DocGo Inc.

Good afternoon ladies and gentlemen and welcome to the DocGo third quarter earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star followed by zero for the operator. This call is being recorded on Thursday, November 7, 2024. I would now like to turn the conference over to Mike Cole, Vice President, Investor Relations. Please go ahead.

Thank you, Operator. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. All statements made in this conference call, other than statements of historical fact, are forward-looking statements. The words may, will, plan, potential, could, goal, outlook, design, anticipate, aim, believe, estimate, expect, intend, Guidance, confidence, target, project, and other similar expressions may be used to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance, and we cannot assure you that we will achieve or realize our plans, intentions, outcomes, results, or expectations. Forward-looking statements are inherently subject to substantial risks, uncertainties, and assumptions, many of which are beyond our control and which may cause our actual results or outcomes or the timing of results or outcomes to differ materially from those contained in our forward-looking statements. These risks, uncertainties, and assumptions include but are not limited to those discussed in our risk factors and elsewhere in DOTCO's annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports and statements filed by DOTCO with the SEC to which your attention is directed. Actual outcomes and results, or the timing of results or outcomes, may differ materially from what is expressed or implied by these forward-looking statements. In addition, today's call contains references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided directly as part of this call or included in our earnings release or the current report on Form 8K that includes our earnings release, which is posted on our website, .gov.com, as well as filed with the SEC. The information contained in this call is accurate as of only the date discussed. Investors should not assume that statements will remain relevant at an operative and operative at a later time. We undertake no obligation to update any information discussed in this call to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events, except as to the extent required by law. At this time, it is now my pleasure to turn the call over to Mr. Lee Beanstalk, CEO of DOTCO. Lee, please go ahead.

Thank you, Mike. And thank you all for joining us today. We had a strong performance across all customer verticals in the third quarter, recording 138.7 million in revenue and 17.9 million in adjusted EBITDA. One of the major highlights from the quarter is the tremendous progress we have made building our care gap closure programs with multiple payers. We are seeing very strong leading indicators with these programs. Once again, more than doubling the number of assigned lives on a sequential basis from Q2 to Q3, and that figure now exceeds 500,000 patients. As of today, we have doubled the average weekly number of care gap visits completed when compared to our last earnings report. By year end, we project that we will exit the year at a run rate of 1,000 visits per week. In just the last two months, we have built new hubs up and down the West Coast to service this demand, from San Diego to Los Angeles to Sacramento, and we are also preparing for further expansion in the Northeast. Today, we fine-tuned our 2024 guidance to $620 to $630 million in revenue and $70 to $75 million in adjusted EBITDA, while increasing our expectation for cash flow from operations to $90 to $100 million, up from $80 to $90 million. Several of our migrant-related programs have extended beyond our original expectation. And we now expect migrant related revenues of 360 to 390 million in 2024, up from our previous forecast of 320 to 350 million. Offsetting that amount is an expected decrease in our non-migrant municipal population health programs by an equal amount, which effectively lowers our base business forecast for 2024, consisting of transportation and non-migrant mobile health to 240 to 260 million down from our previous forecast of 280 to 300 million. I want to be clear. This adjustment has no impact on our consolidated revenue expectations for 2024, just the underlying breakdown between migrant and non-migrant related revenues. To provide a specific example, our contract with HPD, which wound down by approximately 50% in May, was expected to largely conclude in late Q3. Now we expect it to end in late December. As the migrant-related programs wind down, we plan to apply those resources to new non-migrant-related programs. It is simply a matter of timing. Regarding 2025, today we issued consolidated revenue guidance of $410 to $450 million, which includes an expected migrant-related revenue contribution of $50 million. I would like to emphasize that our migrant-related work in 2025 is healthcare-focused and completely aligned with our population health vertical service offerings. like infectious disease screening, behavioral health assessments, vaccinations, and urgent care. In sum, we are meeting or exceeding our consolidated financial objectives across all three customer verticals and cannot be more excited about both our operational execution during the quarter and the strength of our pipeline. Once again, we continue to make substantial progress with our cash collections, generating approximately $31 million in cash flow from operations during the period. Our total cash and cash equivalence balance is now over $108 million, up from $86 million last quarter and $59 million in Q1 of this year. Throughout 2023 and in early 2024, we had a very substantial working capital outlay to support the migrant-related programs. Now that trend has reversed, and we are seeing very strong cash flow as a result, and that trend should continue into early 2025. With our strong balance sheet, we have the resources to support our growth initiatives, execute on opportunities in our robust pipeline, make additional share repurchases, fund new strategic relationships, and repay our line of credit. As I usually do, I would now like to spend some time covering our three key customer verticals, payers and providers, municipal population health, and hospital systems. In our payer and provider customer vertical, as I mentioned above, we are aggressively ramping up our infrastructure to meet the strong reception that we are experiencing for these services. In the news just last month, one of the largest payers in the country announced a significant drop in its Medicare Advantage star ratings, which according to analysts could reduce its 2026 EBITDA by as much as 50%. This is a crucial topic on the mind of every payer in the country, and we believe our CareGap closure programs are an ideal solution to help improve plan ratings and potentially have a material positive financial impact for our customers. We know the demand is there. Now we are laser focused on the build out to support it. As previously mentioned, we anticipate exiting 2024 at a thousand visit per week run rate, and our CareGap closure program which will set us up to meet or exceed our goal of 65,000 visits in 2025. Additionally, we started enrolling PCP patients in Q3 and have agreements in flight with our payer partners that will position us to grow PCP patients to our target of 10,000 in 2025. By the end of 2025, we also continue to expect reaching our goal of monitoring 70,000 patients in our virtual care management programs. Our mobile health plan partnerships program create a virtuous cycle where everyone who participates benefits. Patients benefit from convenient delivery of high-quality care in the home, insurers benefit from healthier patients and the opportunity to increase their heated scores and star ratings, and DOTCO continues to fulfill our mission of bringing high-quality care to all. Importantly, these programs also position DOTCO to expand to value-based care arrangements with our insurance partners over time, which is a key initiative to support our long-term growth. growth, and vision. To give an example of how our plans are coming to fruition, we've been providing a transitional care management readmission reduction program at a single hospital in Southern California for LA Care, a payer that manages 2.5 million lives. Based on our successful delivery of a greater than 50% emergency department reduction for this hospital's patients, we just signed an expansion deal with LA Care to provide our transitional care management program at additional hospitals to offer care gap closure services for LA care members, and launch a mobile health program to help improve the management of some of their most complex high-risk member populations. In our municipal population health vertical, we saw a number of positive indicators in Q3. We are preparing to expand our mobile x-ray program for the City of New York this fall, and we extended the street health outreach and wellness contract for a fourth year which will enable us to continue operating this award-winning mobile healthcare program for unhoused and underserved populations in New York City. Additionally, just this week, we received an expansion with the New Mexico Department of Health, which brought in the scope of our initial contract for clinical services at their public health offices. Collectively, we continue to leverage our clinical expertise and mobile healthcare approach to bring care to people outside of traditional healthcare settings. In Q3 alone, we provided treatment across over 215,000 medical and behavioral health encounters, including x-rays, vaccinations, urgent care, depression screenings, and more. Within this customer vertical, we've also made considerable progress with our Project Prime initiative, whose goal is to identify large government contractors with existing projects who may benefit from subcontracting municipal population health components of their work to DOTCO. We believe this is a very substantial opportunity and we expect to begin generating revenue from this initiative in early 2025. In our hospital vertical, we have a number of small to medium sized contracts that have been signed or are very close to being signed, which give us good line of sight to reach our 2025 growth estimates. In addition to new contracts, we have also recently expanded in the Northeast with a major customer and continue our build out in the Dallas market. We received exceptional customer feedback from our newly launched contracts in Dover, Delaware, which is great to see and encouraging as we grow our presence in that market. We have also made significant enhancements to our technology so that customers can now track a network of providers within our proprietary technology platform, in addition to having the ability to dispatch both medical transportation and mobile health resources, a combination we believe is unique within our industry. We have long believed that our proprietary technology has potential as a standalone SAS product that can generate revenues for us in markets where we do not have a physical presence, and we expect that to begin in the fourth quarter. Before I hand it over to Norm, I also wanted to take a moment to discuss the addition of Dr. Steven Klasko as our new chair of the board. As the former CEO of Jefferson Health and a special advisor at venture capital firm General Catalyst, Dr. Clasco brings extensive healthcare experience and a vast network that can help Doc go in a variety of ways. He is also a vocal advocate for healthcare at any address and pioneering AI technologies that could potentially optimize patient care and increase operational efficiency. We look forward to benefiting from his guidance and vast industry knowledge. We could not be more excited to have Dr. Clasco on board and we're off to a great, great start. I will now hand it over to Norm to cover the financial results. Norm, please go ahead.