On February 27, 2025, DocGo Inc (DCGO, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full-year 2024. DocGo Inc, a provider of last-mile mobile health services and integrated medical mobility solutions, operates through three segments: Mobile Health Services, Transportation Services, and Corporate. The company reported a significant decline in fourth-quarter revenue, primarily due to the wind-down of migrant-related programs, while also highlighting strategic investments aimed at future growth.
Performance Overview and Challenges
DocGo Inc reported a fourth-quarter 2024 revenue of $120.8 million, a sharp decline from $199.2 million in the same period of 2023. This decrease was largely attributed to the accelerated wind-down of migrant-related programs, which negatively impacted revenue by approximately $9.0 million. The company also faced challenges with increased investment in its payer vertical, which reduced adjusted EBITDA by $1.5 million. Additionally, increased loss reserves for self-insured lines further impacted adjusted EBITDA by $3.2 million.
Financial Achievements and Industry Context
Despite the challenges, DocGo Inc achieved a full-year 2024 revenue of $616.6 million, slightly below the 2023 figure of $624.2 million. The company improved its GAAP gross margin to 32.1% from 28.7% in 2023, and its adjusted gross margin to 34.6% from 31.3%. These improvements are significant in the healthcare providers and services industry, where efficient cost management and margin expansion are critical for sustaining growth and competitiveness.
Key Financial Metrics
DocGo Inc reported a full-year net income of $13.4 million, up from $10.0 million in 2023. The adjusted EBITDA for 2024 was $60.3 million, compared to $54.0 million in the previous year. However, the fourth-quarter net loss was $7.6 million, contrasting with a net income of $8.0 million in the fourth quarter of 2023. The company's cash and cash equivalents stood at approximately $107.3 million as of December 31, 2024.
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue | $120.8M | $199.2M | $616.6M | $624.2M |
| Net Income | ($7.6M) | $8.0M | $13.4M | $10.0M |
| Adjusted EBITDA | $1.1M | $22.6M | $60.3M | $54.0M |
Strategic Initiatives and Future Outlook
DocGo Inc is focusing on expanding its care gap closure programs, having surpassed 700,000 patient lives assigned. The company signed new contracts with major hospital systems and expanded its service offerings, including mobile phlebotomy and remote cardiac monitoring. These initiatives are expected to drive future growth, although the company has revised its 2025 adjusted EBITDA margin guidance to approximately 5%, down from the previous estimate of 8%-10%.
Lee Bienstock, Chief Executive Officer of DocGo, commented, “We continue to experience strong demand for our care gap closure programs in our payer and provider vertical, and are investing heavily to support this growth. Our number of patient lives assigned has increased to more than 700,000, up from just 2,000 a little over a year ago.”
Analysis and Conclusion
DocGo Inc's financial performance in 2024 reflects both the challenges of transitioning away from migrant-related revenues and the strategic investments in its core mobile health services. While the company missed analyst estimates for the fourth quarter, its focus on expanding high-demand services and improving operational efficiencies positions it for potential long-term growth. Investors will be keen to see how these strategic shifts translate into financial performance in the coming quarters.
Explore the complete 8-K earnings release (here) from DocGo Inc for further details.
