DocGo Inc. (Nasdaq: DCGO) (“DocGo” or the “Company”), a leading provider of technology-enabled mobile health services, today announced financial and operating results for the quarter ended September 30, 2023.
Q3 2023 Financial Highlights
- Total revenue for the third quarter of 2023 was $186.6 million, up 49% from $125.5 million in the second quarter of 2023 and up 79% from $104.3 million in the third quarter of 2022. The revenue increase was driven by gains in nearly all business and project lines.
- Gross margin for the third quarter of 2023 was 29.5%, compared to 33.4% in the second quarter of 2023 and 31.7% in the third quarter of 2022. Gross margin was impacted by a significant sequential increase in revenue and associated project ramp up costs.
- Net income was $4.6 million for the third quarter of 2023, up 254% compared to net income of $1.3 million in the second quarter of 2023 and up 84% from $2.5 million in the third quarter of 2022.
- Net income margin was 2.5% for the third quarter of 2023, compared to 1.0% in the second quarter of 2023 and 2.4% in the third quarter of 2022.
- Adjusted EBITDA2 was $16.7 million for the third quarter of 2023, up 84% from $9.1 million in the second quarter of 2023 and up 99% from $8.4 million in the third quarter of 2022.
- Adjusted EBITDA margin2 for the third quarter of 2023 was 9.0%, compared to 7.3% in the second quarter of 2023 and 8.1% in the third quarter of 2022.
- DocGo’s current backlog3 increased to $430 million in total contract value over approximately three years. As of the Company’s last announcement of earnings results on August 7, 2023, the backlog was $325 million.
- Mobile Health Services revenue for the third quarter of 2023 was $139.3 million, up 74% from $80.1 million in the second quarter of 2023 and up 82% from $76.6 million in the third quarter of 2022.
- Transportation Services revenue in the third quarter of 2023 was $47.2 million, up 4% from $45.4 million in the second quarter of 2023 and up 70% from $27.7 million in the third quarter of 2022.
- As of September 30, 2023, the Company held total cash and cash equivalents, including restricted cash, of $67.3 million, compared with total cash and cash equivalents, including restricted cash, of $123.8 million as of June 30, 2023.
Select Corporate Highlights
- The Board of Directors appointed Lee Bienstock, previously DocGo’s President and Chief Operating Officer, to the role of Chief Executive Officer.
- Both during the quarter and subsequent to quarter end, continued to expand services with current customers while also signing new customers and winning RFPs.
- UK-based subsidiary Ambulnz Community Partners Ltd. awarded a 5-year contract to provide emergency and urgent ambulance services for South Central Ambulance Service NHS Foundation Trust.
- Announced partnership with Main Line Health in Philadelphia for medical transportation and collaboration on remote patient monitoring, helping to solidify Ambulnz by DocGo’s position as one of the largest ambulance providers in Philadelphia.
- Launched partnership with EmblemHealth for Mobile Health care gap closure patient programs in New York and Connecticut.
- Continued expansion of the number of locations serviced under the Company’s contract with the New York City Department of Housing Preservation and Development (HPD) to provide healthcare and basic services to migrant populations.
- Transported over 158,000 patients, conducted outreach to over 50,000 patients through the Company’s patient engagement team, and provided remote patient monitoring, virtual care management, and cardiovascular implantable electronic device monitoring for over 46,000 patients.
- Expanded the Company’s ability to facilitate clinical services and close over 30 different care gaps in patients’ homes, including bone density measurements, colon cancer screenings, diabetic retinal screening, and annual wellness visits.
- Increased the size of DocGo’s team by over 26% in the third quarter of 2023 to over 6,000 employees and agency staff due to increased demand for the Company’s services.
- Voted a Great Place to Work by employees for the second year in a row, underscoring high levels of employee satisfaction and engagement.
2023 Guidance
- Full-year 2023 revenue guidance is increased to a range of $615-$625 million, up from a previous range of $540-$550 million.
- Full-year 2023 adjusted EBITDA1 guidance is increased to a range of $50-$55 million, up from a previous range of $48-$53 million.
Lee Bienstock, Chief Executive Officer of DocGo, commented, “The third quarter marked our strongest ever growth, and I am extremely proud of the focus our team has brought to expanding our suite of services, our operational execution, and our financial performance. During the quarter, we surpassed 7.5 million total patient interactions since inception while leveraging a workforce that has now grown to over six thousand employees and agency staff – more than double since I joined the company in March of 2022. We intend to continue to innovate our care delivery model, work to help bring high quality healthcare to those who need it most so they can enjoy their best possible quality of life, and deliver strong growth across our entire business.”
Norm Rosenberg, Chief Financial Officer and Treasurer of DocGo, added, “As expected, we experienced significant earnings leverage in the third quarter due to our strong top line growth. While we did experience higher costs associated with the aggressive ramp-up of new projects, we are encouraged by the net margin and adjusted EBITDA margin expansion we witnessed during the period and expect further improvements in Q4 and beyond. The decline in cash balance was driven by substantial receivables associated with the large HPD project under which payments have commenced. We will be providing formal 2024 guidance in the coming months but expect continued strong growth in 2024.”
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