Q4 2022 DocGo Inc Earnings Call
Speaker 1: And J.
Speaker 1: I.
Speaker 2: fourth quarter and full year 2022 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star-0 on your telephone keypad. As a reminder, this conference is being recorded.
Speaker 2: It is now my pleasure to introduce your host, Mike Cole, Vice President of investor relations. Thank you, Mike. Thank you for having me.
Speaker 2: Thank you, operator. 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 historical facts, are forward-looking statements. The words anticipate, aim, believe, estimate, expect, intend, guidance, confidence, target, and end.
Speaker 2: projects, and other similar expressions are used to typically identify such forward-looking statements. These forward-looking statements are not guaranteed to future performance and may involve and are subject to certain risks and uncertainties and other factors that may affect DACA's business, financial condition, and other operating results.
Speaker 2: These include, but are not limited to, the risk factors and other qualifications contained in DOCCO's annual report on Form 10-K , quarterly reports filed on Form 10-Q , and other reports and statements filed by DOCCO with the FCC to which your attention is directed. Actual outcomes and results may differ materially from what is expressed or implied by the region.
Speaker 2: release which is posted on our website, dot go dot com, as well as in our filings with the Securities and Exchange Commission.
Speaker 2: The information contained in this call is accurate as of only the date discussed. Investors should not assume that statements will remain relevant and operative at a later time. We undertake no obligation to update any information discussed in this call in the future. At this time, it is now my pleasure to turn the call over to Mr. Anthony Capone, CEO of Dachco. Anthony, please go ahead. I'm Anthony Capone, CEO of Dachco.
Speaker 3: Thank you, Mike. Looking back on 2022, we did an exceptional job at meticulously replacing substantial MESS COVID testing revenue streams with a variety of new programs while laying the foundation for continued profitable growth in 2023 and beyond.
Speaker 3: In 2022, we generated revenues of $440.5 million up from $318.7 million in 2021, a growth rate of 38%. Excluding mass COVID testing revenues, we grew 75% year over year.
Speaker 3: Our initial revenue guidance at the start of last year was for $400 to $420 million, with $35 to $40 million in adjusted EBITDA, and we are proud to have exceeded both of these measures.
Speaker 3: Along with our 2022 results today, we are introducing 2023 guidance of $500 to $510 million in revenue and $45 to $50 million in adjusted EBITDA. Our gross margin expectations for the year are 35%. Gross margin is expected to be slightly below that rate in Q1 and Q2.
Speaker 3: than improving approximately 50 to 75 basis points per quarter over the course of the year.
Speaker 3: We expect to finish 2023 at an annual rate for gross margin of approximately 37%. And an adjusted EBITDA margin of approximately 13%.
Speaker 3: Our target consolidated gross margin over the longer term remains at 40%.
Speaker 3: We are sharing our backlog today for the first time, which we define as projects that have been awarded but not yet started or fully implemented.
Speaker 3: Our current backlog stands at $180 million over three years.
Speaker 3: We anticipate this backlog to be fully rolled out by the end of the third quarter this year.
Speaker 3: This backlog gives us excellent visibility into 2023 revenue and allows us to provide 2023 revenue guidance with a high degree of confidence.
Speaker 3: At this time, I'm going to hand it over to Lee Beanstock, our President and Chief Operating Officer, to provide an update on some of our key growth initiatives.
Speaker 4: Thanks, Anthony.
Speaker 5: We were very pleased to recently announce a number of successful contract wins and we continue to pursue larger opportunities that are working their way through the RFP process.
Speaker 5: As part of that recent announcement, we secured a $94 million medical transportation contract with a major hospital system, our largest RFP win to date. This is a 100% leased-hour contract providing docbo downside margin protection with significant upside.
Speaker 5: As we move through 2023, we also expect to see further traction with our population health offerings in new geographies such as Connecticut and Chicago.
We recently won an RFP to provide occupational health services for public health workers in Southern California, and we are in the final stages of a public health RFP for remote patient monitoring and chronic care management in Illinois.
Currently, DOTCO has 34 active RFP submissions pending award totaling over $1 billion in aggregate contract value. None of these RFPs are included in our current guidance as an award to DOTCO is not guaranteed.
We have built one of the nation's largest mobile health workforces on top of a unique clinical delivery model that leverages lower-cost medical professionals.
Due to the large pool of these clinicians, we are able to scale quickly while realizing highly profitable unit economics. In addition, our lease-style reimbursement model provides downside margin protection, indicating our exposure to demand risk.
Our recent success in the RFP channel and growing interest in DACAO services across the country highlight the attractiveness of our value proposition to customers.
Notably, our pilot program with Dollar General continues to proceed as well. We have seen week-over-week growth in patient volume, with this past week being our highest demand week ever.
This program's appeal is further validated by an exceptionally strong customer net promoter score. In a recent survey, nearly all patients who have used the service report that they would recommend the service to a friend and plan to use the service again. Dachgo does and will continue to have pilots which are reimbursed on a fee-for-service basis. However, we do not plan to scale any pilot on a fee-for-service basis.
We are also laser focused on maximizing profitability and reducing costs where prudent.
A good example of these efforts is our rapid normalization initiative, which began in early February .
As we have mentioned frequently in the past, the first 90 to 120 days of a new program launch have higher associated costs than our mature programs that have been running longer than six months. The
Typically, the greatest driver of this increased cost is our usage of staffing agency labor to help ramp programs quickly.
This ability is a distinct competitive advantage for dot go, but it becomes at an immediate turn cost.
Typically, when utilizing staffing agency clinicians, we are paying a rate that is about 40% higher as compared to a traditional W-2 employee. After 90 days, we can hire that clinician with no additional fee to the staffing agency. Our goal is to reduce that to 60 days over the course of 2023.
which is not only expected to increase profitability, but also allows us to potentially grow faster as we can better absorb the upfront costs associated with the rapid growth that we are experiencing.
This, as well as other initiatives, such as reducing our usage of rental vehicles while procuring long-term vehicle leases, and our efforts to reduce overtime during project launches are also expected to positively impact margins over the course of the year.
Collectively in 2022 we estimated the combination of all these factors to press margins by approximately 600 basis points.
Fortunately, all of these costs are a byproduct of our substantial growth and we will continue to mitigate these costs over time.
We also expect to drive greater profitability in our medical transportation business in 2023. Specifically, we continue to work to transition existing medical transportation business to at least our model by the end of the year.
Half of our current medical transportation business is fee-for-service, a legacy model that is vulnerable to swings in demand. Our increasingly popular least hour model provides much greater visibility to revenues and margins.
Given the incredibly strong demand for this service by healthcare institutions, it offers an exceptional opportunity to get our foot in the door and expand that relationship into mobile healthcare services, such as our RPM and our ER readmission avoidance programs.
During 2023, we will be repositioning medical transportation assets to service these more lucrative lease-hour contracts while discontinuing service in select markets with lower profitability.
We have already begun discontinuing service in markets, which are not achieving our target margins.
We expect these collective changes to have a material positive impact on medical transportation margins over the course of the year with minimal impact on revenue.
Additionally, it's worth noting that on May 11th of this year, the federal public health emergency is set to expire. We have been preparing for this and it is fully considered in our 2023 revenue and EBITDA guidance.
At this time, I will hand it over to our CFO Norm Rosenberg to review the financials.
Thank you, Anthony, and good afternoon. I'll begin my comments by looking at full year results and then turn to discuss the fourth quarter. Total revenue for the 12 months ended December 31st, 2022, amounted to $440.5 million, representing growth of 38% over total revenue of $318.7 billion.
for the year ended December 31, 2021. Mass COVID testing revenues in 2022 were estimated about $75 million compared to $110 million in 2021, removing these revenues from both periods and revenues increased by 75%. This year-over-year revenue growth was driven by a combination of expanded relationships with existing customers.
2021. Once again, by removing mass COVID testing revenues from both periods, mobile health revenues doubled in 2022.
While our mass COVID testing contracts concluded in September of last year, we do still have standby surge contracts, which will occasionally generate relatively minor amounts of revenue like we saw in Q4. Total transportation revenue was $114.7 million in 2022, up 36% from 2021.
This growth was fueled by both organic and inorganic sources. We witnessed higher trip counts, average price per trip, or what we call APC, and continued adoption of our leased hour model, where we supply an ambulance and related personnel and equipment for a fixed daily or hourly fee. Gross margins improved to 35.1% in 2022, compared to 34.4% in 2021. Mobile health gross margins were 38.9%. After closing our runtime, we Alexa adjusted the Thena hours to
compared to 38.1%, while transportation gross margins were 24.5% virtually unchanged from the 24.7% in 2021. Adjusted EBITDA for 2022 amounted to $41.3 million, up more than 60% from the adjusted EBITDA of $25.1 million for 2021.
Net income for 2022 amounted to $30.7 million, up nearly 60% from $19.2 million in 2021. EPS was 34 cents on both a basic and fully diluted basis in 2022, up from 30 cents on a basic basis and 25 cents on a fully diluted basis in 2021.
Now turning to the fourth quarter, total revenue for the fourth quarter of 2022 amounted to $108.8 million compared to $121.3 million in the fourth quarter of 2021, which included an estimated $49 million in mass COVID testing revenues. By contrast, mass COVID testing revenues represented a relatively insignificant portion of total revenues in 2022's fourth quarter.
Removing these testing revenues from both periods and recurring underlying revenues increased by approximately 49% year over year in the fourth quarter. Mobile health revenue for the fourth quarter of 2022 amounted to $71.8 million as compared to $102.6 million in the fourth quarter of 2021. Once again, looking at recurring mobile health revenues by removing mass COVID testing revenues from both periods and mobile health revenues increased by 32%.
Medical transportation revenue increased significantly to $37 million in Q4 of 2022, nearly doubling from the levels that we saw in the fourth quarter of 2021. Nearly every core transportation market witnessed year-over-year growth in the fourth quarter, and we finished the year with significant momentum.
We recorded net income of about $7.1 million in Q4, compared with net income of $20.3 million in the fourth quarter of 2021. There were several significant non-recurring items in the other income and expense categories that had an impact on the net income in the fourth quarter of 2022. Please refer to the financial statements attached to the earnings release for more detail on these items.
Net income in last year's fourth quarter, of course, included a $5.2 million gain on the remeasurement of warrant liabilities. As you will recall, those warrants were redeemed in Q3 of last year. Adjusted EBITDA for the fourth quarter of 2022 amounted to $6.8 million as compared to adjusted EBITDA of $17.3 million in last year's fourth quarter.
The total gross margin percentage during the fourth quarter of 2022 amounted to 39% as compared to 40.7% for the same period in 2021. Now, gross margins in both periods benefited from items beyond their regular run rate levels. The fourth quarter of 2021 benefited from a surge in COVID testing revenue.
In the fourth quarter of 2022, we recognized significant savings across multiple insurance expense categories and a reduction of certain revenue reserves due to cash collections, which drove margins higher.
During the fourth quarter of 2022, gross margins for the mobile health segment were 43.9% compared to 44.7% for the fourth quarter of 2021. And in the transportation segment, gross margins increased to 29.4% in Q4 of 2022, up from 20.7% in Q4 of 2021.
We recently made the decision to exit the transportation business in California, which we estimate was costing us about $1 million in EBITDA per year. We will continue to operate the mobile health business throughout California. We are at a stage as a company where we have a significant set of opportunities to pursue and we intend to focus on those markets and business lines that offer us the highest expected returns on investment.
Turning to the balance sheet, as of December 31, 2022, our total cash and cash equivalence, including restricted cash, was $164.1 million as compared to $179.1 million as of the end of fiscal 2021 and $179.4 million as of the end of Q3. The reduction in cash during the fourth quarter was due to several factors, including the timing of payments, the
from high quality credit customers which resulted in an increase of approximately 8 million dollars in accounts receivable, 3 million dollars in acquisition payments and capital expenditures and approximately 3.2 million dollars
These factors outweighed the cash that we generated from our regular operations. For the full year operating cash flow was about $29 million. We used $41 million for acquisitions and capital expenditures and we also used for the year a total of $3.7 million on share repurchases during the year.
During the fourth quarter, we bought back approximately 465,000 shares at an average price of $7. We plan to continue to use our balance sheet to support our ongoing stock buyback program where we have approximately $36 million left in our approved program. Combined with our $90 million line of credit, which could potentially be expanded by an additional $50 million.
We have the financial wherewithal to execute buybacks, acquisitions, and to invest in new business lines and projects without the need to raise any new capital. We continue to focus on our capital light model while pursuing selective acquisitions funded by cash flow from operations. With the price of capital increasing in the market, we have the ability to
This provides us with a distinct competitive advantage. Now turning to our 2023 outlook, we anticipate continued strong demand from our customers for both mobile health and transportation services. As Anthony mentioned, our revenue guidance for the year is in the $500 million to $510 million range. While this range would represent year-over-year top-line growth of about 14 to 16 percent.
by organic means and same store sales. We expect that adjusted EBITDA will be in the range of $45 million to $50 million. We expect to finish 2023 at an annual rate for gross margin of approximately 37%, which would be our high water quarter for the year, and an adjusted EBITDA margin of approximately 13%. That concludes my financial comments, and at this time, I'd like to hand it back to the operator to open the call up for Q&A.
We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. 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. One moment please while we pause for questions.
Thank you. Our first question is from Richard Close with Canaccord Genuities. Please proceed with your question.
Yes, thank you. Can you hear me okay?
We can hear you, Richard. Great to hear you again. Great. Congratulations on the year and the outlook. If we could talk about the startup ramp up expenses and maybe the buckets.
the composition of those expenses, like how much of it is labor related versus other costs.
in terms of winning business and starting those contracts. And then with respect to the 180 million in revenue that was won, I guess, since January , beginning of January .
How much in startup expenses do you think is associated with those contracts? Good questions. Good questions. The composition certainly weighted much heavier towards labor.
both labor regarding staffing agencies as well as labor regarding overtime. When we look at 2022,
Just in that time frame, we had subcontractor costs that were around 12 million and over time it was around 14 million, where the other large category or significant category was vehicle rentals, which was around 3 million. Those are the three main categories. There are... And those are all...
standard mature run rate basis.
From there going forward, you know, there was you know those excess costs. So those are the three biggest ones overtime subcontractor and then vehicle rental.
Okay, going forward on the 100. Oh, sorry. Good. Okay.
And on the 180 million on the going forward basis, at the time being, you'll still continue to see similar percentages on those, although they have similar ramps. And just as a reminder, we had disclosed that we plan to have the 180 million fully ramped by the end of Q3.
The only significant difference is that we've already begun our rapid normalization project. And so that will also be kind of coming through to fruition in Q3. So I would expect that the upfront cost on that 180 million will be less than what it has been historically. I hope you like it. You're probably going to enjoy it.
Okay, and just as a follow up on the rapid normalization, will that be fully in place in seeing all the benefits of that with these contracts? Or is that a gradual improvement?
But I would say it's fairly linear in its improvement from February through Q3.
As far as the reduction in those kind of 600 basis points, which is, you know, we currently are getting hit with for the excess costs.
Congratulations, I will jump back in the queue. I'm sure others have a decent number here as well. Thank you. Our next question is from Ryan McDonald with Needham & Company. Please proceed with your questions.
All right, thanks for taking my question. Congrats on a nice quarter. The first question for Lee, as we think about the pipeline you talked about of RFPs, I think 34 sort of up for decision here. How should we think about the expected timelines for those decisions to be rolled out? And when you think about the average size of those RFPs.
say, a couple months on others. Really, the timeline is part of the RFP process from the issuing body of the RFP. So, it really does vary there from weeks to just a couple of months. The average size, we've increased significantly. We had originally started with the size that you just mentioned around the $10 million mark.
but we've increased that substantially to 30 to 50 million is our average submission at this point. So we're going after larger opportunities and we're going after more opportunities.
Super helpful. Thank you. And then Anthony, maybe for you, you talked about obviously the 180Million now that that will be rolled out by 3rd quarter. How should we start to think about that? I guess revenue coming into the model. Is this something that you said over 3 years, like is that recognized radically where you're...
So it's obviously not 60 million immediately, but that 180 is in the current guidance for this year.
And what that allows us to do when you look at. You know, when we look at last year's number of versus versus the guidance that we just gave that 60Million really allows us to explain our entire guidance for this year as opposed to having to use a plug. Helpful and maybe just last 1 for me on the lease our.
What sort of pushback are you getting on sort of the switch, if any?
Medical transportation is in extraordinary demand right now. So for a customer to switch is very, very painful. It's very rare that we find a customer that is not willing to switch. There are extenuating circumstances where 1 may not.
But it is, it's certainly rare. I don't, from a percentage perspective, I don't know which ones will and which ones will not. But what I can say is that we've been speaking about this with our customers for over a year. So they're well informed that when the contract comes up for renewal, that the only option is to renew.
As at least our program, so there will be no surprises to either side if they decide not to go through it, but to switch an ambulance provider right now. Would be very, very painful for any hospital system to do.
Excellent, thanks for the call.
As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
Our next question is from David Grossman with STIFL. Please proceed with your question.
Good afternoon. Thank you. You know, Anthony, I wanted to just first follow up a question just answered about the $180 million backlog coming into revenue. So should we, you know, we assume that that once fully implemented is a $60 million.
ARR kind of, you know, revenue contribution and that you get a quarter of that in 22 or 23 and you get a full year of it in 23. Is that the way to think of it? In other words, does it all come in with revenue pretty much, you know, in the fourth quarter and then, you know, it stays at that level throughout next year?
No, I think that for sure you're at a full run rate basis for all of the 4th quarter, but many of those contracts have already begun rolling out now. Like, as of today, they've already begun rolling out. So, I would say the scale between now to the end of the 4th quarter is fairly.
fairly linear from now until then, but then through the full fourth quarter you're at that full run, you know, kind of revenue run rate that, you know, on an annualized basis.
is not exactly 60, but close enough. Okay, so a linear ramp around 60 million, right? And then you would take the 50 million a quarter into 20, four, I guess, right?
Correct, yeah, then it continues on through, you know, for the next three years into 24 and 25. Right, got it, got it. And then just on the margins, so should we assume that, I thought in your prepared remarks you said you had about a million dollar headwind.
the EBITDA from exiting the transport business in California And then an immaterial impact to revenue it did I catch that right? So that when we look at the 23 guide that includes a million dollar headwind EBITDA
It does, it already includes that. We've already factored that into our guide.
Got it. And then just one last thing I wanted to ask was on the, just how to think about startup expenses. So you've already done a great job of articulating, you know, you're at these elevated levels and you're trying to bring them down. You know, how much, you know, by the time you exit this year it sounds like you feel that
you know, have taken a lot of the costs out of the ramp as a result of some of the staffing, you know, actions that you're taking, as well as on the vehicles. You know, how do you think about when you go into 24, then when you wrap? I mean, do you think you'll have the vast majority of that 600 basis points out of the system?
by the time we exit this year.
No, I think you have about half of it when you, when you think about it, we're at about 120 days today. And we're trying to go down to 60 days. So you're basically cutting your the time period for your startup in half. But then there's certainly that 60 days worth of room to grow and there's additional plans we have to kind of eliminate that 60.
The 60 day period of startup costs on the labor side. I won't go into too much detail here, because I don't want to spoil all the good stuff for next earnings call, but we have a lot of plans for 2024 to get the additional 60 that the 60 days. So that there is actually virtually no startup costs. And we'll begin those initiatives after we get through this rapid normalization initiative.
But the current rapid normalization initiative is to go from 120 to 60, so you can think about it as gaining those kind of 300 basis points of the 600.
Just one last thing for Norm, what should we use for CapEx for 2023? We refer to our capital model where we typically will try to lease instead of buy, but that equation has changed. We know that, right, we're looking at.
and our cost of capital versus what the cost of leasing is and interest rates are going up. I would say in this year, I think we, in 2022, I think we spent about $3 million in change on CapEx. I would expect a somewhat similar number.
And that includes capitalized software? That would include a little bit of capitalized software.
And that includes capitalized software? That would include a little bit of capitalized software, yeah.
a capitalized software? That would include a little bit of capitalized software. Great. All right, guys. Thanks.
Thank you. Our next question is from Richard Close with Canaccord Genuity. Please pursue with your question.
Thanks for the follow-up question. Anthony, when you were talking about Dollar General, you mentioned that you were talking
you had mentioned something with respect to fee-for-service and going forward in the future, you want to be fully in the least rate model. Can you talk a little bit about that in terms of...
You know how you expect that like a relationship maybe like our general to move to the lease our model as well.
Yeah, great question. So there's two approaches. The primary one is to take on similar kind of way that the Ambulance 911 system works, which DOTGO is not really involved in the Ambulance 911 system in the significant degree, but that works by...
The county subsidizes the ambulances because the county needs ambulance services. Without ambulance services, people will get far worse healthcare. If you go to a county as well and you say, well, in your county you have no healthcare institutions are very, very minimal and primary but not urgent or vice versa.
Are you willing to lease this for us for a very, very small amount? Because keep in mind, they're only paying the difference between what we collect on insurance versus the daily minimum, which sometimes can be nothing.
Are you willing to lease this model so that you do have health care in your county?
And when you pair that together with, you know, the prominence and the respect that the Dollar General has in the community, you bring the two together and you basically provide a service to the county where the county is willing for relatively low cost to guarantee that their citizens, they have access to high quality healthcare both on the primary and urgent side. The second approach is you're going to payers.
and you go to payers and they're the ones that are going to pay for that least hour model. We have examples of that today as well. Not with Dollar General, but we have examples elsewhere in our organization where the payers pay on a least hour basis. So those are the two approaches as we continue to expand these pilots. Would the counties, have you had those conversations already and could it be in well received?
local municipality. And that's because the collection rates on these ambulance services are very, very low, which is why DOCGO stays out of 911. But in this case, the collection rates are actually very high. We already see it right now in our ability to fee for service. We just don't want to take risk on demand. So the actual amount the county has to face is very, very low, so the cell is much, much easier for them to have very high risk.
Hi there guys, you've got Kieran Ryan on for PEDO. Thanks for taking the question. First off, I just wanted to confirm this upfront. I believe the last time I checked you weren't including the least hour contracts in the KPIs for your transportation business.
I was just wondering, now that you're kind of putting a bigger focus on the least hour contracts with the one very large one coming through this year, are you going to alter that, how you report those KPIs or anything else to allow us to kind of better track the progress there?
It's an interesting suggestion. I think there's a lot of logic to it. You have to take it back and see what that means. Are we doing at least an hour on revenue or a number of trips or a number of shifts or a number of hours? I think there's a bunch of different ways that you can look at that. But it's certainly an interesting measurement that we focus on internally. So we'll discuss it and look back, but I think it makes a lot of sense.
Yeah, hey, this is Karen. This is Norm. I'll just add to that. I think that as long as the fee-for-service remains a somewhat significant piece of the business, we'll probably continue to track our trip count and our APC, and it becomes very important for us also as a way to explain why the transport margins are so significant.
have gone up very, very nicely, both sequentially and year over year, because our EPC is higher. It's not by accident. We're running higher acuity trips, more advanced life-saving trips, or critical care trips. It's made a very, very big difference, and it's definitely one of the things that's driving margin and something that was part of the plan. What you will notice is when you do the math, if you look at the...
if you look at over time if you look at the trip count multiply by the average price per trip and Then you look at that and compare it to the total amount of transport revenue You'll see that that explain the fee per service piece Explains a smaller and smaller proportion of the overall revenue from from transport with the rest being from the least hour bottle And it's Lee I'll just add one more point which is we've shared every new contract
in your guidance. Can you just give us a little bit more color on the mechanics on how exactly that impacts the business? Thank you.
I'm going to show my ignorance here. P-H-E is
I'm going to show my ignorance here. PHE is... Oops, sorry, the Public Health Emergency.
Oh, thank you. We're all trying to get there. So, yeah, so that the public health emergency, we've been planning on for a long time. And so there's many, it's a very, when that was implemented, it impacted many, many things. And so it's not just one silver bullet to mitigate it, but the biggest part of mitigating.
They're going to, day after that's over, potentially get less from Medicare, get less from managed care organizations. Whereas because of the fact that we do not take fee-for-service business, we're not subjective to those reductions for Medicare changes in the Medicare fee schedule versus telehealth or in-person. from that.
So, we've been planning on this for a long time and structuring contracts in such a way that it doesn't impact us. And again, it's fully baked into the guidance that we gave.
Thanks. Thank you. There are no further questions at this time. I would like to hand the floor back over to Anthony Capone for any closing comments. Thank you.
Thank you, operator. Before we conclude our call for today, I wanted to add that on June 30th of this year, we will be hosting an in-person investor day at NASDAQ's market site at Times Square from 1.30 to 3 p.m. During this session, we will be presenting in detail DocGo's vision for the future of healthcare.
and the hard work of our dedicated 5,000 plus workforce.
Our employees are not only the bedrock of our company, but thousands of them are also partners holding.gov shares and options.
I am sincerely grateful to each and every doco employee for their tireless efforts to help make high quality, highly accessible healthcare a reality and look forward to working together to take doco to greater heights in 2023 and beyond. That concludes our call this evening. Thank you again for joining us and we look forward to working together to make a better life.