DocGo (US:DCGO)2023-05-09 01:06Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was $113 million, a decline of 4% year-over-year, but a 40% increase when excluding mass COVID testing revenues [5][14] - The company recorded a net loss of $3.9 million in Q1 2023, compared to a net income of $9.4 million in Q1 2022, largely due to increased non-cash stock compensation and legal costs [15][39] - Adjusted EBITDA for Q1 2023 was $5.6 million, down from $13.6 million in Q1 2022 [62] Business Line Data and Key Metrics Changes - Medical Transportation revenue increased significantly to $40.1 million in Q1 2023, representing a 44% increase from $27.8 million in Q1 2022 [37] - Mobile Health revenue for Q1 2023 was $72.9 million, down from $90.1 million in Q1 2022, but increased by 38% when excluding mass COVID testing revenue [61] - Gross margins for the Mobile Health segment were 27.7% in Q1 2023, down from 37.3% in Q1 2022, impacted by startup costs for new projects [38] Market Data and Key Metrics Changes - The current backlog totals approximately $205 million, up from $180 million, driven by new municipal Mobile Health contracts [29][19] - The company has seen a doubling of open RFPs, with a total contract value of approximately $1.5 billion, indicating strong demand for mobile health services [28][70] Company Strategy and Development Direction - The company is transitioning from a mass COVID testing-centric business to a broader mobile health service model, focusing on chronic care management and remote patient monitoring [6][10] - A partnership with Fresenius Medical Corporation aims to enhance remote patient monitoring and chronic care management services, targeting a significant patient population [7][10] - The company anticipates providing RPM and CCM services to over 50,000 patients by the end of 2023, with a focus on cardiology and nephrology [10][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance of $500 million to $510 million for 2023, with expected adjusted EBITDA of $45 million to $50 million [5][19] - The company is experiencing a rebound in margins following a challenging start to the year, with expectations for improved gross margins in Q2 2023 [34][35] - Management noted that the macro labor market is becoming more favorable, which should support growth and margin objectives [35] Other Important Information - The company is planning an Investor Day on June 20 at the NASDAQ market site in New York [20] - Non-cash stock compensation expense was approximately $8.5 million in Q1 2023, significantly higher than the previous year [39] Q&A Session Summary Question: Can you elaborate on the increase in RFP value? - The number of outstanding RFPs has doubled, with total contract value increasing from $1.1 billion to $1.5 billion, including both federal and municipal deals [43] Question: How do you plan to reach the goal of 50,000 patients in RPM? - The majority of RPM and CCM services will come from existing cardiology practices and the newly acquired CRMS, which focuses on cardiac patients [47] Question: What is the impact of startup costs on margins? - The startup costs were higher than expected due to an accelerated launch timeline, impacting margins but expected to normalize moving forward [93]