Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $96 million, down from $192.1 million in Q1 2024, primarily due to the decline in the government vertical, especially in migrant-related projects [20][21] - The company recorded a net loss of $11.1 million in Q1 2025 compared to a net income of $10.6 million in Q1 2024, reflecting the drop in revenues [21] - Adjusted EBITDA for Q1 2025 was a loss of $3.9 million, down from an adjusted EBITDA of $24.1 million in Q1 2024 [22] Business Line Data and Key Metrics Changes - Mobile health revenue for Q1 2025 was $45.2 million, down from $143.9 million in Q1 2024, driven by the anticipated wind down of migrant revenues [21] - Medical transportation services revenue increased to $50.8 million in Q1 2025 from $48.2 million in Q1 2024, supported by growth in several markets [21] - The medical transportation business is expected to have adjusted EBITDA of greater than $15 million in 2025, with a projected total of approximately 575,000 transports by the end of 2025 [11][19] Market Data and Key Metrics Changes - The company has seen substantial growth in its payer and provider vertical, exceeding 900,000 assigned lives, up from 700,000 just a quarter ago [12] - The number of care gap closure and transitional care management visits is projected to grow from over 4,400 in Q4 2024 to over 11,500 in Q4 2025, indicating a significant expansion [13] Company Strategy and Development Direction - The company has removed its government population health vertical from its 2025 guidance due to ongoing policy changes and budget cuts, leading to substantial uncertainty [7][9] - The focus is on building the company around innovative solutions for payers, providers, and health systems, particularly in mobile health and medical transportation [10] - Cost-cutting measures have been initiated, with SG&A reduced by approximately $3.1 million sequentially in Q1 2025, while still investing in growth areas [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the medical transportation and payer/provider verticals, despite the challenges in the government sector [10][19] - The company anticipates positive cash flow from operations and expects to exit the year with over $110 million in cash, despite projecting a consolidated adjusted EBITDA loss for the year [18][27] Other Important Information - The company has initiated a stock buyback program, repurchasing nearly 2 million shares for approximately $5.8 million in Q1 2025 [28] - The balance sheet remains healthy, with expectations for improved cash flow from operations as accounts receivable from migrant programs are collected [27] Q&A Session Summary Question: What is the expected government revenue for the remainder of the year? - Management clarified that government population health revenues have been removed from guidance, and any new deployments will be reported separately as upside [32][33] Question: How is the company balancing SG&A cuts with staffing for future government engagements? - Management is restructuring shared services for savings while reinvesting in growing parts of the business to ensure readiness for future growth [34][35] Question: What is the margin profile of the migrant-related revenue compared to core business? - The margins on the migrant program were about 34%, while the non-migrant mobile health segment had a gross margin of 35.9% in Q4 2024 [80] Question: Are there any risks from tariffs on medical equipment? - Management indicated that tariffs could impact the cost of maintaining the fleet and procuring new vehicles, but they are in a good position to manage these costs [81][82]

DocGo (DCGO) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Good afternoon, ladies and gentlemen, and welcome to the DocGo First Quarter Earnings Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on a Thursday, 05/08/2025. I would now like to turn the conference over to Mike Cole, VP of Investor Relations. Please go ahead. Speaker1 Thank you, operator. Before turning the call over ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company experienced a significant revenue decline and a shift to net loss in Q1 2025, with decreased assets and equity, while operating cash flow turned positive Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (Unaudited) ($) | December 31, 2024 (Audited) ($) | | :--- | :--- | :--- | | **Total Current Assets** | 262,531,431 | 304,486,263 | | **Total Assets** | 430,792,998 | 455,621,132 | | **Total Current Liabilities** | 107,571,098 | 121,806,577 | | **Total Liabilities** | 128,868,195 | 140,442,002 | | **Total Stockholders' Equity** | 301,924,803 | 315,179,130 | Condensed Consolidated Statements of Operations Highlights | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | **Revenues, net** | 96,033,055 | 192,087,529 | | **(Loss) income from operations** | (13,997,438) | 15,875,367 | | **Net (loss) income** | (11,079,300) | 10,603,379 | | **Net (loss) income per share - Diluted** | (0.09) | 0.10 | Condensed Consolidated Statements of Cash Flows Highlights | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | 9,655,467 | (10,639,744) | | **Net cash used in investing activities** | (5,733,052) | (1,699,741) | | **Net cash used in financing activities** | (8,518,416) | (881,579) | | **Net decrease in cash and restricted cash** | (4,278,263) | (13,324,123) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details the company's segment operations, customer concentration, recent acquisition, and ongoing legal proceedings, alongside key accounting policies - The company operates in three segments: Mobile Health Services, Transportation Services, and Corporate. The Corporate segment handles shared services and does not generate revenue[28](index=28&type=chunk) - The company has significant customer concentration, with one customer accounting for **47% of revenues** and **45% of net accounts receivable** for the three months ended March 31, 2025[43](index=43&type=chunk) - On February 10, 2025, the Company acquired **100% of Professional Technicians, LLC (PTI)** for **$4.0 million** in cash consideration and up to **$1.5 million** in contingent consideration[128](index=128&type=chunk) - The company is involved in several legal proceedings, including California Labor Actions, a Stockholder Action, and a Cybersecurity Action, with some reaching settlement in principle[231](index=231&type=chunk)[234](index=234&type=chunk)[237](index=237&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Result%20of%20Operations) Management discusses a 50% revenue decrease in Q1 2025, primarily from the Mobile Health segment, leading to an operating loss, while Transportation Services showed modest growth Q1 2025 vs Q1 2024 Results of Operations ($ in Millions) | Metric | Q1 2025 ($ in Millions) | Q1 2024 ($ in Millions) | Change ($ in Millions) | Change % | | :--- | :--- | :--- | :--- | :--- | | **Revenues, net** | 96.0 | 192.1 | (96.1) | (50.0)% | | **Cost of revenues** | 65.2 | 124.8 | (59.6) | (47.8)% | | **(Loss) income from operations** | (14.0) | 15.9 | (29.9) | (188.1)% | | **Net (loss) income** | (11.1) | 10.6 | (21.7) | (204.7)% | - Mobile Health Services revenue decreased by **$98.7 million (68.6%)** YoY, primarily due to the ongoing wind-down of migrant-related services in New York[280](index=280&type=chunk) - Transportation Services revenue increased by **$2.6 million (5.4%)** YoY, driven by a **5.9% increase in trip volumes**, although the average trip price decreased from **$400 to $378**[281](index=281&type=chunk) - The company generated **$9.6 million** in cash from operations in Q1 2025, a significant improvement from a **$10.6 million** use of cash in Q1 2024, mainly due to a **$31.4 million decrease in accounts receivable**[302](index=302&type=chunk)[303](index=303&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates and significant customer concentration, with limited foreign exchange exposure, and does not use hedging instruments - The company is subject to interest rate risk on its Revolving Facility, with **$30 million** outstanding as of March 31, 2025, where a hypothetical **10% change** would have had a neutral net impact on financial statements for the quarter[339](index=339&type=chunk) - Foreign exchange risk from U.K. operations is considered limited, with a hypothetical **10% change** in the exchange rate in Q1 2025 changing total revenues by approximately **1.1%**[340](index=340&type=chunk) - Significant customer concentration risk exists, with one customer accounting for **47% of revenues** and **45% of net accounts receivable** in Q1 2025, compared to two customers accounting for **39% and 32% of revenues** respectively in Q1 2024[342](index=342&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[343](index=343&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[344](index=344&type=chunk) [PART II - OTHER INFORMATION](index=69&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, and other required disclosures [Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal actions, including resolved California Labor Actions, ongoing Stockholder Action, and a settled Cybersecurity Action - The company is subject to legal proceedings arising in the ordinary course of business, as detailed in Note 19 of the financial statements[348](index=348&type=chunk) [Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have been made to the risk factors disclosed in the **2024 Annual Report on Form 10-K**[350](index=350&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company actively repurchased shares under its program in Q1 2025, with approximately **$16.3 million** remaining for future repurchases Share Repurchases in Q1 2025 | Month | Total Number of Shares Purchased | Average Price Paid per Share ($) | Approximate Dollar Value of Shares that May Yet be Purchased ($) | | :--- | :--- | :--- | :--- | | January 2025 | — | — | 22,045,655 | | February 2025 | — | — | 22,045,655 | | March 2025 | 1,953,169 | 2.92 | 16,332,764 | | **Total** | **1,953,169** | **2.92** | **16,332,764** | - The Board authorized a new share repurchase program for up to **$26 million**, which expires on **June 30, 2025**[352](index=352&type=chunk) [Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None [Mine Safety Disclosures](index=70&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=70&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or non-Rule 105b-1 trading arrangement during the quarter[361](index=361&type=chunk) [Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the company's certificate of incorporation, bylaws, and officer certifications, as well as Inline XBRL data files

[Overall Performance and Outlook](index=1&type=section&id=Overall%20Performance%20and%20Outlook) [Q1 2025 Performance Summary](index=1&type=section&id=Q1%202025%20Performance%20Summary) In the first quarter of 2025, DocGo's performance was significantly impacted by policy changes and uncertainty in its Government Population Health vertical, leading to a strategic decision to remove non-migrant government revenue from its 2025 forecast, resulting in a sharp year-over-year decline in total revenue and a shift from net income to a net loss, though core Medical Transportation and Payer & Provider businesses performed in line with expectations, with management now focused on aggressive cost-cutting, anticipating positive cash flow for the remainder of the year, and leveraging its strong balance sheet for growth opportunities | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $96.0 million | $192.1 million | | Net (Loss) Income | ($11.1 million) | $10.6 million | | Adjusted EBITDA | ($3.9 million) | $24.1 million | | GAAP Gross Margin | 28.2% | 32.8% | - The company has decided to remove **all non-migrant Government Population Health revenue** from its 2025 guidance due to substantial uncertainty created by policy changes and adjustments in public spending[1](index=1&type=chunk) - Management plans to **aggressively cut SG&A expenses** and anticipates **positive cash flow** through the rest of the year, driven by collections of outstanding migrant-related receivables[2](index=2&type=chunk) | Revenue Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Mobile Health Services | $45.2 million | $143.9 million | | Transportation Services | $50.8 million | $48.2 million | [Full-Year 2025 Guidance](index=1&type=section&id=Full-Year%202025%20Guidance) DocGo has significantly revised its full-year 2025 guidance downwards, a direct result of the company's decision to exclude projections for non-migrant municipal population health revenue due to market uncertainty, while revenue expectations for Medical Transportation, Payer & Provider businesses, and remaining migrant services work are unchanged | Guidance Metric | New 2025 Estimate | Previous 2025 Estimate | | :--- | :--- | :--- | | Full-Year Revenue | $300 - $330 million | $410 - $450 million | | Full-Year Adjusted EBITDA | ($20) - ($30) million loss | 5% margin | - The guidance revision is explicitly driven by the **removal of non-migrant Government Population Health revenue**; other business verticals continue to perform in line with expectations[1](index=1&type=chunk)[4](index=4&type=chunk) [Business & Operational Highlights](index=2&type=section&id=Business%20%26%20Operational%20Highlights) Despite financial headwinds from its government services segment, DocGo achieved several operational successes in Q1 2025, including a record quarter for medical transportation revenue and trip volume, alongside expanded service contracts with a major New York health plan, a national health system in Texas, and a California cardiology group - The company's medical transportation segment experienced a **record quarter** in terms of both revenue and trip volume[9](index=9&type=chunk) - Key contract wins include: - A major New York health plan for in-home DocGo Primary Care services - A two-year contract with a national health system's North Texas division for medical transportation - An expanded one-year contract with a California-based cardiology group for virtual care management[9](index=9&type=chunk) - The company surpassed **900,000 patients** assigned by payer and provider partners for care gap closure services, with visit volumes approaching **three times the rate** of the previous year[1](index=1&type=chunk)[9](index=9&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the first quarter of 2025, DocGo reported total revenues of $96.0 million, a 50% decrease from $192.1 million in the same period of 2024, primarily due to the wind-down of migrant-related programs, leading to an operating loss of $14.0 million and a net loss of $11.1 million, compared to an operating income of $15.9 million and net income of $10.6 million in Q1 2024, with diluted loss per share at $(0.09), a reversal from $0.10 in the prior year | Line Item (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues, net | $96.0 | $192.1 | | (Loss) income from operations | ($14.0) | $15.9 | | Net (loss) income | ($11.1) | $10.6 | | Diluted (loss) income per share | ($0.09) | $0.10 | [Consolidated Balance Sheets](index=4&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, DocGo's balance sheet showed total assets of $430.8 million and total liabilities of $128.9 million, with cash and cash equivalents at $79.0 million and restricted cash at $24.1 million, while total stockholders' equity decreased to $301.9 million from $315.2 million at the end of 2024, partly due to share repurchases and the net loss for the quarter | Balance Sheet Item (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $79.0 | $89.2 | | Total current assets | $262.5 | $304.5 | | Total assets | $430.8 | $455.6 | | Total current liabilities | $107.6 | $121.8 | | Total liabilities | $128.9 | $140.4 | | Total stockholders' equity | $301.9 | $315.2 | - During Q1 2025, the company repurchased **1.95 million shares** of common stock for a total cost of approximately **$5.8 million**[9](index=9&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, DocGo generated $9.7 million in net cash from operating activities, a significant turnaround from the $10.6 million used in operations in Q1 2024, largely driven by a $31.4 million positive change from accounts receivable, with net cash used in investing activities at $5.7 million and financing activities at $8.5 million, mainly for share repurchases, resulting in a $4.3 million decrease in total cash and restricted cash to $103.1 million at quarter-end | Cash Flow Activity (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $9.7 | ($10.6) | | Net cash used in investing activities | ($5.7) | ($1.7) | | Net cash used in financing activities | ($8.5) | ($0.9) | | Net decrease in cash and restricted cash | ($4.3) | ($13.3) | - The **positive operating cash flow** was primarily driven by a **significant inflow from the collection of accounts receivable**[23](index=23&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Explanation of Non-GAAP Measures](index=7&type=section&id=Explanation%20of%20Non-GAAP%20Measures) DocGo utilizes non-GAAP financial measures, including Adjusted Gross Margin and Adjusted EBITDA, to provide investors with a view of what management considers its core operating performance, with Adjusted Gross Margin excluding non-cash depreciation and amortization from the cost of revenue, and Adjusted EBITDA calculated by adjusting net income for interest, taxes, depreciation, amortization, stock-based compensation, and other non-recurring expenses - **Adjusted Gross Margin** is used to evaluate operating performance by **excluding non-cash depreciation and amortization charges** from the cost of revenue[26](index=26&type=chunk)[27](index=27&type=chunk) - **Adjusted EBITDA** is used to assess core operating performance by **generally eliminating the effects of financing, income taxes, capital spending, acquisitions, and other non-recurring or non-cash items**[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) For Q1 2025, DocGo's Adjusted Gross Margin was 32.1%, down from 35.0% in Q1 2024, and the company reported an Adjusted EBITDA loss of $3.9 million, a stark contrast to the $24.1 million in positive Adjusted EBITDA from the prior-year quarter, with the reconciliation showing that the GAAP net loss of $11.1 million was adjusted for items including income tax benefit, D&A, and non-cash stock compensation to arrive at the Adjusted EBITDA figure | Margin Reconciliation | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP gross margin | 28.2% | 32.8% | | Adjusted gross margin | 32.1% | 35.0% | | EBITDA Reconciliation (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income (GAAP) | ($11.1) | $10.6 | | (+) Depreciation and amortization | $3.8 | $4.2 | | (+) Non-cash stock compensation | $4.8 | $4.0 | | Adjusted EBITDA | ($3.9) | $24.1 |

Core Insights - Kahn Swick & Foti, LLC (KSF) is investigating DocGo Inc. following allegations of misrepresentation regarding its contracts and executive conduct [1][2] - DocGo's contract with U.S. Customs and Border Protection (CBP) was reported to be worth under $2 billion, contrary to the company's claim of $4 billion [2] - The CEO of DocGo resigned due to fabricated elements of his educational background [2] - A securities class action lawsuit has been filed against DocGo and its executives for failing to disclose material information and violating federal securities laws [3] - The court has denied DocGo's motion to dismiss the lawsuit, allowing it to proceed [3] - KSF's investigation is focused on potential breaches of fiduciary duties by DocGo's officers and directors [3] Company Overview - DocGo is a healthcare company that provides medical transportation and mobile health services in the U.S. and the U.K. [2] - The company is currently facing legal challenges due to allegations of corporate misconduct [3] Legal Context - KSF is a prominent securities litigation law firm, ranked among the top 10 firms nationally based on total settlement value [4] - The firm is seeking information from individuals who may assist in the investigation or have been long-term holders of DocGo shares [4]

Group 1 - DocGo (DCGO) reported Q4 '24 results on February 28th, leading to a share price decline of over 20%, with a total drop of more than 45% from its peak in mid-February of this year [1] - The company has faced scrutiny regarding its corporate governance and compliance practices, which may have contributed to the negative market reaction [1] Group 2 - The analysis emphasizes the importance of understanding regulatory governance and corporate compliance in evaluating the company's performance and potential investment opportunities [1]

Core Viewpoint - DocGo Inc. (DCGO) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][10]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [4]. Motion Acquisition's Earnings Outlook - The upgrade for Motion Acquisition reflects an improvement in its earnings outlook, which could positively affect its stock price [3][5]. - For the fiscal year ending December 2025, Motion Acquisition is expected to earn $0.10 per share, representing a 60% decrease from the previous year, but the Zacks Consensus Estimate has increased by 18.8% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - The upgrade of Motion Acquisition to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

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]

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 Q4 2023 [35] - Adjusted EBITDA margin for the full year of 2024 was 9.8%, up from 8.6% 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, with significant expansions in New York and California [13] - The company anticipates a significant cash flow tailwind through mid-2025 from accounts receivable totaling approximately $150 million related to migrant programs [22] Company Strategy and Development Direction - The company aims to build a 100-year company that transforms healthcare delivery and brings high-quality, accessible care to all [10] - Investments are being made in technology, personnel, and infrastructure to support growth in customer verticals [11][39] - The company acquired PTI Health, a mobile phlebotomy company, to expand its service offerings [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a near-term impact on profitability due to aggressive investments but remains optimistic about future growth opportunities [10][27] - The company expects to maintain gross margins while anticipating EBITDA margins in the mid-single digits for 2025 [46] - Management noted a robust pipeline of deals, with expectations for significant revenue growth in the base business [54][100] Other Important Information - The company received over 40,000 job applications from healthcare clinicians and corporate staff in the past year, indicating strong interest in its mission [14] - The company’s net promoter score for its care gap closure program was above 86, indicating high customer satisfaction [14] Q&A Session Summary Question: What is the 2025 revenue guidance? - Management indicated that the base business is expected to grow faster in 2025, with potential for migrant-related revenues to be below the previously estimated $50 million [50][51] Question: What are the details of the $17 million investments? - Investments are focused on technology, personnel training, and business development to support growth in the care gap closure business [58][60] Question: What was the migrant revenue in Q4 and the full year? - Migrant revenues in Q4 were approximately $55 million, with total annual revenues around $370 million [84] Question: How will the company manage unanticipated expenses? - Management noted that being self-insured introduces some uncertainty, but they are working to improve reserving practices to mitigate future fluctuations [72][75] Question: What is the outlook for the municipal business? - The company is progressing with its Project Prime initiative and expects to see contracts with existing service providers for municipal entities [121]

分组1 - DocGo Inc. reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, but down from $0.06 per share a year ago, representing a 25% earnings surprise [1] - Over the last four quarters, Motion Acquisition has surpassed consensus EPS estimates two times, with revenues of $120.83 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.02% [2] - The stock of Motion Acquisition has declined approximately 4.3% since the beginning of the year, while the S&P 500 has gained 1.3% [3] 分组2 - The earnings outlook for Motion Acquisition is mixed, with a current consensus EPS estimate of $0.01 on $107.89 million in revenues for the coming quarter and $0.08 on $407.34 million in revenues for the current fiscal year [7] - The Medical Services industry, which includes Motion Acquisition, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Surgery Partners, is expected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decline of 13.6%, with revenues projected to be $828.84 million, up 12.7% from the previous year [9][10]