investments
(82,742
)
(95,503
)
(229,923
)
(301,362
)
(Loss) gain on remeasurement of operating and finance leases
(6,163
)
4,834
(32,052
)
4,834
(Loss) gain on disposal of fixed assets
(28,681
)
(9,983
)
36,717
(163,452
)
Other income (expense)
(435,825
)
43,353
146,058
(661,825
)
Total other income (expense)
(1,103,016
)
449,051
(1,837,655
)
715,589
Net income before income tax provision
9,034,381
9,157,006
34,324,258
4,096,911
Provision for income taxes
(4,488,828
)
(4,526,767
)
(13,316,752
)
(2,041,843
)
Net income
4,545,553
4,630,239
21,007,506
2,055,068
Net (loss) income attributable to noncontrolling interests
(952,348
)
(134,682
)
(2,247,447
)
2,767,084
Net income (loss) attributable to stockholders of DocGo Inc. and
Subsidiaries
5,497,901
4,764,921
23,254,953
(712,016
)
Other comprehensive income
—
—
Foreign currency translation adjustment
934,774
(582,471
)
828,613
66,965
Total comprehensive income (loss)
$
6,432,675
$
4,182,450
$
24,083,566
$
(645,051
)
Net income (loss) per share attributable to DocGo Inc. and
Subsidiaries - Basic
$
0.05
$
0.05
$
0.23
$
(0.01
)
Weighted-average shares outstanding - Basic
102,067,579
103,874,845
102,573,664
103,351,345
Net income (loss) per share attributable to DocGo Inc. and
Subsidiaries - Diluted
$
0.05
$
0.05
$
0.22
$
(0.01
)
Weighted-average shares outstanding - Diluted
106,290,929
104,993,729
106,797,014
103,351,345
Unaudited Condensed Consolidated Statements of Cash Flows
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30,
2024
2023
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES: Net income
$
4,545,553
$
4,630,239
$
21,007,506
$
2,055,068
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: Depreciation of property and equipment
1,374,975
1,625,070
4,282,940
4,697,717
Amortization of intangible assets
1,605,483
1,515,378
4,884,337
4,295,958
Amortization of finance lease right-of-use assets
1,197,076
1,195,819
3,394,696
2,822,982
(Gain) loss on disposal of fixed assets
28,681
9,983
(36,717
)
163,452
Deferred income tax
(3,218,516
)
2,339,033
(5,242,787
)
1,049,236
Loss on equity method investments
82,742
95,503
229,923
301,362
Bad debt expense
1,086,816
(1,288,131
)
3,857,474
(311,441
)
Stock-based compensation
3,155,186
3,360,709
9,755,455
15,161,847
Loss (gain) on remeasurement of operating and finance leases
6,163
(4,834
)
32,052
(4,834
)
Loss on liquidation of business
—
—
—
70,284
Change in fair value of contingent consideration
44,520
(159,974
)
370,712
(159,974
)
Changes in operating assets and liabilities: Accounts receivable
21,387,772
(88,076,313
)
19,837,507
(103,483,997
)
Prepaid expenses and other current assets
(9,989
)
(112,625
)
12,333,127
(336,093
)
Other assets
(1,133,858
)
610,650
(1,086,913
)
696,984
Accounts payable
4,379,590
2,260,305
15,326,159
(12,640,920
)
Accrued liabilities
(3,498,801
)
26,120,859
(31,495,516
)
27,319,258
Net cash provided by (used in) operating activities
31,033,393
(45,878,329
)
57,449,955
(58,303,111
)
CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of
property and equipment
(786,174
)
(801,151
)
(2,940,843
)
(4,360,807
)
Acquisition of intangibles
(660,276
)
(547,206
)
(2,228,233
)
(2,478,808
)
Acquisition of businesses
—
—
—
(20,203,464
)
Equity method investments
(161,963
)
(150,510
)
(310,450
)
(150,510
)
Proceeds from disposal of property and equipment
95,822
(3,028
)
178,535
274,210
Net cash used in investing activities
(1,512,591
)
(1,501,895
)
(5,300,991
)
(26,919,379
)
CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from
revolving credit line
—
—
45,000,000
—
Repayments of revolving credit line
—
—
(40,000,000
)
—
Repayments of notes payable
(5,120
)
(281,876
)
(22,007
)
(529,583
)
Due to seller
(3,005,113
)
(5,861,748
)
(3,008,976
)
(8,417,936
)
Acquisition of noncontrolling interest
(1,848,000
)
—
(1,848,000
)
—
Earnout payments on contingent liabilities
—
—
(1,600,029
)
—
Dividends paid to noncontrolling interest
—
—
(250,000
)
—
Proceeds from exercise of stock options
—
426,003
684
1,549,298
Payments for taxes related to shares withheld for employee taxes
(107,979
)
(2,166,982
)
(374,311
)
(2,166,982
)
Common stock repurchased
(1,296,187
)
—
(11,078,198
)
—
Payments on obligations under finance lease
(1,088,265
)
(782,808
)
(3,118,054
)
(2,293,330
)
Net cash used in financing activities
(7,350,664
)
(8,667,411
)
(16,298,891
)
(11,858,533
)
Effect of exchange rate changes on cash and cash equivalents
584,966
(457,189
)
510,439
227,887
Net increase (decrease) in cash and restricted cash
22,755,104
(56,504,824
)
36,360,512
(96,853,136
)
Cash and restricted cash at beginning of period
—
—
72,217,986
164,109,074
Cash and restricted cash at end of period
$
22,755,104
$
(56,504,824
)
$
108,578,498
$
67,255,938
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30,
2024
2023
2024
2023
Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest
$
594,734
$
52,660
$
1,507,026
$
179,430
Cash paid for interest on finance lease liabilities
$
194,099
$
135,392
$
560,926
$
394,443
Cash paid for income taxes
$
5,171,459
$
—
$
6,542,733
$
4,223,810
Right-of-use assets obtained in exchange for lease liabilities
$
5,240,876
$
868,977
$
10,980,341
$
2,407,938
Remeasurement of finance lease right-of-use asset due to lease
modification
$
—
$
—
$
300,000
$
—
Fixed assets acquired in exchange for notes payable
$
—
$
746,043
$
—
$
1,369,060
Supplemental non-cash investing and financing
activities: Acquisition of remaining FMC NA through due to
seller and issuance of stock
$
—
$
—
$
—
$
7,000,000
Acquisition of CRMS through issuance of stock
$
—
$
—
$
—
$
1,000,000
CRMS True-up Payment through issuance of stock
$
1,814,345
$
—
$
1,814,345
$
—
Receivable exchanged for trade credits
$
—
$
1,500,000
$
—
$
1,500,000
Pre-acquisition receivables written off through due to seller
$
1,315,691
$
—
$
4,675,758
$
—
Reconciliation of cash and restricted cash Cash
$
23,398,466
$
(56,237,002
)
$
89,458,388
$
52,922,517
Restricted cash
(643,362
)
(267,822
)
19,120,110
14,333,421
Total cash and restricted cash shown in statement of cash flows
$
22,755,104
$
(56,504,824
)
$
108,578,498
$
67,255,938
Non-GAAP Financial Measures
The following information provides definitions and
reconciliation of non-GAAP financial measures used by the Company
to the most directly comparable financial measures calculated and
presented in accordance with generally accepted accounting
principles (“GAAP”). The Company has provided this non-GAAP
financial information, which is not calculated or presented in
accordance with GAAP, as information supplemental and in addition
to the financial measures presented in this earnings release that
are calculated and presented in accordance with GAAP. Such non-GAAP
financial measures should not be considered superior to, as a
substitute for or alternative to, and should be considered in
conjunction with, the GAAP financial measures presented in this
earnings release. The non-GAAP financial measures used by the
Company may differ from similarly titled measures used by other
companies.
Adjusted Gross Margin
Adjusted gross profit and adjusted gross margin are considered
non-GAAP financial measures under SEC rules because they exclude
certain amounts included in gross profit and gross margin
calculated in accordance with GAAP. Adjusted gross profit is total
revenue minus cost of revenue, excluding depreciation and
amortization (which are shown separately), and adjusted gross
margin is adjusted gross profit as a percentage of total
revenue.
The Company’s management believes that adjusted gross margin is
useful in evaluating DocGo’s operating performance, as the
calculation of this measure excludes the impact of non-cash
depreciation and amortization charges. The Company’s management
believes that by using adjusted gross margin in conjunction with
GAAP gross margin, investors will get a more complete view of what
management considers to be the Company’s core operating performance
and allow for comparison of this measure when compared to those of
prior periods. While many companies use adjusted gross margin as a
performance measure, not all companies use identical calculations
for determining adjusted gross margin. As such, DocGo’s
presentation of adjusted gross margin might not be comparable to
similarly titled measures of other companies.
Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under
SEC rules because it excludes certain amounts included in net
income (loss) calculated in accordance with GAAP. Specifically,
adjusted EBITDA is arrived at by taking reported GAAP net income
and adding back the following items: net interest expense (income),
provision for (benefit from) income taxes, depreciation and
amortization, other (income) expense, non-cash equity-based
compensation and certain other non-recurring expenses consisting of
certain one-time legal settlements and certain one-time expenses
incurred in connection with acquisitions and other corporate
activities, beyond those that are typically incurred.
The Company’s management believes that its adjusted EBITDA
measure is useful in evaluating DocGo’s operating performance, as
the calculation of this measure generally eliminates the effect of
financing and income taxes and the accounting effects of capital
spending and acquisitions, as well as other items of a
non-recurring and/or non-cash nature. Adjusted EBITDA is not
intended to be a measure of GAAP cash flow, as this measure does
not consider certain cash-based expenses, such as payments for
taxes or debt service.
Management believes that using adjusted EBITDA in conjunction
with GAAP measures such as net income assists investors in getting
a more complete picture of the Company’s financial results and
operations, affording them with a more complete view of what
management considers to be the Company’s core operating performance
as well as offering the ability to assess such performance as
compared with that of prior periods and management’s public
guidance. While many companies use adjusted EBITDA as a performance
measure, not all companies use identical calculations for
determining adjusted EBITDA. As such, DocGo’s presentation of
adjusted EBITDA might not be comparable to similarly titled
measures of other companies.
Adjusted EBITDA Margin
Adjusted EBITDA margin is considered a non-GAAP measure under
SEC rules. It is calculated by dividing adjusted EBITDA by
revenues. Management believes using adjusted EBITDA margin in
conjunction with GAAP measures, such as gross margin and/or net
margin, is useful to investors because it assists investors in
getting a more complete view of what management considers the
Company’s core operating performance, as expressed in marginal
terms. While many companies use adjusted EBITDA margin as a
performance measure, not all companies use identical calculations
for determining adjusted EBITDA margin. As such, DocGo’s
presentation of adjusted EBITDA margin might not be comparable to
similarly titled measures of other companies.
Reconciliation of Non-GAAP Measures
The table below reflects the reconciliation of GAAP gross margin
and adjusted gross margin for the three and nine months ended
September 30, 2024 compared to the same period in 2023:
Q3 YTD (Sept)
2024
2023
2024
2023
Revenue
$
138,684,814
$
186,552,910
$
495,722,059
$
425,042,373
Cost of revenue (exclusive of depreciation and amortization, which
are shown separately below)
(88,764,282
)
(131,502,046
)
(322,645,933
)
(296,346,420
)
Depreciation and amortization
(4,177,534
)
(4,336,267
)
(12,561,973
)
(11,816,657
)
GAAP gross profit
45,742,998
50,714,597
160,514,153
116,879,296
Depreciation and amortization
4,177,534
4,336,267
12,561,973
11,816,657
Adjusted gross profit
49,920,532
55,050,864
173,076,126
128,695,953
GAAP gross margin
33.0
%
27.2
%
32.4
%
27.5
%
Adjusted gross margin
36.0
%
29.5
%
34.9
%
30.3
%
The table below reflects the reconciliation of net income (loss)
to adjusted EBITDA for the three and nine months ended September
30, 2024 compared to the same period in 2023 and the second quarter
of 2024 (in millions):
Q3 YTD Q2
2024
2023
2024
2023
2024
Net income (GAAP)
$4.5
$4.6
$21.0
$2.0
$5.9
(+) Net interest expense (income)
$0.5
($0.3)
$1.4
($1.6)
$0.5
(+) Income tax
$4.5
$4.5
$13.3
$2.0
$3.7
(+) Depreciation & amortization
$4.2
$4.3
$12.6
$11.8
$4.2
(+) Other (income) expense
$0.6
($0.1)
$0.4
$1.1
$0.0
EBITDA
$14.3
$13.0
$48.7
$15.3
$14.3
(+) Non-cash stock compensation
$3.2
$3.4
$9.8
$15.2
$2.6
(+) Non-recurring expense
$0.4
$0.3
$0.7
$1.0
$0.3
Adjusted EBITDA
$17.9
$16.7
$59.2
$31.5
$17.2
Total revenue
$138.7
$186.6
$495.1
$238.5
$192.1
Pretax income margin
6.5%
4.9%
6.9%
1.7%
5.0%
Net margin
3.2%
2.5%
4.2%
0.8%
3.1%
Adjusted EBITDA margin
12.9%
8.9%
12.0%
13.2%
9.0%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107669990/en/
Investors: Mike Cole DocGo 949-444-1341
mike.cole@docgo.com ir@docgo.com
Media: Tommy Meara Moxie Strategies 718-309-3506
tommy@moxiestrategies.com
Grafico Azioni DocGo (NASDAQ:DCGO)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni DocGo (NASDAQ:DCGO)
Storico
Da Gen 2024 a Gen 2025
