On August 7, 2024, DocGo Inc (DCGO, Financial) released its 8-K filing for the second quarter of 2024, showcasing impressive financial performance that surpassed analyst estimates. DocGo Inc, a provider of last-mile mobile health services and integrated medical mobility solutions, operates through three segments: Mobile Health Services, Transportation Services, and Corporate. The Mobile Health Services segment remains the primary revenue driver for the company.
Performance Highlights
DocGo Inc reported total revenue of $164.9 million for Q2 2024, a 31% increase from $125.5 million in Q2 2023, surpassing the estimated revenue of $162.63 million. The company's net income for the quarter was $5.9 million, a significant rise from $1.3 million in the same period last year, marking a 354% increase. This performance also fell short of the estimated earnings per share (EPS) of $0.07, with the actual EPS coming in at $0.06.
Mobile Health Services revenue surged by 46% to $116.7 million, compared to $80.1 million in Q2 2023. For the first half of 2024, this segment generated $260.7 million, a 70% increase from $153.0 million in the first half of 2023. Transportation Services also saw a modest growth of 6%, with revenue reaching $48.2 million in Q2 2024, up from $45.4 million in Q2 2023.
Financial Achievements and Metrics
DocGo Inc's GAAP gross margin for Q2 2024 was 31.3%, slightly up from 30.3% in Q2 2023. The adjusted gross margin improved to 33.9% from 33.4% in the same period last year. Adjusted EBITDA for Q2 2024 was $17.2 million, an 89% increase from $9.1 million in Q2 2023.
As of June 30, 2024, the company held total cash and cash equivalents, including restricted cash, of approximately $85.8 million, compared to $58.9 million as of March 31, 2024. This significant increase in cash balance is attributed to the company's robust operational execution and improved cash flow from operations.
Guidance and Future Outlook
DocGo Inc reiterated its full-year 2024 revenue guidance of $600-$650 million and adjusted EBITDA guidance of $65-$75 million. The company also raised its cash flow from operations guidance to $80-$90 million, up from the previous expectation of $70-$80 million. For 2025, DocGo Inc expects its base business to grow by more than 30%, with an adjusted EBITDA margin exceeding 10%.
Corporate Highlights
During the second quarter, DocGo Inc secured five new contracts to provide healthcare services across the United States, including remote patient monitoring and virtual care management. The company also launched its first municipal mobile x-ray program in New York City and introduced a new feature for its technology platform to support health plan partnerships.
Lee Bienstock, Chief Executive Officer of DocGo, commented, “I continue to be extremely pleased with both our operational execution and the frequency and diversity of new contract wins. While the majority of these new contracts start out smaller in nature, we believe they have substantial growth potential.”
Norm Rosenberg, Chief Financial Officer of DocGo, added, "We saw a significant increase in our cash balance and generated more than $35 million in cash flow from operations during the period. We continue to work closely with our municipal partners to normalize payment timing and expect further considerable progress in our cash collections over the coming quarters.”
Income Statement Summary
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $164.9 million | $125.5 million |
| Net Income | $5.9 million | $1.3 million |
| Adjusted EBITDA | $17.2 million | $9.1 million |
Balance Sheet and Cash Flow
DocGo Inc's balance sheet remains strong, with total assets of $488.2 million as of June 30, 2024, compared to $490.5 million as of December 31, 2023. The company's total liabilities decreased to $170.2 million from $185.3 million over the same period. Net cash provided by operating activities was $37.1 million for Q2 2024, a significant improvement from $10.7 million in Q2 2023.
DocGo Inc's strong financial performance in Q2 2024, driven by substantial growth in its Mobile Health Services segment, positions the company well for continued success in the healthcare providers and services industry. Investors and stakeholders can look forward to further growth and operational efficiencies as the company continues to expand its service offerings and secure new contracts.
Explore the complete 8-K earnings release (here) from DocGo Inc for further details.
