UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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Item 2.02 Results of Operation and Financial Condition
On March 14, 2022, DocGo Inc. (the “Company”) issued a press release that announced earnings results for the quarter and fiscal year ended December 31, 2021. This press release is furnished as Exhibit 99.1 to this report.
The information in Item 2.02 of this report and the exhibit attached hereto is being furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference to such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. |
Description | |
| 99.1 | Press release of DocGo Inc. dated March 14, 2022 | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL). | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DOCGO INC. | |||
| By: | /s/ Andre Oberholzer | ||
| Name: | Andre Oberholzer | ||
| Title: | Chief Financial Officer | ||
Date: March 14, 2022
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Exhibit 99.1
DocGo Announces Record Fourth Quarter and Full Year 2021 Results
Q4 and full year revenue increased 289% and 239%, respectively, over comparable prior year periods Positive adjusted EBITDA and net income for both the quarter and full year
NEW YORK, NY, March 14, 2022 - DocGo (Nasdaq:DCGO), a leading provider of last-mile mobile health services and integrated medical transportation solutions, today announced financial and operating results for the fourth quarter and full year ending December 31, 2021.
“The fourth quarter caps a year in which we made substantial progress, further penetrating into existing markets while launching in nine new ones, all while continuing to invest in a world class clinical team and transitioning to a publicly-traded company,” stated Stan Vashovsky, Chief Executive Officer and Co-Founder. “Our fourth quarter and full year revenue growth of 289% and 239%, respectively, reflects not only the significant unmet need that we are addressing within the healthcare ecosystem, but also the unique value proposition that we deliver to some of the largest government, corporate and health system entities in the country. We are operating in a vast, untapped market with a scalable and capital efficient business model, and I believe we are in the very early stages of accelerating recurring revenue growth. I look forward to a very successful 2022.”
Fourth Quarter Financial Highlights
| ● | Total revenue was $121.3 million, representing growth of 289% over $31.2 million in the fourth quarter of 2020. |
| ● | Mobile Health revenue increased to approximately $102.6 million, compared to $15.8 million in the fourth quarter of 2020. The increase reflects the extension of certain key contracts as well as significant recent contract wins. |
| ● | Medical transport revenue was approximately $18.7 million, up 21% from $15.4 million in the fourth quarter of 2020. |
| ● | Adjusted EBITDA grew to approximately $17.3 million, versus an Adjusted EBITDA loss of $2.9 million in the fourth quarter of 2020. |
| ● | Net income was $20.3 million, which represents a substantial improvement over the net loss of $4.4 million in the fourth quarter of last year, reflecting the strong increase in revenues during the quarter, which occurred while certain overhead costs remained in line with prior periods. Net income in Q4 2021 includes a gain of approximately $5.2 million relating to the remeasurement of warrant liabilities. |
Full Year Financial Highlights
| ● | Total revenue was $318.7 million, an increase of 239% from $94.1 million in 2020. |
| ● | Mobile Health revenue increased to approximately $234.4 million in 2021, compared to $30.9 million in 2020. The increase reflects the expansion of the services offered by this segment in 2021, with growth accelerating throughout the year, as DocGo increased both its customer base and geographic reach. The year witnessed the extension of certain key contracts as well as significant new contract wins. |
| ● | Medical transport revenue was approximately $84.3 million in 2021, up 33% from $63.2 million in 2020. Both trip volumes and average price per trip increased from 2020 levels. |
| ● | Covid testing-related revenue is estimated to be approximately $110 million. |
| ● | Adjusted EBITDA grew to approximately $25.1 million in 2021, even with significant investments made in regional expansion and personnel, versus an Adjusted EBITDA loss of $8.1 million in 2020. |
| ● | Net income was $19.2 million for the full year 2021, which represents a substantial improvement over a net loss of $14.8 million in 2020. Net income in 2021 includes a gain of approximately $5.2 million relating to the remeasurement of warrant liabilities. |
| ● | As of December 31, 2021, the company held cash and cash equivalents of $175.5 million with insignificant debt, and an additional $78.4 million of accounts receivable. |
Corporate Highlights
| ● | Closed merger with Motion Acquisition Corp. and raised net proceeds of approximately $158 million, including an associated PIPE financing. |
| ● | Hired 2,340 new employees in 2021, bringing total number of medical providers to over 3,800 as of December 31. |
2022 Guidance
The company sees strong demand from our customers for both mobile health and transportation services, and anticipates 2022 revenue to be approximately $400-420 million, representing growth of 27-32% over 2021, or a 65% increase if we exclude non-recurring Covid testing revenue from the second half of both years. Adjusted EBITDA is anticipated to be approximately $35-41 million.
Conference call and webcast
DocGo management will host a conference call and webcast to discuss the fourth quarter and full year results tomorrow, March 15, at 8:30am ET. To access the conference call, please dial 1-877-407-0784 (U.S.) or 1-201-689-8560 (international). Reference conference ID 13727132.
The webcast can be accessed using the following link: https://viavid.webcasts.com/starthere.jsp?ei=1529651&tp_key=a6273f4fcd
or under “Events” on the “Investors” section of the company’s website, https://ir.docgo.com/.
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About DocGo
DocGo is a leading provider of last-mile mobile care services and integrated medical transportation solutions. DocGo is disrupting the traditional four-wall healthcare system by providing care to patients where and when they need it. DocGo’s innovative 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 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 www.docgo.com.
Forward-Looking Statements
This announcement contains forward-looking statements (including within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended) concerning DocGo. These statements include, but are not limited to, statements that address our expected future business and financial performance and statements about (i) our plans, objectives and intentions with respect to future operations, services and products, (ii) our competitive position and opportunities, and (iii) other statements identified by words such as “may”, “will”, “expect”, “intend”, “plan”, “potential”, “believe”, “seek”, “could”, “estimate”, “judgment”, “targeting”, “should”, “anticipate”, “predict” “project”, “aim”, “goal”, “outlook”, “guidance”, and similar words, phrases or expressions. These forward-looking statements are based on management’s current expectations and beliefs, as well as assumptions made by, and information currently available to, management, and current market trends and conditions. Forward-looking statements inherently involve risks and uncertainties, many of which are beyond our control, and which may cause actual results to differ materially from those contained in our forward-looking statements. Accordingly, you should not place undue reliance on such statements. Particular uncertainties that could materially affect current or future results include possible accounting adjustments made in the process of finalizing reported financial results; any risks associated with global economic conditions and concerns; the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreaks, such as the COVID-19 coronavirus pandemic; competitive pressures; pricing declines; rates of growth in our target markets; our ability to improve gross margins; cost-containment measures; legislative and regulatory actions; the impact of legal proceedings and compliance risks; the impact on our business and reputation in the event of information technology system failures, network disruptions, cyber-attacks, 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. We undertake no intent or obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts
Media Contact:
Janine Warner
Crowe PR
docgo@crowepr.com
(646) 916-5314
Investor Contacts:
Steven Halper LifeSci Advisors
shalper@lifesciadvisors.com
or
ir@docgo.com
646-876-6455
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Reconciliation of Adjusted EBITDA to GAAP Net Income
| Q4 | YTD | |||||||||||||||
| 2020 | 2021 | 2020 | 2021 | |||||||||||||
| Net Income/(loss) (GAAP) | $ | -4.4 | $ | 20.3 | $ | -14.8 | $ | 19.2 | ||||||||
| (+) Net Interest expense/ (income) | $ | -0.2 | $ | 0.3 | $ | 0.2 | $ | 0.8 | ||||||||
| (+) Income Tax | $ | 0.1 | $ | -0.4 | $ | 0.2 | $ | 0.6 | ||||||||
| (+) Depreciation & amortization | $ | 1.4 | $ | 2.0 | $ | 5.4 | $ | 7.5 | ||||||||
| (+) Remeasurement of Warrant Liabilities | $ | 0.0 | $ | -5.2 | $ | 0.0 | -5.2 | |||||||||
| EBITDA | $ | -3.1 | $ | 17.1 | $ | -9.0 | $ | 22.9 | ||||||||
| (+) Non-cash stock compensation | $ | 0.2 | $ | 0.2 | $ | 0.7 | $ | 1.3 | ||||||||
| (+) Non-recurring expense | $ | 0.0 | $ | 0.1 | $ | 0.2 | $ | 0.9 | ||||||||
| Adjusted EBITDA | $ | -2.9 | $ | 17.3 | -$8.1 | $ | 25.1 | |||||||||
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DocGo Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
| Years Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 175,537,221 | $ | 32,418,220 | ||||
| Accounts receivable, net of allowance of $7,377,389 and $3,193,048 as of December 31, 2021 and 2020, respectively | 78,383,614 | 24,854,957 | ||||||
| Prepaid expenses and other current assets | 2,111,656 | 1,150,491 | ||||||
| Total current assets | 256,032,491 | 58,423,668 | ||||||
| Property and equipment, net | 12,733,889 | 9,105,597 | ||||||
| Intangibles, net | 10,678,049 | 10,674,106 | ||||||
| Goodwill | 8,686,966 | 6,610,557 | ||||||
| Restricted cash | 3,568,509 | 2,039,053 | ||||||
| Operating lease right-of-use assets | 4,195,682 | 4,997,407 | ||||||
| Finance lease right-of-use assets | 9,307,113 | 7,001,644 | ||||||
| Equity method investment | 589,058 | - | ||||||
| Other assets | 3,810,895 | 1,320,331 | ||||||
| Total assets | $ | 309,602,652 | $ | 100,172,363 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 15,833,970 | $ | 3,954,123 | ||||
| Accrued liabilities | 35,110,877 | 14,254,438 | ||||||
| Line of credit | 25,881 | - | ||||||
| Notes payable, current | 600,449 | 664,357 | ||||||
| Due to seller | 1,571,419 | 1,125,522 | ||||||
| Operating lease liability, current | 1,461,335 | 1,620,470 | ||||||
| Finance lease liability, current | 3,271,990 | 1,876,765 | ||||||
| Total current liabilities | 57,875,921 | 23,495,675 | ||||||
| Notes payable, non-current | 1,302,839 | 594,494 | ||||||
| Operating lease liability, non-current | 2,980,946 | 3,638,254 | ||||||
| Finance lease liability, non-current | 6,867,420 | 5,496,899 | ||||||
| Warrant liabilities | 13,518,502 | - | ||||||
| Total liabilities | 82,545,628 | 33,225,322 | ||||||
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DocGo Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS (CONTINUED)
| Years Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Class A common stock ($0.0001 par value; 500,000,000 and no par value 125,482,677 shares authorized as of December 31, 2021 and 2020, respectively; 100,133,953 and 76,489,205 shares issued and outstanding as of December 31, 2021 and 2020, respectively) | 10,007 | - | ||||||
| Additional paid-in-capital | 283,161,222 | 142,346,852 | ||||||
| Accumulated deficit | (63,556,714 | ) | (87,300,472 | ) | ||||
| Accumulated other comprehensive loss | (32,501 | ) | (48,539 | ) | ||||
| Total stockholders’ equity attributable to DocGo Inc. and Subsidiaries | 219,582,014 | 54,997,841 | ||||||
| Noncontrolling interests | 7,475,010 | 11,949,200 | ||||||
| Total stockholders’ equity | 227,057,024 | 66,947,041 | ||||||
| Total liabilities and stockholders’ equity | $ | 309,602,652 | $ | 100,172,363 | ||||
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DocGo Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| Years Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenue, net | $ | 318,718,580 | $ | 94,090,658 | ||||
| Expenses: | ||||||||
| Cost of revenues (exclusive of depreciation and amortization, which is shown separately below) | 208,971,062 | 62,743,607 | ||||||
| Operating expenses: | ||||||||
| General and administrative | 74,892,828 | 34,913,395 | ||||||
| Depreciation and amortization | 7,511,579 | 5,507,655 | ||||||
| Legal and regulatory | 3,907,660 | 3,747,865 | ||||||
| Technology and development | 3,320,183 | 1,189,583 | ||||||
| Sales, advertising and marketing | 4,757,970 | 746,236 | ||||||
| Total expenses | 303,361,282 | 108,848,341 | ||||||
| Income (loss) from operations | 15,357,298 | (14,757,683 | ) | |||||
| Other income (expenses): | ||||||||
| Interest income (expense), net | (763,030 | ) | (204,632 | ) | ||||
| Gain from PPP loan forgiveness | 142,667 | - | ||||||
| Gain (loss) on disposal of fixed assets | (34,342 | ) | 30,546 | |||||
| Gain on remeasurement of warrant liabilities | 5,199,496 | - | ||||||
| Loss on initial equity method investment | (66,818 | ) | - | |||||
| Other income (loss) | (40,086 | ) | 300,000 | |||||
| Total other income (expense) | 4,437,887 | 125,914 | ||||||
| Net income (loss) before income tax benefit (expense) | 19,795,185 | (14,631,769 | ) | |||||
| Income tax expense | (615,697 | ) | (167,443 | ) | ||||
| Net income (loss) | 19,179,488 | (14,799,212 | ) | |||||
| Net loss attributable to noncontrolling interests | (4,564,270 | ) | (439,268 | ) | ||||
| Net income (loss) attributable to stockholders of DocGo Inc. and Subsidiaries | 23,743,758 | (14,359,944 | ) | |||||
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation adjustment | 16,038 | 196,345 | ||||||
| Total comprehensive gain (loss) | $ | 23,759,796 | $ | (14,163,599 | ) | |||
| Net income (loss) per share attributable to DocGo Inc. and Subsidiaries - Basic | $ | 0.30 | $ | (0.25 | ) | |||
| Weighted-average shares outstanding - Basic | 80,293,959 | 58,370,157 | ||||||
| Net income (loss) per share attributable to DocGo Inc. and Subsidiaries - Diluted | $ | 0.25 | $ | (0.25 | ) | |||
| Weighted-average shares outstanding - Diluted | 94,863,613 | 58,370,157 | ||||||
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DocGo Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Years Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net Income (loss) | $ | 19,179,488 | $ | (14,799,212 | ) | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation of property and equipment | 2,312,437 | 1,874,069 | ||||||
| Amortization of intangible assets | 1,845,193 | 1,451,214 | ||||||
| Amortization of finance lease right-of-use assets | 2,913,925 | 2,182,372 | ||||||
| Loss (Gain) on disposal of assets | 34,342 | (30,546 | ) | |||||
| Loss from equity method investment | 66,818 | - | ||||||
| Gain from PPP loan forgiveness | (142,667 | ) | - | |||||
| Bad debt expense | 4,467,956 | 1,885,457 | ||||||
| Stock based compensation | 1,376,353 | 687,072 | ||||||
| Due to seller write off | - | (300,000 | ) | |||||
| Gain on remeasurement of warrant liabilities | (5,199,496 | ) | - | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (57,996,613 | ) | (16,153,948 | ) | ||||
| Prepaid expenses and other current assets | (961,165 | ) | 94,091 | |||||
| Other assets | (2,490,564 | ) | (218,099 | ) | ||||
| Accounts payable | 11,879,850 | 3,006,187 | ||||||
| Accrued liabilities | 20,766,723 | 9,666,651 | ||||||
| Net cash used in operating activities | (1,947,420 | ) | (10,654,692 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment | (4,808,409 | ) | (4,361,501 | ) | ||||
| Proceeds from disposal of property and equipment | 74,740 | 276,224 | ||||||
| Acquisition of intangibles | (1,849,136 | ) | (1,954,745 | ) | ||||
| Acquisition of businesses | (1,300,000 | ) | - | |||||
| Acquisition of leased assets | (50,504 | ) | - | |||||
| Investments in equity method investment | (655,876 | ) | - | |||||
| Net cash used in investing activities | (8,589,185 | ) | (6,040,022 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from revolving credit line | 8,000,000 | - | ||||||
| Repayments of revolving credit line | (8,000,000 | ) | - | |||||
| Repayments of notes payable | (604,826 | ) | (798,371 | ) | ||||
| Due to seller | (595,528 | ) | (34,002 | ) | ||||
| Noncontrolling interest contributions | 333,025 | 1,500,002 | ||||||
| Acquisition of UK Ltd remaining 20% shares | (479,331 | ) | - | |||||
| Proceeds from exercise of stock options | 628,592 | - | ||||||
| Issuance costs related to merger recapitalization | (19,961,460 | ) | - | |||||
| Proceeds from issuance of Class A common stock, net of transaction cost | 178,102,313 | - | ||||||
| Payments on obligations under finance lease | (2,216,309 | ) | (1,479,722 | ) | ||||
| Net cash provided by (used in) financing activities | 155,206,476 | (812,093 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (21,414 | ) | 196,345 | |||||
| Net increase (decrease) in cash and restricted cash | 144,648,457 | (17,310,462 | ) | |||||
| Cash and restricted cash at beginning of period | 34,457,273 | 51,767,735 | ||||||
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CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
| Years Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Supplemental disclosure of cash and non-cash transactions: | ||||||||
| Cash paid for interest | $ | 315,272 | $ | 608,262 | ||||
| Cash paid for interest on finance lease liabilities | $ | 525,476 | $ | 440,852 | ||||
| Cash paid for income taxes | $ | 615,697 | $ | 117,443 | ||||
| Right-of-use assets obtained in exchange for lease liabilities | $ | 5,271,662 | $ | 1,600,289 | ||||
| Fixed assets acquired in exchange for notes payable | $ | 1,113,102 | $ | - | ||||
| Due to Seller non cash | $ | 434,494 | $ | - | ||||
| Gain from PPP loan forgiveness | $ | 142,667 | $ | - | ||||
| Reconciliation of cash and restricted cash | ||||||||
| Cash | $ | 175,537,221 | $ | 32,418,220 | ||||
| Restricted Cash | 3,568,509 | 2,039,053 | ||||||
| Total cash and restricted cash shown in statement of cash flows | $ | 179,105,730 | $ | 34,457,273 | ||||
| Non-cash investing activities Acquisition of business funded by acquisition payable | 1,028,942 | 837,168 | ||||||
| Years Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Primary Geographical Markets | ||||||||
| United States | $ | 309,218,594 | $ | 88,362,445 | ||||
| United Kingdom | 9,499,986 | 5,728,213 | ||||||
| Total revenue | $ | 318,718,580 | $ | 94,090,658 | ||||
| Major Segments/Service Lines | ||||||||
| Transportation Services | $ | 84,268,817 | $ | 63,188,855 | ||||
| Mobile Health | 234,449,763 | 30,901,803 | ||||||
| Total revenue | $ | 318,718,580 | $ | 94,090,658 | ||||
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