Business Overview and History
DocGo Inc (DCGO) is a leading provider of technology-enabled mobile health services, pioneering a new era of proactive and accessible healthcare. With a strong focus on innovation and geographic expansion, the company has positioned itself as a trailblazer in the evolving healthcare landscape.
DocGo was founded in 2015 as Ambulnz, LLC, a limited liability company in Delaware. In 2017, the company transitioned from a limited liability company to a C-corporation and changed its name to Ambulnz, Inc. Ambulnz was the sole owner of Ambulnz Holdings, LLC, which owned multiple operating entities across the United States and in the United Kingdom. In November 2021, Ambulnz completed a business combination with Motion Acquisition Corp., a special purpose acquisition company, and the combined entity was renamed DocGo Inc.
Prior to the business combination, Ambulnz had recorded net losses each fiscal year from its inception in 2015 to 2021, including a net loss of $14.8 million for the fiscal year ended December 31, 2020. However, the company was able to secure three equity financing transactions as its principal source of liquidity between its inception and the business combination.
Since its inception, DocGo has experienced significant growth, both organically and through strategic acquisitions. The company's core business segments include Mobile Health Services and Transportation Services, catering to a diverse client base that includes hospitals, healthcare facilities, businesses, state and local government entities, and insurance providers.
In the Mobile Health Services segment, DocGo offers a wide range of healthcare services performed in non-traditional settings, such as homes, offices, and event venues. The company's innovative approach to care delivery has enabled it to provide total care management solutions to large, underserved population groups, primarily through partnerships with municipalities. DocGo's Transportation Services segment encompasses both emergency response and non-emergency transport services, including ambulance transports and wheelchair transports.
Since the business combination, DocGo has faced some challenges, including navigating the COVID-19 pandemic and the wind-down of certain migrant-related projects. In 2022, the company started discussions regarding the potential liquidation of its Ambulnz Health, LLC subsidiary through an assignment for the benefit of creditors process, which was finalized in early 2023. This resulted in DocGo recognizing a non-cash goodwill impairment charge of $2.9 million in 2022. Despite these obstacles, DocGo has made significant investments to enhance its technology platform, expand its mobile health services, and grow its transportation services segment.
Financial Performance and Metrics
DocGo's financial performance has been strong, with the company reporting consistent revenue growth over the past few years. In the fiscal year 2024, the company generated $616.6 million in total revenue, a 1% decrease from the previous year's $624.3 million. This slight decline was primarily attributable to the wind-down of the company's migrant-related projects, which had contributed significantly to the 2023 revenue.
The company's gross margin, which includes non-cash depreciation expenses, improved to 32.1% in 2024, compared to 28.7% in 2023. Adjusted gross margin, which excludes depreciation and amortization, remained consistent at 34.6% in 2024, reflecting the company's ability to maintain profitability amid revenue fluctuations.
DocGo's net income for the fiscal year 2024 was $13.4 million, a 34% increase from the $10.0 million reported in 2023. The company's operating cash flow also saw a significant improvement, increasing from a negative $64.2 million in 2023 to a positive $70.3 million in 2024. This turnaround was largely driven by the company's efforts to collect outstanding receivables, particularly from its municipal customers.
For the most recent quarter ended December 31, 2024, DocGo reported quarterly revenue of $120.8 million, a 39% decrease compared to the prior year quarter. This decline was primarily due to the winding down of migrant-related projects. The company reported a net loss of $7.6 million for the quarter.
DocGo's annual free cash flow for 2024 was $64.5 million, demonstrating the company's ability to generate cash from its operations. The adjusted EBITDA for the full year 2024 was $60.3 million, up 12% from 2023, with an adjusted EBITDA margin of 9.8%, an improvement from 8.6% in 2023.
Liquidity
DocGo's liquidity position has improved significantly, as evidenced by the positive operating cash flow in 2024. The company's ability to generate cash from operations and maintain a healthy balance sheet positions it well for future growth and investment opportunities. The successful collection of outstanding receivables, particularly from municipal customers, has been a key factor in strengthening DocGo's liquidity position.
As of December 31, 2024, DocGo had a debt-to-equity ratio of 0.18, indicating a relatively low level of debt compared to equity. The company had $89.2 million in cash and cash equivalents, and an available credit line of $60 million under its $90 million revolving credit facility. DocGo's current ratio and quick ratio were both 2.50 as of December 31, 2024, suggesting a strong ability to meet short-term obligations.
Business Segments and Geographic Markets
DocGo operates through three main business segments: Mobile Health Services, Transportation Services, and Corporate.
The Mobile Health Services segment, which accounted for approximately 69% of DocGo's total revenues in 2024, provides a wide variety of healthcare services performed at homes, offices, and other locations. This segment also includes event services such as on-site healthcare support at sporting events and concerts, as well as total care management solutions for large, typically underserved population groups through arrangements with municipalities.
The Transportation Services segment, which generated approximately 31% of DocGo's total revenues in 2024, encompasses both emergency response and non-emergency transport services. This segment has seen strong growth, with a 32% compound annual growth rate over the past three years.
The Corporate segment primarily represents shared services and personnel that support both the Mobile Health Services and Transportation Services segments. It contains operating expenses such as information technology costs, certain insurance costs, the compensation costs of senior and executive leadership, and software development costs for DocGo's proprietary technology platform.
Geographically, DocGo operates primarily in the United States, with additional operations in the United Kingdom. For the full year 2024, the U.S. accounted for $558.8 million (91%) of total revenue, while the U.K. accounted for $57.8 million (9%) of total revenue. The company operates in 31 states in the U.S. and the U.K., demonstrating its ability to scale its mobile health and transportation services across a wide range of markets.
Expansion and Strategic Initiatives
DocGo's growth strategy has been centered around expanding its geographic footprint and diversifying its service offerings. In 2024, the company operated in 31 states in the U.S. and the United Kingdom, demonstrating its ability to scale its mobile health and transportation services across a wide range of markets.
One of the key pillars of DocGo's growth strategy has been its focus on the payer vertical, which includes partnerships with insurance carriers and managed care organizations. The company has seen strong demand for its care gap closure programs, which aim to improve patient engagement and health outcomes for traditionally underserved populations. In 2024, DocGo was assigned over 700,000 patient lives for these programs, a significant increase from the prior year.
To further enhance its capabilities, DocGo has made strategic acquisitions, such as the acquisition of PTI Health, a mobile phlebotomy company, in early 2025. This acquisition allows DocGo to expand its mobile health services by integrating mobile lab collection and phlebotomy services, addressing critical gaps in diagnostic care for underserved communities.
Challenges and Risks
While DocGo has demonstrated impressive growth and operational improvements, the company is not without its challenges and risks. The highly regulated nature of the healthcare industry, along with the potential for changes in government policies and reimbursement rates, poses ongoing risks to the company's operations.
Additionally, DocGo's reliance on government contracts, particularly for its migrant-related projects, has exposed the company to the uncertainty of political and policy shifts. The accelerated wind-down of these migrant-related projects in 2024 resulted in a significant revenue decline, which the company has been actively working to offset through the expansion of its core payer and municipal programs.
The company's ability to effectively manage its growing operations, including the integration of acquired businesses, will also be crucial to its long-term success. Maintaining a skilled and dedicated workforce, particularly in the highly competitive healthcare labor market, is another key challenge for DocGo.
Outlook and Guidance
Despite the headwinds faced in 2024, DocGo remains optimistic about its future growth prospects. For the fiscal year 2025, the company has maintained its revenue guidance in the range of $410 million to $450 million, reflecting the continued ramp-up of its core business lines and the expected wind-down of its migrant-related projects.
DocGo's management has indicated that it expects gross margins to remain in line with or slightly better than 2024 levels. However, due to ongoing investments in new business lines, the company anticipates EBITDA margins will be in the mid-single digits for 2025, down from the prior expectation. Despite the lower EBITDA margin outlook, DocGo expects cash flow from operations to be significantly higher in 2025 compared to the $70 million generated in 2024, as the company continues to collect on its large accounts receivable balance.
One of the key drivers of DocGo's future performance will be its ability to successfully execute on its pipeline of opportunities, particularly in the payer and municipal verticals. The company has reported a robust pipeline of deals, including 27 municipal contracts, 29 health system deals, and over 120 payer and provider deals, indicating strong momentum in its core business segments.
Conclusion
DocGo's journey has been defined by its commitment to innovation, geographic expansion, and a relentless focus on transforming the healthcare delivery landscape. Despite the challenges posed by the wind-down of its migrant-related projects, the company has demonstrated its resilience and adaptability, pivoting its strategy to capitalize on the growing demand for its mobile health and transportation services.
As DocGo continues to execute on its strategic initiatives, expand its service offerings, and strengthen its partnerships with payers and municipalities, the company is well-positioned to cement its position as a leading provider of technology-enabled mobile healthcare solutions. The company's focus on providing high-quality, highly accessible healthcare services through its mobile health and transportation offerings has been a key driver of its success. DocGo's proprietary technology platform and integrated service model have allowed it to expand its reach and deliver care to patients in a wide range of settings.
Investors will be closely watching DocGo's ability to navigate the evolving healthcare landscape and deliver sustainable growth in the years to come. With a strong liquidity position, a robust pipeline of opportunities, and a clear strategy for growth, DocGo is poised to continue its trajectory of innovation and expansion in the mobile healthcare sector.