Financial Data and Key Metrics - Q3 2024 revenue was $138.7 million, a 26% decrease YoY, driven by the wind-down of migrant-related projects [17] - Adjusted EBITDA for Q3 2024 was $17.9 million, up from $16.7 million in Q3 2023, with an adjusted EBITDA margin of 12.9%, up from 8.9% YoY [18] - Mobile Health revenue for Q3 2024 was $90.7 million, down 35% YoY, while Transportation revenue increased to $48 million, up 2% YoY [17] - Total cash and cash equivalents balance reached $108.6 million, up from $85.8 million in Q2 2024 [22] - GAAP gross margin for Q3 2024 was 33%, up from 27.2% in Q3 2023, with adjusted gross margin at 36%, up from 29.5% YoY [19] Business Line Performance - Mobile Health segment saw adjusted gross margins of 38.8% in Q3 2024, up from 28.8% in Q3 2023, driven by improved subcontractor costs [20] - Transportation segment adjusted gross margins were 30.7% in Q3 2024, down from 31.7% in Q3 2023, but improved by 160 basis points from Q2 2024 [20] - Care gap closure programs more than doubled the number of assigned lives sequentially from Q2 to Q3, exceeding 500,000 patients [5] - The company expects to exit 2024 at a run rate of 1,000 care gap visits per week, with a goal of 65,000 visits in 2025 [10] Market Performance - The company expanded its mobile health plan partnerships, particularly on the West Coast, with new hubs in San Diego, Los Angeles, and Sacramento [5] - In the municipal population health vertical, the company extended the Street Health Outreach + Wellness contract for a fourth year in New York City [13] - The company received an expansion with the New Mexico Department of Health, broadening the scope of clinical services at public health offices [14] - In the hospital vertical, the company signed or is close to signing several small- to medium-sized contracts, with expansion in the Northeast and Dallas markets [15] Strategy and Industry Competition - The company is focusing on value-based care arrangements with insurance partners, aiming to support long-term growth and vision [11] - The addition of Dr. Stephen Klasko as Chair of the Board brings extensive healthcare experience and a network that could optimize patient care and operational efficiency [16] - The company is leveraging its proprietary technology platform to track providers and dispatch both medical transportation and mobile health resources, a unique combination in the industry [15] Management Commentary on Operating Environment and Future Outlook - The company fine-tuned its 2024 guidance to $620 million to $630 million in revenue and $70 million to $75 million in adjusted EBITDA, with increased cash flow from operations expectations [6] - For 2025, the company issued consolidated revenue guidance of $410 million to $450 million, including $50 million in migrant-related revenue [7] - Management emphasized the strong pipeline and operational execution, with a focus on expanding payer programs and maintaining high-quality service delivery [8][9] Other Important Information - The company generated $31 million in cash flow from operations in Q3 2024, with total cash and cash equivalents now over $108 million [8] - The company expects to generate $90 million to $100 million in cash flow from operations in 2024, with $57 million already generated through the first nine months [23] - The company is actively managing operating expenses as migrant programs wind down, with SG&A as a percentage of revenue expected to increase in the coming quarters [21] Q&A Session Summary Question: What drove the strong EBITDA beat in Q3 2024? - The EBITDA beat was driven by higher-than-expected gross margins, particularly in the Mobile Health segment, which benefited from a favorable mix of migrant-related programs [27] - SG&A expenses were well-controlled, down 14% YoY, due to cost-cutting measures [28] Question: How does the 2025 guidance compare to previous expectations? - The 2025 guidance includes $50 million in migrant-related revenue, which is healthcare-focused and aligned with population health services [32] - The adjusted EBITDA margin range of 8% to 10% reflects investments in expansion and quality of service, particularly in payer programs [33] Question: How are care gap closure contracts impacting margins? - Care gap closure contracts are priced to preserve historical margins, but rapid expansion requires upfront investments in training and staffing, which may temporarily impact margins [37] Question: What is the outlook for the non-migrant municipal population health business? - The non-migrant municipal population health business is expected to generate $240 million to $260 million in 2024, revised from previous forecasts due to the extended wind-down of migrant-related programs [40] Question: How has the Medicare Advantage star ratings issue impacted the payer business? - The Medicare Advantage star ratings issue has created opportunities for the company to scale up care gap closure programs, with increased traction from both existing and new payer partners [44][46]

分组1 - DocGo Inc. reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, with a year-over-year comparison showing no change [1] - The earnings surprise for the quarter was 25%, while the previous quarter saw an earnings miss of -14.29% [1][2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] 分组2 - Motion Acquisition reported revenues of $138.69 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.65%, and down from $186.55 million year-over-year [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] - Motion Acquisition shares have declined approximately 34.7% year-to-date, contrasting with the S&P 500's gain of 24.3% [3] 分组3 - The future performance of Motion Acquisition's stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - Current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $126.93 million, and for the current fiscal year, it is $0.24 on revenues of $623.55 million [7] - The Zacks Industry Rank indicates that the Medical Services sector is currently in the bottom 45% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - For the three months ended September 30, 2024, the Company recorded net income of $4.5 million, compared to net income of $4.6 million in the same period of 2023[223]. - For the nine months ended September 30, 2024, the Company recorded net income of $21.0 million, compared to net income of $2.1 million in the same period of 2023[225]. - For the three months ended September 30, 2024, total revenues were $138.7 million, a decrease of $47.9 million, or 25.7%, compared to the same period in 2023[253]. - Mobile Health Services revenues were $90.7 million, a decrease of $48.6 million, or 34.9%, attributed to the wind-down of migrant-related services[254]. - Transportation Services revenues increased by $0.8 million, or 1.7%, to $48.0 million, driven by an 8.5% increase in trip volumes[255]. - For the nine months ended September 30, 2024, total revenues were $495.7 million, an increase of $70.7 million, or 16.6%, compared to the same period in 2023[270]. - Mobile Health Services revenues for the nine months ended September 30, 2024, were $351.3 million, an increase of $59.0 million, or 20.2%, compared to the same period in 2023[271]. - Transportation Services revenues for the nine months ended September 30, 2024, were $144.4 million, an increase of $11.7 million, or 8.8%, compared to the same period in 2023, driven by a 15.1% increase in trip volumes[273]. Cost and Expenses - Total cost of revenues decreased by 32.5% to $88.8 million, while revenues decreased by 25.7%, resulting in cost of revenues as a percentage of revenues decreasing to 64.0%[256]. - For Mobile Health Services, cost of revenues decreased by 44.1% to $55.5 million, with cost of revenues as a percentage of revenues decreasing to 61.2%[258]. - For Transportation Services, cost of revenues increased by 3.4% to $33.3 million, with cost of revenues as a percentage of revenues increasing to 69.4%[259]. - For the nine months ended September 30, 2024, total cost of revenues increased by 8.9% compared to the same period in 2023, while revenues increased by approximately 16.6%[274]. - Cost of revenues for the Mobile Health Services segment for the nine months ended September 30, 2024, amounted to $223.2 million, up 9.3% from $204.1 million in the same period of 2023[276]. - Cost of revenues for the Transportation Services segment for the nine months ended September 30, 2024, amounted to $99.4 million, up 7.8% from $92.2 million in the same period of 2023[277]. - For the nine months ended September 30, 2024, operating expenses increased by 9.3% to $136.9 million from $125.3 million in the same period of 2023, while as a percentage of revenue, they decreased from 29.5% to 27.6%[278]. - In the Mobile Health Services segment, operating expenses rose to $47.9 million, up from $36.1 million, with operating expenses as a percentage of revenues increasing to 13.6% from 12.3%[280]. - The Transportation Services segment reported operating expenses of $46.1 million, an increase from $39.6 million, with operating expenses as a percentage of revenues rising to 31.9% from 29.9%[281]. - The Corporate segment's operating expenses decreased to $42.9 million from $49.6 million, representing 8.7% of total consolidated revenues compared to 11.7% in the prior year[282]. Cash Flow and Working Capital - The company recorded a net cash provided by operating activities of $57.4 million for the nine months ended September 30, 2024, a significant increase of $115.7 million compared to a cash used of $58.3 million in the same period of 2023[294]. - As of September 30, 2024, working capital increased to $178.1 million, up by $9.3 million from $168.8 million at the end of 2023, with available cash totaling $89.5 million[293]. - Cash flows from operating activities were positively impacted by a $19.8 million decline in accounts receivable, reflecting collections from large municipal customers[295]. - Investing activities used $5.3 million of cash during the nine months ended September 30, 2024, compared to $26.9 million in the same period of 2023, indicating a significant reduction in cash outflow[298][299]. - Financing activities used $16.3 million of cash in the nine months ended September 30, 2024, primarily due to $11.1 million spent on share repurchase and $3.1 million in finance lease payments, compared to $11.9 million in the same period of 2023[300]. Acquisitions and Business Development - The Company completed three acquisitions for an aggregate purchase price of $34.2 million during the nine months ended September 30, 2023[237]. - The Company did not complete any acquisitions during the nine months ended September 30, 2024[237]. - The Company intends to develop and introduce innovative new software services and mobile applications to enhance customer experience[238]. Market Trends - The Mobile Health Services market is expanding due to increased patient acceptance of services provided outside traditional healthcare facilities[227]. - The Transportation Services market is driven by an increase in chronic conditions and the aging population, leading to higher demand for medical transportation[228]. Tax and Interest Rates - The company recorded an income tax provision of $13.3 million for the nine months ended September 30, 2024, compared to $2.0 million in the same period of 2023, due to significantly higher pretax income[286]. - The U.S. Federal Reserve implemented an interest rate cut of 0.50%, lowering the benchmark rate to 4.75%-5.00%[232]. - The Company is exposed to interest rate risk related to cash equivalents and borrowings under its Revolving Facility, which bear interest at a variable rate[323]. - A hypothetical 10% change in interest rates during the nine months ended September 30, 2024, would have had a neutral net impact on the financial statements[324]. - The Company has not utilized interest rate hedging strategies to mitigate interest rate risk[324]. Foreign Exchange and Customer Concentration - The foreign exchange gain for the three months ended September 30, 2024, was $934,774, compared to a loss of $(582,471) for the same period in 2023[325]. - For the nine months ended September 30, 2024, one customer accounted for approximately 36% of revenues and 34% of net accounts receivable[327]. - A hypothetical 10% change in foreign exchange rates would have resulted in a change in total revenues of approximately 0.9% for the three months ended September 30, 2024[325]. - The foreign exchange gain for the nine months ended September 30, 2024, was $828,613, compared to $66,965 for the same period in 2023[325]. - One customer accounted for approximately 41% of revenues and 34% of net accounts receivable for the three months ended September 30, 2024[327]. Variable Interest Entities (VIEs) - Total assets of the Company's Variable Interest Entities (VIEs) amounted to $11.84 billion as of September 30, 2024, up from $4.36 billion as of December 31, 2023[309]. - Total liabilities of the Company's VIEs were $12.72 billion as of September 30, 2024, compared to $4.81 billion as of December 31, 2023[309]. - The Company's VIEs reported a net loss of $(425,668) for the nine months ended September 30, 2024, compared to a net income of $16,839 in the same period of 2023[309].

Revenue Performance - Total revenue for Q3 2024 was $138.7 million, a decrease of 26% from $186.6 million in Q3 2023, primarily due to the planned wind down of migrant-related programs[2] - Mobile Health Services revenue decreased by 35% to $90.7 million in Q3 2024, while Transportation Services revenue increased by 2% to $48 million[2] - Total revenues for September 2024 were $138.68 million, a decrease of 25.7% compared to $186.55 million in September 2023[14] - Year-to-date revenue for 2024 reached $495.1 million, an increase of 7.5% compared to $238.5 million in the same period of 2023[27] - Total revenue for the nine months ended September 30, 2024, was $495.7 million, compared to $425.0 million for the same period in 2023[25] Profitability Metrics - GAAP gross margin for Q3 2024 was 33.0%, up from 27.2% in Q3 2023, while adjusted gross margin increased to 36.0% from 29.5%[2] - Net income for Q3 2024 was $4.5 million, a slight decrease of 2% compared to $4.6 million in Q3 2023, but increased significantly to $21.0 million for the first nine months of 2024 from $2.1 million in the same period of 2023[2] - Adjusted EBITDA for Q3 2024 was $17.9 million, a 7% increase from $16.7 million in Q3 2023, with a substantial increase of 88% for the first nine months of 2024 compared to the same period in 2023[2] - The company reported a net margin of 3.2% in Q3 2024, up from 2.5% in Q3 2023[27] - Adjusted EBITDA margin for the year-to-date period was 12.0%, compared to 13.2% in the same period of 2023[27] Cash Flow and Assets - The company generated over $31 million in cash flow from operations during the period, reflecting a significant increase in cash balance[5] - Cash flows from operating activities for the nine months ended September 30, 2024, were $57,449,955, a notable recovery from a cash outflow of $45,878,329 in the same period of 2023[15] - Cash and cash equivalents increased to $89.46 million in 2024 from $59.29 million in 2023, a growth of 50.9%[13] - Cash and restricted cash at the end of the period was $108,578,498, up from $67,255,938 at the end of the same period in 2023[16] - The company experienced a net increase in cash and restricted cash of $36,360,512 for the nine months ended September 30, 2024, compared to a decrease of $96,853,136 in the same period of 2023[16] Operational Developments - The company has significantly expanded its operations on the West Coast to support care gap closure programs, enhancing healthcare access for Medicaid recipients[4] - The average weekly number of care gap visits has doubled compared to the previous quarter, indicating strong demand for care gap closure programs[5] - A new contract was signed to facilitate in-home medical services for members of Firefly Health, indicating ongoing expansion of service offerings[4] Balance Sheet Highlights - Total current assets decreased to $328.33 million in 2024 from $338.87 million in 2023, a decline of 3.6%[13] - Total liabilities decreased to $168.98 million in 2024 from $185.28 million in 2023, a reduction of 8.8%[13] - The total stockholders' equity attributable to DocGo Inc. increased to $325.21 million in 2024 from $300.79 million in 2023, a rise of 8.1%[13] - The company’s accounts payable increased to $35.14 million in 2024 from $19.83 million in 2023, an increase of 77.0%[13] Other Financial Metrics - The company reported a net income before income tax provision of $9.03 million for September 2024, slightly down from $9.16 million in September 2023[14] - The weighted-average shares outstanding for basic net income per share were 102.07 million in September 2024, down from 103.87 million in September 2023[14] - Stock-based compensation for the three months ended September 30, 2023, was $3,360,709, compared to $15,161,847 for the same period in 2022[15] - The company incurred cash paid for interest of $594,734 for the three months ended September 30, 2023, compared to $179,430 for the same period in 2022[17] - The acquisition of businesses and intangibles totaled $2,940,843 and $2,228,233 respectively for the nine months ended September 30, 2024[15]

分组1 - DocGo Inc. reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.07 per share, compared to a loss of $0.02 per share a year ago, representing an earnings surprise of -14.29% [1] - Over the last four quarters, Motion Acquisition has not surpassed consensus EPS estimates, with revenues of $164.95 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.99%, compared to year-ago revenues of $125.49 million [2] - Motion Acquisition shares have lost about 45.1% since the beginning of the year, while the S&P 500 has gained 9.9% [3] 分组2 - The earnings outlook for Motion Acquisition is mixed, with the current consensus EPS estimate at $0.04 on $138.36 million in revenues for the coming quarter and $0.24 on $621.65 million in revenues for the current fiscal year [7] - The Zacks Industry Rank indicates that the Medical Services sector is currently in the bottom 41% of over 250 Zacks industries, suggesting that the performance of stocks in this sector may be adversely affected [8] - Viatris, another company in the same industry, is expected to report quarterly earnings of $0.68 per share, reflecting a year-over-year change of -9.3%, with revenues expected to be $3.82 billion, down 2.6% from the year-ago quarter [9][10]

DocGo Announces Record Second Quarter 2023 Results August 7, 2023 at 4:05 PM EDT Company Raises 2023 Revenue Guidance To $540-$550 Million Increases Adjusted EBITDA1 Guidance To $48-$53 Million NEW YORK--(BUSINESS WIRE)--Aug. 7, 2023-- DocGo Inc. (Nasdaq: DCGO), a leading provider of last-mile mobile health services today announced financial and operating results for the quarter ended June 30, 2023. Q2 2023 Financial Highlights Total revenue for the second quarter of 2023 was $125.5 million, up from $113.0 ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $164.9 million, a 31% increase from Q2 2023 [16] - Adjusted EBITDA for Q2 2024 was $17.2 million, up from $9.1 million in Q2 2023, with an adjusted EBITDA margin of 10.4% [17] - Net income for Q2 2024 was $5.9 million compared to $1.3 million in Q2 2023 [17] - GAAP gross margin percentage was 31.3%, up from 30.3% in Q2 2023, while adjusted gross margin was 33.9% compared to 33.4% in Q2 2023 [19] Business Line Data and Key Metrics Changes - Mobile Health revenue for Q2 2024 was $116.7 million, a 46% increase from Q2 2023, accounting for 71% of total revenues [16][17] - Transportation services revenue increased to $48.2 million in Q2 2024, which was 6% higher than Q2 2023 [16] - Adjusted gross margin from the Mobile Health segment was 35.9%, compared to 34.9% in Q2 2023 [20] Market Data and Key Metrics Changes - The largest revenue gains occurred in New York, Pennsylvania, and the U.K. [16] - The company is seeing strong results from care gap closure services, with a doubling of patients assigned for these services in Q2 compared to Q1 [9][10] Company Strategy and Development Direction - The company is focusing on expanding its mobile health services and has launched initiatives to engage with prospective partners across three customer verticals [6][8] - A world-class Medical Advisory Board has been established to enhance clinical offerings and publish research on patient outcomes [8] - The company is transitioning from migrant-related projects to pursue new opportunities, which is expected to enhance growth [14] Management's Comments on Operating Environment and Future Outlook - Management expects continued strong cash flow from operations, increasing guidance from $70 million to $80 million to a new range of $80 million to $90 million for 2024 [8][26] - The company anticipates a decline in migrant-related revenues but expects to benefit from improved cash collections and operational efficiencies [25][26] - Management is optimistic about the growth potential in the mobile health sector, particularly in care gap closures and primary care offerings [32][41] Other Important Information - The company repurchased approximately $5 million worth of shares during the period and nearly $10 million since the start of 2024 [7][25] - Cash flow from operations exceeded $35 million in Q2 2024, driving up cash balance by more than $25 million relative to Q1 [7][22] Q&A Session Summary Question: What is driving the recent contract wins? - Management indicated that both market adoption for in-home care and the ROI of their programs are contributing factors [27][28] Question: Did the core business grow 30% year-over-year? - The core business was relatively flat quarter-over-quarter, but management anticipates growth in the second half of the year [29][30] Question: What are the revenue expectations for fiscal 2025? - The base business is expected to be $400 million, with additional revenues potentially from migrant-related services [34][35] Question: How does the company fit into the current healthcare environment? - Management believes their proactive care model aligns well with rising healthcare costs and aims to reduce hospital readmissions [39][40] Question: What is the outlook for cash flow conversion? - Management expects a typical conversion of about $30 million in cash flow from the projected $40 million EBITDA [46][49]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39618 DocGo Inc. (Exact Name of Registrant as Specified in Its Charter) | --- | --- | |----------------------- ...

Financial Performance - Total revenue for Q2 2024 was $164.9 million, a 31% increase from $125.5 million in Q2 2023[2] - Net income for Q2 2024 was $5.9 million, up 354% from $1.3 million in Q2 2023[2] - Adjusted EBITDA for Q2 2024 was $17.2 million, an 89% increase from $9.1 million in Q2 2023[2] - Mobile Health Services revenue for Q2 2024 was $116.7 million, a 46% increase from $80.1 million in Q2 2023[2] - Total revenues for Q2 2024 reached $164.95 million, a 31.5% increase from $125.49 million in Q2 2023[15] - Net income attributable to stockholders of DocGo Inc. for Q2 2024 was $6.53 million, compared to a net loss of $2.01 million in Q2 2023[15] - The company reported a gross profit of $55.88 million for Q2 2024, up from $41.87 million in Q2 2023, indicating a gross margin improvement[15] - The company’s net income per share attributable to DocGo Inc. was $0.06 for Q2 2024, compared to a loss of $0.02 per share in Q2 2023[16] - Year-to-date revenue for 2024 reached $357.0 million, a 49.7% increase from $238.5 million in the same period of 2023[31] - Total revenue for the year-to-date period in 2024 was $357.0 million, compared to $238.5 million in 2023, indicating strong growth[31] Cash Flow and Assets - The company raised its cash flow from operations guidance for 2024 to $80-$90 million, up from the previous expectation of $70-$80 million[2] - Cash and cash equivalents increased to $66.06 million as of June 30, 2024, up from $59.29 million as of December 31, 2023[13] - Total current assets decreased to $328.71 million as of June 30, 2024, from $338.87 million as of December 31, 2023[13] - Total liabilities decreased to $170.18 million as of June 30, 2024, from $185.28 million as of December 31, 2023, representing a reduction of approximately 8.2%[13] - The company experienced a net increase in cash of $26,929,531 for the three months ended June 30, 2024, compared to a decrease of $(3,757,956) for the same period in 2023[20] - Net cash provided by operating activities for the six months ended June 30, 2024, was $26,416,562, compared to a net cash used of $(12,424,782) for the same period in 2023[18] - Cash and restricted cash at the end of the period was $85,823,394, down from $123,760,762 at the end of the same period in 2023[20] Operational Highlights - The company secured five new contracts for healthcare services across the U.S.[3] - A new Medical Advisory Board was established to enhance clinical offerings and research[3] - The company launched a new Well Child Visits program aimed at improving pediatric preventive care[4] - A new share repurchase program of up to $26 million was authorized by the Board of Directors[4] Cost and Margin Analysis - Operating expenses for Q2 2024 were $154.80 million, compared to $123.91 million in Q2 2023, reflecting a 24.9% increase[15] - Adjusted gross profit for Q2 2024 was $55.9 million, compared to $41.9 million in Q2 2023, marking a 33.5% increase[30] - GAAP gross margin improved to 31.3% in Q2 2024, up from 30.3% in Q2 2023[30] - Adjusted gross margin for Q2 2024 was 33.9%, slightly up from 33.4% in Q2 2023[30] - The net margin for Q2 2024 improved to 3.6%, up from 1.0% in Q2 2023[31] - The company reported a pretax income margin of 5.8% in Q2 2024, compared to 0.8% in Q2 2023[31] Other Financial Metrics - The accumulated deficit decreased to $(3.64) million as of June 30, 2024, from $(21.39) million as of December 31, 2023[14] - Total stockholders' equity attributable to DocGo Inc. increased to $315.16 million as of June 30, 2024, from $300.79 million as of December 31, 2023[14] - The company reported a net cash used in investing activities of $(3,788,400) for the six months ended June 30, 2024, compared to $(25,417,484) for the same period in 2023[18] - The company paid $464,235 in interest for the three months ended June 30, 2024, compared to $93,943 for the same period in 2023[21] - Adjusted EBITDA is a key non-GAAP measure that excludes certain amounts included in net income, providing a clearer view of the company's operating performance[27] - The company reported an adjusted gross margin, which is useful for evaluating operating performance by excluding non-cash depreciation and amortization charges[25] - The acquisition of remaining FMC NA involved a due to seller and issuance of stock valued at $7,000,000[22] - The company made earnout payments on contingent liabilities totaling $(1,600,029) during the three months ended June 30, 2024[19]

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $192.1 million, a 70% increase from Q1 2023 [48] - Adjusted EBITDA reached a record $24.1 million, more than four times the $5.6 million in Q1 2023, with an adjusted EBITDA margin of 12.6% [114] - Net income was $10.6 million in Q1 2024 compared to a net loss of $3.9 million in Q1 2023 [49] - Gross margin percentage increased to 35% in Q1 2024 from 28.1% in Q1 2023 [23] Business Line Data and Key Metrics Changes - Mobile Health revenue for Q1 2024 was $143.9 million, nearly double the levels of Q1 2023 [48] - Transportation services revenue increased to $48.2 million in Q1 2024, a 20% increase year-over-year [22] - Gross margin for the Mobile Health segment was 35.5% in Q1 2024, up from 27.7% in Q1 2023 [51] Market Data and Key Metrics Changes - The company expects $250 million from hospital system customers, $100 million from municipal customers, and $50 million from payer and provider programs for 2025 [17] - The transportation segment saw nearly every market experience year-over-year revenue growth, continuing momentum from the second half of 2022 [22] Company Strategy and Development Direction - The company plans to grow base revenue from $280 million to $400 million by 2025, with a focus on expanding Mobile Health and Transportation services [12] - The introduction of a mobile X-ray program aims to diagnose tuberculosis in underserved populations, indicating a strategic focus on population health [21] - The company is optimizing operating expenses to maintain adjusted EBITDA margins as migrant-related revenues wind down [42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while migrant-related revenues are expected to decline, the collection of accounts receivable will improve cash flow from operations [28] - The company is optimistic about the growth potential in the Mobile Health sector, particularly through partnerships with health plans [43] - Management emphasized the importance of addressing care gaps and improving health outcomes through innovative service delivery models [96] Other Important Information - The company repurchased approximately 1.3 million shares for about $4.9 million during Q1 2024, with an additional 1.4 million shares repurchased in Q2 [27] - The effective tax rate for Q1 2024 was approximately 33%, which is expected to remain consistent in future periods [49] Q&A Session Summary Question: What are the expected growth rates for the core business segments into 2025? - Management indicated that the hospital system business is expected to grow in the 15% range from 2024 to 2025, with additional growth from mobile health programs [32] Question: Will there be any migrant contract-related revenue in 2025? - Management clarified that any migrant-related revenues in 2025 would be incremental to the projected $400 million base revenue [57] Question: What is the expected core growth rate for 2024? - The assumption for non-migrant revenue in 2024 is roughly $300 million, with a blended growth rate expected to be flat year-over-year [110] Question: How does the company plan to manage corporate expenses as it scales? - Management emphasized the need to right-size corporate expenses to align with the expected revenue of around $400 million [75]