Key Takeaways From Our Second Quarter
On Wednesday evening, we announced our results from the second quarter of 2024, reporting strong results and positive growth across our customer verticals.
At DocGo, we’re reimagining the way healthcare is delivered, with a goal of bringing high quality, highly accessible health care to all. I’m proud of all the ways our second quarter brought us closer to that goal – and I’m excited to share some of the quarter’s key accomplishments with our patients, partners, and investors.
Here are the top takeaways from our Q2 2024 earnings and how we’re thinking about the rest of 2024.
1. Expanding Our Reach & Impact
First off, DocGo more than doubled the number of patients assigned by insurance partners for care gap closure services compared to the previous quarter. This surge in patient assignments demonstrates the demand for our services, as well as our ability to meet the evolving needs of our customers.
Care Gap Closures: DocGo’s home visits and telehealth services help close gaps in care for the hardest-to-reach patient populations. DocGo coordinates the delivery of overdue screenings directly to underserved patients’ homes, using our proprietary technology and protocols to maximize success.
We also secured many new contracts, for services including remote patient monitoring, virtual care management, chronic care management, cardiac implantable electronic devices, and medical transportation. Notably, we signed a mobile health contract to provide nursing care at vaccination clinics for the state of New Mexico, and a two-year contract extension to provide medical transportation for the Imperial College Healthcare NHS Trust in London. This is our biggest contract in the UK, and we’re handling around 30,000 transport requests per month. These contracts are helping us reach even more people with the high-quality care they deserve and are a testament to our growth in key markets in the US and UK.
2. New Innovative Partnerships & Programs
We’re constantly looking for ways to deliver healthcare innovation and improve our services. One of the highlights this quarter was launching our first municipal mobile x-ray program in New York City. This initiative is bringing diagnostic services to patients where they are, when they need it.
Another exciting development is our partnership with Spect, which allows us to offer comprehensive digital eye exam screenings, including for diabetic retinopathy, directly in patients’ homes and workplaces. This collaboration exemplifies our commitment to bringing cutting-edge healthcare technology to our customers.
We’ve also kicked off a Well Child Visits program with a major insurance provider to break down barriers to pediatric preventive care and advance health equity for kids and families in New York City. And we’re not stopping there – this proactive care program is set to expand across New York State and into California soon.
Proactive Care: Proactive care is an approach that focuses on preventing health problems before they occur or become severe, rather than just treating them when they arise. DocGo is leading the proactive care revolution with an innovative care delivery platform that includes mobile health services and remote patient monitoring.
3. Founding A Medical Advisory Board & Supporting Our Front Line
I’m also proud to announce our new Medical Advisory Board, which includes top physicians and specialists from leading institutions. Their expertise will help guide our clinical offerings. Plus, they’ll be publishing research on how our programs are impacting patient outcomes, ensuring that we continue to deliver exceptional care.
At DocGo, our success depends on over 6,000 of medically trained clinicians across the US and the UK. You can therefore imagine how delighted I was to learn that DocGo has been recognized by US News and World Report, as one of the 2024 Best Companies to Work For. This accolade underscores our dedication to fostering a supportive, employee- centric culture and rewarding work environment. We take pride in our company culture, which is a catalyst for our staff to bring their relentless dedication, remarkable compassion, and life-saving skills to take care of you and your families.
4. Continued Financial Growth
Our continued growth in the US and the UK is helping drive strong financial performance. As a result, we reiterated our 2024 revenue guidance of $600-$650 million and adjusted
EBITDA1 guidance of $65-$75 million.
Select Financial Results: Total revenue for the second quarter increased 31% year over year. We now expect to generate $80-$90 million in cash flow from operations in 2024, up from previous expectations of $70-$80 million. We reaffirmed our full-year 2024 revenue guidance. For our full Q2 2024 results, read our quarterly earnings release. For more information, visit our investor relations website.
Looking Ahead
Our work for New York City attracted significant media attention, much of which failed to reflect the realities of our collaboration with the Department of Housing Preservation and Development and New York’s asylum seekers. I’m exceptionally proud of what we’ve achieved in partnership with New York under unprecedented circumstances, fulfilling our contracts with responsibility, fiscal oversight, and cost controls. I encourage everyone to visit our website, where we detail our HPD contracts and accomplishments for the city.
The City has publicly assured us that we will be paid for all services we provided under the terms of our contract in coordination with the HPD for New York’s asylum seekers.
Looking ahead, the wind down of our large HPD migrant contract to provide services in upstate NY has freed up resources, allowing us to pursue a wider array of mobile healthcare opportunities with municipalities and the private sector. As we move forward, I’m incredibly excited about our operational execution and the variety of new contract wins. While many of these new contracts start small, they have enormous growth potential. We’re seeing the fruits of our strategic efforts with new contracts being signed and our pipeline strengthening.
It was a strong quarter for DocGo, and I’m excited about what the future holds for our company. We’re on a mission to leverage our expertise, partnerships, and innovative solutions to deliver exceptional healthcare services and make a real impact on our customers’ lives.
Thank you to our patients, partners, and investors for your support. We look forward to continuing this journey with all of you.
Lee Bienstock, Chief Executive Officer, DocGo
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1Adjusted EBITDA is a non-GAAP financial measure. We have not reconciled adjusted EBITDA outlook to the most comparable GAAP outlooks 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 item 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 in our earnings release.
Forward Looking Statements
This update 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, including the provision of services under its existing contracts, including its contract with the New York City Department of Housing Preservation and Development, and the expansion of the Company’s programs with insurance partners and hospital systems and population health programs and other strategic partners and the Company’s growth margin. 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: impacts related to accelerated wind down of migrant-related services; the Company’s provision of services under its contract with HPD and its ability to expand its programs with insurance partners and hospital systems and population health programs and other strategic partners; the Company’s ability to successfully implement its business strategy, including delivering value to shareholders via buybacks; 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 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 and deliver on cost- containment measures and ongoing cost rationalization initiatives ; 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, cyber 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 (“SEC”).
oreover, 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 update. 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 update 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 update to reflect events or circumstances after the date of this update 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.
