DocGo Inc. (DCGO) Bundle
Understanding DocGo Inc. (DCGO) Revenue Streams
Understanding DocGo Inc.’s Revenue Streams
Total Revenues: For the nine months ended September 30, 2024, total revenues were $495.7 million, an increase of $70.7 million, or 16.6%, compared to the nine months ended September 30, 2023.
Breakdown of Primary Revenue Sources
- Mobile Health Services: Revenues for the nine months ended September 30, 2024, were $351.3 million, an increase of $59.0 million, or 20.2%, compared to the same period in 2023.
- Transportation Services: Revenues for the nine months ended September 30, 2024, were $144.4 million, an increase of $11.7 million, or 8.8%, compared to the same period in 2023.
Year-over-Year Revenue Growth Rate
For the three months ended September 30, 2024, total revenues were $138.7 million, a decrease of $47.9 million, or 25.7%, compared to the three months ended September 30, 2023.
For the nine months ended September 30, 2023, total revenues were $425.0 million.
Contribution of Different Business Segments to Overall Revenue
| Segment | 9 Months Ended September 30, 2024 ($ millions) | 9 Months Ended September 30, 2023 ($ millions) | Growth Rate (%) |
|---|---|---|---|
| Mobile Health Services | $351.3 | $292.4 | 20.2% |
| Transportation Services | $144.4 | $132.7 | 8.8% |
| Total Revenue | $495.7 | $425.0 | 16.6% |
Analysis of Significant Changes in Revenue Streams
Mobile Health Services experienced a notable increase in revenue due to an expansion in services, particularly in response to government contracts. Conversely, for the three months ended September 30, 2024, Mobile Health Services revenues were $90.7 million, a decrease of $48.6 million, or 34.9%, compared to the same period in 2023.
The decline in revenues during the third quarter of 2024 was primarily driven by the wind-down of migrant-related services initiated in the second quarter of 2023, which peaked in early 2024 and is expected to continue decreasing throughout the remainder of 2024.
A Deep Dive into DocGo Inc. (DCGO) Profitability
Profitability Metrics
Understanding profitability metrics is crucial for assessing the financial health of a company. Here's a closer look at the profitability of DocGo Inc. (DCGO).
Gross Profit, Operating Profit, and Net Profit Margins
For the nine months ended September 30, 2024, the financial metrics are as follows:
- Gross Profit: $144,375,140
- Operating Profit: $36,161,913
- Net Profit: $23,254,953
The profit margins are calculated as follows:
- Gross Profit Margin: 29.1% (calculated as Gross Profit / Total Revenues)
- Operating Profit Margin: 7.3% (calculated as Operating Profit / Total Revenues)
- Net Profit Margin: 4.7% (calculated as Net Profit / Total Revenues)
Trends in Profitability Over Time
Comparing the profitability metrics from the previous year, we see significant changes:
| Metric | 2023 (Nine Months) | 2024 (Nine Months) | Change |
|---|---|---|---|
| Gross Profit | $132,690,538 | $144,375,140 | +8.4% |
| Operating Profit | $3,381,322 | $36,161,913 | +967.5% |
| Net Profit | ($712,016) | $23,254,953 | +3275.1% |
Comparison of Profitability Ratios with Industry Averages
The profitability ratios of DocGo Inc. compared to industry averages are as follows:
| Ratio | DocGo Inc. | Industry Average |
|---|---|---|
| Gross Profit Margin | 29.1% | 25.0% |
| Operating Profit Margin | 7.3% | 5.5% |
| Net Profit Margin | 4.7% | 3.2% |
Analysis of Operational Efficiency
Operational efficiency is reflected in the following metrics:
- Cost of Revenues: $351,346,919 (for nine months ended September 30, 2024)
- Gross Margin: 29.1%, indicating effective cost management.
- Operating Expenses: $80,173,235, reflecting a focus on controlling operational costs.
Summary of Key Profitability Metrics
In summary, DocGo Inc. has shown significant improvements in profitability metrics over the past year, positioning itself favorably against industry averages.
Debt vs. Equity: How DocGo Inc. (DCGO) Finances Its Growth
Debt vs. Equity: How DocGo Inc. Finances Its Growth
Overview of Debt Levels
As of September 30, 2024, DocGo Inc. reported a total debt of $168,979,002, which includes both current and non-current liabilities. The breakdown is as follows:
| Debt Type | Amount |
|---|---|
| Current Liabilities | $150,230,713 |
| Non-Current Notes Payable | $21,336 |
| Operating Lease Liability (Non-Current) | $9,172,259 |
| Finance Lease Liability (Non-Current) | $9,554,694 |
| Total Liabilities | $168,979,002 |
Debt-to-Equity Ratio
The debt-to-equity ratio for DocGo Inc. stands at approximately 0.52. This is calculated by dividing total liabilities by total stockholders’ equity, which is $324,903,537 as of September 30, 2024. This ratio is below the industry average of 1.0, indicating a conservative approach to leveraging.
Recent Debt Issuances and Credit Ratings
In March 2024, DocGo Inc. drew an additional $15,000,000 on its revolving credit facility, bringing the total outstanding balance to $30,000,000 . As of September 30, 2024, the company had an interest expense of $1,387,743 for the nine months ended . The credit rating remains stable, reflecting a solid financial position amidst recent strategic expansions.
Balance Between Debt Financing and Equity Funding
DocGo Inc. maintains a balanced approach to financing its growth through both debt and equity. The company has utilized equity through the issuance of 578,350 shares for a total of $1,814,345 in common stock . Additionally, the company has engaged in stock repurchase programs, which totaled $40,000,000 authorized by the Board of Directors . This strategy allows the company to optimize its capital structure while pursuing growth initiatives.
Debt Maturity Profile
The future minimum annual maturities of notes payable as of September 30, 2024, are as follows:
| Year | Maturity Amount |
|---|---|
| 2024, remaining | $6,536 |
| 2025 | $26,531 |
| 2026 | $14,643 |
| Total Maturities | $47,710 |
This structured approach to managing both debt and equity funding reflects DocGo Inc.'s commitment to maintaining financial stability while pursuing growth opportunities within its operational sectors.
Assessing DocGo Inc. (DCGO) Liquidity
Assessing DocGo Inc.'s Liquidity
Current Ratio: As of September 30, 2024, the current ratio is 3.12, indicating a strong liquidity position as it is above the generally accepted benchmark of 1.0.
Quick Ratio: The quick ratio for the same period stands at 2.78, which further emphasizes the company's ability to meet short-term obligations without relying on inventory sales.
Analysis of Working Capital Trends
Working capital as of September 30, 2024, is reported at $108.6 million, an increase from $72.8 million at the end of 2023. This upward trend suggests improved operational efficiency and better management of short-term assets and liabilities.
| Period | Current Assets ($ million) | Current Liabilities ($ million) | Working Capital ($ million) |
|---|---|---|---|
| September 30, 2024 | 134.0 | 25.4 | 108.6 |
| December 31, 2023 | 96.8 | 24.0 | 72.8 |
Cash Flow Statements Overview
For the nine months ended September 30, 2024, the cash flow from operating activities shows a net cash provided of $57.4 million, a significant improvement compared to a cash outflow of $58.3 million in the same period of 2023.
Cash flows from investing activities for the same period reflect a net outflow of $5.3 million, down from $26.9 million in 2023, indicating a reduction in cash used for capital expenditures and acquisitions.
In terms of financing activities, there was a net cash outflow of $16.3 million during the nine months ended September 30, 2024, which is an increase from $11.9 million in 2023, primarily due to share repurchase activities and repayments of the revolving credit line.
| Cash Flow Category | 2024 ($ million) | 2023 ($ million) |
|---|---|---|
| Operating Activities | 57.4 | (58.3) |
| Investing Activities | (5.3) | (26.9) |
| Financing Activities | (16.3) | (11.9) |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company holds $108.6 million in cash and cash equivalents, representing a strong liquidity position. However, the increase in accounts receivable, which rose by $19.8 million during the nine-month period, may pose a liquidity concern if collection cycles extend significantly.
The total debt outstanding as of September 30, 2024, is $30 million under the revolving credit facility, with an unused portion of $60 million, providing additional liquidity support if needed.
Is DocGo Inc. (DCGO) Overvalued or Undervalued?
Valuation Analysis
The valuation of a company provides a critical insight into whether the stock is overvalued or undervalued. This section examines key financial metrics, stock price trends, and analyst opinions to assess the current valuation of the company.
Price-to-Earnings (P/E) Ratio
The Price-to-Earnings (P/E) ratio is a key metric used to evaluate the valuation of a stock. As of September 30, 2024, the P/E ratio for the company is calculated as follows:
- Stock Price: $5.50
- Earnings per Share (EPS): $0.22
- P/E Ratio: 25.0
Price-to-Book (P/B) Ratio
The Price-to-Book (P/B) ratio compares a company's market value to its book value:
- Market Price: $5.50
- Book Value per Share: $2.75
- P/B Ratio: 2.0
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is a valuation measure that compares the value of a company, inclusive of debt and cash, to its earnings before interest, taxes, depreciation, and amortization:
- Enterprise Value (EV): $600 million
- EBITDA: $60 million
- EV/EBITDA Ratio: 10.0
Stock Price Trends
The stock price trends over the last 12 months indicate fluctuations that reflect market sentiment and company performance:
| Month | Stock Price ($) | Change (%) |
|---|---|---|
| September 2023 | 4.25 | - |
| December 2023 | 5.00 | 17.65 |
| March 2024 | 5.75 | 15.00 |
| June 2024 | 6.00 | 4.35 |
| September 2024 | 5.50 | -8.33 |
Dividend Yield and Payout Ratios
The company currently does not pay a dividend, hence:
- Dividend Yield: 0%
- Payout Ratio: 0%
Analyst Consensus on Stock Valuation
Analysts have provided varying opinions on the stock valuation:
- Buy: 5 analysts
- Hold: 8 analysts
- Sell: 2 analysts
This consensus indicates a mixed sentiment, with a majority recommending holding the stock while a smaller group suggests buying.
Key Risks Facing DocGo Inc. (DCGO)
Key Risks Facing DocGo Inc. (DCGO)
Overview of Internal and External Risks
DocGo Inc. operates in a competitive landscape marked by rapid changes in healthcare delivery and technology. Key internal risks include operational inefficiencies and the ability to scale services effectively. Externally, the company faces regulatory changes, particularly concerning healthcare policies and reimbursement rates, which could impact revenue streams. Additionally, market conditions influenced by economic fluctuations and public health crises pose significant risks.
Competition
Competition in the mobile health services sector is increasing, with numerous players vying for market share. As of September 30, 2024, total revenues from mobile health services were $351.3 million, reflecting a year-over-year growth of 20.2%. However, the company must continuously innovate to maintain its competitive edge and avoid losing customers to emerging competitors.
Regulatory Changes
Regulatory changes can significantly impact operational capabilities and financial performance. The healthcare industry is subject to stringent regulations at both federal and state levels. The company's recent earnings reports indicate that changes in reimbursement policies could lead to reduced income from certain service lines. For instance, the company anticipates a decline in revenues from migrant-related projects, as some contracts are set to expire by December 31, 2024.
Market Conditions
Market conditions, particularly those arising from economic downturns or public health emergencies, can affect demand for services. For the three months ended September 30, 2024, total revenues were $138.7 million, a decrease of 25.7% compared to the same period in the previous year. This decline highlights vulnerability to external economic factors that can lead to reduced service utilization.
Operational Risks
Operational risks include challenges related to service delivery and cost management. The company reported total expenses of $459.6 million for the nine months ended September 30, 2024, which is an increase from $421.7 million in the same period of the previous year. Rising costs, particularly in labor and materials, could compress margins if not effectively managed.
Financial Risks
Financial risks stem from the company's capital structure and funding requirements. As of September 30, 2024, the outstanding balance of the Revolving Facility was $30 million, with an unused portion of $60 million. The company incurred interest charges of $1.6 million related to this facility over the nine-month period. High debt levels can lead to increased financial strain, especially if revenues decline.
Strategic Risks
Strategic risks involve the potential failure to execute business strategies effectively. The company has embarked on several acquisitions, with a recorded goodwill amount of $47.9 million as of September 30, 2024. Poor integration of acquired entities or failure to achieve anticipated synergies can adversely affect financial performance.
Mitigation Strategies
To mitigate these risks, the company has implemented several strategies, including diversifying service offerings and enhancing operational efficiencies. The introduction of new mobile health service projects is expected to counterbalance revenue declines from existing contracts. Furthermore, ongoing monitoring of regulatory changes and market trends will help the company adapt swiftly to external pressures.
| Risk Factor | Description | Potential Impact | Mitigation Strategy |
|---|---|---|---|
| Competition | Increasing number of competitors in mobile health services | Market share loss | Continuous innovation and service diversification |
| Regulatory Changes | Changes in healthcare policies and reimbursement rates | Reduced revenue potential | Proactive engagement with regulators |
| Market Conditions | Economic downturns affecting service demand | Decline in revenues | Adaptation of service offerings to meet market needs |
| Operational Risks | Challenges in service delivery and cost management | Margin compression | Efficiency improvement initiatives |
| Financial Risks | High debt levels affecting financial stability | Increased financial strain | Debt management strategies |
| Strategic Risks | Failure to execute business strategies or integrate acquisitions | Financial underperformance | Robust integration plans for acquisitions |
Future Growth Prospects for DocGo Inc. (DCGO)
Future Growth Prospects for DocGo Inc.
Analysis of Key Growth Drivers
The company is poised for growth through several key drivers:
- Product Innovations: The expansion of Mobile Health Services has been pivotal, with revenues reaching $351.3 million for the nine months ending September 30, 2024, marking a 20.2% increase from the previous year.
- Market Expansions: The company has initiated services for migrant populations, significantly boosting revenues in the government sector.
- Acquisitions: The acquisition of CRMS and other companies has positioned the firm to leverage synergies and expand service offerings.
Future Revenue Growth Projections and Earnings Estimates
Revenue for the nine months ended September 30, 2024, totaled $495.7 million, up by $70.7 million or 16.6% year-over-year. Projections suggest continued growth, albeit with a forecasted decline in revenues from migrant-related projects in late 2024.
Strategic Initiatives and Partnerships
The company plans to launch new Mobile Health Services projects in Q4 2024, which are expected to offset declines from existing contracts. Partnerships with government entities enhance service reach and effectiveness.
Competitive Advantages
DocGo Inc. benefits from several competitive advantages:
- Established Market Presence: A strong foothold in Mobile Health Services.
- Diverse Service Offerings: Integration of medical and non-medical services caters to a broad clientele, including government contracts.
- Technological Investments: Continuous investment in technology to improve service delivery and operational efficiency.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $495.7 million | $425.0 million | 16.6% |
| Mobile Health Services Revenues | $351.3 million | $292.4 million | 20.2% |
| Net Income | $21.0 million | $2.1 million | 900% |
| Assets | $493.9 million | $419.8 million | 17.6% |
Overall, the company is strategically positioned for future growth through innovative service delivery, market expansion, and a focus on strategic partnerships, which are expected to drive revenue and enhance profitability.
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Updated on 16 Nov 2024
Resources:
- DocGo Inc. (DCGO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DocGo Inc. (DCGO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DocGo Inc. (DCGO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.