DocGo Inc. Q1 FY2025 earnings call

• Removed government population health vertical from 2025 guidance due to ongoing policy changes and budget cuts causing delays in project launches and RFP responses.
• Revised 2025 revenue guidance to $450 million and adjusted EBITDA to a loss of $20 million to $30 million. Medical transportation expected $225 million in revenue, payer and provider $50 million, and remaining migrant services $50 million in 2025.
• Medical transportation had record trip volume in Q1 2025, expects 575,000 transports in 2025 and 700,000 in 2026, with growth driven by new customer wins and market expansions.
• Payer and provider vertical exceeded 900,000 assigned lives, gap closure visits projected to quadruple in 24 months, added PTI Health for mobile lab collection with plans to complete over 125,000 blood draws in 2025.
• Reduced SG&A by $3.1 million sequentially in Q1 2025, plan to continue cutting SG&A costs while reinvesting in growing business segments.

In the first quarter of 2025, total revenue was $96 million. Medical transportation services revenue increased to $50.8 million from $48.2 million in the prior year, contributing 53% of total revenues. Mobile health revenue was $45.2 million, down from $143.9 million in the prior year, contributing 47% of total revenues. The government population health vertical was removed from 2025 guidance due to policy changes and delays in project launches.

• 2025 revenue guidance revised to $450 million, adjusted EBITDA loss $20 million to $30 million.
• Medical transportation expected $225 million in 2025, payer and provider $50 million, remaining migrant services $50 million.
• Projected 575,000 medical transports in 2025, 700,000 in 2026. Payer/provider gap closure visits expected to grow to 10,000 in 2025 and 40,000 in 2026.
• Non-migrant government population health revenue to be reported as upside to guidance if realized.

• Uncertainty in government population health vertical due to policy changes, budget cuts, and delays in RFP responses and project launches.
• Potential impact of tariffs on fleet maintenance and procurement, affecting costs related to vehicle upkeep and new fleet acquisition.
• Dependence on utilization rates of clinicians in payer/provider vertical to improve margins, as early-stage margins are currently impacted.

Q: Ryan MacDonald asked about government revenue expectations and SG&A balancing.

A: Lee Bienstock and Norman Rosenberg discussed delays in government projects, reporting new government revenue as upside, and restructuring SG&A to cut costs while reinvesting in growing segments.

Q: Kieran Ryan inquired about Q1 results and guidance changes.

A: Lee Bienstock explained the removal of government revenue from guidance due to delays, while medical transportation and payer/provider remained on track. Norman Rosenberg detailed quarterly revenue trajectory changes.

Q: Gabby asked about government revenue delta and 2026 EBITDA.

A: Norman Rosenberg explained conservative guidance with government revenue as upside, and Lee Bienstock discussed payer/provider margin potential improving as utilization rates increase.

Q: Jenny Shen questioned migrant margin and tariffs.

A: Norman Rosenberg stated migrant program margins were ~34%, and Lee Bienstock addressed tariff impact on fleet maintenance and procurement, noting forward-thinking fleet planning and management