DocGo (US:DCGO)2024-05-11 02:10Financial 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]