DocGo's Q4 Revenue Exceeds Expectations, Company Reports Backlog Of $180M Over 3 Years

Zinger Key Points
  • We meticulously replaced non-recurring mass COVID testing revenue with new contracts and programs," says DocGo's CEO.
  • The mobile health care company's 2023 revenue guidance tops Street expectations.

The last-mile mobile health services provider DocGo Inc DCGO announced fourth-quarter revenue of $108.8 million Monday, representing a 10% year-over-year decline, which beats the consensus estimate of $103.82 million.

DocGo's Q4 Report: The revenue includes approximately $1 million of COVID testing revenue, compared to around $50 million of non-recurring COVID testing revenue a year ago.

DocGo's net income totaled $7.1 million in the fourth quarter compared to $20.3 million a year ago. Adjusted EBITDA fell from $17.3 million to $6.8 million year-over-year and was negatively impacted by startup costs associated with onboarding numerous new contracts.

"DocGo began 2022 with revenue guidance of $400 million - $420 million, and we closed the year at $440.5 million. We meticulously replaced non-recurring mass COVID testing revenue with new contracts and programs, both in the U.S. and U.K.," said CEO Anthony Capone. 

DocGo's Guidance: DocGo expects FY23 revenues of approximately $500-$510 million, up 14%-16% Y/Y and 36%-40% if non-recurring mass Covid testing revenue of approximately $75 million in 2022 is excluded. 

The Wall Street revenue estimate stands at $493.23 million.

Adjusted EBITDA is anticipated to be approximately $45-$50 million, with a gross margin of approximately 35%.

Since the start of 2023, DocGo said it has netted multiple new single and multiyear revenue contract wins and contract expansions valued at over $180 million over the next three years.

With these contracts, DocGo said it will expand mobile health services to include population health programs in New York, paramedic-led home visit services in the U.K., remote patient monitoring of patients in Pennsylvania, medical transportation to over 25 acute care hospitals, event medical standby and hospital support services.

The company expects all related contracts to be fully rolled out by the end of the third quarter.

DocGo said it will hire hundreds of clinicians and increase its fleet size by more than 100 vehicles.

DCGO Price Action: DCGO shares gained 1.75% Monday, closing at $8.70. 

Photo via Shutterstock.

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