DocGo Announces Strong First Quarter 2022 Results
Q1 Revenue of
Bolsters Senior Staff, Expands Market Footprint
“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
First Quarter Financial Highlights
-
Total revenue was
$117.9 million . The Company estimates that Q1 2022 Covid testing revenues amounted to$38 million . -
Q1 2022 total revenue of
$117.9 million represents an increase of 137% over$49.7 million in total revenue for the first quarter of 2021, which included$20.4 million of Covid testing revenues. Excluding Covid testing revenues from both periods, total revenues in Q1 2022 increased by approximately 173% from Q1 2021. - The Company estimates that Covid testing revenue accounted for approximately 32% of total revenues in Q1 2022, compared to 41% in Q4 2021.
-
Mobile Health revenue increased to approximately$90.1 million , compared to$30.6 million in the first quarter of 2021. The increase reflects the extension of certain key contracts as well as a number of new contracts. -
Medical transport revenue was approximately
$27.8 million , up 46% from$19.1 million in the first quarter of 2021. -
Net income was
$9.4 million , compared to a net loss of$2.0 million in the first quarter of 2021. -
Adjusted EBITDA(1) grew to approximately
$13.6 million , versus Adjusted EBITDA of$0.4 million in the first quarter of 2021.
Select Corporate Highlights
-
Expanded our presence in
New York andNew Jersey through a new, multi-year contract withAetna for our DocGo On-Demand Mobile Urgent Care service. The service will be provided to Aetna’s commercial and Medicare Advantage members inNew York andNew Jersey . -
Strengthened our senior management ranks by hiring
Lee Bienstock , a seasoned professional who spent the last 10 years atGoogle across various business units and initiatives, as DocGo’s Chief Operating Officer. - Interacted with 1.1 million patients in Q1 2022, representing an 88% increase over the same period in 2021.
-
Announced the launch of America’s first all-electric EV ambulance, and DocGo’s ‘Zero Emission’ initiative with the goal of converting our entire fleet of ambulances to EV by 2032. Subsequently, we completed our first patient transport in partnership with
Jefferson Health . -
Awarded three new contracts in the
UK , adding new service areas toEast England andCentral England , and further expanding our footprint inGreater Manchester . -
Expanded our relationship with Carnival Corporation, adding 15 additional ships and launching services in
Mobile, Alabama . -
Acquired new medical transportation licenses in
Delaware andMaryland , expanding our US transportation footprint to eleven states. -
Hosted a “Fireside Chat” format investor event featuring marquee customers Carnival Corporation and
Thomas Jefferson University , who discussed why they choseDocGo for their companies’ mobile health and medical transportation needs.
_______________________________________________________________
1 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.
2022 Guidance
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
Conference call and webcast
The webcast can be accessed using the following link: https://viavid.webcasts.com/starthere.jsp?ei=1541038&tp_key=a8e9864837 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. 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
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
|
|
|
||||||
|
2022 |
2021 |
||||||
| Unaudited | Audited | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ |
188,353,909 |
$ |
175,537,221 |
|||
| Accounts receivable, net of allowance of |
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 |
|||||
|
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 ( |
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 |
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 |
|||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND | ||||||||
| COMPREHENSIVE INCOME (LOSS) | ||||||||
| Three Months Ended | ||||||||
|
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 |
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 |
$ |
0.11 |
$ |
(0.03 |
) |
|||
| Weighted-average shares outstanding - Basic |
100,177,082 |
58,388,866 |
||||||
| Net income (loss) per share attributable to |
$ |
0.09 |
$ |
(0.03 |
) |
|||
| Weighted-average shares outstanding - Diluted |
115,652,049 |
58,388,866 |
||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| Three Months Ended | ||||||||
|
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 |
||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (CONTINUED) | ||||||||
| Supplemental 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 |
||||
| Three Months Ended | |||||||
|
2022 |
2021 |
||||||
| Primary Geographical Markets | |||||||
| $ |
115,053,431 |
$ |
47,681,374 |
||||
|
2,838,121 |
2,007,482 |
||||||
| Total revenue | $ |
117,891,552 |
$ |
49,688,856 |
|||
| Major Segments/Service Lines | |||||||
| Transportation Services | $ |
27,812,510 |
$ |
19,124,020 |
|||
|
90,079,042 |
30,564,836 |
||||||
| Total revenue | $ |
117,891,552 |
$ |
49,688,856 |
|||
| RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | ||
|
Q1 2021 |
Q1 2022 |
|
|
2021 |
2022 |
|
| Net Income/(loss) (GAAP) |
- |
|
| (+) Net Interest expense/ (income) |
|
|
| (+) Income Tax |
|
|
| (+) Depreciation & amortization |
|
|
| (+) Remeasurement of Warrant Liabilities |
|
|
|
- |
|
|
|
|
|
|
| (+) Non-cash stock compensation |
|
|
| (+) Non-recurring expense |
|
|
| Adjusted EBITDA |
|
|
| Forecasted 2022 Revenue Growth Rate with and without Covid Testing | |||
| in $MM | FY 2021 | FY 2022 | % Change |
| Total Revenues |
|
|
25%-32% |
| Estimated Covid Testing Revenues |
|
|
-50% |
| All non-Covid testing Revenues |
|
|
65%-75% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220509006110/en/
Media Contact:
Crowe PR
docgo@crowepr.com
(646) 916-5314
Investor Contacts:
shalper@lifesciadvisors.com
or
ir@docgo.com
646-876-6455
Source: