DCGO Earnings Prediction
The chart below shows how DCGO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DCGO sees a +3.42% change in stock price 10 days leading up to the earnings, and a +1.46% change 10 days following the report. On the earnings day itself, the stock moves by -0.36%. This data can give you a slight idea of what to expect for the next quarter's release.
DCGO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
138.68M
-25.66%
-15.92%
Gross Margin
32.98%
21.29%
5.27%
Operating Margin
7.31%
56.53%
18.86%
Net Margin
3.28%
32.26%
-7.61%
EPS
0.05
0.00%
-16.67%
No Data Available
DCGO Earnings Analysis
DocGo Inc. Common Stock Corporation (DCGO.O) Earnings Conference Call
Positive
Robust Revenue Performance: 1. Strong Revenue Growth: DocGo reported $138.7 million in revenue for Q3 2024, reflecting a robust performance across all customer verticals despite a planned wind-down of certain projects.
Adjusted EBITDA Improvement: 2. Increased Adjusted EBITDA: The company achieved an adjusted EBITDA of $17.9 million in Q3 2024, up from $16.7 million in the same quarter last year, demonstrating improved operational efficiency.
Cash Flow Generation Increase: 3. Significant Cash Flow Generation: DocGo generated approximately $31 million in cash flow from operations during Q3 2024, contributing to a total cash and cash equivalents balance of over $108 million, up from $86 million in the previous quarter.
Care Gap Program Expansion: 4. Expansion of Care Gap Programs: The number of assigned lives in care gap closure programs more than doubled sequentially from Q2 to Q3, exceeding 500,000 patients, indicating strong demand and growth potential.
Gross Margin Improvement: 5. Improved Gross Margins: The adjusted gross margin for the Mobile Health segment reached 38.8% in Q3 2024, significantly higher than 28.8% in the same quarter last year, reflecting enhanced operational performance.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Total revenue for Q3 2024 was $138.7 million, a 26% decrease from Q3 2023, attributed to the wind down of migrant-related projects.
Mobile Health Revenue Decline: 2. Mobile Health Revenue Drop: Mobile Health revenue fell to $90.7 million in Q3 2024, down 35% from the same quarter last year, driven by the planned reduction in migrant-related work.
Adjusted Revenue Forecast: 3. Lowered Base Business Forecast: The forecast for non-migrant municipal population health programs was adjusted down to $240 million to $260 million for 2024, from a previous estimate of $280 million to $300 million, indicating a decline in expected revenue from this segment.
Rising SG&A Expenses Ratio: 4. Increased SG&A Expenses: SG&A expenses as a percentage of total revenues rose to 28.7% in Q3 2024, up from 24.8% in Q3 2023, reflecting higher operational costs despite a 14% decline in absolute dollar terms due to targeted reductions in force.
EBITDA Margin Revision: 5. Adjusted EBITDA Margin Guidance: The adjusted EBITDA margin expectation for 2025 was revised down to a range of 8% to 10%, compared to a previous floor of 10%, indicating potential pressure on profitability as the company invests in growth initiatives.
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DCGO Earning Call Sentiment
DocGo, Inc. (DCGO) Q3 2024 Earnings Call Transcript
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DCGO.O
0%Positive
The earnings call reveals several concerns: a 26% revenue decline, particularly in mobile health, and potential regulatory issues. Although there's a positive EBITDA beat and improved margins, the overall financial picture is mixed, with expectations of lower margins due to migrant revenue wind-downs. Despite a share repurchase program, the risks of subcontractor costs, competitive pressures, and economic factors contribute to a negative outlook. Additionally, management's vague responses on long-term impacts add to uncertainties, leading to a predicted negative stock price movement of -2% to -8%.
