DocGo (US:DCGO)2022-03-15 17:11Financial Data and Key Metrics Changes - Full year 2021 total company revenue reached $318.7 million, a growth of over 239% compared to $94 million in 2020 [5][29] - Adjusted full year 2021 EBITDA was $25.1 million, a significant improvement from an adjusted EBITDA loss of $8.1 million in 2020 [6][31] - Net income for the full year was $19.2 million, compared to a net loss of $14.8 million in 2020 [31][32] - Q4 2021 total revenue was over $121 million, representing a growth of 289% from $31 million in Q4 2020 [27][29] - Q4 adjusted EBITDA grew to $17.3 million, compared to an EBITDA loss of $2.9 million in the prior year [28][31] Business Line Data and Key Metrics Changes - Mobile Health revenue for fiscal 2021 was $234.4 million, up 659% from $31 million in the prior year [29] - Medical transportation revenue amounted to $84.3 million, a 33% increase from $63.1 million in fiscal 2020 [29] - Q4 Mobile Health revenue was $102.6 million, compared to $15.8 million in Q4 2020, reflecting a growth of approximately 6.5 times [27][28] - Medical transport revenue in Q4 was $18.7 million, up 21% from $15.4 million in Q4 2020 [28] Market Data and Key Metrics Changes - The U.S. addressable market for the company's services is estimated to be approximately $102 billion, largely untapped [23] - A report by McKinsey suggests that up to $265 billion in medical care currently delivered in healthcare facilities will shift to home-based care by 2025 [24] - The company has provided mobile health solutions in 29 states and is licensed to operate in more [12] Company Strategy and Development Direction - The company aims to expand its mobile health and transportation services, focusing on high-quality, affordable healthcare delivery [8][10] - A notable contract with Aetna in New York and New Jersey is expected to drive future growth, providing services to over 2.5 million people [14] - The company is piloting a direct-to-consumer offering to provide cost-effective treatment alternatives for non-emergency conditions [15] - Investments in technology are seen as a significant competitive advantage, enhancing care coordination and patient experience [16][25] Management's Comments on Operating Environment and Future Outlook - Management anticipates a conservative approach to COVID testing revenue, projecting no revenue from it after Q2 2022 [7][42] - Demand for services remains strong, particularly due to staffing shortages in hospitals and healthcare systems [46][48] - The company expects to achieve fiscal 2022 revenues of approximately $400 million to $420 million, representing a 26% to 32% increase over 2021 [7][33] Other Important Information - The company hired over 900 new employees in Q4 2021, totaling over 2,300 hires for the year [32] - Cash and cash equivalents totaled $175.5 million as of December 30, 2021, with minimal debt of approximately $2 million [32] Q&A Session Summary Question: Growth rate and catalysts for mobile transport - Management indicated that growth in transportation is dependent on securing new licenses, with expectations of 35% to 40% growth per year [35][36] Question: Guidance on gross margin - Management expects gross margins to improve over time, targeting 51% to 52% for mobile health and 40% to 43% for transportation [38][52] Question: COVID revenue assumptions for 2022 - Management anticipates COVID testing revenue to drop to zero by July 1, 2022, with a conservative approach to forecasting [42][86] Question: Demand environment and staffing shortages - Management noted strong demand due to staffing shortages in healthcare systems, with a focus on providing services without adding strain to existing staff [46][48] Question: Visibility into 2022 revenue - Management outlined a five-point process for revenue guidance, considering existing contracts, pipeline contracts, and market expansion [58][63]