DocGo Inc.

Good afternoon, ladies and gentlemen, and welcome to the DOCGO fourth quarter and full year 2024 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 zero for the operator. This call is being recorded on Thursday, February 27, 2025. I would now like to turn the call over to Mike Cole, VP of 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 guaranteed the 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 on the current report on Form 8K that includes our earnings release, which is posted on our website, .go.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 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 to as the extent required by law. At this time, it is now my pleasure to turn the call over to Mr. Lee Beanstock, CEO of DOTCO. Lee, please go ahead.

Thank you, Mike, and thank you all for joining us today. The fourth quarter marked a period of aggressive investment as we continue to build out our care gap closure footprint in response to strong demand from our customers. In addition, we continue to invest in our current operational and management structure to support the next leg of growth across our customer verticals. We are thrilled with both the progress and the results of these programs, but these investments also come with a near-term impact on profitability. While we regularly review our expenses for efficiency gains, particularly with respect to our non-field headcount, we want to ensure that we retain the talent base that will be necessary for the next phase of our growth. Our goal is to build a 100-year company that fundamentally transforms how healthcare is delivered and achieve our mission of bringing high-quality, highly accessible care to all. To achieve this vision, it is vital to have a clearly defined value proposition that resonates with our customers and the patients we serve. Based on our early data points, we see tremendous value creation potential from our efforts, so we plan to continue making this investment. We are adding experienced operators, top shelf sales personnel, and continuing to make considerable enhancements in our tech stack to support the rapidly growing needs of our customer base. The scale of what we continue to accomplish is a testament to the impact we are making on how healthcare is delivered. In 2024 alone, Docco's proprietary tech platform calculated over 15 million estimated arrival times for our customers. Our network of clinicians traveled over 8.8 million miles to facilitate care across over 1.5 million patient interactions. These included facilitating vaccinations for over 58,000 adults and children and coordinating over 99,000 behavioral health depression screenings. DACA was assigned hundreds of thousands of patients for care gap closure programs and scaled these programs considerably in New York and California. All told, we provided services across 31 states in the US and across the UK. I'm so proud of the fact that Docco is recognized as one of the top innovators and places to work in healthcare. Last year alone, we received over 40,000 job applications from healthcare clinicians and corporate staff seeking to join us on our mission to provide high quality, highly accessible care to all. A testament to the quality of our offering is our fourth quarter Care Gap Closure Program, NPS, or Net Promoter Score of 86. To put that number in perspective, in healthcare, above 30 is deemed good, above 50 is excellent, and above 70 is deemed world-class. Both our patients and our customers are delighted with the quality of our programs, and we see a substantial opportunity to accelerate our growth in this market via both organic and inorganic means in the coming quarters. When working with our insurance customers, we don't go in pitching a specific care gap program. but offer a clinical platform in a mobile setting that health plans can leverage to engage their hard-to-reach, costly patients. This translates into a very sticky relationship as we deliver strong value for our customers, and they begin to look at us as partners, not just a vendor. We see strong evidence of this given that many of our health plan partners from 2024 are looking to significantly expand their relationship with us from both a scope and scale perspective. I would like to take a minute and provide a few specific examples. First, a major payer in the tri-state area with 3 million members that had assigned us a substantial number of lives for care gap closure advised that it now wants to expand into PCP services, specifically targeting their populations that are unattached and underserved. And they're also considering utilizing DACO's mobile clinics to bring care to communities that would benefit from increased access to healthcare services. Second, a major payer on the West Coast with 5 million members that we provided care gap closure services for in 2024 now wants to expand our relationship to include mobile mammography, PCP, mobile clinics, and transition of care services. Another West Coast customer indicated that it wants to significantly expand our transition of care program to cover all hospital discharges at two of their highest volume hospitals in the region. and include chronic care management for high-risk populations with diabetes and hypertension. A major payer in New York with 5 million lives is expanding their assigned patient list from 10,000 Medicaid members to 40 to 50,000 unengaged members this year. And another East Coast payer with 2 million members that began with a bone density scan care gap closure program is now looking to add immunizations as well. On a macro level with payers, our customers consistently share that they are laser-focused on quality initiatives, as CMS and states across the country are making it harder and harder to reach quality measure thresholds, which places downward pressure on these plans' ratings. In addition to our existing customer base, there has been a flurry of inbound inquiries recently, which can be attributed to payers looking for solutions, but also a broader appreciation for the impact that medical care and care gap closure programs in the home can have. To continue building our scope of services in this vertical, earlier this month we acquired PTI Health, a mobile phlebotomy company. We believe this is a great example of an acquisition that we can grow considerably based on demand from both PTI's existing base as well as our roster of customers expressing interest. Our immediate plans are to expand these capabilities in the New York market to meet the needs of a major national lab partner with additional geographies to follow. In our government population health vertical, our work with the migrant-related HPD contract concluded in mid-December. We anticipate that associated receivables under that contract will be fully paid by the end of Q2 of this year. Regarding our migrant-related programs with New York City Health and Hospitals, we continue to expect that contract to largely wind down in the first half of 2025. Our accounts receivable under all of our migrant-related programs totaled approximately $150 million as of year end, with approximately $30 million of associated payables due to subcontractors, which we expect will create a significant cash flow tailwind through mid-2025. On the business development front, we have made considerable progress at the federal level and have secured two contracts for subcontracted work at the VA. Under these contracts, we will be facilitating vital examinations for veterans while improving access to care and help remove backlog challenges that the system has been facing. We are ideally positioned to leverage our mobile care delivery model to help serve the needs of the VA, and we brought on Dr. David Shulkin, the former secretary of the VA, to help guide the company's efforts and drive growth in the population health vertical. I'm also pleased to report that our mobile x-ray program in New York continues to expand and has now completed over 2,000 images since inception late last year. Our hospital customer vertical, which is predominantly medical transportation, continued to perform well with customer expansions in several key markets. We signed a two-year contract with the major Texas healthcare system that enabled us to launch services in the Dallas-Fort Worth area, keeping with our strategy of entering markets with an anchor customer. We signed a two-year contract extension with a leading Tennessee-based healthcare system to continue providing services in Nashville and just announced that we are launching services in Chattanooga, Tennessee to serve their facilities in that region. We are also expanding our relationship with the largest healthcare system in New York State. Before I hand it to Norm, I think it's important to note that while we were able to maintain gross margins at the same level year over year, SG&A as a percentage of revenues in the fourth quarter was substantially greater than in recent periods. We chose and will continue to choose to maintain and invest in our infrastructure to prepare for the next growth opportunities ahead. Given the expedited drop in migrant-related revenue, we lost a lot of that leverage that comes with a higher revenue base. We view this as a temporary factor and anticipate that we will be able to complement our existing customer expansions already underway with accretive M&A opportunities that will allow us to return to a significantly higher revenue base, all while maintaining the highest level of quality during this transitionary period. If we did not believe strongly in the growth opportunity ahead, we would be making more substantial cuts to get that SG&A percentage in line with historical levels, but that is not the case. The strategic value of being in the home and accessing traditionally difficult-to-reach populations to bring them preventative care is becoming increasingly obvious to customers, and the pace of inbound inquiries and the pipeline in general has never been stronger. This is a time to invest in our future, build critical mass, and continue to deliver exceptional quality in the field, and we could not be more excited about what lies ahead. At this point, I'll pass it over to Norm to cover the financials. Norm, please go ahead.