DocGo Announces Fourth Quarter and Full-Year 2022 Results
2022 Revenue Increased to
Full Year Revenue up 75% Year-Over-Year Excluding Mass Covid Testing
Company introduces Full-Year 2023 Revenue and Adjusted EBITDA1 Guidance of
Company to host investor conference call and webcast today,
Full Year 2022 Financial Highlights
-
Full-year 2022 revenue increased to
$440.5 million , compared to$318.7 million for the full-year 2021, an increase of 38%. - Gross Margin for 2022 was 35% compared to 34% in 2021.
-
Mobile Health revenue was approximately$325.9 million in 2022, compared to$234.4 million in 2021, an increase of 39%. -
Medical transport revenue was approximately
$114.6 million in 2022, compared to$84.3 million in 2021, an increase of 36%. -
Full-year net income amounted to
$30.7 million , compared to net income of$19.2 million for the full-year 2021, an increase of 60%. -
Full-year 2022 Adjusted EBITDA2 was
$41.3 million , compared to$25.1 million for the full-year 2021, an increase of 65%. -
As of
December 31, 2022 , the company held total cash and cash equivalents, including restricted cash, of$164.1 million .
Fourth Quarter 2022 Financial Highlights
-
Total Q4 2022 revenue was
$108.8 million , which includes approximately$1 million of COVID testing revenue, compared to$121.3 million in Q4 2021, which includes approximately$50 million of non-recurring COVID testing revenue. -
Mobile Health revenue was$71.8 million , which includes approximately$1 million of COVID testing revenue, compared to$102.6 million for the fourth quarter of 2021, which includes approximately$50 million of COVID testing revenue. -
Transportation Services revenue was
$37 million compared to$18.7 million for the fourth quarter of 2021, an increase of 98%. -
Net income was
$7.1 million for the fourth quarter of 2022, compared to$20.3 million for the fourth quarter of 2021. Net income in the fourth quarter of 2021 was positively impacted by approximately$50 million of non-recurring mass COVID testing revenue, compared to$1 million in Q4 2022. -
Adjusted EBITDA2 was
$6.8 million for the fourth quarter of 2022 compared to$17.3 million for the fourth quarter of 2022. Adjusted EBITDA in the fourth quarter of 2021 was positively impacted by approximately$50 million of non-recurring mass COVID testing revenue and Adjusted EBITDA in the fourth quarter of 2022 was negatively impacted by startup costs associated with onboarding numerous new contracts.
| _____________________________ | ||
|
1 |
Adjusted EBITDA is a non-GAAP financial measure. See footnote 3 below. |
|
|
2 |
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. |
|
2023 Guidance
The company sees continued strong demand from its customers for both mobile health and transportation services solutions and anticipates 2023 revenue to be approximately
Select Corporate Highlights
-
Entered into a partnership with
Redirect Health , a platform that creates and manages healthcare solutions for businesses and employees nationwide, to provide on-demand, urgent mobile care to patients inNew Jersey andNew York . Through Redirect Health’s referral team, DocGo’s high quality, on-demand mobile health services are now available to thousands of Redirect Health’s members residing in those states. -
Announced the appointment of veteran human resources executive
Vina Leite , MS, to its Board of Directors. -
Awarded a new Rapid Falls Response Service contract in the
U.K. , via itsU.K. subsidiary,Ambulnz Community Partners , potentially helping elderly patients recover from falls without requiring a trip to the emergency room and establishing clinical pathways to help prevent future incidents. - Launched an app integrated with the EPIC Health Information Technology platform which allows clinical staff to order DocGo’s medical transport services and/or mobile health visits from within the EPIC system.
-
Secured a
$90 million line of credit withCitibank, N.A . The line includes a$50 million accordion option and carries a five year term which remains unused as of today. -
DocGo’s current Backlog4 is
$180 million over three years, of which all related contracts are expected to be fully rolled out by the end of Q3 2023. -
DocGo currently has 34 active RFPs pending award, totaling over$1 billion in aggregate contract value. None of these RFPs are included in our current guidance as any award toDocGo is not guaranteed.
| _____________________________ | ||
| 3 | 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. | |
| 4 |
The company defines backlog as projects that have been awarded, but not yet started or fully rolled out. |
|
Conference call and webcast
To access the Call me™ option, which avoids having to wait for an operator, click here.
The webcast can be accessed at: https://viavid.webcasts.com/starthere.jsp?ei=1596989&tp_key=4882d58a60 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
About
Forward-Looking Statements
This announcement contains forward-looking statements (including within the meaning of Section 21E of the
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 companies.
Adjusted EBITDA
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/(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 of other companies.
The table below reflects the reconciliation of Net Income (Loss) to Adjusted EBITDA for the three and twelve months ended
|
|
Q4 |
YTD |
||
|
|
2021 |
2022 |
2021 |
2022 |
|
Net Income/(loss) (GAAP) |
|
|
|
|
|
(+) Net Interest expense/ (income) |
|
( |
|
( |
|
(+) Income Tax |
( |
( |
|
( |
|
(+) Depreciation & amortization |
|
|
|
|
|
(+) Other (income)/expense |
( |
|
( |
( |
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
(+) Non-cash stock compensation |
|
|
|
|
|
(+) Non-recurring expense |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
| Consolidated Balance Sheets | |||||||||
|
Years Ended |
|||||||||
|
|
2022 |
|
|
2021 |
|
||||
|
Audited |
Audited |
||||||||
|
ASSETS |
|||||||||
| Current assets: | |||||||||
| Cash and cash equivalents |
$ |
157,335,323 |
|
$ |
175,537,221 |
|
|||
| Accounts receivable, net of allowance of |
|
102,995,397 |
|
|
78,383,614 |
|
|||
| Prepaid expenses and other current assets |
|
6,269,841 |
|
|
|
2,111,656 |
|
||
| Assets Held for Sale |
|
4,480,344 |
|
|
|
- |
|
||
| Total current assets |
|
271,080,905 |
|
|
256,032,491 |
|
|||
| Property and equipment, net |
|
21,258,175 |
|
|
12,733,889 |
|
|||
| Intangibles, net |
|
22,969,246 |
|
|
10,678,049 |
|
|||
|
|
38,900,413 |
|
|
8,686,966 |
|
||||
| Restricted cash |
|
6,773,751 |
|
|
3,568,509 |
|
|||
| Operating lease right-of-use assets |
|
9,074,277 |
|
|
4,195,682 |
|
|||
| Finance lease right-of-use assets |
|
9,039,663 |
|
|
9,307,113 |
|
|||
| Equity method investment |
|
597,977 |
|
|
589,058 |
|
|||
| Deferred tax assets |
|
9,957,967 |
|
|
- |
|
|||
| Other assets |
|
3,625,254 |
|
|
3,810,895 |
|
|||
| Total assets |
|
393,277,628 |
|
|
309,602,652 |
|
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||
| Current liabilities: | |||||||||
| Accounts payable |
|
21,582,866 |
|
|
15,833,970 |
|
|||
| Accrued liabilities |
|
31,573,031 |
|
|
35,110,877 |
|
|||
| Line of credit |
|
- |
|
|
25,881 |
|
|||
| Notes payable, current |
|
664,913 |
|
|
600,449 |
|
|||
| Due to seller |
|
26,244,133 |
|
|
1,571,419 |
|
|||
| Contingent Consideration |
|
10,555,540 |
|
|
- |
|
|||
| Operating lease liability, current |
|
2,325,024 |
|
|
1,461,335 |
|
|||
| Liabilities Held for Sale |
|
4,480,344 |
|
|
- |
|
|||
| Finance lease liability, current |
|
2,732,639 |
|
|
3,271,990 |
|
|||
| Total current liabilities |
|
100,158,490 |
|
|
57,875,921 |
|
|||
| Notes payable, non-current |
|
1,236,601 |
|
|
1,302,839 |
|
|||
| Operating lease liability, non-current |
|
7,040,982 |
|
|
2,980,946 |
|
|||
| Finance lease liability, non-current |
|
5,914,164 |
|
|
6,867,420 |
|
|||
| Warrant liabilities |
|
- |
|
|
13,518,502 |
|
|||
| Total liabilities |
|
114,350,237 |
|
|
82,545,628 |
|
|||
| STOCKHOLDERS' EQUITY: | |||||||||
| Class A common stock ( |
|
10,241 |
|
|
10,013 |
|
|||
| Additional paid-in-capital |
|
301,451,435 |
|
|
283,161,216 |
|
|||
| Accumulated deficit |
|
(28,972,216 |
) |
|
(63,556,714 |
) |
|||
| Accumulated other comprehensive loss |
|
741,206 |
|
|
(32,501 |
) |
|||
| Total stockholders' equity attributable to |
|
273,230,666 |
|
|
219,582,014 |
|
|||
| Noncontrolling interests |
|
5,696,725 |
|
|
7,475,010 |
|
|||
| Total stockholders' equity |
|
278,927,391 |
|
|
227,057,024 |
|
|||
| Total liabilities and stockholders' equity |
$ |
393,277,628 |
|
$ |
309,602,652 |
|
|||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||
| Years Ended |
|||||||||
|
|
2022 |
|
|
2021 |
|
||||
| Revenue, net |
$ |
440,515,746 |
|
$ |
318,718,580 |
|
|||
| Expenses: | |||||||||
| Cost of revenues (exclusive of depreciation and amortization, which is shown separately below) |
|
285,794,520 |
|
|
208,971,062 |
|
|||
| Operating expenses: | |||||||||
| General and administrative |
|
103,403,416 |
|
|
74,892,828 |
|
|||
| Depreciation and amortization |
|
10,565,578 |
|
|
7,511,579 |
|
|||
| Legal and regulatory |
|
8,780,590 |
|
|
3,907,660 |
|
|||
| Technology and development |
|
5,384,853 |
|
|
3,320,183 |
|
|||
| Sales, advertising and marketing |
|
4,755,161 |
|
|
4,757,970 |
|
|||
| Total expenses |
|
418,684,118 |
|
|
303,361,282 |
|
|||
| Income from operations |
|
21,831,628 |
|
|
15,357,298 |
|
|||
| Other income (expenses): | |||||||||
| Interest income (expense), net |
|
762,685 |
|
|
(763,030 |
) |
|||
| Gain on remeasurement of warrant liabilities |
|
1,127,388 |
|
|
5,199,496 |
|
|||
| Gain (loss) on initial equity method investments |
|
8,919 |
|
|
(66,818 |
) |
|||
| Gain on remeasurement of finance leases |
|
1,388,273 |
|
|
- |
|
|||
| Gain on bargain purchase |
|
1,593,612 |
|
|
- |
|
|||
| Gain from PPP loan forgiveness |
|
- |
|
|
142,667 |
|
|||
| Loss on disposal of fixed assets |
|
(21,173 |
) |
|
(34,342 |
) |
|||
|
|
(2,921,958 |
) |
|
- |
|
||||
| Other expense |
|
(987,482 |
) |
|
(40,086 |
) |
|||
| Total other income |
|
950,264 |
|
|
4,437,887 |
|
|||
| Net income before income tax benefit (expense) |
|
22,781,892 |
|
|
19,795,185 |
|
|||
| Income tax benefit (provision) |
|
7,961,321 |
|
|
(615,697 |
) |
|||
| Net income |
|
30,743,213 |
|
|
19,179,488 |
|
|||
| Net income attributable to noncontrolling interests |
|
(3,841,285 |
) |
|
(4,564,270 |
) |
|||
| Net income attributable to stockholders of |
|
34,584,498 |
|
|
23,743,758 |
|
|||
| Other comprehensive income | |||||||||
| Benefit plans |
|
- |
|
|
- |
|
|||
| Foreign currency translation adjustment |
|
773,707 |
|
|
16,038 |
|
|||
| Total comprehensive gain |
$ |
35,358,205 |
|
$ |
23,759,796 |
|
|||
| Net income per share attributable to |
$ |
0.34 |
|
$ |
0.30 |
|
|||
| Weighted-average shares outstanding - Basic |
|
101,228,369 |
|
|
80,293,959 |
|
|||
|
Net income per share attributable to |
$ |
0.34 |
|
$ |
0.25 |
|
|||
| Weighted-average shares outstanding - Diluted |
|
102,975,831 |
|
|
94,863,613 |
|
|||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
|
Years Ended |
||||||||
|
|
2022 |
|
|
2021 |
|
|||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income |
$ |
30,743,213 |
|
$ |
19,179,488 |
|
||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation of property and equipment |
|
4,114,346 |
|
|
2,312,437 |
|
||
| Amortization of intangible assets |
|
3,214,814 |
|
|
1,845,193 |
|
||
| Amortization of finance lease right-of-use assets |
|
3,236,418 |
|
|
2,913,925 |
|
||
| Loss on disposal of assets |
|
21,173 |
|
|
34,342 |
|
||
| Deferred tax asset |
|
(9,957,967 |
) |
|
- |
|
||
| Gain from PPP loan forgiveness |
|
- |
|
|
(142,667 |
) |
||
| Gain (loss) from equity method investment |
|
(8,919 |
) |
|
66,818 |
|
||
| Bad debt expense |
|
3,815,187 |
|
|
4,467,956 |
|
||
| Stock based compensation |
|
8,054,571 |
|
|
1,376,353 |
|
||
| Gain on remeasurement of finance leases |
|
(1,388,273 |
) |
|
- |
|
||
| Gain on remeasurement of warrant liabilities |
|
(1,127,388 |
) |
|
(5,199,496 |
) |
||
| Gain on bargain purchase |
|
(1,593,612 |
) |
|
- |
|
||
|
|
2,921,958 |
|
|
- |
|
|||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable |
|
(8,415,793 |
) |
|
(57,996,613 |
) |
||
| Assets held for sale |
|
190,312 |
|
|||||
| Prepaid expenses and other current assets |
|
(4,181,035 |
) |
|
(961,165 |
) |
||
| Other assets |
|
1,557,655 |
|
|
(2,490,564 |
) |
||
| Accounts payable |
|
3,637,305 |
|
|
11,879,850 |
|
||
| Accrued liabilities |
|
(5,964,064 |
) |
|
20,766,723 |
|
||
| Net cash provided by operating activities |
|
28,869,901 |
|
|
(1,947,420 |
) |
||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment |
|
(3,198,234 |
) |
|
(4,808,409 |
) |
||
| Acquisition of intangibles |
|
(2,299,558 |
) |
|
(1,849,136 |
) |
||
| Acquisition of businesses |
|
(32,953,179 |
) |
|
(1,300,000 |
) |
||
| Proceeds from disposal of property and equipment |
|
3,000 |
|
|
74,740 |
|
||
| Acquisition of leased assets |
|
- |
|
|
(50,504 |
) |
||
| Investments in equity method investment |
|
- |
|
|
(655,876 |
) |
||
| Net cash used in investing activities |
|
(38,447,971 |
) |
|
(8,589,185 |
) |
||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from revolving credit line |
|
- |
|
|
8,000,000 |
|
||
| Repayments of revolving credit line |
|
(25,881 |
) |
|
(8,000,000 |
) |
||
| Repayments of notes payable |
|
(925,151 |
) |
|
(604,826 |
) |
||
| Due to seller |
|
(2,535,521 |
) |
|
(595,528 |
) |
||
| Noncontrolling interest contributions |
|
2,063,000 |
|
|
333,025 |
|
||
| Proceeds from exercise of stock options |
|
1,980,585 |
|
|
628,592 |
|
||
| Acquisition of |
|
- |
|
|
(479,331 |
) |
||
| Common stock repurchased |
|
(3,731,712 |
) |
|
- |
|
||
| Equity costs |
|
(19,570 |
) |
|
- |
|
||
| Payments on obligations under finance lease |
|
(2,985,568 |
) |
|
(2,216,309 |
) |
||
| Issuance costs related to merger recapitalization |
|
- |
|
|
(19,961,460 |
) |
||
| Proceeds from issuance of Class A common stock, net of transaction cost |
|
- |
|
|
178,102,313 |
|
||
| Net cash provided by financing activities |
|
(6,179,818 |
) |
|
155,206,476 |
|
||
| Effect of exchange rate changes on cash and cash equivalents |
|
761,232 |
|
|
(21,414 |
) |
||
| Net increase in cash and restricted cash |
|
(14,996,656 |
) |
|
144,648,457 |
|
||
| Cash and restricted cash at beginning of period |
|
179,105,730 |
|
|
34,457,273 |
|
||
| Cash and restricted cash at end of period |
$ |
164,109,074 |
|
$ |
179,105,730 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230313005664/en/
Media:
Allison+Partners
203-962-4036
Alex.Cole@Allisonpr.com
Investors:
949-444-1341
mike.cole@docgo.com
ir@docgo.com
646-876-6455
shalper@lifesciadvisors.com
ir@docgo.com
Source: