DocGo (US:DCGO)2025-02-27 21:33Financial Performance - For the year ended December 31, 2024, the company recorded net income of $13.4 million, compared to $10.0 million in 2023 and $30.7 million in 2022[344]. - Total revenues for the year ended December 31, 2024, were $616.6 million, a decrease of $7.7 million, or 1.2%, from 2023[362]. - Mobile Health Services revenues decreased by $19.7 million, or 4.4%, to $423.1 million, primarily due to the wind-down of migrant-related services[363]. - Transportation Services revenues increased by $12.0 million, or 6.6%, to $193.5 million, driven by a 13.7% increase in trip volumes[364]. - The company recorded a net income of $13.4 million, an increase of $3.4 million, or 34.0%, compared to $10.0 million in 2023[361]. - The provision for income taxes increased to $14.4 million in 2024 from $6.2 million in 2023, primarily due to higher pretax income[380]. Revenue Segments - The company derives revenue primarily from two segments: Mobile Health Services and Transportation Services[351]. - Mobile Health Services revenues increased to $442.8 million, up $116.9 million, or 35.9%, primarily due to service expansion in the government customer sector[386]. - Transportation Services revenues reached $181.5 million, an increase of $66.9 million, or 58.3%, driven by a 15.8% increase in trip volumes[387]. Expenses and Costs - Total cost of revenues decreased by $25.9 million, or 6.0%, to $403.0 million, with cost of revenues as a percentage of revenues decreasing to 65.4% from 68.7%[365][366]. - Operating expenses increased by $4.6 million, or 2.6%, to $184.9 million, with operating expenses as a percentage of revenues rising to 30.0% from 28.9%[369]. - The company focuses on managing working capital and operating expenses, with significant costs in labor, medical supplies, and vehicle-related expenses[336]. Acquisitions and Investments - The company completed three acquisitions in 2023 for an aggregate purchase price of $34.2 million, while no acquisitions were completed in 2024[342]. - The company plans to invest in research and development to enhance customer experience and introduce innovative new software services and mobile applications[345]. Cash Flow and Working Capital - As of December 31, 2024, available cash totaled $89.2 million, reflecting an increase of $30.0 million compared to December 31, 2023[413]. - For the year ended December 31, 2024, cash provided by operating activities was $70.3 million, a significant increase of $134.5 million compared to cash used of $64.2 million in 2023[415]. - The Company’s total working capital as of December 31, 2024, was $182.7 million, an increase of $13.9 million or 8.2% compared to $168.8 million in 2023[413]. Market Conditions and Risks - The company operates in a competitive environment influenced by macroeconomic conditions, including interest rates and inflation[332]. - The company expects general and administrative expenses to increase as it scales its business and complies with SEC regulations[353]. - The company anticipates that revenues from migrant-related projects will be significantly lower in 2025 compared to 2024 and the second half of 2023[348]. Customer Concentration - One customer accounted for approximately 38% of revenues and 39% of net accounts receivable for the year ended December 31, 2024[458]. - Another customer accounted for approximately 28% of revenues and 37% of net accounts receivable for the same period[458]. Credit and Interest Rate Risk - The Company does not believe it is exposed to significant credit risk due to the financial strength of the depository institutions[457]. - The Company has not utilized interest rate hedging or other strategies to mitigate interest rate risk[454]. - A hypothetical 10% change in interest rates during the year ended December 31, 2024, would have had a neutral net impact on the Consolidated Financial Statements[454].