DocGo (DCGO) 8 May 242024 Q1 Earnings call transcript

Greetings, and welcome to the DocGo First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Mike Cole, Director of Investor Relations. Please go ahead, sir.

Thank you, operator.

over remarks I concerning call make like the following the forward-looking turning to would management, to Before statements. forward-looking All call, statements are other conference statements. than statements made of historical in this fact, expect, could, may, words design, believe, target, may similar will, and potential, be identify intend, The statements. goal, used confidence, guidance, to plan, anticipate, outlook, aim, other expressions project estimate, such forward-looking

outcomes, you realize guarantees These future performance, intentions, assure are our cannot or achieve not of or that statements will forward-looking we we expectations. results plans, and

Forward-looking inherently assumptions, to and risks, many forward-looking differ actual the substantial of cause to from control outcomes or results materially may our statements statements. our timing those subject are or in uncertainties of or outcomes which and are which results our beyond contained

and Form not on These reports and in directed. in assumptions those discussed and are attention your on Risk report and DocGo's SEC filed annual DocGo include, is reports to, XX-Q but our quarterly with limited Factors the elsewhere by to other which statements XX-K, risks, Form uncertainties

outcomes timing or materially may differ forward-looking expressed of what by results the is Actual outcomes from statements. or results implied or and these

as is the call on financial part non-GAAP non-GAAP of to contains financial with call posted docgo.com, today's or Securities comparable filed this well measures of the earnings directly financial Reconciliations which measures our our measures. addition, In are release, references provided as and to most Exchange GAAP these directly in as Commission. included website,

except call new events this relevant at later of as no update not only call date to this after any required contained undertake to discussed. law. in of operative extent obligation Investors information events occurrence to information reflect information should or a remain circumstances that by of date will or call assume the We to unanticipated the is as accurate time. statements discussed The the in and reflect the or this

the pleasure ahead. Lee CEO call over it Bienstock, please to to now time, turn of is DocGo. this At my go Lee, Mr.

I'm Thank you, execution with Mike, and QX our thank on today. and operational you performance for fronts. all extremely pleased joining all our

making talent adjusted of underserved team We $XXX.X closure companies. set business care EBITDA continued primary of services gap progress programs we're population diverse We're recorded expanding mobile and We revenue, remains with And in insurance nicely. We health of with of proud care leadership a million. our medical the strong new providing top are program is a record major offering, systems served communities. hospital million had and transportation our growing considerable record transportation QX. $XX.X in X-ray patients, for launched introduced medical number hire to our our

range like for we would call, discuss million. and $XXX a $XXX XXXX. expected provided our million our annual last of with revenues I to start, in guidance $XX to On million earnings EBITDA adjusted updated $XX of XXXX to for To guidance million

timing Given revenues and to full associated accelerated migrant-related of are EBITDA the anticipate adjusted projects of the guidance. now year wind-down forward, million of lines million $XXX to transportation $XXX approximately $XXX Health nonmigrant revenues $XXX business million of $XXX million. our revenue revenues, and XXXX revenues to migrant-related business million We updating and our $XXX we Mobile our This of includes going base million. and our from business medical

at in line track projects. expected services the original reduction should guidance base the year. in in certain from The This comes migrant and guidance of wind-down with QX accelerated solely throughout levels performed business

and of the of we base this Transportation nonmigrant $XXX Breaking down of at million million revenue approximately high expect end $XXX Health revenues the Mobile further, revenues range.

to XX% range $XX margin. adjusted of million, representing $XX now the an EBITDA year full a We for EBITDA see adjusted million in

margins as optimize we can wind We down. maintain to so expenses migrant-related operating program embarked EBITDA our have upon adjusted that revenues a the

beyond color some provide to like XXXX. also would I

anticipate million Looking we in million $XXX $XXX in Health million base as follows: $XXX nonmigrant and EBITDA. to Mobile plan $XX break expect our roughly We and Transportation. million revenue down ahead from million $XXX XXXX, million in adjusted $XXX $XXX to to million that revenue grow in to to

by million down and million it customer Breaking we million vertical, customers payer programs. from system hospital provider $XX $XXX municipal from expect $XXX customers, from and

it amount. over would XXXX this possible some any that While current carry to XXXX, revenues migrant-related could is incremental base in of projects the be into migrant

XXXX. I'd base our X to XXXX represent of love some an And this verticals revenue Our growth. from usual, share customer that increase drivers over goal from helping support would XX% as are

closure and to we First, accelerate, gap with with insurance health companies companies work in X the X country. care now contracts largest have insurance focused our continues the of out

in and are California the payers York planning pipeline. actively expansions in more with New with We

an access innovative provide that plan have address with in to primary and care model a those lacking to gaps members engages convenient to visits care provider. care We health ongoing home traditional

more the our health and in-home virtual unique partnerships. better PCP has to by this We In offering the of this and model, we that patient's and improve mobile health patients patients virtual launched outcomes. plan are fact, PCP bring its coordinate we're every and to that through care the help we to working see with DocGo excited new offering to their can past needs believe our meet quarter, day, serving announce better as we

can to We're excited patients. innovative about care primary do what our for approach our

our was first We offering December PCP For a to stroke and in and one home EKG. overdue she it full needed an life, and improve desperately we of again testing, could was the PCP visits. up possible a including patients PCP lacked her labs in with combined her but relationship her a surgery, our without to This with home at and was provide of who we wouldn't exam virtual discharged necessary and followed have her clearance from a quality our procedure needed her After a recovering and center provide surgery. completed cleared from for her exam, a been all a in-home surgery. cataract example, deployed rehab for eye

a health hard-to-reach traditionally in have leverage revenue different greater populations mobile payer a contracts and us to providing of our future for total access now capabilities care growth. allowing X platform provide for to place, We to

also management to continue offerings. care remote monitoring our with progress and make We virtual

We new and signed and monitoring patient X care cardiology programs in Ohio virtual X contracts launched with Jersey Delaware Pennsylvania. in large new practices have New and

of see a give pressure gaps of XX,XXX hemoglobin AXC with and and improve and is diabetic business. plans. and we including less results, the year, how To the members density quality sense an over in across expanding number evaluations X,XXX states by a overdue contracted health health Last closing Medicare, in-home recent no exams, with health HEDIS, DocGo health of example to Medicaid blood Stars-related patients commercial virtual screenings. or multiple DocGo members helped saw DocGo scale and including lines plan their around months, assigned this eye X,XXX kidney known exchange business, we X-million-member assigned They to test, XXXX. by and with XX% on In bone than visits over metrics care plan X gaps. these members Based in care,

These our closures, XX,XXX line to scale patients for and monitor over PCP our pipeline XXXX insurance partnerships current is complete goal Our in patient XX,XXX monitoring with enroll and metrics partners. to XX,XXX of patients. gap over and care business all future are to

higher Transportation part on the in in capacity health volumes. experiencing large our due system U.S. closely with to volumes partners the our hospital vertical by We able our management to Second, service QX, U.K. pride saw and support efforts being trip patient in record partners. ourselves collaborating

have Pennsylvania. medical We've launched Health at in have leased Lenox program with hour Manhattan. fully been in deployed our lease Line a Main we Hill Concurrently, Delaware contract in hour and Hospital XXX Dover, awarded transportation

We York grow City our Wisconsin contract new Football including with New our Ballpark continue event Commons Club. a to in work services, medical and with

Mobile In within our are this customer addition, Health base. we increasingly expanding footprint

potential equation want. which Mobile services have our small room, While acuity emergency our to of component is our patients they keep the given customers help of time exactly a grow what ability health still over out to relatively Health system today, lower the customers substantially the are

TB expect X-ray and Conference sharing unit our program program, country X-ray believe the business, has at many across geographies Tuberculosis We're experiencing in initially as growth already help interest which as beyond of updates Coalition we that. in exciting additional used expands. and term And America's mobile believe be forward third, near Maryland utility this municipal to sharp debuted Baltimore, much an look the we the Annual introduced increase seeing diagnose health we municipal this considerable in within but populations, a National new population of broader our will underserved potential offering are first TB. in has mobile this program We tuberculosis strong to cases in

behavioral health population be of will Going municipal for pipeline programs. RFPs larger, sustainable by driven forward, our more growth health our and

day we core wherever and that My they surrounding remind care what realization on to noise at keep hundreds to world out profitably allows patient on the technology able access built clouding that of deploy a which the job people meet is is wound everyone cannot. efficiently The mobile and alone person, clinical caring impact expanding story platform us is work DocGo. of hospital, do up patients be. truly services to migrant-related to clinicians and the their is: patients units end alone our telehealth and bring of coming outcomes, what in have to to the We're may proprietary of of terms, hands our telehealth is our to what post-pandemic combination the thousands insufficient technology everybody In story to daily helping that wants. of

differentiated We've of need a created differentiated millions is a a partners and and a There model, that market, patients of patient differentiated experience. us. a product tremendous world

Norm I'll hand it to With financials. over the cover to that,

the good was experienced first Mobile increase geographies. a of the million, revenue and growth of afternoon. Thank XXXX quarter We quarter of first across business first levels from was Total of Lee, quarter million, Health the you, of double XX% first revenue $XXX.X for for projects, the the XXXX. XXXX. XXXX nearly several lines and $XXX.X quarter

H&H. the operated the HPD of the projects related However, New gains migrant-related year-over-year revenue in bulk both York, we to and

million Transportation services revenue than in continuing the revenues every in of Nearly XX% witnessed XXXX, year-over-year in transport momentum XXXX. of XXXX. higher the quarter QX began half transportation that increased the we to of back recorded second first revenue the $XX.X growth, market

Transport accounted for In the total and XX%. revenues of about first Mobile revenues Health quarter, XX% for

was revenues income compared $XX.X the margins. in and $X.X in of first of XXXX, reflecting million wider XXXX Net quarter a net loss with QX of million gross higher

approximately rate the quarter was which tax future for periods. effective a Our we for believe is first XX%, assumption good

quarter was Adjusted quarter. up of adjusted The XXXX. EBITDA million, EBITDA $X.X first highest first ever quarter adjusted EBITDA million QX, in Xx of recorded year's was than figure margin and the for first X% we've the $XX.X more XXXX last the quarterly in in from the XX.X%

quarters rebound first last projects. the from increased Total gross the XX.X% sub-par first of of XX%, the XXXX was margin represented costs which in the first in first of had continued launch of the quarter margin and during up from percentage Gross levels impacted significantly and of quarter ramp-up a by the been quarter the new XXXX. third resulted XXXX from negatively that year, of

During improve in maintain to have able the our by with XXXX fourth to first earnings costs communicated were overtime quarter largely able revenue we calls. quarter, line we targets more subcontracted closely bringing while margins labor were in expenses further and recent levels, the we

sequential these metrics. solid improvements saw We of key both in

fourth trend from metrics XXXX. QX in peak total third the which labor quarter XX% XXXX the have quarter these first in total back X% quarter the compared X% of hours of in accounted of the bodes our of for to of fourth quarter Overtime first of well as to worked down margins. lower for accounted and in compared quarter to of XXXX. the XX% in XXXX, second hours During of XXXX the Both continued to subcontracted of quarter XX% date, worked for

project the of had to margin and by gross first Mobile of ramp-up-related XX.X% which During segment been for Health those and launch XX.X% quarter quarter compared impacted XXXX, XXXX, costs. in was the first the

by outweighed were there ramp-ups XXXX, on mature were projects. project QX in improvement While ongoing more these some margin an of our new some impacts

do, a been encouraging. generate XX% improvements of to to X the work gross blended the months aim still in Mobile but some Health segment, past We have so seen or better in margin very we've we our have more

hour increased XX.X% gross segment, In the margins scale, from and value with of XXXX. the Transportation from gross to easing a up higher along in mix a XX.X% in utilization continued leased were and quarter price of Transportation fuel shift higher-margin of trips first programs. of continued benefit pressures QX toward XXXX, improved margins

quarter consecutive Transportation The the marked of XX%. gross of quarter of margins XXXX fourth first excess in

tight. in margins market some anticipated around pressures for We current certain as gross expect despite right level EMTs wage that remains Transportation will geographies stay the the

Now a XXXX. lower was XX.X% XX.X% as looking the at first of revenues quarter of total XXXX, much quarter operating in percentage costs. SG&A of first the the in than

half revenues and a as over leading As decline SG&A on expansion. total XXXX increased into of revenues, saw to operating the second margin percentage we XXXX, of

savings We move QX also QX, into executed during as realized cost in in be some that targeted reduction we a and which force resulted beyond. will

the Turning sheet. balance to

As of total cash XXXX. the as $XX.X million March cash, of XX, cash XXXX, to including restricted end $XX.X our equivalents, of and million compared as was

half Our the spike continued the to receivable accounts in we over XXXX in reflecting that witnessed second XXXX. increase, early revenues of and

before over quarter QX, the payments QX. in to amounts X significant we during flow in in of early collected again particularly started weeks a late February, the we final collections saw While slowdown

our HPD. Preservation of at with City's project York Development, New Housing Looking Department

of today, receivable XX% XX% nearly of are of large the yet $XXX project. in accounts million various At particular been these to date, the that for for total XXXX company collections, amounts bulk not had migrant the have we accounts has of invoiced representing approximately the XXXX our though, have receivable programs, quarter accounts this we end, about from which Offsetting year-end collected As we receivable. collected.

migrant-related substantially cash revenues, of this we XXXX improvement the programs to operations. impact leading an While AR on expected sheet wind-down in is as our from have an will collect to flow balance in benefit

used to our balances execute our capital working program. uses, cash we to stock buyback during QX, addition In

another market terms automated $X.X XXbX-X we the repurchase Having about X.X the our additional of open we million. spent for approximately X.X an million on have program. plan, approximately an point, purchases aggregate of repurchased year, an this that this trading repurchased During shares have via in remaining QX, million To million amount accordance quarter, million. our far we $XX with additional under $XX million $X.X shares in so for still

of we lower expect we to As the mentioned, migrant revenue due projects. certain wind-down accelerated now year this migrant-related anticipated

the However, will improvement working mentioned to collection capital lead of in an situation. receivables above our

cash expenditures, we an line we project see as in invoices decrease with our expect older, lower in cash and As larger increase collect outflows would balance. migrant our to

the XXXX, February. when we XXXX now expect therefore, million from $XX we is the higher to range guided operations cash that at We, generate $XX which flow originally our in results of million of to than to end reported

point, I'd call this the the like Q&A. Operator, to back to At for turn operator please go ahead.

Needham. first The of have Ryan we that [Operator Instructions] question comes from MacDonald

Congrats see of the here about on and to a the nice relative moving quarter, to clearing contracts. business core forward sort of as we migrant a think great decks

of you contract expectations? clarify, still and at all contract-related migrant to are going but your Maybe addition expecting are 'XX in thinking with revenue it, revenue about would any you at into expecting just just initial any start to million sounded to in of Are your It sort be EBITDA. like business to $XXX for of as that be so all? migrant expectations XXXX, core million around the $XX you're

Thanks, question. Ryan. Appreciate Thanks, Ryan. the

$XXX really that's to revenue we you're revenues So going Any into to, that into break base that. wanted grow be and XXXX to million which would the incremental out is XXXX. alluding to the migrant-related

continue needs the nature the possible possible the base into that nature would it's business. of on it incremental of the million of deployment that the but $XXX on depending certainly So crisis, it's city, and be depending on the XXXX, the to could

scaling everybody to our, that base it. their sharing do sort want guidance, we're not that. XXXX to for Ryan, numbers are. they of that it's The a think we're represent They make I'll just we about do revenues can so just for modeling Norm. what clear represent speak, right? as We sure add so to that to

the better get might we we'll and migrant-related As guidance to be via what actual constitute have period. closer to would for the that actually our into XXXX, revenue that visibility added

municipal, million think core and systems, helpful clarification. and the the numbers, sort of super you All you we $XXX payer right. then million said from hospital about XXXX million sense from us thinking programs, a give of can That's of, $XX provider as $XXX were breakdown rates, And there, from business you as markets year? end growth of -- but there those the sort lot great about a a this give respective are you're us of within of sense initiatives of are about what year next into the talking

Sure.

driven are. of So by I where those think to X the be going pipeline those growth segments businesses is really the of

You business. we -- alluded to that into 'XX. hospital expected into range XX% from is and is to transportation business the in have That 'XX the grow business business to the today, 'XX medical that

In systems addition will health hospital us new health going hospital see from every programs working we're which potential partners, as we're add And more that us 'XX. as single also mobile a systems with growth the coming partnered with are come you are that to day. in system where with that, well from to of already our is pipeline partners that that for

such really bit, shared for population On what going -- business, with be the health, long-term, we municipal characteristics a look to growing we're I through business nature they're really, And the in sustainable RFPs they're are municipalities. we're that that model. long and term there nature services, as going call but to less opportunities incorporate aspects core response. our and in are in that our our delivery innovative of core crisis disease They our and services deployment, other infectious versus competencies, services technology vaccination health our care incorporate programs medical long-term core also behavioral services and

previous look those calls for continue and going pursue, we're we under going evaluating X we that that RFPs, opportunities pipeline again, to embody characteristics. our we're And RFP RFPs we're on be to have going to to those And going criteria. so shared forward which of

have have expanding partners expanding It's and And provider on smallest the that as we the that our new well pipeline. business our with based current the the to rate, going ours partnerships I then relationships grow and business, as and monitoring into growth we fastest-growing today. base. off payers would shared, and that portfolio, that's the is we then payer new but our the the business the smallest still payer in in business, has side that insurance highest our of geographies say on And

have The comes we question Canaccord Richard next of Close Genuity. from

the quarter. on Congratulations

clarify, is appreciate migrant, contract I What to of that some curious with a are migrant to Hospitals, wind helpful. down revenue Health + that NYC respect details Just saying with to respect on believe terms in be that's expecting the to the you're details the I'm contribution. And would just work. away? for expected Maybe go separate or you

Sure, Richard.

Let me with walk through you. that

start level, or so, migrant-related down when about or to estimate guidance by you $XXX take, Just million our taking the the guidance. to we're essentially, at revenues high current give a around the compare last

that sites, to projection. then a you which, well, that's of York one, of of anticipated Just and is There sites City, granted, the so-called HPD we're the away of is now the anticipated relates projecting here have the calendar as and about sites that. the X New upstate -- in dollar every that, yet for wind-down downstate different not Number transition factors. some because a but from

the flat. H&H work The the pretty bit with much business, the call sites -- there for doesn't the some obviously, longer. look ins very old at outs, be are essentially, a of old the But much. H&H-related projection going migrant is and are -- when projection, that versus I'll that other number close, little that move it's current to sites part the what I As

while you. $XXX we about And roughly H&H that's a that of and will full the million expectation I mean, $XXX be the out $XXX for can million the about for HPD-related down items be I assume will from that year, million. previous break

entire delta of by the really various HPD So contracts. -- HPD explained the programs is the various elements and

I an end or missed -- H&H I Okay. apologize is there that. But date on just if

Sure.

of our end on We'll an continue deployments the date in working Hospitals. to support myriad currently care We've years long-standing work. with isn't them H&H a health of been They're different one there Heath So needs. for and partners. +

end date on going those end Obviously, there's to on shape we now, as more that. date more know and no how there's right terms that. of no So up, we're projects update. in But

for provide roughly all date the no for then year services We heading those went did of bid, we'll for initiate and were few and did now from -- we did providing go need, contracts under into but update those more or more XXXX, and as and bid. we We will projects of an course, past scheduled months. But a depending originally new the those out procurement those emergency you. there now. H&H to run on services But services, continue we'll right know end out

be then and on of that contract to respect under just contracts to like And is Is like $XXX you're contracts, That's And sort currently Okay. growth Norm, some go-get like care target. million million? sounds already that's is certain that the question. helpful. of maybe some Ryan's a in for clear managed a $XXX example. expected it the follow-up sort that's this, With of there correct? to executing XXXX, or business ramp-up Or

lot Yes. talked from $XXX been has there going breaks of do think a of million anywhere already about in that any X revenues Well, Transport. and have I months be goals that here down that it you're out, to, and there's that are what XX time with go-get some that to to we disseminated But would the be essentially, to internally. about talking that

$XX you that that expect targets you number this double-digit as have. growth, a we million on and That's expect on talking doubling It's million And -- $XX probably the So payer and couple about to year, as $XXX of number the based have, so patients to far a compare million. would this on category, of factors. maybe programs that about trending would we million goals that of nearly low the to you're based or agreements growth $XX million get $XXX we're that things. if the to double-digit or growth to year, the

and as hospital of said based to look at And are maybe as number a that And not are because the are of Mobile bit a but in of there's on opposed we up phase those million are mentioned, hospitals a assuming, are go-get there. of we're then as in signing definitely there we vertical deals that them some as XX% little further funnel. go-get that $XXX some -- segment, applied of them the a every from the not -- some revenue but some for, Lee the a in is Transport, that funnel. sure, spoken are the But in that's lot But dollar Health. in system is against something of in

of The this next for year. and year I'd that off various really, have for the pipeline as based the well different pipeline have the contracts combination have we it's of business, to and stages next and right all Yes. the this we partners year. it's is have for base only the thing Pipeline year we now the partners we of that date add, a of all all in Richard, as

migrant internally. Yes. But who thing people going here's here the some focused the getting going years are and something everyone last last of X developing to on the about and have there talk this for people an that of really it be same the better are who, been out revenue -- years know, to we that pipeline The part important revenue. over few

an go base. focus benefit an the we we of couple cost definitely was over opportunity forward as called -- building as last there's on there's out definitely while opportunity that So years, there

we're of work. So down in terms be other the on the in development of turning base. migrant activity, But focus operational not terms business will activity, clearly

of next David have The from BTIG. we comes Instructions] [Operator Larsen question

talk talk would for attractive the competition seeing solution about Maybe care sounds about your health a have plans. unique you payer-facing that Can you to gap be the It very closures. is demand in that you're Who the business? space? like

about little benefit virtual And primary maybe you plans could well. as like can seems then talk from the bit It care business? that a probably

in which important plans. probably Stars ratings, this health all I are improvement of very think And obviously drives to

any So there color be very helpful. more would

Of course. the Thanks, Appreciate David. question.

investing of quality demand health described, their you for measures their making their member scores, really and This improving their in outcomes. sure many And and those of driven member a which absolutely, plans Stars impacting have see reach improving their members in care patient engage they're -- us and health we care by the members So tremendous as being to gaps these seeing accessibility we're to really have that that gap. base for on is and absolutely health millions have their really investing opportunity plans, deeply HEDIS, issues.

to bone home, proving patient How differentiated And experience neighborhood, week a have We're I sound? cancer We you our come competition your funnel the calling tried a valuable, come in plans health need we close care or colon need Instead those your sort we density to very of we're into clinics does that need we a saying, the clinics brick-and-mortar a sound? of a patient where hey, approach. office feel neighborhood. for diabetic patient primarily we try come does take exam, call you be think we'll Obviously, and love successful different have tomorrow your able how for a say, we I are next your a to and in understand gaps in it. traditionally like patients to you direct really or to into scan need and to eye clinic and think to the our care. patients screening. we is gap you very into closed, those

an tech have So but to really the combines that we of where And a kind unique of the with need other we we with platform. see with the them providers clinical provide and service our technology that's practice out optimize demand. have, them encounter really a we marry directing the field -- we competition. partner That's there, course, then efficiently we advanced clinicians that's them mobile up We're model able remotely. provider delivery the there that are they

helpful unique them way and improving in to patients are they and is model obviously be where bringing care more really to meeting outcomes. a So health likely

terms of really model. PCP virtual mentioned, in well care feel practice business have the that care In of business, we primary that there you a differentiated as terms the -- we

to when go for become patients So provider. deeper to coordinate there's a profound, an and for opportunity an can their gaps way. impact their much quarterback their care care, us imagine And in home and help engage and care you care us we there's that their close in when we we relationship, to care, primary in form their opportunity help more

have we opportunity And so like we feel there.

going for care And their so PCP or gaps, a have to they a to year getting provider getting us they with they have an hard appointment have in as one seen hard because opportunity we or PCP. time haven't an be their engage a to time perhaps primary over close access the or to one there's care they become don't patients,

we We have essentially the to where bring our unique model PCP them.

and gaps, where And their be go is going can natural to then that care we we close sort there funnel of so as as become well. PCP

ultimately system, you betters participate will as helps metrics, that. Stars successful patient, lower imagine gaps helping we'll care, obviously, that in that the plans score And as then coordinate and ratings, care, HEDIS and can we're for and the we the be overall closing in impacting we're in cost quality betters

it. certainly we're offering It's it think and there. excited So we're prop from patient in out invest experience certainly really there today, funnel. scale We is that the differentiated what's and value about to excited The there. is a

like like helpful. like businesses primary LifeMD, high a virtual it care highest very on would just their be very are of, month within I'm I then consumer? that the then, the that And is revenue quick like I And Accolade, the growth. fast-growth primary segment. in That's I be aware like a -- one business, care follow-up $XX mean, assume Could care think, Plus if revenue patients. businesses. very be? growth think $XXX direct would be to you -- model Would there what year million XX,XXX Okay.

still Or and the or need percentage see premium? in is development that would bear the And market? of risk where you and then collect sort is -- of of a potentially in you'll sort

Yes.

care think only, and it where simply effective they many our virtual And important they're to really clinical person needing think And I the the telehealth really is are in-home in we differentiation is are go then ability So like that out care. in it's needed. I it's companies know, just it's of cases, when to a when finding lot that needed. doing feel health

but So able we'll our adding virtual, that's not on virtual do in the needed, some the we're really feel in differentiation, person. side, when to it's cases, go to we just like equation the and we in-person, but are

this you really our think of I exactly is described. monetization as

data, we member think health cost are for to commercial we once. risk-sharing. ability have of patient care. and are a to per way feel it Initially the having or comfortable, signing impacting or outcomes But things of not step we when month be like is contracts risk charged, gets and we're we do into we per to to we're us initially, enter per comfortable, full we're upside feel fee the going structuring function, the that then total payer. eventually, either I going a once once -- when all essentially feel lowering have at plan then eventually the a only in that be we patient And indeed a some

of Pito we have Deutsche question from Bank. Chickering comes Next

You've got for on Kieran Pito. Ryan

on help that can in margin kind revs to is $XX is today there -- as any for wondering, way in what of XX.X% and you XXXX or million in XXXX revenues base can on understand we your Just about just the million anything you say us think bridging the EBITDA. to $XXX maybe

Sure.

-- So Norm. on the it's

the pretty side, on out we margin gross business, easily. Transport So break the

So that's EBITDA a different allocate the running. we're that margin you on how overhead number. the where Obviously, and is depending change, on so about that's XX%

we'll change. at Health, look margin, gross Mobile you higher. if the start bit with break little out and XX% that probably about Actually, a number when might be But you migrant,

programs migrant that be the of to the margin. especially going happen Some lower the revenues, go that out door, be ones are to the first

way you XXs. The XX So you get having I -- gross is SG&A or then XX the as points and is base though margin points think get the XX we a is let's points. of, we percentage get margin there Mobile your then Health gross about XX.X to say, and margin of blended high a about base talk revenue in

got X categories that different is thing tricky The of SG&A. you've

pretty variable. So we which have is SG&A, Mobile Health the

Transport on with Transport along basis. -- down come when are should is out that generally The also come So well, revenues connected SG&A the a revenues migrant piece. for the variable

do going have us that for to work expenses. our issue is The is the we whether certainly underway to rightsize we be really started, that has sure making that corporate

say, or scale so that little we So or we million? company bit in corporate opposed million a expenses for a more it that million $XXX how that's, our manage or as let's in a to do $XXX way $XXX revenue than such

as that blended a on on be we now, that's to done margin kind SG&A points getting work right the we you the we about get adjusted of and about has about XX to there. how the basis, of But business. and rest XX.X%. But EBITDA then margin side, of scale where get XX% rightsize are going XX%, an to gross the is that

characteristics to have we So QX. similar here look the margin will be yes, in actually very they -- what

Right.

not would stay margins quarterly that imply year So that gross 'XX? change there's probably XQ with consistent expectation your this relatively much to

we're have we It clean typical take margin because you of neat can margin down. saw in a sequential, that was much year-over-year Yes. but course, in could any adjustments up this only gross nonrecurring very, basis, improvement clean. like have I number that. or a I encouraged There I accruals quarter or in pretty wasn't that little a and mean, continued of the reversal the pretty mean, it, lot that was margins is of quarter. stuff that your very or and pure That There do that not anything nature. accounting say, of on we was expenses wasn't very

Now on time, always but some factors in to that from will obviously, there time put are other margins same the are pressure factors there time, direction. that move the at

time. think area we we to be quite ought this some for general in So

the QX. or they in cost than As or are to direction, were positive during even things in you positive better of trend however a call, direction. labor overtime as to I a like at in continue a pointed percentage also look out it Things want trending like hours subcontracted the

we is KPIs, those flashing when signal the look So at green.

that's So good.

we of Fitzgerald. Cantor comes James from question Sarah next have The

HPD to pretty you as guys Is sounds buckets ratios mix shift clarify expect just that on consistent. out the like core in between have your would on So G&A, last enough revenue that business of you a mix right? that it expenses and that to that that the any of similar cost we question, stay those shouldn't step of revenue

Realistically, overall that be of to that's ones correct. an the on in terms the margin. happen that timing, the have or to it Sarah, happens basis, that gross lower first the are sites going projects be first be to transitioned

So you'd improvement technically. of a an little see bit

wasn't that sites certain But happens like cherry-picked like just and again, that. certain bit we little you when a don't of profitable. tend didn't they choose projects, the on business. to the it a profile less margin an anything the to It way look rest basis, be from blended But dramatically sort of at sites overall those we regions -- be or that in have different

some but year? second offer we contrasting the Okay. as to down, half seasonality it with Great. contribution other your versus that how anything contract that units, of growth you're on And about can of think should in is half? this Kind us of there you help winds first

fluctuation. on that we the for seasonality projections a trend is would line would -- to the that projects shared core feel year year is we full go we our that to per that's side. look what pick outweigh And in a are on business, with essentially, that will se, on what launch, but and sequentially mean, Transport Mobile seasonality as about that would because look a at grow sequentially, based be outweighed or what I if the overall then while Health at sequential I I the revenue about QX on throughout blended by we've that's core are HPD -- have going certain pretty the would that. side up and in really to be I revenue up So to revenue they or did revenue. will there But And going decline both -- not you good at the Not lower non-migrant going basis. least a fluctuation is

our So contribution we're guidance, in HPD QX and from contract. And there's QX, a at that from half then projection dropping down immaterial looking coming almost significant in by -- again amount in by then revenue particular maybe by QX. pretty in our

outweigh it that in to increase So be core will the revenue. that's going the a enough big delta

you'd some will basis QX drop that the as revenue our for other sequentially, QX have probably So serving us overall if up drop further into XXXX high quarterly I looking dropping and of a depending it lines was will way at up for the QX, moment in it revenue watermark of on on at a that -- is number QX, the just end further into into timing picks when revenues up.

any in the Great. the Could on us quarter, details payable payable? you Last build accounts give question.

Sure. payable? accounts The

of not money you after But so the So sheet, at included capital obviously, well during look in interesting is levels continued close, XX-Q, filed actually balance if on expenses both is which the that, you'll pressure only in that at thing working and a AR mentioned of payable but up, we side. the obviously, look things which was today you've we bit collected went quite was that the seen notice go our the that we've certain quarter. what release the and i.e., the right as down, nature. did prepaid Yet,

So the paid to And during payroll programs, -- But almost million migrant we $XX out extent same that. we probably of the estimate obviously, lot the against just million, payables a large $XX the million those $XX at through quarter. -- be almost I from then related about I time, collected about $XXX various million to of projects. there's on everybody would walk it, collected to would estimate and

we is when the can't internally thing we the can position where up payables in match that the get -- discussing were a with one we we here And payment not just money. of we're

paid to have -- to that We pay have have underlying order that many get the cases, in paid, show to we in the providers. we receipts

that's luxury cycle the the of a migrant case. don't to it revenues, have but bit, We're really little can cycle going we that on negative we turning be in capital these working always around. and a working stretch So capital

us to do they're important cases, other they're small companies. [indiscernible] afford some X, not companies, and vendors these of to And vendors. before they're to that. very in the very owned X get to wait we important X, if paid even choose that thing private a is can't lot they were They And are -- companies, months

lot of the So when be quarter revenues, there's pressure again. these first capital going working to always kinds during you're a came with dealing what of that's up and

Northland The have Latimore of we Mike next question from Capital. comes

deals Could migrant behalf This Latimore. on the give on color your of is noise care around in affecting other the if some NYC Mike you Aditya or state?

that answer to Happy question. Sure.

heard the I part think could the but I it question? just last clearly, of you repeat

noise around City New the your other deals in York is your Whether or care migrant affecting state?

Yes.

the noise, something -- I has certainly think, that we So monitor.

proactive. gets and there and value We working very partners the all and that call is with noise printed, of something are know us clarify. current and noise. some current our our our we in close and communication all of that with misleading Whenever of today we're in pipeline. everybody partners We we're or partnership to really so really are address our quality prospective And work obviously, able partners the partners our

moving to of forward past. looking one things, the we're that's And frankly, that

some noise I in revenues, a and think our with potentially became unfortunately, created politicized, very, with in investors created as think we've a the well. I noise, customers, market created of and lot the handled the very result, migrant-related noise some market which

it's attention So something paying we're to. close

us. in partners our close of But had the noise working wanted rest that with all to have that partner We're partner. pause closely the with subsides. one We communication are until

the been address We and comes up an issue. that has not any noise that to continue of

work like as all itself. really the we the with update have partners we partners everybody And with proposition really prospective prospective today our our pipeline, And speaks value we feel go. we our quality and of for for

we've And as to references. our successfully. one current of is opportunity partners, very customers contact things done have great the that the put do And with we very, actually we any in prospective

to what like are and to sales for as customers and our references us current help speak utilized with we've in and us, of work partner to the Our it's great the quality process. us with that well work

you could ratio also cash And EBITDA expect year? this flow color the some you might it. to of on Got operating give

Yes, sure.

took talk So by the operations, down bit, as the we line a we from expect $XX little of cash actually we clear, million, between -- hopefully we're be from taking And about flows as million that GAAP that, even have now and going of in EBITDA a we're flow your you when and item that number. number assumption saying have. a you bit flow higher that we statement that to actually heard than cash or cash operations heard, $XX is little be actually to EBITDA that's the

collection receivables or the I be a as result is if faster of to are this going have decline to that's pay going XX% flow. Now have we things know, typically, part we of we What maybe are in through that then operating that be it in what of a, cash all result than equal, so terms model the should be the we -- at in base, that's as out, go migrant to that's adjusted built to going we is going of revenue in -- we so we the being taxpayer, running the in running factor, year. we EBITDA obviously should out a at don't

months. on to the going be we're X older So invoices X, next here collecting over

time, then paying less at same out But the money. we're

of quarters. of working reversal issues a X X of capital to the the last we've that Sort had some in

to be so year somewhere compared $XX in our $XX think full EBITDA if million a -- statement if was was number operations. That quarter first to in the adjusted range $XX million -- used $XX the of the look you QX, I flows, million $XX at a million in negative that was to the million range. number in example, you So at that $XX change million about it should and cash in or on look for basis the in as

fact a X. expect has changes working acknowledging in positive a that the lot bit get for with going to year, of little that here X capital we So some to it that be to the would do more XXX% and than QX, we're

from question we Grossman have final David The of comes Stifel.

for really rate, 'XX? X assume underlies core So out migrant road, here, that the do just front of growth and -- quick One core the back guide? a in but is I'm expecting work in growth the rate you is did 'XX is you when screen 'XX with not rate Sorry, give this growth what the you're ones. you I'm on that so

revenue for sorry, I'm about the 'XX? you're non-migrant asking

Right. Right.

Yes.

roughly the assumption is... non-migrant $XXX on revenue for which 'XX is million, So

does like growth Right. perspective that from And a look what year-over-year?

the I projects, those growing other another They XXXX. non-migrant months if that Mobile in a couple were early of projects for expired or they $X had probably That of low XXXs, it's line about Health, pretty you're we maybe of so large while was at XXXs on million but just that so -- so Transport by projects XX% high XXX million municipal have is to to year-over-year, we the projects $XX the of part that XXXX. or going maybe flat. by $XX were, and the call I'll that them, the So from X.X the COVID-adjacent. Transport items, reason mid- vaccination-related million weren't in had testing first that -- side, to look The on or

that a you down by then bit. look that, at number when So came little

by up bit. then take a it's you that out, If

$XXX expect a $XXX revenues you year to million and what on about million year. last we did of So those blended would do consider this basis, core would

the the that Q, did the And and is chance margins, in it. segment Any -- Transport between then just EBITDA provide Mobile? Got you on segment margins?

And way the The but have same you there. you that apply guys that's corporate. -- we've because broken all apply out yes, in the the of we it corporate use, know breakout I

question-and-answer reached sir. would And Lee the have we like ahead, over turn go end I our remarks. the to Please back gentlemen, session. Bienstock closing for to and of Ladies call

to looking Thank today. thank all you, soon well. forward on We're speaking and joining progress. you all again with for you Be our

us. that Thank conference. you, joining today's Thank sir. Ladies concludes you then and gentlemen, for

may You your lines. disconnect now