Q4 2021 DocGo Inc Earnings Call

March 15, 2022

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Greetings and welcome to the DocGo fourth quarter and full year 2021 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If you would like to ask a question, please press star 1 on your telephone keypad.

Operator: Greetings, welcome to the DocGo Q4 and Full Year 2021 Earnings Conference Call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If you would like to ask a question, please press star one on your telephone keypad. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steve Halper of LifeSci Advisors. Thank you, sir. Please go ahead.

Greetings and welcome to the Docs go fourth quarter and full year 2021 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If you would like to ask a question. Please press.

Star one on your telephone keypad.

If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steve Halper of LifeSci Advisors. Thank you, sir. Please go ahead.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

A reminder, this conference is being recorded it is now my pleasure to introduce your host Steve Halper of lifestyle advisors. Thank you Sir Please go ahead.

Steve Halper: Thank you, Donna. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. All statements in this conference call, other than the historical facts, are indeed forward-looking statements. The words anticipate, believe, estimate, expect, intend, guidance, confidence, target, project, and other similar expressions are used typically to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and may involve and are subject to certain risks and uncertainties and other factors that may affect DOCGO's business, financial condition, and other operating results. These include, but are not limited to, the risk factors and other qualifications contained in DOCGO's annual report on Form 10-K, quarterly reports filed on Forms 10-Q, and other reports and statements filed by DOCGO with the SEC to which your attention is directed.

Steve Halper: Thank you Donna before turning over the call before turning the call over to management. I would like to make the following remarks concerning forward looking statement.

Thank you Donna.

Before turning over the call before turning the call over to management I would like to make the following remarks concerning forward looking statements. All statements in this conference call other than the historical facts are indeed forward looking statements. The words anticipate believe estimate expect intend guidance confidence target project and other similar.

Steve Halper: All statements in this conference call other than the historical facts are indeed forward-looking statements. The words anticipate, believe, estimate, expect, intend, guidance, confidence.

Steve Halper: and other similar expressions are used typically to identify such forward-looking statements.

Expressions are used typically to identify such forward looking statements. These forward looking statements are not guarantees of future performance and may involve and are subject to certain risks and uncertainties and other factors that may affect <unk> business financial condition and other operating results. These include but are not limited to the risk factors and other qualifications.

Steve Halper: These forward-looking statements are not guarantees of future performance and may involve and are subject to certain risks and uncertainties and other factors that may affect DOCGO's business financial condition and other operating results. These include, but are not limited to the risk factors and other qualifications.

Steve Halper: Contained in Docco's annual report on Form 10-K quarterly reports filed on forms 10-Q and other reports and statements filed by Docco with the to which your attention is directed actual outcomes and results may differ materially from what is expressed or implied by these forward looking statements. Docco expressly disclaims any intent or obligation to update these forward looking statements.

Contained in <unk> annual report on Form 10-K quarterly reports filed on forms 10-Q, and other reports and statements filed by Doctor or with the SEC to which your attention is directed actual outcomes and results may differ materially from what is expressed or implied by these forward looking statements dacko expressly disclaims any intent or obligation to update these forward looking statements.

Steve Halper: Actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. DOCGO expressly disclaims any intent or obligation to update these forward-looking statements. At this time, it's now my pleasure to turn the call over to Stan Vashovsky, Chief Executive Officer and Co-founder of DOCGO. Stan?

Speaker Change: So at this time, it's now my pleasure to turn the call over to Stan Vysotsky, chief executive officer and co-founder of DotGo.

So at this time, it's now my pleasure to turn the call over to stay in Versace, Chief Executive Officer, and co founder of Dot go Stan.

Stan Vysotsky: Thank you, Steve, and thank you to everyone for joining our conference call, our first since closing the acquisition between DACO and Motion Acquisition Corporation, which we announced back in March 2021 and finalized on November 5th.

Stan Vashovsky: Thank you, Steve, and thank you to everyone for joining our conference call, our first since closing the acquisition between DocGo and Motion Acquisition Corporation, which we announced back in March 2021 and finalized on 5 November 2021. I'll make a few remarks about our business and then turn the call over to Andre to review the financials. We will then take your questions. 2021 was, by almost any measure, a very successful year for our company. Andre will cover the financials in detail, but I wanna hit on a few of the highlights. We're pleased to report that a full year 2021 total company revenue of $318.7 million, which was well ahead of our expectations. This represents growth of more than 239% over the $94 million in revenue that we reported for the full year 2020.

Thank you, Steve and thank you to everyone for joining our conference call. Our first since closing the acquisition between Telco and motion acquisition Corporation, which we announced back in March 2021 and finalized on November 5th.

Stan Vysotsky: I'll make a few remarks about our business and then turn the call over to Andre to review the financials. We will then take your questions.

I'll make a few remarks about our business and then turn the call over to Andre to review the financials. We will then take your questions.

Stan Vysotsky: 2021 was, by almost any measure, a very successful year for our company. Andre will cover the financials in detail, but I want to hit on a few of the highlights.

2021 was by almost any measure a very successful year for our company Andre will cover the financials in detail, but I want to hit on a few of the highlights.

Stan Vysotsky: We're pleased to report that a full year 2021 total company revenue of 318.7 million dollars, which was well ahead of our expectations.

We're pleased to report that our full year 2021 total company revenue of $318 $7 billion, which was well ahead of our expectations. This represents growth of more than 239% over the 94 million in revenue that we reported for the full year 2020.

Stan Vysotsky: This represents growth of more than 239% over the 94 million in revenue that we reported for the full year 2020.

Stan Vashovsky: Similarly, we are reporting an adjusted full year 2021 EBITDA of $25.1 million, representing solid profitability and a substantial improvement over the adjusted EBITDA loss of $8.1 million that we reported for the full year 2020. We reported positive net income for the full year and Q4, which both represent significant improvements relative to the net losses that we reported for Q4 2020 and full year 2020. It is important to note that COVID testing-related revenue is estimated to be approximately $110 million. For 2022, we're taking a conservative approach and are not including in our projections any COVID testing revenue after the end of Q2.

Stan Vysotsky: Similarly, we are reporting an adjusted full year 2021 EBITDA of $25.1 million, representing solid profitability and a substantial improvement over the adjusted EBITDA loss of $8.1 million that we reported for the full year 2020.

Similarly, we're reporting an adjusted full year 2021 EBITDA, that's $25 1 million.

Is any solid profitability and a substantial improvement over the adjusted EBITDA loss of $8 1 million that we reported for the full year 2020.

Stan Vysotsky: And we reported positive net income for the full year and fourth quarter, which both represent significant improvements relative to the net losses that we reported for Q4 2020 and full year 2020.

And we reported positive net income for the full year and fourth quarter, which both represent significant improvements relative to the net losses that we reported for Q4 2020 and full year 2020.

Stan Vysotsky: It is important to note that COVID testing's elated revenue is estimated to be approximately $110 million.

It is important to note that Covid testing is the latest revenue is estimated to be approximately $10 million.

Stan Vysotsky: For 2022, we're taking a conservative approach and are not including in our projections any COVID testing revenue after the end of the second quarter. However, we see strong demand from our customers from both mobile health and transportation services and are comfortable issuing a full year guidance of 400 to $420 million for 2022.

2022 we're taking a conservative approach and are not including in our projection any COVID-19 testing revenue after the end of the second quarter.

Stan Vashovsky: However, we see strong demand from our customers from both mobile health and transportation services, and are comfortable issuing full-year guidance of $400 to $420 million for 2022. This represents a 26% to 32% increase over 2021, or a 65% increase if we exclude non-recurring COVID testing revenue from the H2 of both years. Taking a step back, for those who may not be familiar with our story, DocGo is a leading provider of last-mile healthcare delivery services. What does that mean? We deliver high-quality, highly affordable healthcare services to patients where they are when they need it most. We operate in two distinct divisions, mobile health and mobile transport.

Ever we see strong demand from our customers from both mobile health and transportation services and are comfortable issuing full year guidance of $400 million to $420 million for 2022 .

Stan Vysotsky: This represents a 26 to a 32% increase over 2021, or a 65% increase if we exclude non-recurring COVID testing revenue from the second half of both years.

This represents a 26% to 32% increase over 2021 was 65% increase if we exclude nonrecurring COVID-19 testing revenue from the second half of both years.

Stan Vysotsky: Taking a step back, for those who may not be familiar with our story, DACO is a leading provider of last mile healthcare delivery services. What does that mean? We deliver high quality, high affordable healthcare services to patients where they are, when they need it most.

Taking a step back for those who may not be familiar with our story <unk> is a leading provider of last mile of care delivery services, what does that mean, we deliver high quality high affordable health care services to patients where they are when they need it most we operate two distinct divisions mobile health.

Stan Vysotsky: We operate in two distinct divisions, mobile health and mobile transport.

With transport.

Stan Vysotsky: Mobile health, the most significant driver of our growth, brings in-person health care to patients where a visit to a doctor's office or hospital may not be necessary.

Stan Vashovsky: Mobile health, the most significant driver of our growth, brings in-person healthcare to patients where a visit to a doctor's office or hospital may not be necessary. Many companies provide patient care in non-traditional settings. What differentiates our mobile health business is DOCGO's use of highly trained licensed practical nurses and paramedics who work under physician licenses in our network of medical practices across the United States. This allows our clinicians to work under a much broader scope of practice than how they've been used in the past. This innovative model has enabled DOCGO to build a large, cost-efficient labor force to facilitate a host of medical treatments that are traditionally provided by more expensive nurses, physician assistants, nurse practitioners, and medical doctors.

Mobile health the most significant driver of Boswell in person health care to patients, where there's a doctor's office or hospital may not be necessary. Many companies provide patient care in nontraditional settings, what differentiate our mobile health business is dock was used on highly trained licensed practical nurses.

Stan Vysotsky: Many companies provide patient care in nontraditional settings. What differentiates our mobile health business is DACA's use of highly trained, licensed practical nurses and paramedics who work under physician licenses in our network of medical practices across the United States.

And paramedics, who work under physician licenses and a network of medical practices across the United States.

Stan Vysotsky: This allows our clinicians to work on their much broader scope of practice than how they've been used in the past. This innovative model has enabled DALCO to build a large, cost-efficient labor force to facilitate a host of medical treatments that are traditionally provided by more expensive nurses, physician assistants, nurse practitioners, and medical doctors.

This allows our clinicians to work under a much broader scope of practice.

<unk> been used in the past.

Innovative model has enabled <unk> to build a large cost efficient labor force to facilitate a host of medical treatments that attrition traditionally provided by more expensive nurses physician assistants, and nurse practitioners and medical doctors.

Stan Vysotsky: This approach has enabled DOCO to significantly scale up our medical workforce during a national labor shortage and facilitate a wide range of high-quality medical treatments and interventions to patients at a much lower cost.

Stan Vashovsky: This approach has enabled DOCO to significantly scale up our medical workforce during a national labor shortage and facilitate a wide range of high quality medical treatments and information interventions to patients at a much lower cost. By leveraging this workforce to provide care to patients in their homes, their offices, and in non-traditional settings, we help avoid costly and unnecessary visits to the emergency room. Our services include bedside procedures, preventative care, medicine administration, monitoring, and various vaccinations, EKGs, ultrasounds, infusion therapy, and much, much more. We contract directly with government agencies, corporations, and hospital systems, and then provide services directly to their members, and we get paid by the contracting agency instead of the patient. As mentioned, we employ a large number of licensed practical nurses and paramedics in addition to regular nurses, PAs and MDs, who are used primarily for training and to provide medical supervision.

This approach has enabled taco to significantly scale up our medical workforce, giving a national labor shortage and facilitate a wide range of high quality medical treatments and installation of interventions to patients at a much lower cost.

Stan Vysotsky: By leveraging this workforce to provide care to patients in their homes, their offices, and in non-traditional settings, we help avoid costly and unnecessary visits to the emergency room.

By leveraging this workforce to provide care to patients in their homes offices, and then non traditional settings, we help avoid costly and unnecessary visits to the emergency room.

Stan Vysotsky: Our services include bedside procedures, preventative care, medicine administration, monitoring, and various vaccinations, EKGs, ultrasounds, effusion therapy, and much, much more.

Our services include bedside procedures preventative care Medicine administration monitoring and various vaccinations ekg's ultrasound excuse in therapy and much much more.

Stan Vysotsky: We contract directly with government agencies, corporations, and hospital systems and then provide services directly to their members and we get paid by the contracting agency instead of the patient.

We contract directly with government agencies corporations and hospital systems, and then provide services directly to their members and we get paid by the contracting agency instead of the patient.

Stan Vysotsky: As mentioned, we employ a large number of licensed practical nurses and paramedics in addition to regular nurses, PAs, and MDs who are used primarily for training and to provide medical supervision.

As mentioned, we employ a large number of licensed practical nurses and having that as an additional two regular nurses T. A's and B's were used primarily for training and to provide medical supervision.

Stan Vashovsky: I think it is important worth noting we employ the majority of our practitioners. They are not contractors. We believe this leads to a more satisfied customer and loyal employees and ultimately better care for our patients. A key metric that demonstrates our employee satisfaction is DOCO's stellar ratings on leading internet employment portals. Hundreds of employees have left ratings of their experience working for our company, and we enjoy a 4.2 rating on Glassdoor and a 4.1 on Indeed, scores that are far higher than our competitors. We have provided mobile health solutions in 29 states and are licensed to provide these services in even more markets across the United States. Given the very low penetration rate in our industry currently, there remains a significant amount of greenfield opportunity for us to pursue while in parallel continuing to grow in our established markets.

Stan Vysotsky: I think it is important, worth noting, we employ the majority of our practitioners. They are not contractors. We believe this leads to a more satisfied customer and loyal employees and ultimately better care for our patients.

It is important important worth noting we employ the majority of our practitioners. They are not contractors. We believe this leads to more satisfied customer and loyal employees and uncle ultimately better care for our patients.

Stan Vysotsky: A key metric that demonstrates our employees' satisfaction is DALCO's stellar ratings on leading Internet employment portals. Hundreds of our employees have left ratings of their experience working for our company, and we enjoy a 4.2 rating on Glassdoor and a 4.1 on Indeed, scores that are far higher than any other company.

A key metric that demonstrates our employee satisfaction is darko stellar ratings, a leading internet portals hundreds of our employees have left the weightings of their experience working for our company and we enjoy a four point to waiting on Glassdoor and a full 0.1 on E D.

Cause that are far higher than our competitors.

Stan Vysotsky: We have provided mobile health solutions in 29 states and are licensed to provide these services in even more markets across the United States.

We have provided mobile health solutions, and 20, United States and a license to provide these services even more markets across the United States.

Stan Vysotsky: Given the very low penetration rate in our industry currently, there remains a significant amount of greenfield opportunity for us to pursue while in parallel continuing to grow in our established market.

Given given the very low penetration rate in our industry. Currently there remains a significant amount of greenfield opportunity for us to pursue while in parallel continue to grow in our established markets.

Stan Vysotsky: Between 2019 and 2021, our total revenue excluding COVID testing grew at a compound annual growth rate of 182%, reaching $207 million in 2021, compared to just $48.3 million in 2019.

Stan Vashovsky: Between 2019 and 2021, our total revenue, excluding COVID testing, grew at a compound annual growth rate of 182%, reaching $207 million in 2021, compared to just $48.3 million in 2019. This stellar growth is driven by the inclusion of revenues from several large, new, and expanded mobile health contracts and the continued growth and geographic expansion of our transportation business. One very notable contract that we announced in January that will help drive future growth is with Aetna in New York and New Jersey. This multi-year contract gives us the opportunity to offer unique on-demand medical services to the total population of more than 2.5 million people. This is a significant opportunity for us, even if we convert just a small percentage of these patients to our in-demand at-home services.

Between 2019 and 2021, our total revenue excluding Covid testing grew at a compound annual growth rate of 182%, reaching $207 million in 2020 , one compared to just $48 3 million in 2019.

Stan Vysotsky: This stellar growth is driven by the inclusion of revenues from several large new and expanded mobile health contracts and the continued growth and geographic expansion of our transportation business.

Stellar growth is driven by the inclusion of revenues from several large new and expanded mobile health contracts and the continued growth and geographic expansion of our transportation business.

Stan Vysotsky: One very notable contract that we announced in January that will help drive future growth is with Aetna in New York and New Jersey. This multi-year contract gives us the opportunity to offer unique on-demand medical services to the total population of more than 2.5 million people. This is a significant opportunity for us, even if we convert just a small percentage of these patients to our in-demand at-home service.

One very notable contract that we announced in January .

Drive future growth as with Aetna in New York, and New Jersey. This multiyear contract. It gives us the opportunity to offer unique arguably had medical services. So the total population.

Selection of more than $2 5 million people. This is a significant opportunity for us even if we convert just a small percentage of these patients who are in demand at home services.

Stan Vashovsky: One of the new services we're most excited about is our direct-to-consumer offering. As medical co-pays and deductibles continue to increase, we see an opportunity to provide cost-effective treatment alternatives directly to patients who are seeking medical treatment for non-emergency conditions. We are in early stages of piloting this B2C offering and have plans to take the learnings from this pilot and expand these services to a number of markets in 2022. One of the unique aspects of our mobile health service is our purpose-built technology platform that plugs seamlessly into existing healthcare ecosystems and provides better coordination of care, designed to be used by patients and their families, care providers, and facilities among its many core functions and benefits. It integrates into electronic healthcare records from well-known leaders in the field such as Epic and Allscripts, ensuring that all patient information is in a single repository.

Stan Vysotsky: One of the new services we're most excited about is our direct-to-consumer offering.

One of the new services. We're most excited about is that a direct to consumer offering.

Stan Vysotsky: As medical co-pays and deductibles continue to increase, we see an opportunity to provide cost-effective treatment alternatives directly to patients who are seeking medical treatment for non-emergency conditions.

As medical Copays and deductibles continue to increase we see an opportunity to provide cost effective treatment alternatives directly to patients who are seeking medical treatment for non emergency conditions. We are in early stages of piloting this beauty offering and have plans to take the learnings from this pilot and expand these services to a number of them.

Stan Vysotsky: We are in early stages of piloting this B2C offering and have plans to take the learnings from this pilot and expand these services to a number of markets in 2022.

<unk> in 2022.

Stan Vysotsky: One of the unique aspects of our mobile health service is our purpose-built technology platform that plugs seamlessly into existing healthcare ecosystems and provides better coordination of care. Designed to be used by patients and their families, care providers and facilities among its many core functions and benefits, it integrates into electronic healthcare records from well-known leaders in the field, such as Epic and Allscripts, ensuring that all patient information is in a single repository.

One of the unique aspects of our mobile health service is a purpose built technology platform the plugs seamlessly into existing health care ecosystems and provides better coordination of care design.

Designed to be used by patients and their families care providers and facilities among its many core functions and benefits it integrates into electronic health care records from well known leaders in the field such as epic and all scripts, ensuring that all patient information is in a single repository.

Stan Vashovsky: In addition to resulting in better coordination of care and superior patient experience, these complex EMR integrations provide DocGo with a significant competitive advantage. Our other offerings in medical transportation, which basically refers to providing Uber-like on-demand ambulance patient transfer solutions between clinical settings. This is not 911 emergency work. Our fleet of 300+ ambulances provides pre-scheduled high-acuity medical transportation. While we have a small number of wheelchair vans and medical sedans, 99% of our transportation revenue comes from high-margin ambulance transport. We've developed a CapEx-like model for our ambulances, where we lease vehicles through GE Capital for five-year terms. At the end of the lease period, we're able to return our vehicles and upgrade to the latest models.

In addition to results.

Stan Vysotsky: in better coordination of care, and superior patient experience, these complex EMR integrations provide DACO with a significant competitive advantage.

And better coordination of care and superior patient experience. These complex EMR integrations provide telco with a significant competitive advantage.

Stan Vysotsky: Our other offerings in medical transportation, which basically refers to providing Uber-like on-demand ambulance patient transfer solutions between clinical settings. This is not a 911 emergency work. Our fleet of 300-plus ambulances provide pre-scheduled high-acuity medical transportation.

Our other offerings and medical transportation, which basically refers to providing uber like on demand ambulance patient transfer solutions between clinical settings. This does not and 911 emergency work our fleet of 300, plus ambulances provide pre scheduled high acuity medical transportation.

Stan Vysotsky: While we have a small number of wheelchair vans and medical sedans, 99% of our transportation revenue comes from high-margin ambulance transport. We've developed a CapEx-like model for our ambulances where we lease vehicles through GE Capital for five-year terms. At the end of the lease period, we're able to return our vehicles and upgrade to the latest model.

While we have a small number of wheelchair vans and medical sedans, 99% of our transportation revenue comes from high margin ambulance transport, we've developed a capex light model for Aegon says, we're well leased vehicles through GE capital for five year terms at the end of the lease period, we're able to turn our vehicles and upgrades to the Lai.

Just models.

Stan Vysotsky: We maintain partnerships with some of the largest and highly regarded healthcare providers in the industry, including Fresenius, Jefferson, and UC Health, as well as Northwell and HVA. These long-term multi-year contracts are increasingly moving away from fee-for-service agreements

Stan Vashovsky: We maintain partnerships with some of the largest and highly regarded healthcare providers in the industry, including Fresenius, Jefferson, and UC Health, as well as Northwell and HVA. These long-term multi-year contracts are increasingly moving away from fee-for-service agreements to a lease hour model, where we provide vehicles, equipment, and staff for a daily fee. This provides our customers with dedicated resources to help expedite patient transfers, a rebate feature to help them lower costs as they increase scheduled efficiency, and provides us with better revenue predictability and gross margin performance. Via our strategic partner relationships with Fresenius, Jefferson, and others, we are contracted for over $500 million in potential revenue. Between 2019 and 2021, revenue in medical transport business grew at a compound annual growth rate of 35%, reaching $84 million for the full year 2021, with just about 26% of our total revenue.

We maintained partnerships with some of the largest and highly regarded health care providers in the industry, including Fresenius Jefferson and you see how as well as north well and HCA.

Long term multiyear contracts are increasingly moving away from fee for service agreements.

Stan Vysotsky: to a leased hour model where we provide vehicles, equipment, and staff for a daily fee.

Two a leased our model, where we provide vehicles equipment and staff for a daily fee.

Stan Vysotsky: This provides our customers with dedicated resources that help expedite patient transfers, a rebate feature to help them lower costs as they increase scheduled efficiency, and provides us with better revenue predictability and gross margin performance.

This provides our customers with dedicated resources to help expedite patient transfers.

Big feature to help them lower cost as they increased scheduled deficiency and provides us with better revenue predictability and gross margin performance there.

Stan Vysotsky: via our strategic partner relationships with Fresenius, Jefferson, and others, we are contracted for over $500 million in potential revenue.

Our strategic partner relationships with Fresenius, Jefferson and others, we are contracted for over $500 million in potential revenue.

Stan Vysotsky: Between 2019 and 2021, revenue in medical transport business grew at a compound annual growth rate of 35%, reaching 84 million for the full year 2021, with just about 26% of our total revenue.

Between 2019 at 2021 revenue and medical transport business grew at a compound annual growth rate of 35%, reaching 84 million for the full year 2021, but just about 26% of our total revenue. We currently provide medical transportation services in 11 states with additional licenses.

Stan Vysotsky: We currently provide medical transportation services in 11 states with additional licenses pending.

Stan Vashovsky: We currently provide medical transportation services in 11 states with additional licenses pending. At this point, I'd like to hit on a few operational highlights from the quarter. We announced a partnership with Carnival, the world's largest cruise line, to deploy medical teams on ships to augment existing medical staff. This is in addition to the embarkation services that we already provide, in which we are expanding to additional ports. We announced a partnership with Visiting Physician Services to provide in-home non-emergency services to older adults and homebound patients in New Jersey and the surrounding tri-state area. Visiting Physician Services is the largest geriatric house call practice in New Jersey, and this partnership will allow them to serve a larger patient base with faster response times. We introduced additional services, including mobile health, to residents in San Diego, California, and a mobile Suboxone treatment for street homelessness in New York.

Yeah.

Stan Vysotsky: At this point, I'd like to hit on a few operational highlights from the quarter. We announced a partnership with Carnival, the world's largest cruise line, to deploy medical teams on ships to augment existing medical staff.

At this point I'd like to hit on a few operational highlights from the quarter, we announced the partnership with Carnival, the worlds largest cruise lines to deploy medical teams on ships to augment existing medical staff.

Stan Vysotsky: This is in addition to the embarkation services that we already provide, which we are expanding to additional ports.

This is in addition to the embarked embarkation services that we already provide and which we are expanding to additional ports.

Stan Vysotsky: We announced a partnership with Visiting Physician Services to provide in-home non-emergency services to older adults and homebound patients in New Jersey and the surrounding tri-state area. Visiting Physician Services is the largest geriatric household practice in New Jersey, and this partnership will allow them to serve a larger patient base with faster response.

We announced the partnership with visiting physician services to provide in home non emergency services to older adults and homebound patients in New Jersey, and the surrounding Tri State area.

Is there any physician services is the largest geriatric household practice in New Jersey, and this partnership will allow them to serve a larger patient base with faster response times. We entered this additional services, including mobile health to residents in San Diego, California, and a mobile suboxone treatment, but street homelessness in New York.

Stan Vysotsky: We introduced additional services including mobile health to residents in San Diego, California and a mobile suboxone treatment for street homelessness in New York.

Stan Vashovsky: These are just a few examples of the diverse range of services that we offer. Turning to market opportunity. The US addressable market for our services is significant and largely untapped. Virtual healthcare has seen rapid growth in recent years, propelled in large part by COVID. In addition to being a tailwind for our 2021 business performance, the relationships we've established have enabled us to prove the value of DOCO's mobile health services with a range of new customers and expand those relationships, in many cases, to include additional service offerings. It has been estimated that $250 billion, or approximately 20% of all Medicare, Medicaid, and commercial outpatient, office, and home health spend, could be virtual. However, some $80 billion of this virtual care requires some form of physical follow-up, and currently there is no broadly available at-home solution for in-person clinical services.

Stan Vysotsky: These are just a few examples of the diverse range of services that we offer.

These are just a few examples of the diverse range of services that we offer.

Stan Vysotsky: To include market opportunity, the U.S. addressable market for our services is significant and largely untapped.

Turning to market opportunity the U S addressable market for our services is significant and largely untapped.

Stan Vysotsky: Virtual healthcare has seen rapid growth in recent years, propelled in large part by COVID.

Virtual health care has seen rapid growth in recent years propelled in large part by Covid.

Stan Vysotsky: In addition to being a tailwind for our 2021 business performance, the relationships we've established have enabled us to prove the value of Donco's mobile health services with a range of new customers and expand those relationships in many cases to include additional service offerings.

Additional to being a tailwind for our 2021 business performance.

What's your ships, we've established have enabled us to prove the value of <unk> mobile health services with a range of new customers and expand those relationships in many cases to include additional service offerings. It.

Stan Vysotsky: It has been estimated that $250 billion, or approximately 20% of all Medicare, Medicaid, and commercial outpatient office and home health spend could be virtual. However, some $80 billion.

It has been estimated that $250 billion or approximately 20% of all Medicare Medicaid and commercial outpatient office and home health spend could be virtual however, some 80 billion.

Stan Vysotsky: of this virtual care requires some form of physical follow-up, and currently there is no broadly available at-home solution for in-person clinical services.

Of this virtual care requires some form of physical follow up and currently there is no broadly available at home solution put in percent clinical services.

Stan Vashovsky: In addition, the medical transportation industry is highly fragmented and growing steadily due to the aging of the population as well as a greater prevalence of chronic disease. Combining the opportunities we see in both mobile health and transportation, we estimate the TAM for our services in the United States alone to be approximately $102 billion. Similarly, a recent report by McKinsey concluded that up to $265 billion in medical care currently delivered in healthcare facilities will be shifted to home-based care by 2025. This represents a quarter of total expenditures for both the Medicare fee-for-service and Medicare Advantage programs. This represents a 3x to 4x increase as compared to today. Companies like DocGo, who are able to provide care in the home, stand to be among the biggest beneficiaries of this shift.

Stan Vysotsky: In addition, the medical transportation industry is highly fragmented and growing steadily due to the aging of the population as well as the greater prevalence of chronic disease.

In addition, the medical transportation industry is highly fragmented and growing steadily due to the aging of the population as well as the greater prevailing of chronic disease.

Stan Vysotsky: Combining the opportunities we see in both mobile health and transportation, we estimate the TAM for our services in the United States alone to be approximately $102 billion.

Combining the opportunities we see in both mobile health and transportation, we estimate the Tam for our services in the United States alone to be approximately $102 billion.

Stan Vysotsky: Similarly, a recent report by McKinsey concluded that up to $265 billion in medical care currently delivered in healthcare facilities will be shifted to home-based care by 2025.

Similarly, a recent report by Mckinsey concluded that up to $265 billion in medical care currently delivered and health care facilities will be shifted to home based care by 2025.

Stan Vysotsky: This represents a quarter of total expenditures for both the Medicare Fee-for-Service and Medicare Advantage programs.

This represents a quarter of total expenditures for both the Medicare fee for service and Medicare advantage programs.

Stan Vysotsky: This represents a three-times to a four-times increase as compared to today and companies like Dato who are able to provide care in the home stand to be among the biggest beneficiaries of this shift.

This represents a three times to four times increase as compared to today and companies like that who are able to provide care in the home tends to be among the biggest beneficiaries of this shift.

Stan Vashovsky: Clearly, we have barely scratched the surface, but with the investments that we have made, particularly in the area of technology, we believe we have created a significant competitive advantage. At this point, I'd like to turn the call over to our CFO, Andre Oberholzer, for a review of our financials.

Stan Vysotsky: Clearly, we have barely scratched the surface, but with the investments that we have made, particularly in the area of technology, we believe we have created a significant competitive advantage.

Clearly, we have barely scratched the surface, but with the investments that we have made particularly in the area of technology. We believe we have created a significant competitive advantage.

Speaker Change: At this point, I'd like to turn the call over to our CFO , Andre Oberholzer, for a review of our financials.

At this point I'd like to turn the call over to our CFO Andre Oberholtzer for a review of our financials.

Andre Oberholzer: Thank you, Stan. Good morning. Total company revenue for Q4 2021 amounted to just over $121 million, representing growth of 289% as compared to the $31 million reported for Q4 2020. The year-over-year revenue growth was driven mainly by the contribution of revenue from several new and expanded Mobile Health contracts. Mobile Health revenue for Q4 2021 amounted to $102.6 million, as compared to $15.8 million in Q4 2020, up approximately 6.5 times. Medical Transportation revenue amounted to $18.7 million, up 21% from $15.4 million in Q4 2020.

Thank you Stan and good morning, Doug.

Andre Oberholzer: Total company revenue for the fourth quarter of 21 announced it is just over $121 million, representing growth of 289% as compared to the $31 million recorded for the fourth quarter of 2020.

Total company revenue for the fourth quarter of 'twenty, one announced just over $21 million representing growth of 289% as compared to the.

$31 million reported for the fourth quarter 2020.

Andre Oberholzer: The year-over-year revenue growth was driven mainly by the contribution of revenue from several new and expanded mobile health contracts.

The year over year revenue growth was driven mainly by the contribution of revenue from several new and expanded mobile health contracts.

Andre Oberholzer: Mobile health revenue for the fourth quarter of 21 amounted to $102.6 million as compared to $15.8 million in Q4 of 2020, up approximately six and a half times.

Mobile health revenue for the fourth quarter of 'twenty, one amounted $202 6 million.

As compared to $15 8 million in Q4 of 2020.

<unk> six and a half points.

Andre Oberholzer: Medical transportation revenue amounted to $18.7 million, up 21% from $15.4 million in Q4 of 2020.

Medical transportation revenue amounted to $18 7 million up 21% from $15 4 million in Q4 of 2020.

Andre Oberholzer: It is important to note that excluding COVID testing-related revenue from Q4 of both years, Q4 revenue still tripled year-over-year, reflecting strong momentum in our core businesses. Adjusted EBITDA grew to $17.3 million in Q4 2021, even with significant investments made in regional expansion and infrastructure, versus an adjusted EBITDA loss of $2.9 million in the prior-year quarter. Net income amounted to $20.3 million in Q4 2021, which represents a substantial improvement over the net loss of $4.4 million in Q4 of the prior year. This reflects the strong increase in revenue during Q4, while certain overhead costs remain in line with prior periods, allowing a larger proportion of additional revenue to drop to the bottom line.

Andre Oberholzer: It is important to note that excluding COVID testing-related revenue from Q4 of both years, Q4 revenue score tripled year-over-year, reflecting strong momentum in our core businesses.

It is important to note that excluding COVID-19 testing the latest Avenue from Q4 of both years Q4 revenues tripled year over year.

The strong momentum in our core businesses.

Andre Oberholzer: adjusted EBITDA grew to $17.3 million in the fourth quarter of 2021.

Adjusted EBITDA grew to $17 3 million in the fourth quarter of 'twenty one.

Andre Oberholzer: even with significant investments made in regional expansion and infrastructure. This is an unjustified EBITDA loss of $2.9 million in the prior year quarter.

Even with significant investments made regional expansion and infrastructure.

Adjusted EBITDA loss of $2 9 million in the prior year quarter.

Andre Oberholzer: Net income amounted to $20.3 million in the fourth quarter of 2021, which represents a substantial improvement over net loss of $4.4 million in the fourth quarter of the prior year.

Net income amounted to $20 3 million in the fourth quarter of 'twenty one.

Represents a substantial improvement over the net loss for Q4.

In the fourth quarter.

Andre Oberholzer: This reflects a strong increase in revenue during the fourth quarter, while certain overhead costs remain in line with prior periods, allowing a larger proportion of additional revenue to drop to the bottom line.

Got it.

This reflects the strong increase in revenue during the fourth quarter, while certain overhead costs.

In line with prior periods and now with a larger proportion of additional revenue to drop to the bottom line.

Andre Oberholzer: I also want to point out that net income in Q4 2021 includes a gain of $5.2 million relating to the remeasurement of warrant liabilities, which has no impact on cash flow or operations. Turning now to our full year results. Total company revenue for fiscal 2021 amounted to $318.7 million, representing growth of 239% over $94.1 million reported for fiscal 2020, and it reflects a 4.5% improvement versus our prior guidance. Mobile health revenue for fiscal 2021 amounted to $234.4 million, up 659% from $31 million in the prior year. Medical transportation revenue amounted to $84.3 million, up 33% from $63.1 million versus fiscal 2020.

Andre Oberholzer: I also want to point out that net income in Q4-21 includes a gain of $5.2 million relating to the remeasurement of water liabilities, which has no impact on cash flow or operations.

I also want to point out that.

Net income in Q4 'twenty one.

It's a gain of $5 2 million relating to the re measurement of water.

Which has no impact on cash flow or operations.

Turning now to our full year results.

Andre Oberholzer: Total company revenue for fiscal 21 amounted to $318.7 million, representing growth of 239% over $94.1 million reported for fiscal 2020.

Total company revenue for fiscal 'twenty, one amounted to $18 7 million.

<unk> growth of 239% over 94 1 million reported for fiscal 2020.

Andre Oberholzer: and 8.6 to 4.5% improvement with our prior guidance.

And it reflects the full 35% improvement.

Full year guidance.

Andre Oberholzer: Mobile health revenue for fiscal 21 amounted to $234.4 million, up 659% from $31 million in the prior year.

Mobile health revenue for fiscal 'twenty, one amounted to 234 4 million up 659% from 31 million in the prior year.

Andre Oberholzer: Medical transportation revenue amounted to $84.3 million, up 33% from $63.1 million in 2015.

Medical transportation revenue amounted to $84 3 million 30 feet the same $63 1 million. This.

Fiscal 2020.

Andre Oberholzer: Gross margin for fiscal 2021 was 34.4%, representing a 100 basis point improvement from 33.4% in 2020. The increase in gross margin was largely due to a shift in revenue mix towards higher margin mobile health revenues. Margins were negatively impacted by more expensive subcontracted or agency labor, an increase over time during the launch of several mobile health projects in an expedited fashion, and to a lesser extent, increased labor rates. As new markets mature, we expect to see improved margins. Generally speaking, we experience lower margins during the launch of new projects as we focus on a timely launch of operations and usually relying on higher priced subcontracted labor. Once we get past that initial launch period, we are able to drive margins higher to target margins as we are able to schedule more efficiently with doctor employees.

Andre Oberholzer: The gross margin for fiscal 21 was 34.4%, representing 100 basis point improvement from 33.4 in 2020.

Gross margin for fiscal 'twenty one.

34, 4%, representing a 100 basis point improvement from 34 in 2020.

Andre Oberholzer: The increase in gross margin was largely due to a shift in revenue mix towards higher margin multiple output revenues.

The increase in gross margin was largely due to a shift in mix towards higher margin mobile health savings.

Andre Oberholzer: Margins were negatively impacted by more expensive subcontracted or agency labor and increased over time during the launch of several mobile health projects in an expedited fashion and to a lesser extent increased.

Margins were negatively impacted by more expensive subcontracting or agency labor.

Overtime.

Several mobile all projects in an expedited fashion and to a lesser extent increased labor rates.

Andre Oberholzer: As new markets mature, we expect to see improved markets.

As new markets mature, we expect to see improved margins.

Generally speaking we experience lower margins during the launch of new projects as we focus on the timing of operation.

And usually relying on higher price subcontract with language.

Andre Oberholzer: Once we get past that initial launch period, we are able to drive margins higher to target margins as we are able to schedule more efficiently with Docker employees.

Once we get past that initial launch period, we are able to drive margins all your targeted margins.

We were able to schedule more efficiently with Takeda employees.

Andre Oberholzer: In 2021, adjusted EBITDA grew to approximately $25.1 million, or 7.9% of revenue.

Andre Oberholzer: In 2021, adjusted EBITDA grew to approximately $25.1 million or 7.9% of revenue, even with all of the investments we've made in regional expansion and corporate infrastructure. This compares to an adjusted EBITDA loss of $8.1 million in 2020. As a reminder, adjusted EBITDA is a non-GAAP measure representing earnings before interest, taxes, depreciation, amortization, and also adding back stock compensation and the impact of the warrant liability revaluation, as well as adding back non-recurring expenses incurred in connection with our public listing. Please refer to our earnings release for a reconciliation of adjusted EBITDA to net income. Net income amounted to $19.2 million during fiscal 2021, which represents a substantial improvement over the net loss of $14.8 million in 2020.

In 2021.

<unk> EBITDA grew to approximately $25 1 million or seven 9% of revenue.

Andre Oberholzer: even with all of the investments you've made in regional expansion and corporate infrastructure.

Even with all of the investment seems like regional expansion.

Andre Oberholzer: This compares to an adjusted e-bill loss of $8.1 million in 2020.

Sure.

This compares to an adjusted EBITDA loss of $8 1 million in 2020.

Andre Oberholzer: As a reminder, Adjusted EBITDA is a non-GAAP measure representing earnings before interest, taxes, depreciation, amortization, and also adding back stock compensation and the impact of the warrant liability revaluation, as well as adding back non-recurring expenses incurred in connection.

As a reminder, adjusted EBITDA is a non-GAAP measure representing earnings before interest taxes, depreciation and amortization and also adding back stock compensation and in fact, the warrant liability revaluation as well as adding back non recurring expenses.

In connection with a public listing.

Andre Oberholzer: Please refer to our earnings release for a reconciliation of adjusted e-bill alternatives.

<unk> earnings release for reconciliation of adjusted EBITDA to net income.

Andre Oberholzer: Net income amounted to $19.2 million during fiscal 21, which represents a substantial improvement over the net loss of $14.8 million.

Net income amounted to $19 2 million during fiscal 'twenty one.

Represents a substantial improvement over the net loss of $14 8 million.

20.

Andre Oberholzer: Net income for 2021 included a $5.2 million gain from the revaluation of the warrant liability. Excluding this non-cash and non-operational item, our operational net income amounted to $14 million or 4.4% of revenue for the year. As of 31 December 2021, our cash and cash equivalents totaled $175.5 million. Total proceeds to the company from the public listing amounted to approximately $158 million net of transaction expenses. Note that we have insignificant debt of approximately only $2 million. Finally, to support our growth, we hired over 900 new employees in Q4 of 2021, bringing total hires for calendar year 2021 to over 2,300, and the total number of medical providers to over 3,800 as of year-end. Now turning to 2022 outlook.

Andre Oberholzer: Net income for 2021 included a $5.2 million gain from the revaluation of foreign liabilities.

Net income for 'twenty, one included a $5 2 million gain from the revaluation.

Liability.

Andre Oberholzer: excluding this non-cash and non-operational item, our operational net income amounted to 14 million or 4.4 percent of revenue for the year.

Excluding this non cash and non operational items, our operational net income amounted to 14 million or four 4% up revenue for the year.

Andre Oberholzer: As of December 31, 21, our cash and cash equivalents totaled $175.5 million.

As of December 31, 21.

Cash cash equivalents totaled $75 5 million.

Andre Oberholzer: Total proceeds to the company from the public listing amounted to approximately $158 million net of transactions.

Total proceeds to the company from a public listing amounted to approximately 58 million made up of transaction expenses.

Andre Oberholzer: Note that we have insignificant debt of approximately only $2 million.

Note that we have insignificant Dave.

With.

Only $2 million.

Andre Oberholzer: Finally, to support our growth, we hired over 900 new employees in Q4 of 21, bringing total hires for calendar year 21 to over 2,300, and the total number of medical providers to over 3,800 as of year end.

Finally to support our growth.

Over 900, new employees in Q4 of 21.

Bringing total audience for calendar year 'twenty watch over 2300.

Total number of medical providers to over 330.

<unk> thousand 800 as of year end.

Andre Oberholzer: Now turning to 2022 outlook, Stan mentioned earlier we anticipate fiscal 2022 revenues to amount to approximately $400 million to $420 million.

Now turning to 'twenty to 'twenty two.

Andre Oberholzer: Stan mentioned earlier we anticipate fiscal 2022 revenues to amount to approximately $400 million to $420 million, and we estimate adjusted EBITDA within the range of $35 million to $41 million. At the midpoint, adjusted EBITDA is estimated at 9.4% of revenues during 2022 versus 7.9% in 2021. In terms of segments, we expect that the Mobile Health segment should continue to contribute approximately 70% to 75% of revenues, with Medical Transportation as the remainder. That concludes my remarks. At this time, we ask the operator to open the call for questions.

Dan mentioned earlier, we anticipate fiscal 'twenty two revenues the amount to approximately 400 million to $420 million.

Andre Oberholzer: and we estimated adjusted EBITDA within the range of $35 to $41 million.

We estimate that adjusted EBITDA.

Range of 35 to 41 million.

Andre Oberholzer: At the midpoint, adjusted EBITDA is estimated at 9.4% of revenues during 2022 versus 7.9% in 2021.

At the midpoint adjusted EBITDA is estimated at nine 4% of revenues during 2022 with a.

Seven 9%.

2021.

Andre Oberholzer: In terms of segments, we expect that the mobile health segment should continue to contribute approximately 70 to 75 percent of revenues with medical transportation.

In terms of statements, we expect that the mobile health system should continue to contribute approximately 70% to 75% of revenues with medical transportation, that's the remainder.

Speaker Change: That concludes my remarks. At this time, we ask the operator to open the call for questions.

That concludes my remarks at this time.

The operator to open the call for questions.

Speaker Change: Thank you. The floor is now open for questions. If you would like to ask a question, please press star 1 on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that is star 1 to register questions at this time. Our first question is coming from Mike Latimore of Northland Capital. Please go ahead. Great, thanks and great.

Operator: Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that is star one to register questions at this time. Our first question is coming from Mike Latimore of Northland Capital Markets. Please go ahead.

Thank you the floor is now open for questions. If you would like to ask a question. Please press star one on your telephone keypad at this time a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

Once again that is star one to register our questions. At this time. Our first question is coming from Mike Latimore of Northland Capital. Please go ahead.

Stan Vashovsky: We announced a partnership with Visiting Physician Services to provide in-home non-emergency services to older adults and homebound patients in New Jersey and the surrounding tri-state area. Visiting Physician Services is the largest geriatric house call practice in New Jersey, and this partnership will allow them to serve a larger patient base with faster response times. We introduced additional services, including mobile health, to residents in San Diego, California, and a mobile Suboxone treatment for street homelessness in New York.

Stan Vashovsky: It has been estimated that $250 billion, or approximately 20% of all Medicare, Medicaid, and commercial outpatient, office, and home health spend, could be virtual. However, some $80 billion of this virtual care requires some form of physical follow-up, and currently there is no broadly available at-home solution for in-person clinical services.

Stan Vashovsky: This represents a quarter of total expenditures for both the Medicare fee-for-service and Medicare Advantage programs. This represents a 3x to 4x increase as compared to today. Companies like DocGo, who are able to provide care in the home, stand to be among the biggest beneficiaries of this shift.

Andre Oberholzer: Net income amounted to $20.3 million in Q4 2021, which represents a substantial improvement over the net loss of $4.4 million in Q4 of the prior year. This reflects the strong increase in revenue during Q4, while certain overhead costs remain in line with prior periods, allowing a larger proportion of additional revenue to drop to the bottom line.

Andre Oberholzer: Mobile health revenue for fiscal 2021 amounted to $234.4 million, up 659% from $31 million in the prior year. Medical transportation revenue amounted to $84.3 million, up 33% from $63.1 million versus fiscal 2020.

Andre Oberholzer: Generally speaking, we experience lower margins during the launch of new projects as we focus on a timely launch of operations and usually relying on higher priced subcontracted labor. Once we get past that initial launch period, we are able to drive margins higher to target margins as we are able to schedule more efficiently with doctor employees.

Andre Oberholzer: Please refer to our earnings release for a reconciliation of adjusted EBITDA to net income. Net income amounted to $19.2 million during fiscal 2021, which represents a substantial improvement over the net loss of $14.8 million in 2020.

Andre Oberholzer: Finally, to support our growth, we hired over 900 new employees in Q4 of 2021, bringing total hires for calendar year 2021 to over 2,300, and the total number of medical providers to over 3,800 as of year-end. Now turning to 2022 outlook.

Mike Latimore: Great. Thanks, and congratulations on the great year there. I guess just two questions. On the medical mobility or mobile transport side of things, can you talk a little bit about the growth rate you might see there, the catalyst for maybe a little bit of accelerating growth on that side of the business? Second question is just on gross margin. Maybe give a little guidance on where you see gross margin going this year.

Great Thanks, and congratulations on the great year there.

Mike Latimore: I guess just two questions on the.

I guess just two questions on the medical.

Mike Latimore: medical mobility or mobile transport side of things. Can you talk a little bit about

Mobility or mobile transport side of things.

Can you talk a little bit about it.

Mike Latimore: the growth rate you might see there, the catalyst for maybe a little bit of accelerating growth on that side of the business. And then, the second question is just on gross margin. Maybe give a little guidance on where you see gross margin going this year.

The growth rate you might see there the catalysts for maybe a little bit of accelerating growth on the on that side of the business and then second question is just on gross margin.

What.

Maybe give a little guidance on where you see gross margin going this year.

Andre Oberholzer: Yeah, Mike, sure. In terms of transportation and the acceleration growth, you know, that's largely dependent on the amount of licenses we can secure throughout the various states. We made an announcement a few weeks ago. We acquired two new licenses. We hope to do at least five, possibly seven new markets in 2022. We have several LOIs out with small organizations to acquire their current licenses. As you know, with our business model, we don't just go into a market and start looking for business. You know, before we even issue an LOI, before we make any considerations of acquisition, first thing we tend to do is look at how many Facini's locations are in that market, how many of those patients are patients that we can actually serve.

Stan Vashovsky: Yeah, Mike, sure. In terms of transportation and the acceleration growth, you know, that's largely dependent on the amount of licenses we can secure throughout the various states. We made an announcement a few weeks ago. We acquired two new licenses. We hope to do at least five, possibly seven new markets in 2022. We have several LOIs out with small organizations to acquire their current licenses. As you know, with our business model, we don't just go into a market and start looking for business.

Yeah, Mike sure.

Mike Latimore: In terms of transportation and the acceleration growth, you know, that's largely dependent on the amount of licenses we can secure throughout the various states.

In terms of transportation and the acceleration of growth.

And that's largely dependent on the amount of licenses, we can secure throughout the various states.

Mike Latimore: We made an announcement a few weeks ago, we acquired two new licenses. We hope to do at least five, possibly seven new markets in 2022. We have several LOIs out with small organizations to acquire their current licenses. As you know, with our business model.

We made announcements two weeks ago, we acquired the two by two new licenses.

We hope to do a lease five possibly seven new markets in 2022.

We have several L O wise out with a small organizations to acquire their current licenses as you know with our business model.

Mike Latimore: We don't just go into a market and start looking for business, you know, before we even issue an LOI, before we make any considerations of acquisition. First thing we tend to do is look at how many facilities, locations are in that market, how many of those patients are patients that we can actually serve. We build out a detailed pro forma, and then if it makes sense, we go all in and try to make an offer to buy out that license.

We don't just go into a market and start looking for business.

Stan Vashovsky: You know, before we even issue an LOI, before we make any considerations of acquisition, first thing we tend to do is look at how many Facini's locations are in that market, how many of those patients are patients that we can actually serve.

Before we even issued an LOI before we make any considerations of acquisition close then we tend to do is look at how many facilities locations are in that market and many of those patients out patients that we can actually serve we build out a detailed pro forma and that if it makes sense. We go all in and try to make an offer to buy up.

Andre Oberholzer: We build out a detailed pro forma, and then if it makes sense, we go all in and try to make an offer to buy out that license. This gives us some visibility into the kind of revenue or profits we can generate in that market. Our goal is also to, you know, once we sign and we get that license secured, we wanna get revenue generating as quickly as possible, usually within a couple of weeks. You know, to answer your question, hopefully add another 5 to 7 markets in 2022. In terms of growth, we tend to grow our transportation business at a rate about 35, maybe 40% per year.

Stan Vashovsky: We build out a detailed pro forma, and then if it makes sense, we go all in and try to make an offer to buy out that license. This gives us some visibility into the kind of revenue or profits we can generate in that market. Our goal is also to, you know, once we sign and we get that license secured, we wanna get revenue generating as quickly as possible, usually within a couple of weeks. You know, to answer your question, hopefully add another 5 to 7 markets in 2022. In terms of growth, we tend to grow our transportation business at a rate about 35, maybe 40% per year.

Mike Latimore: This gives us some visibility into the kind of revenue and profits we can generate in that market. And our goal is also to, you know, once we sign and we get that license secured, we want to get revenue generating as quickly as possible, usually within a couple of weeks.

That license.

Gives us some visibility into the kind of revenue or profit, we can generate in that market and our goal is also to once once we sign and we get that license secured we Wanna get revenue generating as quickly as possible usually within a couple of weeks.

Mike Latimore: So, you know, to answer your question, hopefully add another five to seven markets in 2022.

So to answer your question hopefully add another five to seven markets in 2022.

Mike Latimore: In terms of growth, we tend to grow our transportation business at a rate of about 35, maybe 40 percent per year. We've been doing that consistently for several years.

In terms of growth.

We tend to grow our transportation business at a rate of about 35, maybe 40% per year.

Stan Vashovsky: We've been doing that consistently for several years. Don't see any reason why that trend should change anytime soon. If we're lucky, and if we can get our hands on more licenses, you know, we can definitely look to accelerate that. We're definitely not capital constrained in any fashion. You know, we have plenty of capital, plenty of cash on the books to do those transactions. In any way, the tech could be small. You know, as we've spoken about in the past, when we acquire these licenses, they have no limitation to the amount of vehicles that we can deploy. You know, we can launch one ambulance or a thousand ambulances. It's an operator's license, there's no limitation on those.

We've been doing that consistently for several years.

Mike Latimore: I don't see any reason why that trend should change any time soon. If we're lucky and if we can get our hands on more licenses, you know, we can definitely look to accelerate that.

Don't see any reason why that trend to change anytime soon.

If we're lucky and if we can get our hands on more licenses you know, we can definitely look to accelerate that.

Mike Latimore: We're definitely not capital constrained in any fashion. We have plenty of capital, plenty of cash on the books to do those transactions. In any way, they tend to be...

Definitely not capital constrained in any fashion, we have plenty of capital point of cash on the books to do those transactions.

Anyway, they tend to be small.

Mike Latimore: And as we've spoken about in the past, when we acquire these licenses, they have no limitation to the amount of vehicles that we can deploy. You know, we can launch one ambulance or a thousand ambulances. It's an operator's license. There's no limitation on those.

And he has as we've spoken about in the past when we acquire these licenses they have no limitations to the amount of vehicles that we can deploy.

Stan Vashovsky: You know, as we've spoken about in the past, when we acquire these licenses, they have no limitation to the amount of vehicles that we can deploy. You know, we can launch one ambulance or a thousand ambulances. It's an operator's license, there's no limitation on those.

We can launch one ambulance 1000 named the line sits in operators license, there's no limitation on those.

Stan Vashovsky: In terms of gross margin, you know, there is some loss of margin in the first 90 days or so when we do a mobile health project. The reason for that is we very often need to start up very quickly. A lot of times it's in remote locations where we may not have a presence, so we'll go ahead and work with one of our 30-plus medical staffing agencies that we have contracts with. They will provide the temporary personnel. We provide the more advanced medical trained personnel to train them, to get them ready for the project that we're launching. With almost all of our staffing agreements, we have the ability to convert those employees to W-2 after day 60 or after day 90, for no fees.

Mike Latimore: In terms of gross margin, there is some loss of margin in the first 90 days or so when we do a mobile health project.

In terms of gross margin.

You know there is some.

Loss of margin in the first 90.

90 days or so when we do a mobile health projects.

Mike Latimore: And the reason for that is we very often need to start up very quickly. A lot of times it's in remote locations where we may not have a presence.

And the reason for that is that we very often need to start up very quickly.

A lot of times, it's in remote locations, where we may not have a presence.

Mike Latimore: So we'll go ahead and work with one of our 30 plus medical staffing agencies that we have contracts with.

So we'll go ahead and work with one of our 30 plus.

Medical staffing agencies that we have contracts with.

Mike Latimore: They will provide the temporary personnel. We provide the more advanced medical trained personnel to train them, to get them ready for the project that we're launching.

They will provide the temporary personnel, we provide the more advanced medical training personnel to train them to get them ready for the project that we're launching.

Stan Vashovsky: We provide the more advanced medical trained personnel to train them, to get them ready for the project that we're launching. With almost all of our staffing agreements, we have the ability to convert those employees to W-2 after day 60 or after day 90, for no fees.

Mike Latimore: And with almost all of our staffing agreements, we have the ability to convert those employees to W-2 after day 60 or after day 90 for no fee.

And with almost all of our staffing agreements, we have the ability to convert those employees to W. Two after day 60 or after a day 90.

Four four low fees.

Stan Vashovsky: We'll very often give up some margin in the very beginning by using an agency. By day 60, by day 90, we ultimately, you know, our goal is to convert those to W-2 employees and not have the temp agency provide the staffing any longer. After day 90, in Mobile Health, our target is about 51% to 52% gross margin. That's our target on a go-forward basis whenever we do a Mobile Health project. Sometimes they're a little bit more profitable, depending on the type of services that we're performing in that contract, but our target gross margin in Mobile Health is about 51% to 52%, and in Transportation is about 40% to 43%.

Mike Latimore: So, we'll very often give up some margin in the very beginning by using an agency, but by day 60, by day 90, we ultimately, you know, our goal is to convert those to W-2 employees and not have the temp agency provide the staffing any longer.

So we're very often you give up some margin.

In the very beginning by using an agency, but by day 60 by day 90.

We ultimately.

Goes to convert those to W. Two employees.

Not have the temp agency provides a staffing a longer.

Mike Latimore: So after day 90, in mobile health, our target is about 51 to 52% gross margin. And that's our target on a go-forward basis whenever we do a mobile health project. Sometimes they're a little bit more profitable, depending on the type of services that we're performing in that contract. But our target gross margin in mobile health is about 51, 52%, and in transportation is about 40 to 43%.

So after a day 90 in mobile health, our target is about 51% to 52% gross margin.

And that and that's our target on a go forward basis whenever we do a mobile health project.

Stan Vashovsky: Sometimes they're a little bit more profitable, depending on the type of services that we're performing in that contract, but our target gross margin in Mobile Health is about 51% to 52%, and in Transportation is about 40% to 43%.

Sometimes they're a little bit more profitable depending on the type of services that we're performing in that contract.

Our target gross margin and mobile health is about 50 to 61, 62% and in transportation is about 40% to 43%.

Mike Latimore: Great. Thank you.

Great. Thank you.

Stan Vashovsky: Sure, Mike.

Sure Mike.

Speaker Change: Thank you. Our next question is coming from Sarah James of Barclays. Please go ahead.

Operator: Thank you. Our next question is coming from Sarah James of Barclays. Please go ahead.

Thank you. Our next question is coming from Sarah James of Barclays. Please go ahead.

Speaker Change: Hi guys, this is Steve Braun on for Sarah. Had a question on the COVID revenue assumption in 2022. Just wanted to see, so you said that it was 65% growth, excluding the second half of.

Steve Braun: Hi, guys. This is Steve Braun on for Sarah. Just had a question on the COVID revenue assumption in 2022. Just wanted to see, so you said that it was 65% growth excluding the second half of revenue from 2021 and, I guess, like, 2022. I just wanted to see, like, how much you're assuming and then, like, if you can give us a split between Q1 and Q2.

Hi, guys. This is Steve Brown on for on for Sarah.

A question on the Covid revenue.

<unk> in 2022, just wanted to see.

So you said that it was 65%.

Growth, excluding the second half of.

Steve Braun: revenue from 21 and I guess like 22, so I just wanted to see how much you're assuming and then if you can give us a split between 1Q and 2Q.

Our revenue from 'twenty, one and I guess like 'twenty two so I just wanted to see like how much youre, assuming and then like if you can give us a split between <unk> and <unk>.

Steve Braun: So, at this point where, you know, for 1Q and 2Q, we see COVID testing, we're anticipating COVID testing will start to subside, so it's kind of hard for us to give you any real accurate data because, frankly, we have not received that many notifications to reduce them just yet, but we very much expect that we will start receiving those notifications shortly.

Stan Vashovsky: At this point, you know, for Q1 and Q2, we see COVID testing, or we're anticipating COVID testing will start to subside. It's kinda hard for us to give you any real accurate data because frankly, we have not received that many notifications to reduce them just yet, but we very much expect that we will start receiving those notifications shortly. I don't wanna share any information that's not accurate. We are assuming come end of Q2, COVID testing revenue goes to zero. I do believe there will be some continuous COVID testing beyond Q2. Keep in mind, Steve, we do not do consumer testing. You know, almost all of our business is municipal.

So at this point where.

For <unk> and <unk>, we see Covid testing are we anticipating COVID-19 testing will start to subside.

So it's kind of hard for us to give you any real accurate data because frankly, we are we have not received that many notifications to me just them just yet, but we very much expect that we will start that start we are seeing those notification shortly.

Steve Braun: So I don't want to share any information that's not accurate. We are assuming come end of second quarter, COVID testing revenue goes to zero. I do believe there will be some continuous COVID testing beyond the second quarter. Keep in mind, Steve, we do not do consumer testing. Almost all of our business is municipal. We work for counties, cities, and states.

So I don't want to share any information that's not accurate.

Stan Vashovsky: We are assuming come end of Q2, COVID testing revenue goes to zero. I do believe there will be some continuous COVID testing beyond Q2. Keep in mind, Steve, we do not do consumer testing. You know, almost all of our business is municipal.

We are assuming come end of second quarter Covid testing revenue goes to zero.

I do believe there will be some continuous COVID-19 testing beyond the second quarter.

Keep in mind Steve.

We do not do consumer testing.

Almost all of our business is municipal we worked for counties cities and states.

Stan Vashovsky: You know, we work for counties, cities, and states. You know, it's quite unlikely that, you know, municipalities will re-remove all municipal testing while COVID still exists. We are taking a very conservative approach, and in our forecasting for going forward in our guidance, we're just simply gonna assume worst case scenario, COVID testing 1 July goes to zero, and that revenue will be replaced and added on by other mobile health services.

Steve Braun: And, you know, it's quite unlikely that municipalities will remove all municipal testing while COVID still exists.

And.

It's quite unlikely that municipalities will remove all municipal testing.

While COVID-19 still exists.

Steve Braun: but we are taking a very conservative approach and in our forecasting for going forward in our guidance, we're just simply gonna assume worst case scenario COVID testing July one goes to zero and that revenue will be replaced and added on by other mobile health services.

But we are taking a very conservative approach and in our forecasting for going forward in our guidance. We're just simply going to assume worst case scenario Covid testing July one goes to zero.

And that revenue will be replaced and add it on by other mobile health services.

Steve Braun: Okay. Great. Thank you.

Okay.

Great. Thank you.

Stan Vashovsky: Sure, Steve.

Tracy.

Speaker Change: Thank you. The next question is coming from Ryan McDonald of Needham & Company. Please go ahead.

Operator: Thank you. The next question is coming from Ryan MacDonald of Needham & Company. Please go ahead.

Thank you. The next question is coming from Ryan Macdonald of Needham <unk> Company. Please go ahead.

Ryan McDonald: Stan and Andrea, thanks for taking my questions and congrats on a great finish to a really strong year. Stan, I really want to talk first about the demand environment and perhaps what you're seeing. Maybe you could parse it out between municipalities and health systems. On the health system side, are you seeing any talent from demand given the severe staffing shortages that these systems are going through right now and how that might be impacting the business as we think about the 2022 outlook?

Ryan MacDonald: Hey, Stan and Andre. Thanks for taking my questions, and congrats on a great finish to a really strong year. Stan, really want to talk first about the demand environment and perhaps what you're seeing, and maybe you could parse it out between sort of municipalities and health systems. You know, on the health system side, are you seeing any sort of tailwind from demand given the severe staffing shortages that these systems are going through right now and how that might be impacting the business as we think about the 2022 outlook?

Mr. Hannan Andre Thank you for taking my questions and congrats on a great finish to a really strong year.

And really wanted to talk first about the demand environment and perhaps what you're seeing.

You can parse it out between sort of municipalities and health systems.

On the health system side are you seeing any sort of tailwind from demand given the severe staffing shortages that these systems are going through right now and how that might be impacting the business as we think about the 2022 outlook.

Stan Vysotsky: Hey, Ryan, great to hear from you again. Yeah, I mean, look, demand is going strong. You know, there are staffing shortages throughout the country. I think hospitals throughout the nation, nursing homes, urgent cares are all short-staffed. They all need more nurses. They need physician assistance.

Stan Vashovsky: Hey, Ryan. Great to hear from you again. Yeah, I mean, look, demand is going strong. You know, there are staffing shortages throughout the country. I think hospitals throughout the nation, nursing homes, urgent cares are all short-staffed. They all need more nurses. They need physician assistants. That it would be almost irresponsible for us to further add to that strain. That is the reason why we want a different model. You know, we firmly believe that, you know, nurses and physician assistants, nurse practitioners spend a big portion of their day doing skills and tests that are well below their level of training.

Hey, Ryan Great Great to hear from you again, yeah, I mean look demand is going strong.

You know there are staffing shortages throughout the country.

I think hospitals throughout the nation nursing homes urgent cares all short staffed it they all need more nurses they need physician assistance.

Stan Vysotsky: And that it would be almost irresponsible for us to further add to that strain.

And that and it would be almost irresponsible for us to further add to that strain.

Stan Vysotsky: And that is the reason why we want a different model. You know, we firmly believe that nurses and physician assistants, nurse practitioners spend a big portion of their day doing skills and tests that are well below the level of.

And that is the reason why we went a different model.

We firmly believe that.

Nurses and physician assistants nurse practitioners spent a big portion of their day doing skills and tests that are well below the level of training.

Speaker Change: So, rather than spending top dollars doing basic tests and procedures, our approach is that we'll hire a licensed practitioner like an LPN and then up train them to do those types of services. It's a lot more cost effective and doesn't add.

Stan Vashovsky: You know, rather than spending top dollar doing basic, you know, tests and procedures, our approach is that we'll hire a licensed practitioner like an LPN and then up-train them to do those types of services. It's a lot more cost-effective and doesn't add strain to the existing staffing shortages that we're seeing throughout the country. The demand on the municipalities is going strong. We have probably what I would like to say one of the most advanced comprehensive homelessness programs in the nation. We have contracts in Pennsylvania and New York for those programs and now in discussion to do a pilot in California. We presented to Chicago and several other municipalities on that program, getting a lot of great media from it. You know, the municipality demand is strong.

So rather than spending top dollar doing basic testing procedures are approaches that will we will hire a licensed practitioner like an L. P. N and then up train them to do those types of services. It's a lot more cost effective and doesn't add strain to the existing staffing shortages that we're seeing throughout the country.

Speaker Change: strain to the existing staffing shortages that we're seeing throughout the country.

Speaker Change: So the demand on the municipalities are going strong. We have probably what I would like to say one of the most advanced, comprehensive

So the demand on the municipalities are going strong.

We have probably what I would like to say one of the most advanced comprehensive homeless.

Speaker Change: homelessness programs in the nation. We have contracts in Pennsylvania and New York for those programs and now in discussion to do a pilot in California. We presented to Chicago and several other municipalities on that program, getting a lot of great media from it.

Homelessness.

Grams in the nation, we are.

Stan Vashovsky: We have contracts in Pennsylvania and New York for those programs and now in discussion to do a pilot in California. We presented to Chicago and several other municipalities on that program, getting a lot of great media from it. You know, the municipality demand is strong.

Contracts in Pennsylvania, and New York for those programs and now in discussion.

To do a pilot in California.

We presented to Chicago and several other municipalities on that program getting a lot of great media from it and.

Speaker Change: You know, the municipality demand is strong, but it's not just in the area of homelessness, there are other municipal areas where we provide.

The municipality demand is strong.

Stan Vashovsky: It's not just in the area of homelessness. There are other municipal areas where we provide mobile urgent care units to lower income communities that have difficulty getting quality access to medical services other than hospitals. The mobile urgent care units are getting quite popular. You know, overall demand on municipality and healthcare systems is just going strong. You know, hospitals are always looking to add additional services, and giving their patients opportunities to come into the hospital or be treated for certain things at home is very well received. We do that with several hospitals throughout the nation. It is being very well received by their customers.

But it's not just in the area of homelessness, there other municipal areas, where we provide.

Speaker Change: mobile urgent care units to lower income communities that have difficulty getting quality access to medical services other than hospitals.

Mobile urgent care units to lower income communities.

They have difficulty getting quality access to medical services other than hospitals.

Speaker Change: So, mobile urgent care units are getting quite popular.

So mobile urgent care units are getting quite popular.

Speaker Change: Um, you know, overall demand on municipality and health care systems is just so strong. Um, you know, hospitals are always looking to add additional services.

Overall demand on municipality and health care systems.

Don strong hospitals are always looking to add additional services and given their patients to opportunities to come into the hospital or be treated for certain things at home.

Stan Vashovsky: You know, hospitals are always looking to add additional services, and giving their patients opportunities to come into the hospital or be treated for certain things at home is very well received. We do that with several hospitals throughout the nation. It is being very well received by their customers.

Speaker Change: and giving their patients opportunities to come into the hospital or be treated for certain things at home is very well received. We do that with several hospitals throughout the nation. It is being very well received by their customers.

<unk> is very well received.

We do when we do that with several hospitals throughout the nation.

Is being very well received by their customers.

Stan Vashovsky: On a weekly basis, we're constantly presenting the program to new hospital systems that are interested to learn about the offering. Overall, you know, maybe the medical community initially was a little bit skeptical about three years ago when we started this work. You know, can you really, you know, up-train LPN? I think we've proven with remarkable results that, you know, the answer is a strong yes. You can use lower wage medical professionals to do a lot of these very basic testing procedures that in the past have been done by higher skilled medical professionals. For medical systems to offer, you know, the additional, call it, you know, higher end level of service by giving patients the option of the clinician going to their home is being extremely well received.

Speaker Change: On a weekly basis, we're constantly presenting the program to new hospital systems that are interested to learn about the offering.

I know on a weekly basis, we're constantly presenting the program to new hospital systems that are interested to learn about the offering.

Speaker Change: And overall, maybe the medical community initially was a little bit skeptical about three years ago when we started this work. Can you really up train LPNs? And I think we've proven with remarkable results that the answer is a strong yes. And you can use lower wage medical professionals to do a lot of these very basic testing procedures that in the past have been done by higher skilled medical professionals.

And overall, maybe the medical community initially was a little bit skeptical about three years ago. When we started this work.

Can you really Uptrade L. P N and I think we've proven with remarkable results that you know the answer is a strong yes, and and you can use lower wage and medical professionals to do a lot of these very basic testing procedures that in the past have been done by highest skilled medical professionals.

Stan Vashovsky: You can use lower wage medical professionals to do a lot of these very basic testing procedures that in the past have been done by higher skilled medical professionals. For medical systems to offer, you know, the additional, call it, you know, higher end level of service by giving patients the option of the clinician going to their home is being extremely well received.

Speaker Change: And for medical systems to offer, you know, the additional, call it, you know, higher end level of service by giving patients the option of a clinician going to their home is being extremely well received.

And for medical systems to offer the additional call it higher and level of service by.

Giving patients the option of a clinician go into their home is being extremely well received.

Speaker Change: So the overall answer is really strong demand. Our salespeople are very busy, which is always a good thing. And besides just local municipalities and local hospitals, we're also participating in large state and federal.

Stan Vashovsky: you know, the overall answer is, you know, really strong demand. you know, our salespeople are very busy, which is always a good thing. you know, besides just local municipalities and local hospitals, you know, we're also participating in large state and federal RFPs, you know, using that same concept of, you know, lower skilled licensed practitioners, up-trained to do certain types of services, clinical services. you know, we have several big, you know, RFPs that are out. You know, I should note those, these are RFPs that in the past we probably would not have participated in due to working capital requirements. You know, we just didn't have the, you know, large amounts of cash needed to support those types of contracts. You know, as Andre mentioned, we have plenty of cash on the books.

So the.

The overall answer there's really strong demand.

Our salespeople are very busy which is always a good thing.

And that you know.

Besides just local municipalities and local hospitals, we're also participating in large state and federal Rfps using that same concept of lowest skilled license practitioners uptrend to do certain types of services clinical services and then we have several big.

Speaker Change: using that same concept of lowest-skilled, licensed practitioners, up-trained to do certain types of services, clinical services. And we have several big RFPs that are out. I should note, these are RFPs that in the past we probably would not have participated in due to working capital requirements. We just didn't have the large amounts of cash needed to support those types of contracts.

Ts that are out there I should note that these are rfps that in the past, we probably would not have participated in due to working capital requirements.

Stan Vashovsky: You know, I should note those, these are RFPs that in the past we probably would not have participated in due to working capital requirements. You know, we just didn't have the, you know, large amounts of cash needed to support those types of contracts. You know, as Andre mentioned, we have plenty of cash on the books.

Didn't have.

Large amounts of cash needed to support those types of contracts.

Speaker Change: You know, as Andre mentioned, we have plenty of cash on the books. You know, we want to put that money to work.

Ondrej mentioned that we have.

Many of cash on the books, we want to put that money to work in.

Stan Vashovsky: You know, we wanna put that money to work. You know, we're now out there and aggressively going for these really large federal, state, municipal type contracts. You know, hopefully, if we're lucky, 2022 we'll get a couple of those big awards.

Speaker Change: we're now out there and aggressively going for these really large federal state municipal type contracts. And hopefully, if we're lucky 2022, we'll get a couple of those big awards.

We're now out there and aggressively gone for these really large federal state and municipal type contracts and.

Hopefully if we're lucky 2022, we'll we'll get a couple of those Big Awards.

Speaker Change: That's a really helpful color, Stan. I appreciate that. As a follow-up, perhaps for Andre, you know, great to see the strong performance here in gross margin and that lease-hour model starting to sort of flow through into the model in fourth quarter. As we think about fiscal 22 and some of the assumptions around what the implied guidance there might be for gross margin, can you talk about how sort of lease-hour continues to play out? Yeah. Yeah.

Ryan MacDonald: Excellent. That's really helpful color, Stan. I appreciate that. As a follow-up, perhaps for Andre, you know, great to see the strong performance here in gross margin and that lease hour model starting to sort of flow through into the model in Q4. As we think about fiscal 2022 and some of the assumptions around what the implied guidance there might be for gross margin, can you talk about how sort of lease hour start continues to flow through the model? Then also, you know, we're in an environment now where we're seeing fuel costs rise, you know, quite significantly. Can you just remind us of what the potential impact that it has on the gross margin outlook as well? Thanks.

That's really helpful color Sam I appreciate that.

As a follow up perhaps for Andre great.

Great to see the strong performance here in gross margin and that lease our model starting to.

Sort of flow through into the model in fourth quarter as we think about fiscal 'twenty two and in some of the assumptions around what the implied guidance there might be for gross margin you talked about how sort of lease sour start continues to.

Speaker Change: flow through the model, but then also, you know, we're in an environment now where we're seeing fuel costs rise, you know, quite significantly. Just remind us of what the potential impact that has on the gross margin outlook as well.

Low through the model, but then also we're in an environment now where we're seeing fuel costs rise quite significantly just remind us of what the potential impact that that has on the gross margin outlook as well. Thanks.

Ryan MacDonald: Then also, you know, we're in an environment now where we're seeing fuel costs rise, you know, quite significantly. Can you just remind us of what the potential impact that it has on the gross margin outlook as well? Thanks.

Speaker Change: Sure, I'll talk about the last one first on fuel because that's quite a popular question.

Andre Oberholzer: Sure. I'll start with the last one first on fuel, because that's quite a popular question. In our guidance that we talked about earlier, we assume that fuel price will be about $4.30 a gallon for this year. Year to date, it's running about $3.71. We're safe a little bit against the guidance that we've given. If we assume that gas prices go up by another dollar to an average of $5.30, that will cost us about $1.5 million in additional fuel costs. Which is about 39-40 basis points on gross margin. It's an impact, but it's not as significant as maybe some other industries like airlines.

Sure.

The last one first on fuel because that's quite a popular question. So you know guidance that you talked about earlier, we assume that fuel price will be about $4.30 together for this year.

Speaker Change: So in our guidance that we talked about earlier, we assume that fuel price will be about $4.30 a gallon for this year. Year to date, it's running about 371. So we're safe a little bit against the guidance that we've given.

Year to date, it's running at about 371, so, let's say, it's a little bit against the guidance that we've given.

Speaker Change: If we assume that gas prices go up by another dollar to an average of $5.30, that will cost us about $1.05 million in additional fuel costs, which is about 39, 40 basis points on gross margin.

If we assume that gas prices go up by another dollar to an average of five city.

It will cost us about 1 million five additional fuel costs about 39, and 40 basis points of gross margin.

Speaker Change: So it's an impact, but it's not as significant as maybe some other industries like airlines.

So it's an impact, but it's not insignificant if they use somebody like airlines.

Speaker Change: In terms of gross margin, as Stan mentioned, for transportation in the mature market, we trend towards the 40% range.

Andre Oberholzer: In terms of gross margin, Stan mentioned, you know, for transportation in a mature market, we trend towards the 40%, you know, high 30s, 40% range. For mobile health, you know, 50, 51% gross margin. In 2021, you will note that we are not on that track, and that's part of the reason for that is what Stan also mentioned, and I mentioned, that when we launch all these new projects and we have a short window to launch the project because there's a demand, we go out and hire agency staff and some subcontractors, and that basically impacts margins. We expect that to improve by a couple of points during 2022, because we will have less expedited projects on a larger base of revenue.

In terms of gross margin Stan mentioned.

Transportation and the mature market.

Towards the 40%.

It is 40% range.

Speaker Change: And for mobile health, you know, 50, 51% goes larger.

And for mobile health.

51% gross margin.

Speaker Change: In 21, you will note that we are not on that track, and that's part of the reason for that is what Stan also said.

'twenty one.

You'll note that we are not on that track.

Andre Oberholzer: That's part of the reason for that is what Stan also mentioned, and I mentioned, that when we launch all these new projects and we have a short window to launch the project because there's a demand, we go out and hire agency staff and some subcontractors, and that basically impacts margins. We expect that to improve by a couple of points during 2022, because we will have less expedited projects on a larger base of revenue.

Part of the reason for that is what Stan also mentioned and I mentioned that when we launch all these new projects and we have a short window to launch the project because there's a demand we go out and agency staff and some sub contractors and that basically impacts margins.

Speaker Change: That's when we launch all these new projects and we have a short window to launch the project because there's a demand. We go out and hire agency staff and some subcontractors and that basically impacts margins.

Speaker Change: would

We expect that to improve by a couple of points during 2002.

Because we have less expedited project on a larger base of revenue.

Andre Oberholzer: You know, we see that we're gonna trend towards, you know, the goal of, you know, getting to long-term margins of, on the average, 50%.

Speaker Change: So, you know, we see that you're going to train towards, you know, the goal of, you know, getting to long-term margins of, on the average, 50%.

So we see that you've got a trained towards.

The goal of getting to long term margin itself on the average 50%.

Ryan MacDonald: Helpful color. Congrats again on an amazing quarter.

That's helpful color, Congrats again, an amazing quarter.

Stan Vashovsky: Thank you. Again, just to clarify, the long-term goal that we discussed in prior guidance is, you know, 3 to 5 years out, just to clarify.

Andre Oberholzer: Thank you. Again, just to clarify, the long-term goal that we discussed in prior guidance is, you know, 3 to 5 years out, just to clarify.

Speaker Change: Thank you. And again, just to clarify, the long-term goal that we discussed in prior guidance is, you know, three to five years out, just to clarify.

Thank you and again.

The long term goal.

Scotts implied guidance with three to five yourself.

Clarify.

Operator: Thank you. The next question is coming from David Grossman of Stifel. Please go ahead.

Speaker Change: Thank you. The next question is coming from David Grossman of Stiefel. Please go ahead.

Thank you. The next question is coming from David Grossman of Stifel. Please go ahead.

David Michael Grossman: Thank you. Good morning. I'm wondering, Stan, if you could talk, I know you don't disclose a backlog number or anything like that, but maybe you could discuss just a little bit about the visibility that you have.

David Grossman: Thank you. Good morning. I'm wondering, Stan, if you could talk. I know you don't disclose a backlog number or anything like that, but maybe you could discuss just a little bit about, you know, the visibility that you have going into the year based on, you know, the contracts that you actually have in hand or perhaps some of the recurring revenue that you typically get.

Thank you good morning.

I'm wondering standards. She could talk I know you don't disclose the backlog number or anything like that but maybe you could discuss just a little bit about the visibility that you have.

Stan Vysotsky: going into the year based on the contracts that you actually have in hand or perhaps some of the recurring revenue that you typically get.

Going into the year based on the.

The contracts that you actually have in hand, or perhaps some of the recurring revenue that you typically get.

Speaker Change: Sure, David. Good to hear from you again. So, when we look into 2022 and guidance and incremental revenue, we go through quite an exhausting process with all senior management. Basically, it's a ground-up approach, and we take several things into consideration. There are about five key points.

Stan Vashovsky: Sure, David. Good to hear from you again. So, you know, when we look into 2022 and guidance and incremental revenue, we go through quite an exhausting process with all senior management. You know, basically, it's a ground up approach, and we take several things into consideration. There are about 5 key points that we take into consideration when we come up with our number. We frankly don't finalize the process until everyone is in agreement, you know, that this is a number that we can get behind. You know, the 5 points that we take into consideration is 1, additional revenue from existing mobile health contracts.

Sure David.

Good to hear from you again.

So you know when we when we look into 2022 and guidance and <unk>.

Incremental revenue, we go through quite an exhausting process with all of the senior management.

Yeah basically.

With the ground.

Ground up approach.

And we take several things into consideration there are about five key points.

Speaker Change: that we take into consideration when we come up with our number and, you know, and we frankly, we don't finalize the process until everyone is in agreement, you know, that this is a number that we can get behind. Well, you know, the five points that we take into consideration is, one, additional revenue from existing mobile health contracts.

That we've taken into consideration when we come up with our number and and.

Stan Vashovsky: We frankly don't finalize the process until everyone is in agreement, you know, that this is a number that we can get behind. You know, the 5 points that we take into consideration is 1, additional revenue from existing mobile health contracts.

And we frankly, we don't.

We don't finalize the process until everyone is in agreement.

This is a number that we can get behind.

Well you know the five points that we've taken into consideration as one.

Additional revenue from existing mobile health contracts.

Speaker Change: These are contracts that are already in place, relationships that we are already servicing that have come forward to us to talk about expansion of existing programs.

Stan Vashovsky: These are contracts that are already in place, relationships that we're already servicing, that have come forward to us to talk about expansion of existing programs. You know, two is mobile health contracts that are already contracted and are in the pipeline to be implemented. These are contracts that are signed, contracts that are funded, but have a start date of 30, 60, 90 days out, to begin capturing revenue. Thirdly, mobile health contracts that are in the pipeline with greater than a 75% probability of closing. You know, we use Salesforce, you know, so we go through Salesforce and different stages of contracts are given a probability of closing percentage.

These are contracts that are already in place relationships that we're already servicing.

That have come forward to us to talk about expansion of existing programs.

Speaker Change: You know, two is mobile health contracts that are already contracted and are in the pipeline to be implemented. These are contracts that are signed, contracts that are funded, that have a start date of 30, 60, 90 days out to begin capturing revenue.

Two is mobile help contracts that are already contracted and are in the pipeline to be implemented.

These are contracts that are signed contracts that are funded.

But have a start date of 30 60 90 days out too.

To begin capturing revenue.

Speaker Change: Thirdly, mobile health contracts that are in the pipeline with greater than a 75% probability of closing.

Stan Vashovsky: Thirdly, mobile health contracts that are in the pipeline with greater than a 75% probability of closing. You know, we use Salesforce, you know, so we go through Salesforce and different stages of contracts are given a probability of closing percentage.

Thirdly mobile health contracts that are in the pipeline with greater than a 75% probability of closing.

Speaker Change: You know, we use Salesforce, you know, so we go through Salesforce and different stages of contracts are given a probability of closing percentage. Once they hit 75, which is usually past the point of us providing a proposal and receiving some indication of acceptance, we take that, those types of agreements and attribute those to, you know, to the pipeline.

We use salesforce. So we go through a sales force in different stages of contracts are given a probability of closing percentage once they hit 75, which is usually passed the point of us providing a proposal of receiving some indication of acceptance.

Stan Vashovsky: Once they hit 75, which is usually past the point of us providing a proposal and receiving some indication of acceptance, we take those types of agreements and attribute those to, you know, to the pipeline. We look at transportation expansion. We look at markets that we've already secured but have not launched in, but we've already completed pro formas on because we know what's waiting for us in terms of Fresenius and other customers. We also look at our license pipeline and, with high probability, feel comfortable that we'll be closing some of those licenses and include that, you know, those locations in our pro forma. Finally, number 5 is some small, non-significant or non-material M&A opportunities.

We take that those types of agreements.

And and attribute those two to the pipeline.

Speaker Change: Then we look at transportation expansion. We look at markets that we've already secured but have not launched in, but we've already completed performers on because we know what's waiting for us in terms of Fresenius and other customers.

Then we look at transportation expansion, we look at markets that we've already secured but have not launched in but we've already completed pro forma azam, because we know what's waiting for us in terms of Fresenius and other customers.

Speaker Change: And then we also look at our license pipeline, and with high probability, feel comfortable that we'll be closing some of those licenses and include that, you know, those locations in our PERFORMA.

Stan Vashovsky: We also look at our license pipeline and, with high probability, feel comfortable that we'll be closing some of those licenses and include that, you know, those locations in our pro forma. Finally, number 5 is some small, non-significant or non-material M&A opportunities.

And then we also look at our license pipeline and that with high probability feel comfortable that we'll be closing some of those licenses and include that those.

Those locations and our pro forma.

Speaker Change: And then finally, number five is some small, non-significant or non-material M&A opportunities. When you buy sometimes these little companies that may be some dragging revenues that come along with that.

And then finally number five is some small not significant or material M&A opportunities.

Stan Vashovsky: When you buy sometimes these little companies, there may be some dragging quote, revenues that come along with them. We take those five factors. We go through an exhaustive process of, you know, going through every, you know, a lot of detail on every one of those, and then we come up with an annual number that we can all get behind. It's a process that takes time, months. At the end of the day, the entire management team is behind it, and that's how we've come up with the numbers that we shared earlier for 2022.

When you buy sometimes it's a little companies that may be some dragging revenues that come along with them. So we take those five factors.

Speaker Change: So we take those five factors, we go through an exhaustive process of

We go through an exhaustive process of.

Speaker Change: going through a lot of detail on every one of those. And then we come up with an annual number that we can all get behind.

Going through a lot of detail on on every one of those and then we come up with an annual number that we can all get behind.

Speaker Change: It's a process that takes time, months, but at the end of the day, the entire management team is behind it.

It's a process that takes time.

Months.

But at the end of the day and time management team.

<unk> is behind it and.

Speaker Change: And that's how we've come up with the numbers that we shared earlier for 2022.

And that's how we've come up with the numbers that we showed earlier for 2022.

Speaker Change: I've got it. So I guess in that context, plus, you know, your thoughts about COVID, you know, the cadence of the quarters in 2022, you know, are probably pretty difficult for all of us to predict. So is there any guidance you can give us in terms of how to think about the cadence of both, you know, revenue and EBITDA as the year progresses, given this kind of unusual year that we're in?

David Grossman: Got it. I guess in that context, plus, you know, your thoughts about COVID, you know, the cadence of the quarters in 2022, you know, are probably pretty difficult for all of us to predict. Is there any guidance you can give us in terms of how to think about the cadence of both, you know, revenue and EBITDA as the year progresses, given this kind of unusual year that we're in?

Got it so I guess in that context, plus you know your thoughts about COVID-19 and the cadence of the quarters in 2022.

Probably pretty difficult for all of us to predict so is there any guidance you can give us in terms of how to think about the cadence.

Both revenue and EBITDA.

Progresses, given this kind of unusual year that we're in.

Speaker Change: Yeah, definitely what I would call an unusual year, because we do expect COVID testing to drop off over Q1 and Q2. Ultimately, taking the most conservative approach and seeing it go to zero come July 1, and a lot of that work being replaced by other mobile health contracts that we've either secured or about to secure.

Stan Vashovsky: Yeah. It's, you know, definitely what I would call an unusual year, because we do expect COVID testing to drop off over Q1 and Q2. You know, ultimately, you know, taking the most conservative approach and seeing it go to zero come 1 July, and a lot of that work being replaced by other mobile health contracts that we've either secured or are about to secure. So, you know, a little bit difficult for us to kinda go quarter by quarter, because it is what I would call some of this revenue transition year for us. You know, what we could share is that we've gone through this, you know, five-step process.

Yeah, Yeah, definitely what I was calling an unusual year because.

Because we do expect COVID-19 testing to drop off over Q1 and Q2.

Ultimately taken the most conservative approach and seeing them go to zero come July one.

And a lot of that work being replaced by other mobile health contract side that we've either secured or about to secure.

Speaker Change: Um, so it's a little bit difficult for us to kind of go quarter by quarter. Uh, because it is what I would call some of this revenue transition year for us.

So, it's a little bit difficult for us to kind of go quarter by quarter, because it is what I would call. Some of this revenue transition year for us.

Speaker Change: But what we could share is that we've gone through this five-step process.

But.

Well, we could share was that we've gone through this five step process.

Stan Vashovsky: You know, we've you know, I think you know our historical performance in 8 quarters. We've never missed guidance, never missed budget. Don't expect and don't hope, you know, that we never do going forward. We feel quite confident about the numbers that we've shared with you. Some people may think it's too conservative. As a company, we tend to be more on the conservative side of things, and if we see that the year is shaping up better after each quarter, we'll go ahead and raise that guidance after the quarter. But I do agree with you. You know, it is difficult, you know, to you know, kind of project out on a quarter by quarter basis and give more detail other than we've already provided.

Speaker Change: Um, and, uh, you know, we've, uh, you know, I think, you know, our historical performance in eight quarters, we've never missed guidance.

And we've got I think you know our historical.

Performance in eight quarters, we've never Miss guidance.

Speaker Change: Never miss budgets, don't expect and don't hope, you know, that we never do going forward.

Nevertheless budget don't expect and do hope.

We never do going forward.

Speaker Change: So we feel quite confident about the numbers that we've shared with you. Some people may think it's too conservative. As a company, we tend to be more on the conservative side of things, and if we see that the year is shaping up better after each quarter, we'll go ahead and raise that data after the quarter.

So we feel quite confident about the numbers that we've shared with you.

Some people May think it's too conservative.

Stan Vashovsky: As a company, we tend to be more on the conservative side of things, and if we see that the year is shaping up better after each quarter, we'll go ahead and raise that guidance after the quarter. But I do agree with you. You know, it is difficult, you know, to you know, kind of project out on a quarter by quarter basis and give more detail other than we've already provided.

As a company we tend to be more on the conservative side of things and and if we see that the year shaping up better after each quarter. We'll go ahead and raise that guidance after the quarter.

Speaker Change: But I do agree with you, you know, it is difficult, you know, to, you know, kind of project out on a quarter by quarter basis and give more detail other than we've already provided.

But I do agree with you it is difficult to kind of project out on a quarter by quarter basis, and give more detail other than we've already provided.

Speaker Change: Right. And maybe I can just ask it a different way. Is it logical to think that based on the parameters that you're using relative to COVID that we would see sequential declines in revenue for March and June and then reestablish that as the base to increase revenue sequentially in the back half of the year? And listen, if you can't comment, you can't comment, but just curious if that's at least a logical assumption to use as we think about 2022.

David Grossman: Right. Maybe I can just ask it a different way. Is it logical to think that based on the parameters that you're using relative to COVID, that we would see sequential declines in revenue for Q1 and Q2 and then reestablish that as the base to increase revenue sequentially in H2? Is that? And listen, if you can't comment, you can't comment, but just curious if that's at least the logical assumption to use as we think about 2022.

Right, so, but and maybe I can just ask it a different way is it logical to think that based on the parameters that you're using relative to COVID-19 that we would see sequential declines in revenue for March and June and then reestablish that as the base to increase revenue sequentially in the back.

Half of the year.

And listen if you can't comment I can't comment, but just curious if that's at least a logical assumption to use is when we think about 2022.

Andre Oberholzer: I think it's safe to say that as COVID testing revenue starts dropping off, that we have a healthy backlog of agreements that would capitalize on that labor, available labor workforce to start on new projects. That is ultimately our goal. Our challenge is to time it well. We secure new agreements. We have a good idea in terms of what COVID testing revenue, when COVID testing revenue will start dropping off, and then we use that workforce to take on and begin new contracts.

Speaker Change: I think it's safe to say that as COVID testing revenue starts dropping off that we have a healthy backlog of agreements that would capitalize on that available labor workforce to start on new projects. That is ultimately our goal. Our challenge is to time it well. We are securing new agreements.

I think it's safe to say that as Covid testing revenue.

Dropping off that we have a.

A healthy backlog of agreements that would capitalize on that labor available labor workforce to start on new projects.

I mean that is ultimately our goal.

We have.

Our challenge is to time it well.

So we secured new agreements, we haven't we have a good idea in terms of what Covid testing revenue went COVID-19 testing revenue will start dropping off and when we use that workforce.

Speaker Change: We have a good idea in terms of what COVID testing revenue, when COVID testing revenue will start dropping off, and then we use that workforce to take on and begin new contracts.

Take on and we get new contracts.

David Grossman: All right. Got it. Thanks for that. I wanted to make sure I understood. Andre, I think you said that there was a $5.2 million, was it a gain? I'm sorry, I just didn't get the exact description of what that was in the Q4. Do you mind just repeating that?

Speaker Change: All right, got it. Thanks for that. And then, just, I wanted to make sure I understood. So, Andre, I think you said that there was a $5.2 million, was it a gain? I'm sorry, I just didn't, I didn't get the exact description of what that was in the fourth quarter. Could you mind just repeating that?

Alright got it thanks for that and then.

Just I wanted to make sure I understood. So Andre I think you said that there was a $5 $2 million.

Was it again I'm, sorry, I just didn't I didn't get the exact description of what that was in the fourth quarter could you mind just repeating that.

Andre Oberholzer: Yeah, sure, no problem. So basically, net income as well as just even up for the year and for the quarter. As a matter of fact, there's a $5.2 million gain on the warrant liability. So when we merged with Motion way back in November , when it went effective, we inherited that warrant liability for outstanding warrants.

Andre Oberholzer: Yeah. Sure. No problem. Basically, net income as well as just EBITDA for the year and for the quarter. As a matter of fact, there's a $5.2 million gain on the warrant liability. When we merged with Motion way back in November, when it went effective, we inherited that warrant liability for outstanding warrants. At the date of the transaction, you know, Motion stock was priced at $10 a share, so you basically value the warrants at $10 a share. At the end of December when we closed the year and the quarter, the stock price was down in the six-dollar range, $6.50, whatever. That delta, that $3.5 is basically a reduction of the warrant liability.

Yes, sure no problem so basically.

Net income as well as adjusted EBITDA for the year and for the quarter.

It's a matter of fact.

It's a $5 $2 million gain on our warrant liability.

When we merged with motion a way back.

And it's been effective.

Editing that warrant liability.

<unk> Outstanding award at the <unk>.

Andre Oberholzer: At the date of the transaction, you know, Motion stock was priced at $10 a share, so you basically value the warrants at $10 a share. At the end of December when we closed the year and the quarter, the stock price was down in the six-dollar range, $6.50, whatever. That delta, that $3.5 is basically a reduction of the warrant liability.

Andre Oberholzer: At the date of the transaction, motion stock was priced at $10 a share, so you basically value the warrants at $10 a share. At the end of December , when we close the year in the quarter, the stock price is down in the $6 range. So that delta, that $3.5, is basically an adoption of the warrant liability.

Date of the transaction you know motion stuff was priced at $10 a share so you basically values of water.

$10 a share.

At the end of the St. Louis when we close the year in the quarter.

Stock price of sale and the $6 range $6.

Okay.

So that Delta that's C. N S. C. Sequent $5 is basically at an induction off the water liability.

Andre Oberholzer: So that's just a marked market. So we owe, it's a lower liability. So the bad thing is, or the mix that you're gonna get is, you know, we obviously wanna see our price trading above $10, then you're gonna have it going the other way. So that's why we call it out, that it's a non-cash, non-operational, it's just an accounting item, just like, you know, stock option treatment. It's a non-cash.

Andre Oberholzer: That's just-

David Grossman: Mm-hmm.

So that doesn't work market so we owe.

Andre Oberholzer: mark to market. It's a lower liability.

Yes.

Liability.

David Grossman: I see.

Andre Oberholzer: The bad thing is, or the mix that you're gonna get is, you know, we obviously wanna see our price trading above $10, then you're gonna have it going the other way. That's why we call it out, that it's a non-cash, non-operational. It's just an accounting item, just like, you know, stock options, you know, treatment. It's a non-cash item.

The.

Bad thing so that makes it you're going to get as you know, we obviously want to see off price trading above $10.

Then you're going to have it going the other way. So that's why we called it out that it's a non cash non operational.

Just an accounting item dislike.

David Grossman: Right. When you-

Right right.

Speaker Change: Right. So, so when I think, right.

Alright.

Right. So so.

Andre Oberholzer: That's it.

David Grossman: 'Cause I think you-

Andre Oberholzer: That's it.

David Grossman: Right.

Alright.

Speaker Change: So, I think, I guess, going back to January , you pre-announced your quarter, yet you exceeded that. So, what is the difference between, I think it was about $108 million in what you actually reported. What is the difference between those two numbers? What came in unexpectedly, I guess, that you were able to outperform what you pre-announced in January ?

Andre Oberholzer: Sorry, go ahead.

David Grossman: I guess going back to January, you pre-announced your quarter, yet you exceeded that. What is the difference between $108 million and what you actually reported? What is the difference between those two numbers? You know, what came in unexpectedly, I guess, that you were able to outperform what you pre-announced in January?

So I think I guess going back to January you pre announced your quarter, yet you exceeded that so what is the difference between.

I think it was about $108 million and what you actually reported what what is the difference between those two numbers what came in unexpectedly I guess you were able to outperform when you pre announced in January .

Andre Oberholzer: Yeah. We had several, you know, new projects that started in November, December timeframe. Not to bore you with some accounting lingo, but it's called a 606 calculation to determine-

Speaker Change: We had several new projects that started in November and December . Not to bore you with some accounting lingo, but there's a 606 calculation to determine based on your revenue that you book, what will you ultimately collect.

Yes, so we had several new projects that started in November December .

Timeframe.

Not to bore you with some accounting lingo, but they said, let's call it six or six calculation too.

David Grossman: I see.

Andre Oberholzer: Based on your revenue that you book, what will you ultimately collect. When you have a new project, you don't have any history on collection for that specific project. We made some estimates that, you know, instead of booking 100% of revenue, we booked a lower percentage of revenue because we had to project that there will be a lower cash collection from that customer because we have no experience. Then as we got into January, February and, you know, finalizing the audit, we got paid on some of those projects. Now suddenly that reserve that we set aside, potential short payment or non-payment, suddenly you take that reserve back into income. It's just a standard audit process, you know, looking at subsequent receipts on the receivables that you have on the balance sheet.

David Grossman: I see.

And based on your revenue that you booked like when you ultimately collect so when you have a new project you don't have any history on collection for that specific project.

Speaker Change: So when you have a new project, you don't have any history on collection for that specific project. So we made some estimates that, you know, instead of booking 100% of revenue, we booked a lower percentage of revenue because we had to project that there will be a lower cash collection from that customer because we have no experience.

So we made some estimates that.

Instead of looking at 100% of revenue.

Lower sustaining self revenue because we had to project it that they will be lower cash collections from that customer.

Exterior.

Speaker Change: And then as we got into January , February , and finalizing the audit, we got paid on some of those projects. So now suddenly that reserve, if you set aside potential short payment or non-payment, suddenly you take that reserve back into income. And it's just a standard audit process, looking at subsequent receipts on the receivables that you have on the balance.

And then as we got into January February and finalizing the audit we got paid off some of those projects. So now 70 that reserve that you set aside the St.

Andre Oberholzer: Now suddenly that reserve that we set aside, potential short payment or non-payment, suddenly you take that reserve back into income. It's just a standard audit process, you know, looking at subsequent receipts on the receivables that you have on the balance sheet.

Short payment for non payment.

You take that back into income.

And it does it stand at quarter Prostates looking at subsequent seats.

Receivables that you have on the balance sheet.

Speaker Change: That was, you know, the major really factors of the 606 calculation.

Andre Oberholzer: That was, you know, the major really factor was the 606 calculation.

That's that was the major factor.

<unk> calculation.

Speaker Change: It's not an unusual transaction, it's just a standard process at the end of every quarter and at the end of the fiscal year.

David Grossman: Got it. Just-

Got it and just any Joe.

Andre Oberholzer: That's standard. It's not unusual. It's not an unusual transaction. It's a standard process at the end of every quarter and at the end of a fiscal year.

Unusual transaction, it's a standard process at the end of every quarter.

Fiscal year.

David Grossman: Right. If I could, just one last one. Can you just give us some sense of what to use for the share count in 2022, given 2021's kind of an unusual year and the non-GAAP adjustments also for 2022 to the extent you have visibility on them?

Speaker Change: Right. And if I could, just one last one. Can you just give us some sense of what to use for the share count in 2022, given 2021 is kind of an unusual year, and the non-GAAP adjustments also for 2022 to the extent you have visibility on them?

Right.

And if I could just one last one can you just give us some sense of what you used for the share count.

In 2022, given the 'twenty ones kind of an unusual year and.

The non-GAAP adjustments also for 2022 to the extent you have visibility on.

Andre Oberholzer: In terms of share count, we have 100 million outstanding shares at the end of December. There are 6 million warrants out there. About half is public and half is still private warrants. On a fully diluted basis, it's 106 million. We have about 5 million of a earn-out related to the transaction, that if we hit certain price points then, the selling shareholders, quote unquote, will be earning the 5 million earn-out shares. At this point in time, you know, I think the first earn-out piece is at $11.50 a share. You know, that's, you know, it's tough to project when we're gonna earn those 5 million shares. There's about 6 million outstanding shares related to stock options.

Speaker Change: Because of share count, we have 100 million upstanding shares at the end of December .

In terms of share count.

We have $100 million outstanding shares at the end of December .

Speaker Change: you know, 6 million warrants out there. About half is public and half is for private warrants. So on a fully diluted basis, it's 106 million.

Yeah 6 million water up there.

About half of its public and ethical private water.

So on a fully diluted basis.

$6 million.

Speaker Change: And then we have about $5 million of an earn-out related to the transaction, but if we hit certain price points. And then we have about $5 million of an earn-out related to the transaction, but if we hit

And then we have about $5 million.

A L.

Related to the transaction.

We hit certain price points in the selling shareholders quote unquote will be earning the 5 million shares.

Speaker Change: then the selling shareholders, quote unquote, will be earning the $5 million earn out share.

Speaker Change: At this point in time, you know, I think the first announcement is that 1150 is shared, so that's, you know,

Andre Oberholzer: At this point in time, you know, I think the first earn-out piece is at $11.50 a share. You know, that's, you know, it's tough to project when we're gonna earn those 5 million shares. There's about 6 million outstanding shares related to stock options.

At this point in time.

I think the first announced thesis and they've been 50 a share.

Yeah.

Speaker Change: start to project when we're going to earn those 5 million shares. And then there's about 6 million outstanding shares related to stock options.

It's tough to predict thing we can do.

It's 5 million shares.

And then it's about 6 million outstanding shares related to stock options.

Andre Oberholzer: Stock options that are not vested, all of them. Four-year vesting is our standard vesting program. Those are the buckets. About 100 million outstanding now, 6 million warrants for sure, 5 million potential earn-out in the future, and then about 6 million stock options. Some is vested and some is not vested. Does that help?

Speaker Change: stock options that are not vested, all of them. Four-year vesting is our standard vesting program.

Stock options that are not based on all of them.

Full year basing yourself standards they can program.

Speaker Change: So those are the buckets, about $100 million upstanding now, $6 million warrants for sure, $5 million potential in and out in the future, and then about $6 million stock options, summer's based on.

So those are the buckets.

Million outstanding now 6 million water for sure.

This new potential and out in the future and then about 6 million stock options some of that space.

There's been some it's not fix it.

Speaker Change: Does that help? Okay, it does. Yeah, it does. And how about the non-GAAP adjustments? Any sense for those in 2022? So, going forward, non-GAAP adjustments,

David Grossman: Okay, got it. Yeah, it does. How about the DocGo, the non-GAAP adjustments? Any sense for those in 2022?

Okay got it yeah.

Yeah. It does and then how about the doctor to non-GAAP adjustments and any sense for those in 'twenty two so not so going forward non-GAAP adjustments.

Andre Oberholzer: Going forward, non-GAAP adjustments will be still stock compensation because that's always an expense that we book every quarter. There will be a warrant true-up as long as we have the warrants outstanding on the balance sheet. I just said earlier, if the stock price goes above $10, you know, we'll have a nice loss, but we will be happy that the stock price is up. The other adjustment we had in 2021 was related to the listing of the company. We won't have that going forward. It will be standard EBITDA plus stock option compensation plus warrants liability true-up.

Speaker Change: it will be still stocks compensation, because that's always an expense if you book every quarter. There will be a warrant throughout as long as we have the warrants outstanding on the bus $10. Thank you.

It will be still stock compensation, because that's always the experience that we book every quarter.

It will be a water and true up as long as we have the warrants outstanding on our balance sheet.

And I, just said earlier that if the stock price goes above $10.

Speaker Change: we'll have a nice loss, but we will be happy that the stock price is up. And then the other adjustment we had in 2021 was related to the listing of the company. We won't have that going forward.

We will have a.

Nice loss, even with this tough.

Stock prices up.

And then the other.

The adjustment we had in 'twenty one was related to the listing of the company people who have that to look forward.

Forward so.

Speaker Change: So it will be standard EBITDA plus stock option compensation plus warrants liability throughout. Great, all right guys, thanks.

So it can be standard EBITDA.

Stock option compensation, plus water liability true up.

David Grossman: Got it. Great. All right, guys. Thanks very much.

Got it great alright, guys. Thanks very much.

Stan Vashovsky: Thank you, David.

Thank you David.

Andre Oberholzer: You're welcome.

Youre welcome.

Speaker Change: Thank you. Our next question is coming from Richard Close of Canaccord Genuity. Please go ahead.

Operator: Thank you. Our next question is coming from Richard Close of Canaccord Genuity. Please go ahead.

Thank you. Our next question is coming from Richard close of Canaccord Genuity. Please go ahead.

Richard Collamer Close: Yeah, thanks for the question. Congratulations on a strong year. I just wanted to clarify, what was the COVID revenue in 2021? Did you say it was $110 million?

Richard Close: Yeah. Thanks for the question. Congratulations on a strong year. I just wanted to, you know, clarify, what was the COVID revenue in 2021? Did you say it was $110 million?

Yeah.

Thanks for the question and congratulations on a strong year I just wanted to get.

<unk> what was the Covid revenue in 2021 did you say it was $110 million.

Andre Oberholzer: That is correct.

Stan Vashovsky: Richard, we

Correct.

Yes.

Andre Oberholzer: Sorry, go ahead.

Stan Vashovsky: Go ahead, Andre.

Sorry go ahead go ahead I'm sorry.

Andre Oberholzer: No, go ahead. I was just gonna say, yes, we estimate that the COVID testing-related revenue was about $110 million. The reason we say we estimate it, because some people ask, "Why don't you know the specific number?" Stan mentioned earlier that we don't really do consumer testing, almost, you know, 100% is contracts with municipalities or states. We get paid for a shift, for a whole shift for the labor. Our margins is covered by the shift. Whether we do one test or 10 tests on that shift, in some cases, we don't really get anything extra. In other cases, we get a little bit more. Our contracts started as testing, and then we started adding vaccines, you know, multiple types of vaccines and then some other services.

Speaker Change: I was just going to say, yes, we estimate that the COVID testing related to it was about 110.

Okay.

Yeah.

I was just going to say, yes, we estimate that the COVID-19 testing related to it and it was about $110 million.

Speaker Change: And the reason we say we estimate it, because some people ask, why don't you know the specific number? Stan mentioned earlier that we don't really do consumer testing. Almost, you know, 100% is contracts with municipalities.

The reason, we say we estimate it because some people ask why.

Specific number.

I mentioned earlier that we don't really do consumer testing.

Under the Sandoz contracts with <unk>.

<unk> state.

Speaker Change: We get paid for a shift, for a whole shift for the laborer. So our margin is covered by the shift. And whether we do one test or 10 tests on that shift.

Hey.

Or chip or old shift for the labor. So our margins is covered by this shift.

Andre Oberholzer: Whether we do one test or 10 tests on that shift, in some cases, we don't really get anything extra. In other cases, we get a little bit more. Our contracts started as testing, and then we started adding vaccines, you know, multiple types of vaccines and then some other services.

And whether we do one case or 10 tests on that ship.

Speaker Change: In some cases, we don't really get anything extra. In other cases, we get a little bit more. So our contracts started as testing, and then we started adding vaccines, you know, multiple types of vaccines, and then some other services.

Some cases, we don't really get anything extra other cases, we get a little bit more.

So our contracts.

That same thing.

Then we started adding vaccine multi.

Multiple types of vaccines and then some other services so they got contracts testing as co mingled with other agents.

Andre Oberholzer: On our labor contracts, testing is commingled with other revenue. We had to go through contracts, and we estimate that was about $110 million for 2021.

Speaker Change: So on our labor contracts, testing is coming out of other areas.

Speaker Change: So we had to go through contracts and we estimate that was about $110 million for 2021.

We had to go through contracts and we estimate that that's about a $10 million.

2021.

Richard Close: Okay.

Speaker Change: A good way to look at it is we try to structure our agreements for a flat fee by the day.

Okay.

Stan Vashovsky: Richard, you know, a good way to look at it is, you know, we try to structure our agreements for a flat fee by the day. If we're doing a pre-op service in the patient's home, we are doing an EKG, blood work, vital signs, and a COVID test. We get paid by the day, maybe nominal upcharges for different things that we do, $5, $10 nominal upcharges. It's, you know, how do you kind of separate out just that COVID test in that scenario? You know, it's a little bit challenging. It's simpler when you have just a contract that only has COVID, but some of the work that we do has COVID as a, you know, one of many services that we do under a daily rate.

A good way to look at it is this.

We try to structure our agreements for flats feed by the day.

Speaker Change: And if we're doing a pre-op service in the patient's home, you're doing an EKG, blood work, a vital signs and a COVID test. So we get paid by the day, maybe nominal upcharges for different things that we can, that we do five, $10 nominal upcharges.

And if we're doing a pre op service in that patient's home.

Doing an EKG bloodwork or a vital science in a COVID-19 test, but we get paid by the day may be nominal up charges with different things that we can do we do $510 nominal up charges.

Stan Vashovsky: It's, you know, how do you kind of separate out just that COVID test in that scenario? You know, it's a little bit challenging. It's simpler when you have just a contract that only has COVID, but some of the work that we do has COVID as a, you know, one of many services that we do under a daily rate.

Speaker Change: it's how do you kind of separate out just that COVID test in that scenario. So, you know, it's a little bit challenging. It's simpler when you have just a contract that only has COVID, but some of the work that we do has COVID as a, you know, one of many services that we do under a daily rate.

How do you how do you kind of separate out just that Covid test of that scenario, so it's a little bit challenging.

It's simple and when you have a contract that only has COVID-19 .

But some of the work that we do have COVID-19 as a one of many services that we do under a daily rate.

Speaker Change: Um, so it's a little challenging, but you know, I think Andre and the team did a good job of getting to a ballpark figure.

Stan Vashovsky: It's a little challenging, but you know, I think Andre and the team did a good job of getting to a ballpark figure.

So it's a little challenging, but I think Andre and the team did a good job of getting to a ballpark figure.

Speaker Change: Okay and and then just to be clear on the guidance because you gave some you know you gave the guidance and then you said what the growth is if you exclude it from the second half because 2022 you're expecting no COVID testing revenue in the second half.

Richard Close: Okay. Then just to be clear on the guidance, because you gave some, you know, you gave the guidance, and then you said what the growth is if you exclude it from the H2, because the 2022, you're expecting no COVID testing revenue in the H2. I just wanna be clear, you know, what is the assumption for COVID in the H1? Did you know, call out a specific, you know, millions of dollars number that you're expecting or?

Okay, and then just to be clear on the guidance. Because you gave some you know you gave the guidance and then you said what the growth is if you exclude it from the second half because with.

2022, you're expecting no COVID-19 testing revenue in the second half.

Speaker Change: So I just want to be clear, you know, what is the assumption for COVID in the first half? Did you, you know, call out a specific, you know, millions of dollars number that you're expecting?

So I just wanted to be clear.

What is the assumption for Covid in the first half did you call out a specific.

$2 number.

You're expecting or.

Yes.

Speaker Change: We have not, you know, and the reason for that is because...

Stan Vashovsky: We have not. You know, the reason for that is because, you know, one, we don't wanna communicate a set of numbers, a group of numbers that we're not, you know, basically, you know, absolutely certain about. Although COVID testing in municipalities, the volumes have decreased, some of the agreement personnel have been lowered, but frankly, we don't know when we get a phone call from a municipality and they ask us to reduce the staffing because the need is no longer there or the need is substantially reduced. You know, we're basically, you know, saying that H1 of the year will be on a similar trajectory as H1 of last year.

We have not and.

And the reason for that is because.

Speaker Change: One, we don't want to communicate a set of numbers, a group of numbers that we're not basically absolutely certain about.

One we don't want to communicate pace they set of numbers that group of numbers that we're not.

<unk>, yeah, absolutely certain about.

Speaker Change: and although COVID testing in municipalities, the volumes have decreased, some of the agreement personnel have been lowered, but frankly, we don't know when we get a phone call from the municipality and they ask us to reduce the staffing because the need is no longer there or the need is substantially reduced.

And although COVID-19 testing and municipalities.

Stan Vashovsky: Although COVID testing in municipalities, the volumes have decreased, some of the agreement personnel have been lowered, but frankly, we don't know when we get a phone call from a municipality and they ask us to reduce the staffing because the need is no longer there or the need is substantially reduced. You know, we're basically, you know, saying that H1 of the year will be on a similar trajectory as H1 of last year.

The volumes have decrease some of the agreement personnel have been lowered.

But frankly, we don't know when we get a phone call from the municipality and that and they asked us to reduce the staffing because they need it no longer they have what they need is substantially reduced.

Speaker Change: So, we're basically saying that the first half of the year will be on a similar trajectory as the first half of last year, and phasing out during more towards Q2, and ultimately going to zero in the beginning of Q3.

So we were basically.

Saying that.

The first half of the year will be on a similar trajectory as the first half of last year.

Stan Vashovsky: You know, phasing out during, you know, more towards Q2, and ultimately going to zero in beginning of Q3. You know, it wouldn't be, call it, you know, professional of us to just take guesses on how the states and municipalities are gonna be doing reductions during Q1 and Q2. We just internally kind of, you know, budget it out on a gradual reduction to a zero, you know, come July 1.

And phasing out doing more more towards Q2.

And ultimately going to zero in beginning of Q3.

Speaker Change: But, you know, it wouldn't be, call it, you know, professional of us to just take guesses on how the states and municipalities are going to be doing reductions during Q1 and Q2. So, we just internally kind of, you know,

But.

It wouldn't be call. It professional of US did this take guesses on how the states and municipalities are going to be doing reductions during Q1 and Q2.

So we just that internally kind of.

Speaker Change: budgeted out on a gradual reduction to a zero, you know, come July 1.

Budgeted out on a gradual reduction to a zero come July one.

Speaker Change: Okay. Just hitting on Prostenius for a little bit. I know in the filings,

Richard Close: Okay. Just hitting on Fresenius for a little bit. I know in the filings, you know, you previously disclosed the amount of revenue associated with, that client or that partner, I should say. What specifically was the revenue associated with Fresenius in 2021? Your thoughts on expansion of that relationship in 2022.

Okay.

Just hitting on <unk> for a little bit.

I know in the filings.

Speaker Change: You previously disclosed the amount of revenue associated with that client or that partner, I should say. What are you expecting in 2020, or what specifically was the revenue associated with Presenius in 2021? And then your thoughts on expansion of that relationship in 2022.

Previously.

Disclose the amount of revenue associated with.

That client or that partner I should say.

What are you expecting in 'twenty or what specifically was the revenue associated with presenting as in 2021 and then your thoughts on expansion of that relationship in 2022.

Speaker Change: Um, you know, again, we, you know, we don't disclose numbers specific to, you know, to a client, uh, to a customer. Um, but what I would say is. We've pretty much doubled the revenue in 2021 compared to 2020 with 15 years.

Stan Vashovsky: You know, again, we you know we don't disclose numbers specific to a client, to a customer. What I would say is we've pretty much doubled the revenue in 2021 compared to 2020 with Fresenius. I think as long as we can secure our licenses in new markets, we hope that, you know, we'll continue to, you know, closely double the revenue number with them, year after year. I mean, that's what I would love to see happen. I don't think it's a far stretch to assume that. You know, the relationship with Fresenius is going strong. They are in all 50 states.

Again, we are you know, we don't disclose the number specific to to a client to a customer.

I would say is we've pretty much double the.

The revenue in 2021 compared to 2020 with Fresenius.

Speaker Change: I think as long as we can secure our licenses in new markets, we hope that we'll continue to closely double the revenue number with them year after year. I mean, that's what I would love to see happen.

I think as long as we can secure licenses in new markets. We hope that we'll continue to hopefully double the revenue number with them.

Year after year I mean, that's what I would love to see happen.

Speaker Change: I don't think it's a far stretch to assume that. You know, the relationship with Ficinius is going strong. They are in all 50 states. They have 2,400 clinics.

I don't think it's a it's a far stretch to assume that.

The relationship with Fresenius is going strong.

They are in all 50 states.

Stan Vashovsky: They have 2,400 clinics, you know, all of which have certain amounts of patients that go by private ambulance service, and those are patients that we service and get compensated quite well for. We love that business because it's, you know, recurring, it's, you know, steady, and we can, you know, forecast it with a very high degree of accuracy. In addition to the transportation services, you know, we are looking at other, call it, mobile health opportunities that we can deliver to Fresenius and some of their patients. You know, those conversations are ongoing. There's discussion about pilots.

They have 2400 clinics.

Speaker Change: You know, all of which have certain amounts of patients that go by private ambulance service, and those are patients that we service and get compensated quite well for. We love that business because it's, you know, recurring, it's, you know, steady, and we can, you know, forecast it with a very high degree of accuracy.

All of which have certain amounts of patients that go by private ambulance service and those are patients that we service and.

Get compensated quite well for us.

We love that business because it's recurring it's.

Steady.

And we can.

Forecast it with a very high degree of accuracy.

Speaker Change: In addition to the transportation services, you know, we are looking at other mobile health opportunities that we can deliver to Facinius and some of their patients. You know, those conversations are ongoing. There's discussion about pilots.

In addition to the transportation services.

We are we all.

Looking at other call it mobile health opportunities that we can deliver to <unk> and <unk>.

Some of their patients.

Those conversations are ongoing.

Theres discussion about pilots.

Speaker Change: But until things just become a little bit more concrete on there, you know, in terms of expansion into other opportunities beyond transport.

Stan Vashovsky: until things just become a little bit more concrete on there, you know, in terms of expansion into other opportunities beyond transport, you know, we're really not gonna go into that detail until there's a contract that's signed, and you know, we'll be thrilled to communicate that with everybody.

But until things just become a little bit more concrete on there in terms of expansion into other opportunities beyond transport.

Speaker Change: Um, you know, we're, we're really not going to go into that detail until there's a, you know, there's a contract that's signed and we'll be, we'll be thrilled to communicate that with everybody.

Really not going to go into that detail until there's a there's a contract that side and we'll be we'll be thrilled to communicate that with everybody.

Speaker Change: Okay. And maybe just a clarification, I believe Andre said mobility is expected to be 25 to 30 percent of revenue in 2022.

Richard Close: Okay, maybe just a clarification. I believe Andre said mobility is expected to be 25% to 30% of revenue in 2022. That's correct?

Okay, and maybe just a clarification I believe Andre said mobility is expected to be 25% to 30% of revenue in 2022.

Andre Oberholzer: That's correct. Yes. Okay. And then, Stan, you said 5 to 7 new markets expect for transportation in 2022.

Correct.

Stan Vashovsky: That's correct, yes.

That's correct yes.

Richard Close: Okay. Stan, you said 5 to 7 new markets expected for transportation in 2022?

And then Stan you said five to seven new markets expect for transportation in 2022.

Stan Vysotsky: I'm sorry, Richard, can you repeat that question? Did you say five to seven new markets for transportation in 2021?

Stan Vashovsky: I'm sorry, Richard, can you repeat that question?

I'm sorry can you repeat that question did you did you say five to seven new markets for <unk> and 'twenty.

Richard Close: Did you say 5 to 7 new markets for transportation?

Stan Vashovsky: Yeah.

Richard Close: In 2020?

Richard Collamer Close: Yeah, we've got two new markets, licenses that we've already secured and kind of started the soft launch on early on in the year. We've probably got close to half a dozen LOIs out today, so I think it's very realistic to assume we'll get into five to seven more transportation markets by the end of the year.

Stan Vashovsky: Yeah. We've got, you know, 2 new markets licenses that we've already secured, and kind of started the soft launch on early on in the year. We've probably got close to 6 LOIs out today. I think it's, you know, very realistic to assume we'll get into 5 to 7 more transportation markets by the end of the year.

Yeah, We've got you.

Two new markets licenses that we've already secured.

And that kind of started the soft launch an early early on in the year.

We've probably got close to half a dozen LOI is out today.

So I think it's very realistic to assume we'll get into five to seven more transportation markets by the end of the year.

Speaker Change: Are those two licenses you secured the acquisition you did in Maryland and Pennsylvania and whatnot?

Richard Close: Are those two licenses you secured the acquisition you did in Maryland and Pennsylvania and whatnot?

Are those two licenses you've secured the acquisition you did in Maryland, and Pennsylvania and whatnot.

Stan Vashovsky: That's correct. Yep.

That's correct.

Richard Close: Okay. With respect to EMR integration, you called that out. Is there thoughts on getting Cerner or Oracle, I guess now, integration or does that matter?

Speaker Change: Okay. With respect to EMR integration, you called that out. Is there thoughts on getting Cerner or Oracle, I guess now, integration or does that matter?

Okay.

With respect to EMR integration, you called that out.

They are spot on.

Getting a cerner or Oracle I guess now integration or does that matter.

Speaker Change: Yeah, I mean, we have integration with

Stan Vashovsky: Yeah. I mean, we have integration with quite a few large EMRs, particularly Epic and Allscripts. We've done some work with Cerner in the past. You know, what really drives that is just our customer needs and customer demands. The depth of that integration with Epic, you know, we've gone really deep. You know, I would say the majority of our large customers are on Epic. Northwell, which is an Allscripts client, we've got good integration with that product there. We've done some basic integration with Cerner. We can definitely go much deeper, but you know, that's really dictated by the customer and the level of integration that they'd like us to complete with them.

Yeah, I mean, we have integration.

With the with.

Speaker Change: quite a few large EMRs, particularly EPIC and Allscript.

Quite a few large EMR, particularly epic and all scripts.

Speaker Change: We've done some work with Cerner in the past.

We've done some work with Cerner in the past.

Speaker Change: What really drives that is just our customer needs and customer demands, the depth of that integration with Epic. We've gone really, really deep. I would say the majority of our large customers are on Epic.

What really drives that is just our customer needs and customer demands.

The depth of that integration with epic.

Really really deep.

I would say the majority of our large customers are on epic.

Speaker Change: Northwell, which is an Allscripts client, we've got good integration with that product there. We've done some basic integration with Cerner. We can definitely go much deeper, but that's really dictated by the customer and the level of integration that they'd like us to see complete with them.

Stan Vashovsky: Northwell, which is an Allscripts client, we've got good integration with that product there. We've done some basic integration with Cerner. We can definitely go much deeper, but you know, that's really dictated by the customer and the level of integration that they'd like us to complete with them.

North well, which is an all scripts.

Client.

We've got good integration with that with that product there.

We've done some basic integration with Cerner, we can definitely go much deeper, but that's really dictated by the customer and the level of integration that they'd like us to see a complete with them.

Stan Vashovsky: You know, one of the things that I probably should call out, these integrations are not easy to accomplish. If we called on our own, you know, to an Epic representative, we probably wouldn't make it past the reception desk. The only reason why we've been successful with these integrations and why we're probably one of the very few, if not the only company that has accomplished them, is because our long-term contracts with the hospitals allow the hospitals to actually call the EMR provider and insist on the integration. It's Jefferson, you know, that's making the call to Epic. It's UCHealth, it's Northwell. When the call comes from them, being that they're a substantial sized customer, you know, Epic steps up and helps get that completed. Allscripts steps up and helps get that completed.

Speaker Change: You know, one of the things that I probably should call out, these integrations are not easy to accomplish.

One of the things that I, probably should call out these integrations are not easy to accomplish.

Speaker Change: If we called on our own, you know, to an EPIC representative, we probably wouldn't make it past the reception desk.

If we called on our own.

Two an epic representative would probably wouldn't make it past the reception desk. The only reason why we've been successful with these integrations and why we're probably one of the very few if not the only company that has accomplished them is because of our long term contracts with the hospitals.

Speaker Change: The only reason why we've been successful with these integrations and why we're probably one of the very few, if not the only company that has accomplished them is because our long-term contracts with the hospitals.

Speaker Change: allow the hospitals to actually call the EMR provider and insist on the integration.

Allow the hospitals to actually called the EMR provider and insist on the integration.

Speaker Change: So, it's Jefferson, you know, that's making the call to Epic, it's UCHealth, it's Northwell. And when a call comes from them, being that they're a substantial-sized customer, you know, Epic steps up and helps get that completed. Allscripts steps up and helps get that completed. So, it's really these long-term, you know, quality relationships that we have with our hospital system.

Stan Vashovsky: It's Jefferson, you know, that's making the call to Epic. It's UCHealth, it's Northwell. When the call comes from them, being that they're a substantial sized customer, you know, Epic steps up and helps get that completed. Allscripts steps up and helps get that completed.

So its Jefferson.

The call to epic you see health, it's north well and when a call comes from them being that there are substantial size customer.

Vic.

Steps up and helps get get that completed all scripts steps up and have to get that completed.

Stan Vashovsky: It's really these long-term, you know, quality relationships that we have with our hospital systems that allow for these in-depth integrations. It's not just Epic and Cerner. I mean, there's about 20 different EMRs, smaller ones, you know, that we've also done some level of integration with. It definitely strengthens our IP that we own.

So it's really these long term quality relationships that we have with our hospital systems.

Speaker Change: that will allow for these in-depth integrations. And it's not just Epic or Cerner. I mean, there's about 20 different EMRs, smaller ones that we've also have done some level of integration.

It allows for these in depth integrations, and it's not just epic and Cerner I mean, there's about 20 different EMR is smaller ones.

We've also have done some level of integration with them and are definitely strengthens our IP that we own.

Speaker Change: and it definitely strengthens our IP that we all have.

Speaker Change: Okay. And a question with respect to the Aetna, you called that out. That's a new, you know, channel for you guys, I guess, or a new...

Richard Close: Okay. Question with respect to the Aetna, you called that out. That's a new, you know, channel for you guys, I guess, or a new customer base in the payer side. I assume there's some marketing and onboarding costs associated with you know, driving revenue on that business that's different than your normal mobile health business. Can you talk a little bit about that? How we should think about-

Okay.

And a question with respect to the Aetna you called that out.

That's a new channel.

Channel for you guys, I guess or a new customer.

Speaker Change: customer base in the payer side. And so I assume there's some marketing and onboarding costs associated with.

Customer.

Base.

And the payers side, and so I assume there's some marketing and onboarding costs associated with.

Speaker Change: um you know driving revenue on that business that's different than your normal mobile health business can you talk a little bit about that how we should think about yeah the um sort of profitability or go to market you know should dry ramp the revenue there

You know driving revenue on that business, that's different than your normal mobile health business can you talk a little bit about that how we should think about that.

Stan Vashovsky: Yeah

Richard Close: sort of profitability or go-to-market, you know, to ramp the revenue there?

Sort of profitability or go to market should drive ramp the revenue there.

Richard Close: sort of profitability or go-to-market, you know, to ramp the revenue there?

Stan Vashovsky: Well, you know, great question, Richard. I mean, the reality is, you know, one of the things I'm most excited about in 2022 is us entering the direct-to-consumer market. You know, with high co-pays, high deductibles, you know, we see consumers be willing to pay a nominal amount and get concierge-like services in their home. We've launched the service with a partnership out of Canada. The pilot is doing super well, and we're now laying the groundwork, you know, to launch that service in the United States. The Aetna agreement is the first, call it major, contract that we signed, that is a B2C type of an offering. You know, we don't have a lot of information that we can share yet about that program.

Speaker Change: Well, you know, great, great question, Richard. I mean, the reality is, you know, one of the things I'm most excited about in 2022 is us entering the direct-to-consumer market. You know, with high co-pays, high deductibles, you know, we see consumers be willing to pay a nominal amount and get concierge-like services in their homes.

Well, yeah, great Great question, Richard I mean, the reality is one of the things I'm. Most excited about in 2022 is us entering the direct to consumer market with high co pays deductibles.

We see consumers be be willing to pay a nominal amount and get concierge like services in their home.

Speaker Change: We've launched the service with a partnership out of Canada, the pilot is going super well, and we're now laying the groundwork to launch that service in the United States.

We've got we've launched the service with a partnership out of Canada. The pilot is doing super well and we're now laying the groundwork to launch that service in the United States.

Stan Vashovsky: The pilot is doing super well, and we're now laying the groundwork, you know, to launch that service in the United States. The Aetna agreement is the first, call it major, contract that we signed, that is a B2C type of an offering. You know, we don't have a lot of information that we can share yet about that program.

Speaker Change: The Aetna Agreement is the first major contract that we signed that is a B2C type of an offering.

The agreement is the first.

Call It major contract that we sign.

That is a b to C type of an offering.

Speaker Change: We don't have a lot of information that we can share yet about that program. That entire initiative is being headed by Aaron Stevers at our company. Aaron is a proven executive with lots of success behind him, and the entire B2C offering is something that he is leading for us.

We don't have a lot of information that we can share yet about that program that entire initiative is being headed by Aaron Sievers at our company Aron is a proven executive with lots of success behind him and the entire BDC offering is something that he is leading for us.

Stan Vashovsky: That entire initiative is being headed by Aaron Severs at our company. Aaron is a proven executive with lots of success behind him, and the entire B2C offering is something that he is leading for us. Preliminary testing of call it selected customers that we service one-offs have provided, you know, really good feedback and very high satisfaction levels. What you basically are seeing is the foundation for a future direct-to-consumer offering. There's gonna be a lot of learning. There's gonna be a lot of development that goes into that program that we are tapping. You know, if successful, we're gonna tap into a huge TAM, you know, that the company will benefit from for many years going forward.

Speaker Change: Preliminary testing of selected customers that we serviced, one-offs, have provided really good feedback and very high satisfaction levels.

Preliminary testing.

Of course with selected customers that we service one offs have provided really good feedback and very high satisfaction levels.

Speaker Change: So, what you're basically are seeing is the foundation for a future direct-to-consumer offering. There's going to be a lot of learning. There's going to be a lot of...

So what you basically are seeing is the foundation for a future direct to consumer offering.

Stan Vashovsky: There's gonna be a lot of learning. There's gonna be a lot of development that goes into that program that we are tapping. You know, if successful, we're gonna tap into a huge TAM, you know, that the company will benefit from for many years going forward.

Theres going to be a lot of learning.

There's going to be.

A lot of.

Speaker Change: development that goes into that program. If successful, we're going to tap into a huge, huge TAM that the company will benefit from for many years going forward. We don't have that much information that we can publicly share yet, other than we are all in on the direct-to-consumer offering. Aetna is one of the first that we signed in preparation for that.

Development that goes into that program that we are tapping.

Successful, we're going to tap into a huge huge tam.

You know that that the company will benefit from for many years going forward. So we don't have that much information that we can publicly share yet other than you know we are all in on the direct to consumer offering and that Aetna is one of the first that we sign in preparation for <unk>.

Stan Vashovsky: We don't have that much information that we can publicly share yet other than, you know, we are all in on the direct-to-consumer offering. Aetna is one of the first that we signed in preparation for that. We have ongoing conversations with several other large national payers to offer that service with. As we get more results out of our Canada program, you know, we'll definitely share it with you. As we get ready to launch that service officially in the United States beyond the pilot, you know, we'll definitely share that with everyone.

Speaker Change: We have ongoing conversations with several other large national payers to offer that service with.

We have ongoing conversations with several other large national payers.

To offer that service with and.

Speaker Change: As we get more results out of our Canada program, you know, we'll definitely share it with you. And as we get ready to launch that service officially in the United States beyond the the pilot, you know, we'll definitely share that with you.

As we get more results out of our Canada program, we'll definitely share it with you and as we get ready to launch that service officially in the United States beyond the pilot.

We'll definitely share that with everyone.

Operator: Thank you. This brings us to the end of our question-and-answer session, as we are out of time. I would like to turn the floor back over to Mr. Vashovsky for closing comments.

Speaker Change: Thank you, this brings us to the end of our question and answer session. As we are out of time, I would like to turn the floor back over to Mr Vachosky for closing comments.

Thank you this brings us to the end of our question and answer session. As we are out of time I would like to turn the floor back over to Mr. Vishal Keith for closing comments.

Vachosky: Yeah, thank you. Well, that concludes our call for this morning. We hope you found the call to be informative. We hope we were successful in conveying our enthusiasm for the year and beyond.

Stan Vashovsky: Yeah, thank you. Well, that concludes our call for this morning. We hope you found the call to be informative. We hope we were successful in conveying our enthusiasm for the year and beyond. We have significant opportunities in front of us, and I look forward to a very successful and exciting year. This is gonna conclude our call, and I really wanna thank everyone for joining. Have a great day, everyone.

Yeah. Thank you.

Well that concludes our call for this morning.

We hope you found the call to be informative, we hope we're successful inconvenient, our enthusiasm for the year and beyond.

Vachosky: We have significant opportunities in front of us, and I look forward to a very successful and exciting year.

We have significant opportunities in front of us and I look forward to a very successful and exciting year.

Speaker Change: This is gonna conclude our call and really wanna thank everyone for joining. Have a great day.

This is going to conclude our call and we really want to thank everyone for joining have a great day everyone.

Speaker Change: Ladies and gentlemen, thank you for your participation and interest in DOCCO. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

Operator: Ladies and gentlemen, thank you for your participation and interest in DocGo. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

Ladies and gentlemen, thank you for your participation and interest in Darko you may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

Speaker Change: ?

Okay.

[music].

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Speaker Change: .

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