Full Press Release Details
Announces Record Second Quarter 2023 Results
Raises 2023 Revenue Guidance To $540-$550 Million
Adjusted EBITDA1 Guidance To $48-$53 Million
YORK, NY, August 7, 2023 - DocGo Inc. (Nasdaq: DCGO), a leading provider of last-mile mobile health services today announced
financial and operating results for the quarter ended June 30, 2023.
2023 Financial Highlights
Corporate Highlights
Chief Executive Officer of DocGo, commented, "New project momentum at the end of the second quarter was exceptional and that momentum
accelerated further in July. We are seeing strong growth in our core markets and strong demand from large payers for our proactive healthcare
programs. We continue to strategically invest earnings from our municipal population health programs into our payer programs, such as
remote patient monitoring, chronic care management and care gap closure. This approach allows us to fund our aggressive growth from our
own balance sheet." Capone concluded, "Collectively, the strong demand we are seeing across the board is driving our increase
in full year revenue and adjusted EBITDA guidance to $540-$550 million and $48-$53 million, respectively."
Rosenberg, Chief Financial Officer of DocGo, added, "I think it is important to reiterate that while revenues grew 15% in the quarter
year over year, excluding mass Covid-testing revenue, revenues were up 53%. Cash collections were also strong toward the end of the second
quarter, which were then cycled back out in support of the robust project activity we are experiencing, resulting in a relatively flat
cash position. We also saw a solid improvement in our gross margin in the quarter, increasing from 28.1% to 33.4% on a sequential basis,
and we expect continued improvements in the coming quarters."
call and webcast details:
August 7, 5:00 pm EDT
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can be accessed under Events on the Investors section of the Company's website, https://ir.docgo.com/.
leading the proactive healthcare revolution with an innovative care delivery platform that includes mobile health services, remote patient
monitoring and ambulance services. DocGo disrupts the traditional four-wall healthcare system by providing high quality, highly affordable
care to patients where and when they need it. DocGo's proprietary, AI-powered technology and dedicated field staff of certified health
professionals elevate the quality of patient care and drive business efficiencies for facilities, hospital networks, and health insurance
providers. With Mobile Health, DocGo empowers the full promise and potential of telehealth by facilitating healthcare treatment, in tandem
with a remote physician, in the comfort of a patient's home or workplace. Together with DocGo's integrated Ambulnz medical transport
services, DocGo is bridging the gap between physical and virtual care. For more information, please visit docgo.com.
announcement contains forward-looking statements (including within the meaning of Section 21E of the U.S. Securities Exchange Act of
1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended) concerning DocGo. These statements include, but are
not limited to, statements that address our expected future business, financial performance and guidance and statements about (i) our
plans, objectives and intentions with respect to future operations, services and products, including our transition to non-COVID related
services, geographic expansion, rapid normalization initiative, new and existing contracts and backlog, serviceable patient population,
M&A activity, workforce growth, leadership transition, cash position and share repurchase program, (ii) our competitive position
and opportunities, including our addressable market opportunities, expected demand for our products and our ability to realize the benefits
from our operating model, and (iii) other statements identified by words such as "may", "will", "expect",
"intend", "plan", "potential", "believe", "seek", "could", "estimate",
"judgment", "targeting", "should", "anticipate", "predict" "project", "aim",
"goal", "outlook", "guidance", "design" and similar words, phrases or expressions. These forward-looking
statements are based on management's current expectations and beliefs, as well as assumptions made by, and information currently available
to, management, and current market trends and conditions. Forward-looking statements inherently involve risks and uncertainties, many
of which are beyond our control, and which may cause actual results to differ materially from those contained in our forward-looking
statements. Accordingly, you should not place undue reliance on such statements. Particular uncertainties that could materially affect
current or future results include possible accounting adjustments made in the process of finalizing reported financial results; any risks
associated with global macroeconomic and geopolitical conditions and concerns, including rising interest rates, the inflationary environment,
the potential recessionary environment, regional conflict and tensions, financial institution instability and the prospect of a shutdown
of the U.S. federal government; the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreaks, such as
the COVID-19 coronavirus pandemic; competitive pressures; availability of healthcare professionals; changes in the cost of labor; pricing
declines; rates of growth in our target markets; our ability to improve gross margins; cost-containment measures; loss of major customers;
legislative and regulatory actions; the impact of legal proceedings and compliance risks; the impact on our business and reputation in
the event of information technology system failures, network disruptions, cyber-attacks, or losses or unauthorized access to, or release
of, confidential information; and the ability of the Company to comply with laws and regulations regarding data privacy and protection.
We undertake no intent or obligation to publicly update or revise any of these forward-looking statements, whether as a result of new
information, future events or otherwise.
following information provides definition and reconciliation of the non-GAAP financial measure presented in this earnings release to
the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles (GAAP).
The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information
supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance
with GAAP. Such non-GAAP financial measure should not be considered superior to, as a substitute for or alternative to, and should be
considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measure in this
earnings release may differ from similarly titled measures used by other companies.
EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission's ("SEC") rules because
it excludes certain amounts included in net income (loss) calculated in accordance with GAAP. Specifically, Adjusted EBITDA is arrived
at by taking reported GAAP Net Income and adding back the following items: net interest expense/ (income), Provision/(benefit) for income
taxes, depreciation and amortization, other (income)/expense, non-cash equity-based compensation and certain other non-recurring expenses
consisting of expenses incurred in relation to the Company's merger with Motion in 2021, certain one-time legal settlements and
certain one-time expenses incurred in connection with acquisitions, beyond those that are typically incurred. The Company's management
believes that its Adjusted EBITDA measure is useful in evaluating DocGo's operating performance, as the calculation of this measure
generally eliminates the effect of financing and income taxes and the accounting effects of capital spending and acquisitions, as well
as other items of a non-recurring and/or non-cash nature. Adjusted EBITDA is not intended to be a measure of GAAP cash flow, as this
measure does not consider certain cash-based expenses, such as payments for taxes or debt service. Management believes that using Adjusted
EBITDA in conjunction with GAAP measures such as net income assists investors in getting a more complete picture of the Company's
financial results and operations, affording them with a more complete view of what management considers to be the Company's core
operating performance as well as offering the ability to assess such performance as compared with that of prior periods and management's
public guidance. While many companies use Adjusted EBITDA as a performance measure, not all companies use identical calculations for
determining Adjusted EBITDA. As such, DocGo's presentation of Adjusted EBITDA might not be comparable to similarly titled measures
table below reflects the reconciliation of Net Income (Loss) to Adjusted EBITDA (in millions) for the quarter and six months ended June
30, 2023 compared to the same period in 2022 and the first quarter of 2023:
| Q2 | YTD | Q1 | ||||||||||||||||||
| 2022 | 2023 | 2022 | 2023 | 2023 | ||||||||||||||||
| Net Income/(loss) (GAAP) | $ | 11.8 | $ | 1.3 | $ | 21.1 | $ | (2.6 | ) | $ | (3.9 | ) | ||||||||
| (+) Net Interest expense/ (income) | $ | (0.1 | ) | $ | (0.5 | ) | $ | 0.0 | $ | (1.3 | ) | $ | (0.8 | ) | ||||||
| (+) Income Tax | $ | 0.3 | $ | (0.3 | ) | $ | 0.8 | $ | (2.5 | ) | $ | (2.1 | ) | |||||||
| (+) Depreciation & amortization | $ | 2.0 | $ | 3.8 | $ | 4.2 | $ | 7.5 | $ | 3.6 | ||||||||||
| (+) Other (income)/expense | $ | (4.5 | ) | $ | 1.1 | $ | (4.4 | ) | $ | 1.1 | $ | (0.1 | ) | |||||||
| EBITDA | $ | 9.5 | $ | 5.4 | $ | 21.7 | $ | 2.2 | $ | (3.3 | ) | |||||||||
| (+) Non-cash stock compensation | $ | 2.0 | $ | 3.4 | $ | 3.4 | $ | 11.8 | $ | 8.5 | ||||||||||
| (+) Non-recurring expense | $ | 0.8 | $ | 0.3 | $ | 0.8 | $ | 0.7 | $ | 0.4 | ||||||||||
| Adjusted EBITDA | $ | 12.3 | $ | 9.1 | $ | 25.9 | $ | 14.7 | $ | 5.6 |
DocGo Inc. and Subsidiaries
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
| June 30, 2023 | December 31, 2022 | |||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 109,159,519 | $ | 157,335,323 | ||||
| Accounts receivable, net of allowance of $4,204,532 and $7,818,702 as of June 30, 2023 and December 31, 2022, respectively | 118,498,751 | 102,995,397 | ||||||
| Assets held for sale | - | 4,480,344 | ||||||
| Prepaid expenses and other current assets | 6,786,787 | 6,269,841 | ||||||
| Total current assets | 234,445,057 | 271,080,905 | ||||||
| Property and equipment, net | 21,937,494 | 21,258,175 | ||||||
| Intangibles, net | 38,050,268 | 22,969,246 | ||||||
| Goodwill | 47,820,840 | 38,900,413 | ||||||
| Restricted cash | 14,601,243 | 6,773,751 | ||||||
| Operating lease right-of-use assets | 9,288,582 | 9,074,277 | ||||||
| Finance lease right-of-use assets | 8,963,759 | 9,039,663 | ||||||
| Equity method investment | 392,118 | 597,977 | ||||||
| Deferred tax assets | 11,247,764 | 9,957,967 | ||||||
| Other assets | 3,538,920 | 3,625,254 | ||||||
| Total assets | $ | 390,286,045 | $ | 393,277,628 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,690,956 | $ | 21,582,866 | ||||
| Accrued liabilities | 34,787,144 | 31,573,031 | ||||||
| Notes payable, current | 696,308 | 664,913 | ||||||
| Due to seller | 17,896,030 | 26,244,133 | ||||||
| Contingent consideration | 26,489,294 | 10,555,540 | ||||||
| Operating lease liability, current | 2,479,340 | 2,325,024 | ||||||
| Liabilities held for sale | - | 4,480,344 | ||||||
| Finance lease liability, current | 2,717,546 | 2,732,639 | ||||||
| Total current liabilities | 91,756,618 | 100,158,490 | ||||||
| Notes payable, non-current | 1,580,516 | 1,236,601 | ||||||
| Operating lease liability, non-current | 7,162,046 | 7,040,982 | ||||||
| Finance lease liability, non-current | 5,926,286 | 5,914,164 | ||||||
| Total liabilities | 106,425,466 | 114,350,237 | ||||||
| Commitments and Contingencies | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock ($0.0001 par value; 500,000,000 shares authorized as of June 30, 2023 and December 31,2022; 103,762,092 and 102,411,162 shares issued and outstanding as of June 30, 2023 and December 31,2022, respectively | 10,376 | 10,241 | ||||||
| Additional paid-in-capital | 312,101,281 | 301,451,435 | ||||||
| Accumulated deficit | (33,729,702 | ) | (28,972,216 | ) | ||||
| Accumulated other comprehensive income | 1,390,642 | 741,206 | ||||||
| Total stockholders' equity attributable to DocGo Inc. and Subsidiaries | 279,772,597 | 273,230,666 | ||||||
| Noncontrolling interests | 4,087,982 | 5,696,725 | ||||||
| Total stockholders' equity | 283,860,579 | 278,927,391 | ||||||
| Total liabilities and stockholders' equity | $ | 390,286,045 | $ | 393,277,628 |
DocGo Inc. and Subsidiaries
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue, net | $ | 125,486,760 | $ | 109,519,304 | $ | 238,489,463 | $ | 227,410,856 | ||||||||
| Expenses: | ||||||||||||||||
| Cost of revenues (exclusive of depreciation and amortization, which is shown separately below) | 83,617,876 | 70,176,462 | 164,844,374 | 148,164,035 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 30,797,237 | 24,637,618 | 60,017,554 | 48,498,234 | ||||||||||||
| Depreciation and amortization | 3,831,061 | 2,037,771 | 7,480,390 | 4,238,792 | ||||||||||||
| Legal and regulatory | 2,404,856 | 3,061,276 | 6,043,177 | 4,409,259 | ||||||||||||
| Technology and development | 2,574,389 | 1,148,320 | 4,437,968 | 2,290,153 | ||||||||||||
| Sales, advertising and marketing | 685,387 | 1,000,100 | 992,633 | 2,258,061 | ||||||||||||
| Total expenses | 123,910,806 | 102,061,547 | 243,816,096 | 209,858,534 | ||||||||||||
| Income (loss) from operations | 1,575,954 | 7,457,757 | (5,326,633 | ) | 17,552,322 | |||||||||||
| Other income (expenses): | ||||||||||||||||
| Interest income (expense), net | 521,872 | 98,276 | 1,331,044 | (37,330 | ) | |||||||||||
| (Loss)/gain on remeasurement of warrant liabilities | - | 3,027,766 | - | 2,969,017 | ||||||||||||
| (Loss)/gain on initial equity method investments | (90,573 | ) | 89,810 | (205,859 | ) | 6,469 | ||||||||||
| (Loss)/gain on remeasurement of finance leases | - | 1,388,273 | - | 1,388,273 | ||||||||||||
| (Loss)/gain on disposal of fixed assets | (98,630 | ) | - | (153,469 | ) | - | ||||||||||
| Other (expense) income | (920,058 | ) | 15,640 | (705,178 | ) | 11,387 | ||||||||||
| Total other (expense) income | (587,389 | ) | 4,619,765 | 266,538 | 4,337,816 | |||||||||||
| Net income (loss) before income tax benefit (expense) | 988,565 | 12,077,522 | (5,060,095 | ) | 21,890,138 | |||||||||||
| Income tax benefit (provision) | 355,054 | (321,660 | ) | 2,484,924 | (761,839 | ) | ||||||||||
| Net income (loss) | 1,343,619 | 11,755,862 | (2,575,171 | ) | 21,128,299 | |||||||||||
| Net income (loss) attributable to noncontrolling interests | 3,354,886 | (979,791 | ) | 2,901,766 | (2,237,048 | ) | ||||||||||
| Net (loss)/income attributable to stockholders of DocGo Inc. and Subsidiaries | (2,011,267 | ) | 12,735,653 | (5,476,937 | ) | 23,365,347 | ||||||||||
| Other comprehensive income | ||||||||||||||||
| Foreign currency translation adjustment | 405,778 | 10,434 | 649,436 | 4,571 | ||||||||||||
| Total comprehensive (loss) income | $ | (1,605,489 | ) | $ | 12,746,087 | $ | (4,827,501 | ) | $ | 23,369,918 | ||||||
| Net (loss)/income per share attributable to DocGo Inc. and Subsidiaries - Basic | $ | (0.02 | ) | $ | 0.13 | $ | (0.05 | ) | $ | 0.23 | ||||||
| Weighted-average shares outstanding - Basic | 103,585,661 | 99,303,948 | 103,085,257 | 100,372,146 | ||||||||||||
| Net (loss)/income per share attributable to DocGo Inc. and Subsidiaries - Diluted | $ | (0.02 | ) | $ | 0.11 | $ | (0.05 | ) | $ | 0.20 | ||||||
| Weighted-average shares outstanding - Diluted | 103,585,661 | 115,279,676 | 103,085,257 | 116,347,874 |
DocGo Inc. and Subsidiaries
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net (loss) income | $ | (2,575,171 | ) | $ | 21,128,299 | |||
| Adjustments to reconcile net (loss)/income to net cash | ||||||||
| (used in)/provided by operating activities: | ||||||||
| Depreciation of property and equipment | 3,072,647 | 1,441,438 | ||||||
| Amortization of intangible assets | 2,780,580 | 1,279,078 | ||||||
| Amortization of finance lease right-of-use assets | 1,627,163 | 1,518,276 | ||||||
| Loss on disposal of assets | 153,469 | - | ||||||
| Deferred tax asset | (1,289,797 | ) | - | |||||
| Loss/ (Gain) on equity method investment | 205,859 | (30,290 | ) | |||||
| Bad debt expense | 976,690 | 1,818,792 | ||||||
| Stock based compensation | 11,801,138 | 3,504,861 | ||||||
| Gain on remeasurement of finance leases | - | (1,388,273 | ) | |||||
| Loss on liquidation of business | 70,284 | - | ||||||
| Gain on remeasurement of warrant liabilities | - | (2,969,017 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (15,407,684 | ) | 4,310,990 | |||||
| Prepaid expenses and other current assets | (223,468 | ) | (3,173,647 | ) | ||||
| Other assets | 86,334 | 2,128,320 | ||||||
| Accounts payable | (14,901,225 | ) | (2,927,492 | ) | ||||
| Accrued liabilities | 1,198,399 | 3,545,642 | ||||||
| Net cash (used in)/provided by operating activities | (12,424,782 | ) | 30,186,977 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment | (3,559,656 | ) | (941,655 | ) | ||||
| Acquisition of intangibles | (1,931,602 | ) | (1,016,430 | ) | ||||
| Acquisition of businesses, net of cash paid | (20,203,464 | ) | - | |||||
| Proceeds from disposal of property and equipment | 277,238 | - | ||||||
| Net cash used in investing activities | (25,417,484 | ) | (1,958,085 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from revolving credit line | - | 1,000,000 | ||||||
| Repayments of notes payable | (247,707 | ) | (287,998 | ) | ||||
| Due to seller | (2,556,188 | ) | (877,088 | ) | ||||
| Noncontrolling interest contributions | - | 2,063,000 | ||||||
| Proceeds from exercise of stock options | 1,123,295 | 1,153,410 | ||||||
| Common stock repurchased | - | (497,899 | ) | |||||
| Equity costs | - | (19,570 | ) | |||||
| Payments on obligations under finance lease | (1,510,522 | ) | (1,411,565 | ) | ||||
| - | ||||||||
| Net cash (used in)/provided by financing activities | (3,191,122 | ) | 1,122,290 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 685,076 | 4,571 | ||||||
| Net increase in cash and restricted cash | (40,348,312 | ) | 29,355,753 | |||||
| Cash and restricted cash at beginning of period | 164,109,074 | 179,105,730 | ||||||
| Cash and restricted cash at end of period | $ | 123,760,762 | $ | 208,461,483 |
| Six Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| Supplemental disclosure of cash and non-cash transactions: | ||||||||
| Cash paid for interest | $ | 126,770 | $ | 129,363 | ||||
| Cash paid for interest on finance lease liabilities | $ | 259,051 | $ | 222,649 | ||||
| Cash paid for income taxes | $ | 4,223,810 | $ | 761,839 | ||||
| Right-of-use assets obtained in exchange for lease liabilities | $ | 1,538,961 | $ | 2,192,946 | ||||
| Fixed assets acquired in exchange for notes payable | $ | 623,017 | $ | - | ||||
| Acquisition of remaining Ambulnz-FMC North America, LLC. through Due to seller and issuance of stock | $ | 7,000,000 | $ | - | ||||
| Acquisition of Cardiac RMS, LLC | $ | 1,000,000 | $ | - | ||||
| Reconciliation of cash and restricted cash | ||||||||
| Cash | $ | 109,159,519 | $ | 198,138,395 | ||||
| Restricted cash | 14,601,243 | 10,323,088 | ||||||
| Total cash and restricted cash shown in statement of cash flows | $ | 123,760,762 | $ | 208,461,483 |