DocGo Inc. (NASDAQ:DCGO) Q1 2024 Earnings Call Transcript

The H&H-related migrant work is – obviously, there are going to be some sites that close, other sites that are a little bit longer. But with the ins and outs, essentially, that number doesn’t move very much. And I can break that out for you. I mean, we assume that the H&H will be roughly $180 million for the full year, while the HPD-related items will be about $150 million and that’s down from a previous expectation of about $250 million. So the entire delta really is explained by the various HPD – various elements of the HPD programs and contracts.

Richard Close: Okay. But is there an end date on H&H or – I apologize if I just missed that.

Lee Bienstock: Sure. So there isn’t currently an end date on the H&H work. We’ll continue to support Heath and Hospitals. They’re one of our long-standing partners. We’ve been working with them for years in a myriad of different healthcare deployments and needs. So there’s no end date on that. Obviously, as we know more and more in terms of how those projects shape up, we’re going to update. But right now, there’s no end date on that. We did – all of those H&H projects did go out for bid. We were originally providing services under an emergency procurement and then those services went out for bid, and we did initiate new contracts there and those will run for a year roughly from now or the past few months. But depending on the need, we’ll continue to provide those services, but no end date scheduled right now. But as we know more and more heading into 2025, of course, we’ll update you.

Richard Close: Okay. That’s helpful. And then maybe a follow-up to Ryan’s question, with respect to 2025, just to be clear on this, Norm, the $400 million is sort of a target. And it sounds like that’s like business that’s already under contract you’re currently executing and some expected growth or ramp-up of certain contracts like the managed care contracts, for example. Is that correct? Or is there some sort of go-get in that $400 million?

Norman Rosenberg: Yes. Well, I think that any time that you’re talking about revenues that are anywhere from 6 to 18 months out, there’s going to be some go-get in there and a lot of it has to do with the goals that have already been disseminated here internally. But essentially, what that breaks down to, and we talked about $225 million of that would be Transport. So if you compare that to maybe $195 million or $200 million this year, you get that growth – the double-digit growth, the low double-digit growth on the payer programs and the things. And that category, we’re probably trending to a $25 million or $30 million this year, so you’re talking about nearly doubling that to about $50 million. That’s based on a couple of factors.

It’s based on targets and goals as far as the number of patients we would expect to have, number of agreements that we would expect to have. And then in a hospital system because we look at that as not – as a vertical as opposed to a segment, we’re assuming, as Lee mentioned, maybe 10% of that number of the $250 million we said from hospitals are not Transport, but are Mobile Health. And those are based on some deals that are in the – some of them are in the signing phase and some of them are a little bit further up the funnel. But a lot of that is spoken for, but sure, there’s definitely some go-get in there. But every dollar of go-get revenue that’s in there is applied against something in the funnel.

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

Norman Rosenberg: Yes. But here’s an important thing for everyone really to know, something we talk about it here internally. The people who are going to be out there going and getting that revenue and developing that pipeline are the same people who, over the last 2 years – the better part of the last few years have been focused on some of this migrant revenue. So there’s definitely – while there was definitely an opportunity cost over the last couple of years, there’s called an opportunity benefit as we go forward as we focus on building out that base. So we’re not turning down migrant work. But in terms of business development activity, in terms of other operational activity, the focus will clearly be on the base.

Richard Close: Okay, thank you very much.

Operator: Thank you. [Operator Instructions] The next question we have comes from David Larsen of BTIG. Please go ahead.

David Larsen: Hi, can you talk about the payer-facing business? Maybe talk about the demand that you’re seeing for care gap closures. Who is your competition in the space? It sounds like you have a very unique solution that would be attractive to health plans. And then maybe can you talk a little bit about the virtual primary care business? It seems like plans could probably benefit from that as well. And I think all of this probably drives improvement in Stars ratings, which are obviously very important to health plans. So any more color there would be very helpful. Thank you.