Full Press Release Details
DocGo Announces Strong First Quarter 2022
Q1 Revenue of $118 Million Up 137% Over Comparable
Bolsters Senior Staff, Expands Market Footprint
NEW YORK, NY, May 9, 2022 - DocGo (Nasdaq:DCGO),
a leading provider of last-mile mobile health services and integrated medical transportation solutions, today announced financial and
operating results for the first quarter ending March 31, 2022.
"During the first quarter we
were able to continue our momentum from 2021, as we began the transition of some Covid-related services to longer term non-Covid related
work both with new and existing customers. Our goal is to make this transition as seamless as possible. While there are challenges,
we are making great progress," stated Stan Vashovsky, Chief Executive Officer and Co-Founder of DocGo. "We also
continue to expand our breadth and geographic reach, adding new services in new states, while bolstering the strength of our operational
team. Not only did DocGo grow revenue 137% over the year-ago period, but we also generated strong net income and cash flow,
and we expect to see continued improvements in profitability over time. We continue to operate in a vast, untapped market with
a scalable and capital efficient business model. Our first quarter results represent a strong start to what I anticipate will be a successful
2022, and I look forward to sharing additional updates."
First Quarter Financial Highlights
Select Corporate Highlights
The company continues to see strong demand from
its customers for both mobile health and transportation services. Accordingly, the company is reiterating its prior revenue guidance for
fiscal year 2022 of approximately $400-420 million. This represents growth of 25-32% over 2021 revenues. Excluding estimated Covid testing
revenues from both years, its 2022 revenue guidance would represent an annual increase of 65% - 75% over 2021(3). Adjusted
EBITDA(2) is anticipated to be approximately $35-41 million for 2022.
Adjusted EBITDA is a non-GAAP financial measure. See "Non-GAAP Financial Measures" below for additional information on this
non-GAAP financial measure and a reconciliation to the most comparable GAAP measure.
2 Adjusted EBITDA is a
non-GAAP financial measure. We have not reconciled Adjusted EBITDA outlook to the most comparable GAAP outlook because it is not possible
to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future
events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted
with the level of precision required, we are unable to provide outlook for the comparable GAAP measure (net income). Forward- looking
estimates of Adjusted EBITDA are made in a manner consistent with the relevant definitions and assumptions noted herein.
3 See table below for additional detail.
Conference call and webcast
DocGo management will host a conference call
and webcast to discuss the first quarter results tomorrow, May 10, at 8:30 am ET. To access the conference call, please dial 1-877-407-0784
(U.S.) or 1-201-689-8560 (international). Reference conference ID 13728508.
The webcast can be accessed using the following link:
or under "Events" on the "Investors" section
of the company's website, https://ir.docgo.com/. A replay of the webcast will be archived on the company's investor relations
page through June 2, 2022 at approximately 5:00 PM Eastern Time.
DocGo is a leading provider of last-mile mobile
care services and integrated medical transportation solutions. DocGo is disrupting the traditional four-wall healthcare system by providing
care to patients where and when they need it. DocGo's innovative 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 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 www.docgo.com.
Forward-Looking Statements
This 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 and financial performance 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, new and existing contracts and our "Zero
Emission" initiative, (ii) our competitive position and opportunities, , including 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", 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 economic conditions
and concerns; the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreaks, such as the COVID-19 coronavirus
pandemic; competitive pressures; pricing declines; rates of growth in our target markets; our ability to improve gross margins; cost-containment
measures; 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.
Non-GAAP Financial Measures
The 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
Adjusted 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. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it
facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords
investors a view of what management considers to be the Company's core operating performance as well as the ability to make a more
informed assessment of such operating performance as compared with that of the prior period.
The table below reflects the calculation of Adjusted EBITDA for
the three months ended March 31, 2022 compared to the prior year's first quarter ended March 31, 2021:
DocGo Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 188,353,909 | $ | 175,537,221 | ||||
| Accounts receivable, net of allowance of $8,023,348 and $7,377,389 as of March 31, 2022 and December 31, 2021, respectively | 76,167,670 | 78,383,614 | ||||||
| Prepaid expenses and other current assets | 3,649,206 | 2,111,656 | ||||||
| Total current assets | 268,170,785 | 256,032,491 | ||||||
| Property and equipment, net | 12,624,427 | 12,733,889 | ||||||
| Intangibles, net | 10,579,310 | 10,678,049 | ||||||
| Goodwill | 8,686,966 | 8,686,966 | ||||||
| Restricted cash | 10,370,398 | 3,568,509 | ||||||
| Operating lease right-of-use assets | 3,962,805 | 4,195,682 | ||||||
| Finance lease right-of-use assets | 8,658,897 | 9,307,113 | ||||||
| Equity method investment | 520,063 | 589,058 | ||||||
| Other assets | 1,622,653 | 3,810,895 | ||||||
| Total assets | $ | 325,196,304 | $ | 309,602,652 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 15,120,928 | $ | 15,833,970 | ||||
| Accrued liabilities | 38,174,025 | 35,110,877 | ||||||
| Line of credit | 1,025,881 | 25,881 | ||||||
| Notes payable, current | 593,831 | 600,449 | ||||||
| Due to seller | 1,411,169 | 1,571,419 | ||||||
| Operating lease liability, current | 1,404,651 | 1,461,335 | ||||||
| Finance lease liability, current | 3,262,004 | 3,271,990 | ||||||
| Total current liabilities | 60,992,489 | 57,875,921 | ||||||
| Notes payable, non-current | 1,171,306 | 1,302,839 | ||||||
| Operating lease liability, non-current | 2,788,103 | 2,980,946 | ||||||
| Finance lease liability, non-current | 6,402,846 | 6,867,420 | ||||||
| Warrant liabilities | 13,577,251 | 13,518,502 | ||||||
| Total liabilities | 84,931,995 | 82,545,628 | ||||||
| Commitments and Contingencies | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock ($0.0001 par value; 500,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 100,475,958 and 100,133,953 shares issued and outstanding as of March 31, 2022 and December 31,2021, respectively) | 10,208 | 10,013 | ||||||
| Additional paid-in-capital | 284,938,732 | 283,161,216 | ||||||
| Accumulated deficit | (52,927,020 | ) | (63,556,714 | ) | ||||
| Accumulated other comprehensive loss | (38,364 | ) | (32,501 | ) | ||||
| Total stockholders' equity attributable to DocGo Inc. and Subsidiaries | 231,983,556 | 219,582,014 | ||||||
| Noncontrolling interests | 8,280,753 | 7,475,010 | ||||||
| Total stockholders' equity | 240,264,309 | 227,057,024 | ||||||
| Total liabilities and stockholders' equity | $ | 325,196,304 | $ | 309,602,652 |
DocGo Inc. and Subsidiaries
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
COMPREHENSIVE INCOME (LOSS)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenue, net | $ | 117,891,552 | $ | 49,688,856 | ||||
| Expenses: | ||||||||
| Cost of revenues (exclusive of depreciation and amortization, which is shown separately below) | 77,987,573 | 35,860,742 | ||||||
| Operating expenses: | ||||||||
| General and administrative | 23,860,616 | 12,035,526 | ||||||
| Depreciation and amortization | 2,201,021 | 1,597,676 | ||||||
| Legal and regulatory | 1,347,983 | 656,658 | ||||||
| Technology and development | 1,141,833 | 569,351 | ||||||
| Sales, advertising and marketing | 1,257,961 | 842,861 | ||||||
| Total expenses | 107,796,987 | 51,562,814 | ||||||
| Income (loss) from operations | 10,094,565 | (1,873,958 | ) | |||||
| Other income (expenses): | ||||||||
| Interest income (expense), net | (135,606 | ) | (115,009 | ) | ||||
| Loss on remeasurement of warrant liabilities | (58,749 | ) | - | |||||
| Loss on initial equity method investments | (83,341 | ) | - | |||||
| Other income (loss) | (4,253 | ) | - | |||||
| Total other income (expense) | (281,949 | ) | (115,009 | ) | ||||
| Net income (loss) before income tax benefit (expense) | 9,812,616 | (1,988,967 | ) | |||||
| Income tax expense | (440,179 | ) | (10,029 | ) | ||||
| Net income (loss) | 9,372,437 | (1,998,996 | ) | |||||
| Net loss attributable to noncontrolling interests | (1,257,257 | ) | (320,632 | ) | ||||
| Net income (loss) attributable to stockholders of DocGo Inc. and Subsidiaries | 10,629,694 | (1,678,364 | ) | |||||
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation adjustment | (5,863 | ) | 7,998 | |||||
| Total comprehensive gain (loss) | $ | 10,623,831 | $ | (1,670,366 | ) | |||
| Net income (loss) per share attributable to DocGo Inc. and Subsidiaries - Basic | $ | 0.11 | $ | (0.03 | ) | |||
| Weighted-average shares outstanding - Basic | 100,177,082 | 58,388,866 | ||||||
| Net income (loss) per share attributable to DocGo Inc. and Subsidiaries - Diluted | $ | 0.09 | $ | (0.03 | ) | |||
| Weighted-average shares outstanding - Diluted | 115,652,049 | 58,388,866 |
Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | 9,372,437 | $ | (1,998,996 | ) | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation of property and equipment | 711,878 | 528,840 | ||||||
| Amortization of intangible assets | 633,363 | 422,024 | ||||||
| Amortization of finance lease right-of-use assets | 855,781 | 646,812 | ||||||
| Loss from equity method investment | 68,995 | - | ||||||
| Bad debt expense | 1,154,235 | 678,840 | ||||||
| Stock based compensation | 1,422,937 | 391,534 | ||||||
| Loss on remeasurement of warrant liabilities | (58,749 | ) | - | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,061,709 | (7,138,675 | ) | |||||
| Prepaid expenses and other current assets | (1,537,550 | ) | (2,121,543 | ) | ||||
| Other assets | 2,188,242 | (113,384 | ) | |||||
| Accounts payable | (671,744 | ) | (583,363 | ) | ||||
| Accrued liabilities | 3,063,148 | 7,903,736 | ||||||
| Net cash provided by (used in) operating activities | 18,264,682 | (1,384,175 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment | (602,416 | ) | (760,049 | ) | ||||
| Acquisition of intangibles | (534,624 | ) | (515,246 | ) | ||||
| Acquisition of businesses | - | (759 | ) | |||||
| Net cash used in investing activities | (1,137,040 | ) | (1,276,054 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from revolving credit line | 1,000,000 | - | ||||||
| Repayments of notes payable | (138,151 | ) | (282,115 | ) | ||||
| Due to seller | (160,250 | ) | - | |||||
| Noncontrolling interest contributions | 2,063,000 | 333,025 | ||||||
| Proceeds from exercise of stock options | 374,344 | - | ||||||
| Equity costs | (19,570 | ) | - | |||||
| Payments on obligations under finance lease | (622,575 | ) | (601,501 | ) | ||||
| Net cash provided by (used in) financing activities | 2,496,798 | (550,591 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (5,863 | ) | 7,998 | |||||
| Net increase (decrease) in cash and restricted cash | 19,618,577 | (3,202,822 | ) | |||||
| Cash and restricted cash at beginning of period | 179,105,730 | 34,457,273 | ||||||
| Cash and restricted cash at end of period | $ | 198,724,307 | $ | 31,254,451 |
Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
disclosure of cash and non-cash transactions:
| Cash paid for interest | $ | 68,222 | $ | 2,365 | ||||
| Cash paid for interest on finance lease liabilities | $ | 153,327 | $ | 121,356 | ||||
| Cash paid for income taxes | $ | 440,179 | $ | 7,225 | ||||
| Right-of-use assets obtained in exchange for lease liabilities | $ | 722,716 | $ | 1,454,029 | ||||
| Reconciliation of cash and restricted cash | ||||||||
| Cash | $ | 188,353,909 | $ | 28,134,967 | ||||
| Restricted Cash | 10,370,398 | 3,119,484 | ||||||
| Total cash and restricted cash shown in statement of cash flows | $ | 198,724,307 | $ | 31,254,451 |