Document DocGo Announces Record Fourth Quarter and Full-Year 2023 Results Company Updates 2024 Revenue Guidance to $720-$750 Million, Introduces 2024 Adjusted EBITDA Guidance 1 of $80-$85 Million Management to Host Confe

DocGo Announces Record Fourth Quarter and Full-Year 2023 Results

Company Updates 2024 Revenue Guidance to $720-$750 Million, Introduces 2024 Adjusted EBITDA Guidance1 of $80-$85 Million

Management to Host Conference Call and Webcast Today at 5 00 PM Eastern Time

NEW YORK, NY, February 28, 2024 - DocGo Inc. (Nasdaq DCGO) ("DocGo" or the "Company"), a leading provider of technology-enabled mobile health services in 30 states and the UK, today announced financial and operating results for the quarter and year ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights

Total revenues for the fourth quarter of 2023 were $199.2 million, compared to $108.8 million in the fourth quarter of 2022, an increase of 83%.

Gross margin for the fourth quarter of 2023 was 33.5%, compared to 39.0% in the fourth quarter of 2022. While gross margins improved sequentially, they were lower on a year-over-year basis, reflecting ongoing start-up costs related to the rapid growth on projects in the second half of 2023.

Net income was $8.0 million for the fourth quarter of 2023, compared to net income of $7.1 million in the fourth quarter of 2022, an increase of 13%.

Adjusted EBITDA2 was $22.6 million for the fourth quarter of 2023 compared to $6.8 million for the fourth quarter of 2022, an increase of 232%.

Mobile Health Services revenues in the fourth quarter of 2023 were $150.4 million, compared to $71.8 million for the fourth quarter of 2022, an increase of 110%.

Transportation Services revenues in the fourth quarter of 2023 were $48.8 million compared to $37.0 million for the fourth quarter of 2022, an increase of 32%.

Full-Year 2023 Highlights

Full-year 2023 revenues increased to $624.2 million, compared to $440.5 million for the full-year 2022, an increase of 42%.

Gross margin for 2023 was 31.3%, compared to 35.1% in 2022, reflecting significant project start-up costs, particularly in the first and third quarters of the year.

Full-year net income for 2023 was $10.0 million, compared to net income of $30.7 million for the full-year 2022, a decrease of 67%. The decline in net income in 2023 was due to the increase in non-cash, stock-based compensation and the recording of an income tax provision in 2023, compared to an income tax benefit in 2022.

Full-year 2023 adjusted EBITDA2 was $54.0 million compared to $41.3 million for full-year 2022, an increase of 31%.

Mobile Health Services revenues were approximately $442.8 million in 2023, compared to $325.9 million in 2022, an increase of 36%.

Transportation Services revenues were approximately $181.5 million in 2023, compared to $114.6 million in 2022, an increase of 58%.

As of December 31, 2023, the Company held total cash and cash equivalents, including restricted cash, of $72.2 million, compared to $67.3 million as of September 30, 2023 and $164.1 million as of December 31, 2022.

Subsequent to year end, the Company has bolstered its balance sheet by receiving approximately $120 million in payments from January 1, 2024 to present.

Subsequent to the end of the fourth quarter, the Company's line of credit was paid down in full.

Full-year 2024 revenues are expected to be $720-750 million.

Full-year 2024 adjusted EBITDA1 is expected to be $80-85 million.

Full-year 2024 cash flow from operations is expected to be $65-$75 million.

Select Corporate Highlights for the Fourth Quarter 2023 and Recent Weeks

Launched care gap closure services in Michigan with one of the nation's largest insurance companies during the fourth quarter.

Doubled the number of patients seen under our care gap closure programs in the fourth quarter of 2023, compared to the third quarter of 2023.

Received positive results from the initial phase of our innovative Transitional Care Management program with LA Care, with statistically significant data showing that our program reduced 30-day hospital readmissions compared to the control group. With these results, the Company is now planning an expansion of this program.

Signed first payer partnership with one of the nation's largest insurance companies that includes the option to share risk in a value-based care arrangement.

Expanded vaccination and public health initiatives in Arizona through a new contract with the Department of Health in Santa Cruz County, Arizona.

Entered a new agreement with a large cardiology practice in Chicago to provide CIED (Cardiac Implantable Electronic Device) monitoring, RPM (Remote Patient Monitoring) and VCM (Virtual Care Management).

Announced share repurchase program for up to $36 million, which the Company intends to commence promptly following the opening of its trading window in early March, subject to prevailing market conditions and other considerations.

Lee Bienstock, Chief Executive Officer of DocGo, commented, "I am extremely proud of our operational execution during the fourth quarter across all three of our key market verticals. Our payer relationships continue to expand with commercial rollouts in Michigan, Connecticut and New Jersey in late 2023. Our work with major hospital systems has continued to grow as well, and we have launched new government population health programs in California and Arizona." Bienstock concluded, "While our business continues to deliver for underserved populations like the homeless and asylum seekers, our impact and reach extends far beyond that, providing medical transportation for hundreds of hospitals, deploying vaccination programs in multiple states, monitoring tens of thousands of cardiac patients, closing care gaps for bed bound chronically ill and so much more. In summary, our goal remains the same, to continue bringing healthcare to people where and when they need it and to help keep them out of the hospital, and we are seeing great success with this effort."

Norm Rosenberg, Chief Financial Officer and Treasurer of DocGo, also commented, Within our 2024 guidance, we have assumed some moderation in migrant-related revenues as the year progresses. At the same time, we expect to see the significant startup costs associated with recent migrant-related program launches continue to abate. We are seeing a variety of forces come together to drive increased profitability, and we expect that trend to continue over the coming quarters. Our agency labor and overtime utilization rates have begun to moderate after a surge to support the strong revenue growth we experienced in the second half of 2023. There is typically a slight lag as these leading indicators transition to improved profitability, and we observed that play out late in 2023 and early in 2024."

1Adjusted 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 an 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.

2Adjusted 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.

Conference call and webcast details

1-877-407-0784 - Investors Dial

1-201-689-8560 - Int'l Investors Dial

Conference ID - 13743132

To access the Call me feature, which avoids the need to wait for an operator, click here.

The webcast can be accessed under Events on the Investors section of the Company's website, https ir.docgo.com .

DocGo is 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 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.

Forward-Looking Statements

This earnings release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, the plans, strategies, outcomes, and prospects, both business and financial, of the Company. These statements are based on the beliefs and assumptions of the Company's management. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, the Company cannot assure you that it will achieve or realize these plans, intentions, outcomes, results or expectations. Accordingly, you should not place undue reliance on such statements. All statements other than statements of historical fact are forward-looking, including, but not limited, to statements regarding the Company's future actions, business strategies or models, plans, goals, future events, future revenues, future margins, current and future revenue guidance, future growth or performance, financing needs, business trends, results of operations, objectives and intentions with respect to future operations, services and products, and new and existing contracts or partnerships. In some cases, these statements may be preceded by, followed by or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "might," "will," "should," "could," "can," "would," "design," "potential," "seeks," "plans," "scheduled," "anticipates," "intends" or the negative of these terms or similar expressions.

Forward-looking statements are inherently subject to substantial risks, uncertainties and assumptions, many of which are beyond the Company's control, and which may cause the Company's actual results or outcomes, or the timing of results or outcomes, to differ materially from those contained in the Company's forward-looking statements, including, but not limited to the following the Company's ability to successfully implement its business strategy the Company's reliance on and ability to maintain its contractual relationships with its healthcare provider partners and clients the Company's ability to compete effectively in a highly competitive industry the Company's ability to maintain existing contracts the Company's reliance on government contracts the Company's ability to effectively manage its growth the Company's financial performance and future prospects the Company's ability to deliver on its business strategies or models, plans and goals the Company's ability to expand geographically the Company's ability to deliver on its margin normalization initiative the Company's ability to maintain and roll out its backlog the Company's M A activity the Company's ability to retain its workforce and management personnel and successfully manage leadership transitions the Company's ability to collect on customer receivables the Company's ability to maintain its cash position risks associated with the Company's share repurchase program expected impacts of macroeconomic factors, including inflationary pressures, general economic slowdown or a recession, rising interest rates, foreign exchange rate volatility, changes in monetary pressure, financial institution instability or the prospect of a shutdown of the U.S. federal government potential changes in federal, state or local government policies regarding immigration and asylum seekers expected impacts of geopolitical instability the Company's competitive position and opportunities, including its ability to realize the benefits from its operating model the Company's ability to improve gross margins the Company's ability to implement cost-containment measures legislative and regulatory actions the impact of legal proceedings and compliance risk volatility of the Company's stock price the impact on the Company's business and reputation in the event of information technology system failures, network disruptions, cybersecurity incidents 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 and other risk factors included in the Company's filings with the Securities and Exchange Commission.

Moreover, the Company operates in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this earnings release. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results or outcomes could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this earnings release are based on events or circumstances as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this earnings release to reflect events or circumstances after the date of this earnings release or to reflect new information or the occurrence of unanticipated events, except as and to the extent required by law. The Company's forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

DocGo Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEET

DocGo Inc. and Subsidiaries

CONSOLIDATED STATEMENT OF OPERATIONS

DocGo Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

DocGo Inc. and Subsidiaries

STATEMENT OF OPERATIONS Q4

DocGo Inc. and Subsidiaries

STATEMENT OF CASH FLOWS Q4

Non-GAAP Financial Measures

The following information provides definitions and reconciliation of the non-GAAP financial measures used by the Company to the most directly comparable financial measures 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 measures 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 measures used by the Company may differ from similarly titled measures used by other companies.

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. Specifically, adjusted EBITDA is arrived at by taking reported GAAP net income and adding back the following items net interest expense (income), provision for (benefit from) income taxes, depreciation and amortization, other (income) expense, non-cash equity-based compensation and certain other non-recurring expenses consisting of certain one-time legal settlements and certain other one-time expenses incurred in connection with acquisitions and other corporate activities, 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 of other companies.

Adjusted EBITDA Margin

Adjusted EBITDA margin is considered a non-GAAP measure under SEC rules. It is calculated by dividing adjusted EBITDA by revenues. Management believes using adjusted EBITDA margin in conjunction with GAAP measures, such as gross margin and or net margin, is useful to investors because it assists investors in getting a more complete view of what management considers the Company's core operating performance, as expressed in marginal terms. While many companies use adjusted EBITDA margin as a performance measure, not all companies use identical calculations for determining adjusted EBITDA margin. As such, DocGo's presentation of adjusted EBITDA margin might not be comparable to similarly titled measures of other companies.

Reconciliation of Non-GAAP Measures

The table below reflects the reconciliation of net income to adjusted EBITDA for the three and twelve months ended December 31, 2023 compared to the same periods in 2022 (in millions)

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