DocGo (US:DCGO)2022-05-14 12:50Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $118 million, a growth of 137% compared to Q1 2021 [6][25] - Adjusted EBITDA for Q1 2022 was $13.9 million, significantly improved from $0.4 million in Q1 2021, with an adjusted EBITDA margin of 11.8% [8][25] - Net income for Q1 2022 was $9.4 million, a substantial improvement from a net loss of $2 million in Q1 2021 [9][25] - Cash and cash equivalents as of March 31, 2022, totaled $188.4 million, up from $135.5 million at the end of 2021 [28] Business Line Data and Key Metrics Changes - Mobile Health division generated revenue of $90.1 million in Q1 2022, a 193% increase from $30.7 million in Q1 2021 [7][25] - Transportation revenue was $27.8 million, a 46% increase from $19 million in Q1 2021 [8][25] - Excluding COVID testing revenue, total Q1 revenues increased approximately 2.7 times year-over-year, from about $29 million in Q1 2021 to approximately $80 million in Q1 2022 [25] Market Data and Key Metrics Changes - The UK market revenue grew by 40% to $2.8 million during Q1 2022, representing about 2% of total revenue [25] - The company provided services in 29 states and the UK, with significant growth opportunities in both existing and new markets [10][20] Company Strategy and Development Direction - The company aims to transition from COVID-related services to longer-term non-COVID work, focusing on building lasting customer relationships [9][19] - Plans to expand direct-to-consumer offerings and enhance technology integration with existing healthcare systems [15][64] - The company is pursuing international expansion, particularly in the UK, while also targeting the untapped U.S. market [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for mobile health and transportation services, maintaining revenue guidance of $400 million to $420 million for 2022 [31][54] - The transition from COVID testing to new mobile health contracts is expected to be seamless, with a focus on timing and resource allocation [41][60] - Management highlighted the significant market opportunity for home-based care, projecting a shift of up to $265 billion in medical care to home settings by 2025 [23] Other Important Information - The company unveiled the first zero-emission all-electric ambulance in the U.S. and aims to convert to an all-electric fleet by 2032 [21] - The company has expanded its workforce, with over 4,000 full-time personnel, primarily clinical providers, and anticipates reaching around 5,000 by year-end [44] Q&A Session Summary Question: What is the COVID testing revenue for 2021? - The estimated COVID testing revenue for 2021 was $110 million, with an anticipated $55 million for 2022 in the first half [36][37] Question: How is the transition from COVID contracts to long-term work progressing? - The transition is primarily about timing, ensuring personnel are ready for new contracts as COVID work winds down [41][42] Question: What is the final provider headcount at the quarter end? - The final provider headcount was over 4,000, with expectations to reach around 5,000 by the end of the year [44] Question: How does the revenue transition from COVID testing to new services look? - The revenue model remains consistent, with minimal variation as practitioners transition from COVID testing to other clinical services [45][46] Question: What are the gross margin targets for mobile health and transportation? - Long-term gross margin targets are 50% to 53% for mobile health and 40% to 42% for transportation [69]