Q2 2024 DocGo Inc Earnings Call

August 7, 2024

Operator: Good day everyone, and welcome to the Docgo second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing the star and 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star 2. Please note this call may be recorded. I'll be standing by if you should need any assistance. It is my pleasure to turn the program over to Mike Cole, Vice President of Investor Relations.

Operator: Good day, everyone, and welcome to the DocGo, second quarter, 2024 earnings conference call. At this time, all participants are in listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing the star and one on your telephone keypad. You may withdraw yourself from the queue by pressing star two. Please note this call may be recorded. I'll be standing by if you should need any assistance.

Operator: Hey everyone, and welcome to the Docgo second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing the star and 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star 2. Please note this call may be recorded. I'll be standing by if you should need any assistance. It is my pleasure to turn the program over to Mike Cole, Vice President of Investor Relations.

Good day, everyone and welcome to the Doctor <unk> second quarter 2024 earnings Conference call.

Speaker Change: At this time all participants are in a listen only mode. Later, you will have the opportunity to ask questions. During the question and answer session. You may registered to ask a question at any time by pressing the star and one on your telephone keypad.

You may withdraw yourself from the queue by pressing star two.

Speaker Change: Please note this call may be recorded I'll be standing by if you should need any assistance it.

Mike Cole: It is my pleasure to turn the program over to Mike Cole, Vice President of Investor Relations.

It is my pleasure to turn the program over to Mike Cole Vice President of Investor Relations.

Mike Cole: Thank you, operator.

Mike Cole: Thank you, Operator. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. All statements made in this conference call, other than statements of historical fact, are forward-looking statements. The words may, will, plan, potential, could, goal, outlook, design, anticipate, aim, believe, estimate, expect, intend, guidance, confidence, target, project, and other similar expressions may be used to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance, and we cannot assure you that we will achieve or realize our plans, intentions, outcomes, results, or expectations.

Mike Cole: Thank you operator before turning the call over to management I would like to make the following remarks concerning forward looking statements. All statements made in this conference call other than statements of historical fact are forward looking statements. The words may will plan potential could goal outlook design anticipate believe estimate.

Mike Cole: Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. All statements made in this conference call, other than statements of historical fact, are forward-looking statements. The words may, will, plan, potential, could, goal, outlook, design, anticipate, aim, believe, estimate, expect, intent, guidance, confidence, target, project, and other similar expressions may be used to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance, and we cannot assure you that we will achieve or realize our plans, intentions, outcomes, results, or expectations. Forward-looking statements are inherently subject to substantial risks, uncertainties, and assumptions, many of which are beyond our control and which may cause our actual results or outcomes, or the timing of results or outcomes, to differ materially from those contained in our forward-looking statements.

Mike Cole: Forward-looking statements are inherently subject to substantial risks, uncertainties, and assumptions, many of which are beyond our control and which may cause our actual results or outcomes or the timing of results or outcomes to differ materially from those contained in our forward-looking statements. These risks, uncertainties, and assumptions include but are not limited to those discussed in our risk factors and elsewhere in DACA's annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports and statements filed by DACA with the SEC to which your attention is directed.

Mike Cole: Actual outcomes and results or the timing of results or outcomes may differ materially from what is expressed or implied by these forward-looking statements. In addition, today's call contains references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided directly as part of this call or included in our earnings release or on the current report on Form 8K that includes our earnings release, which is posted on our website, docgo.com, as well as filed with the SEC.

Expect intend guidance confidence target project and other similar expressions may be used to identify such forward looking statements. These forward looking statements are not guarantees of future performance and we cannot assure you that we will achieve or realize our plans intentions outcomes results or expectations forward looking statements are.

Mike Cole: These forward-looking statements are not guarantees of future performance, and we cannot assure you that we will achieve or realize our plans, intentions, outcomes, results, or expectations. Such statements are inherently subject to substantial risks, uncertainties, and assumptions, many of which are beyond our control, and which may cause our actual results or outcomes, or the timing of results or outcomes, to differ materially from those contained in our forward-looking statements. These risks, uncertainties, and assumptions include but are not limited to those discussed in our Risk Factors and Elsewhere and DOCGO's annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports and statements filed by DOCGO with the SEC to which your attention is directed.

Currently subject to substantial risks uncertainties and assumptions many of which are beyond our control and which may cause our actual results or outcomes or the timing of results or outcomes to differ materially from those contained in our forward looking statements. These risks uncertainties and assumptions include but are not limited to those discussed in our risk factors and elsewhere.

Mike Cole: These risks, uncertainties, and assumptions include but are not limited to those discussed in our risk factors and elsewhere in DACA's annual report on Form 10-K, quarterly reports on Form 10-K, and other reports and statements filed by DACA with the SEC to which your attention is directed. Actual outcomes and results, or the timing of results or outcomes, may differ materially from what is expressed or implied by these forward-looking statements.

Speaker Change: <unk> annual report on Form 10-K quarterly reports on Form 10-Q, and other reports and statements filed by <unk> with the SEC to which your attention is directed actual outcomes and results or the timing of the results or outcomes may differ materially from what is expressed or implied by these forward looking statements.

Mike Cole: However, actual outcomes and results, or the timing of results or outcomes, may differ materially from what is expressed or implied by these forward-looking statements. In addition, today's call contains references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided directly as part of this call or included in our earnings release or on the current report on Form 8K that includes our earnings release, which is posted on our website, docgo.com, as well as filed with the SEC.

Mike Cole: In addition, today's call contains references to non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided directly as part of this call or included in our earnings release or on the current report on Form 8-K that includes our earnings release, which is posted on our website. go.com as well as filed with the SEC.

Mike Cole: In addition, today's call contains references to non-GAAP financial measures reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided directly as part of this call or included in our earnings release or on the current report on form 8-K that includes our earnings release, which is posted on our website <unk> dot com as well.

Mike Cole: As filed with the SEC.

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

Mike Cole: The information contained in this call is accurate as of only the date discussed investors should not assume that statements will remain relative and operative at a later time, we undertake no obligation to update any information discussed in this call to reflect events or circumstances. After the date of this call or to reflect new information or the occurrence of unanticipated events, except <unk>.

Mike Cole: 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 to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events, except as to the extent required by law. At this time, it is now my pleasure to turn the call over to Mr. Lee Bienstock, CEO of Docgo. Lee, please go ahead.

Mike Cole: As to the extent required by law at this time. It is now my pleasure to turn the call over to Mr. Levine CEO of Duck out Lee. Please go ahead.

Lee Bienstock: At this time, it is now my pleasure to turn the call over to Mr. Liby and Stock CEO of.go.

Lee Bienstock: Lee, please go ahead. Thank you, Mike, and thank you all for joining us today. We had an excellent performance in the second quarter, recording 164.9 million in revenue and 17.2 million in adjusted EBITDA, driven by strong operational execution while also making substantial progress with new business development and cash collections. We are seeing a lot of momentum working through the sales pipeline. Early this year, we launched an initiative to specifically pursue dialogue with prospective partners across our three customer verticals, as well as partnership opportunities with virtual-only providers who want to utilize our in-person capability to complement their role.

Lee Bienstock: Thank you, Mike, and thank you all for joining us today. We had an excellent performance in the second quarter, recording $164.9 million in revenue and $17.2 million in adjusted EBITDA, driven by strong operational execution while also making substantial progress with new business development and cash collection. We are seeing a lot of momentum working through the sales pipeline. Early this year, we launched an initiative to specifically pursue dialogue with prospective partners across our three customer verticals, as well as partnership opportunities with virtual-only providers who want to utilize our in-person capability to complement their offer.

Mr. Levine: Thank you Mike and thank you all for joining us today.

Mr. Levine: We had an excellent performance in the second quarter recording $164 9 million in revenue and $17 2 million in adjusted EBITDA driven by strong operational execution, while also making substantial progress with new business development and cash collections.

Mike Cole: We are seeing a lot of momentum working through the sales pipeline early this year, we launched an initiative to specifically pursued dialogue with prospective partners across our three customer verticals as well as partnership opportunities with virtual only providers, who want to utilize our in person capability to complement their offerings.

Lee Bienstock: Lawrence. There is no doubt that the healthcare industry is increasingly looking for mobile delivery solutions to create greater access to care while lowering costs. Telemedicine has a number of advantages, but on a standalone basis it also has significant limitations. The dialogue that we're having with these potential strategic partners revolves around DocGo's unique ability to deliver last mile physical care. We are seeing strong results from this effort, with several new relationships in the contracting phase and others working their way through the sales pipeline.

Lee Bienstock: There is no doubt that the healthcare industry is increasingly looking for mobile delivery solutions to create greater access to care while lowering costs. Telemedicine has a number of advantages, but on a stand-alone basis, it also has significant limitations.

Mike Cole: There is no doubt that the health care industry is increasingly looking for mobile delivery solutions to create greater access to care, while lowering costs.

Speaker Change: The medicine has a number of advantages, but on a standalone basis. It also has significant limitations.

Dr. <unk>: <unk> they were having with these potential strategic partners revolves around Dr. <unk> unique ability to deliver last mile physical care. We are seeing strong results from this effort with several new relationships in the contracting phase and others working their way through the sales pipeline.

Lee Bienstock: I'm really excited to share those opportunities with you as a mature. I'm also very proud of our operational execution in Q2. It was a significant undertaking to wind down the downstate migrant-related locations under our contract with HPD, but we did so seamlessly, and we concurrently began the process of right sizing our cost structure accordingly. I think we did an exceptional job managing this process, and we expect to see margin improvement going forward as those right sizing initiatives take hold. We also made significant progress during the quarter with our cash collections. Our cash flow from operations exceeded 35 million in Q2 of 2024, driving up our cash balance by more than 25 million relative to the end of Q1.

Dr. <unk>: I'm really excited to share those opportunities with you as they mature.

Lee Bienstock: I'm also very proud of our operational execution in Q2. It was a significant undertaking to wind down the downstate migrant-related locations under our contract with HPD, but we did so seamlessly, and we concurrently began the process of right-sizing our cost structure accordingly. I think we did an exceptional job managing this process, and we expect to see margin improvement going forward as those rightsizing initiatives take hold. We also made significant progress during the quarter with our cash collection.

Lee Bienstock: I'm also very proud of our operational execution in Q2. It was a significant undertaking to wind down the downstate migrant-related locations under our contract with HPD, but we did so seamlessly, and we concurrently began the process of right-sizing our cost structure accordingly. I think we did an exceptional job managing this process, and we expect to see margin improvement going forward as those right-sizing initiatives take hold. We also made significant progress during the quarter with our cash collection.

Dr. <unk>: I'm also very proud of our operational execution in Q2, it was a significant undertaking to wind down the downstate migrant related locations under our contract with HDD, but we did so seamlessly and we concurrently began the process of right sizing our cost structure. Accordingly, I think we did an exceptional job managing.

Speaker Change: This process and we expect to see margin improvement going forward as those right sizing initiatives take hold.

Speaker Change: We also made significant progress during the quarter with our cash collections our.

Lee Bienstock: Our cash flow from operations exceeded $35 million in Q2 of 2024, driving up our cash balance by more than $25 million relative to the end of Q1. I think it's important to note that the cash balance also reflects the fact that we repurchased approximately $5 million worth of Docgo shares during the period and nearly $10 million since the start of 2024.

Dr. <unk>: Our cash flow from operations exceeded $35 million in Q2 of 2020 for driving up our cash balance by more than $25 million relative to the end of Q1.

Lee Bienstock: I think it's important to note that the cash balance also reflects the fact that we repurchase the approximately $5 million worth of DocGo shares during the period and nearly $10 million since the start of 2024. We continue to work with our large municipal customers to try and normalize the payment process and expect continued strong cash flow from operations over the coming quarters. We expect this to give us the resources to further strengthen our balance sheet, support potential additional stock repurchases, and, of course, continue to support the strong growth we project ahead.

Dr. <unk>: I think it's important to note that the cash balance also reflects the fact that we repurchased approximately $5 million worth of <unk> shares during the period and nearly $10 million since the start of 2024.

Lee Bienstock: We continue to work with our large municipal customers to try and normalize the payment process and expect continued strong cash flow from operations over the coming quarters. We expect this to give us the resources to further strengthen our balance sheet, support potential additional stock repurchases, and, of course, continue to support the strong growth we project ahead. As a result, we are increasing our cash flow from operations guidance from $70 to $80 million to an updated range of $80 to $90 million for 2024.

Dr. <unk>: We continue to work with our large municipal customers to try and normalize the payment process and expect continued strong cash flow from operations over the coming quarters.

Dr. <unk>: We expect this to give us the resources to further strengthen our balance sheet support potential additional stock repurchases and of course continue to support the strong growth. We project ahead.

Lee Bienstock: As a result, we are increasing our cash flow from operations guidance from 70 to 80 million to an updated range of 80 to 90 million for 2024.

Dr. <unk>: As a result, we are increasing our cash flow from operations guidance from $70 million to $80 million to an updated range of $80 million to $90 million for 2024.

Lee Bienstock: We also announced the establishment of a world-class medical advisory board, which includes a prominent group of physicians and specialists from leading national institutions. The advisory board will offer counsel and expertise on our clinical offerings and publish medical research on the impact of the company's programs on patient outcomes. We are excited to leverage their expertise to continue developing innovative healthcare solutions for those that need it most.

Lee Bienstock: We also announce the establishment of a world-class medical advisory board, which includes a prominent group of physicians and specialists from leading national institutions. The advisory board will offer counsel and expertise on our clinical offerings and publish medical research on the impact of the company's programs on patient outcomes. We are excited to leverage their expertise to continue developing innovative healthcare solutions for those that need them most. As I usually do, I would now like to spend some time covering our three key customer verticals, payers and providers, hospital systems, and municipal population health.

Dr. <unk>: We also announced the establishment of a world class Medical Advisory Board, which includes a prominent group of physicians and specialists from leading national institutions.

Dr. <unk>: The advisory Board, where offer counsel and expertise on our clinical offerings and publish in medical research on the impact of the company's programs on patient outcomes.

Dr. <unk>: We are excited to leverage their expertise to continue developing innovative health care solutions for those that need it most.

Lee Bienstock: As I usually do, I would now like to spend some time covering our three key customer verticals: payers and providers, hospital systems, and municipal population health. In our payer and provider customer vertical, we have had a flurry of recent contract wins, with several of those opportunities having considerable room for expansion over time. One key leading indicator for this vertical is the number of patients. Co has been assigned for CareGap Closure Services, and we have more than doubled that number on a sequential basis in Q2 over Q1. We are seeing strong results from these programs, and the customer ROI is becoming increasingly apparent.

Lee Bienstock: In our payer and provider customer vertical, we have had a flurry of recent contract wins, with several of those opportunities having considerable room for expansion over time. One key leading indicator for this vertical is the number of patients Docgo has been assigned for care gap closure services, and we have more than doubled that number on a sequential basis in Q2 over Q1. We are seeing strong results from these programs, and the customer ROI is becoming increasingly apparent.

Dr. <unk>: As I, usually do I would now like to spend some time covering our three key customer verticals payers and providers hospital systems and municipal population health.

Lee Bienstock: In our payer and provider customer vertical, we have had a flurry of recent contract wins with several of those opportunities having considerable room for expansion over time. One key leading indicator for this vertical is the number of patients Docgo has been assigned for Care Gap Closure services, and we have more than doubled that number on a sequential basis in Q2 over Q1. We are seeing strong results from these programs, and the customer ROI is becoming increasingly apparent.

Dr. <unk>: And our payer and provider customer vertical we have had a flurry of recent contract wins with several of those opportunities having considerable room for expansion over time.

Dr. <unk>: One key leading indicator for this vertical is the number of patients <unk> has been assigned for care gap closure services and we have more than double that number on a sequential basis in Q2 over Q1.

Dr. <unk>: We are seeing strong results from these programs and the customer ROI is becoming increasingly apparent.

Lee Bienstock: here. For example, one of our customers has observed a 50% reduction in all-cause readmissions for complex patients that receive our care post-discharge. In addition, our quality measure and care gap closure programs enable payers to maintain or improve quality ratings, which can further impact payer financials in a material way. During the second quarter, we added a top 10 payer in Southern California, and plans are in place to expand with that same customer in New York. Our work with hospital systems continues to perform well. We had a new medical transport; we had new medical transport wins in New York and Delaware, with key extensions in New Jersey and the UK.

Lee Bienstock: For example, one of our customers has observed a 50% reduction in all-cause readmissions for complex patients that receive our care post-discharge. In addition, our Quality Measure and Care Gap Closure programs enable payers to maintain or improve quality ratings, which can further impact payer financials in a material way. During the second quarter, we added a top 10 payer in Southern California, and plans are in place to expand with that same customer in New York. Our work with hospital systems continues to perform well.

Dr. <unk>: For example, one of our customers has observed a 50% reduction in all cause readmissions for complex patients that received our care post discharge. In addition, our quality measure eye care gap closure programs enable payers to maintain or improve quality ratings, which can further impact payer financials in a.

Dr. <unk>: Serial way during the second quarter, we added a top 10 player in southern California, and plans are in place to expand with that same customer in New York.

Dr. <unk>: Our work with hospital systems continues to perform well.

Lee Bienstock: We had a new medical transport service, we had new medical transport wins in New York and Delaware with key extensions in New Jersey and the UK. Overall, we saw 13% revenue growth to date in 2024 compared to the first half of 2023, and we still expect medical transportation to grow in the neighborhood of 15% or more annually over the near term. We're in the final stages of contracting with one of the largest hospital networks in New Jersey for a mobile health program to provide physicals and wellness checks to their enterprise customers located across the state.

Lee Bienstock: We had a new medical transport service; we had new medical transport wins in New York and Delaware with key extensions in New Jersey and the UK. Overall, we saw 13% revenue growth to date in 2024 compared to the first half of 2023. And we still expect medical transportation to grow at a rate of 15% or more annually over the near term. We're in the final stages of contracting with one of the largest hospital networks in New Jersey for a mobile health program to provide physicals and wellness checks to their enterprise customers located across the state, and we're seeing increased interest from major health systems for our transitional care management mobile health offerings, remote patient monitoring, virtual care management, readmission reductions, and more, all of which are designed to help keep patients out of the hospital and healthy in their homes.

Speaker Change: Had a new medical transport, we had new medical transport wins in New York, and Delaware with key extensions in New Jersey, and the U K.

Lee Bienstock: Overall, we saw 13% revenue growth today in 2024 compared to the first half of 2023, and we still expect medical transportation to grow in the neighborhood of 15% or more annually over the near term. We're in the final stages of contracting with one of the largest hospital networks in New Jersey for a mobile health program to provide physical and wellness checks to their enterprise customers located across the state, and we're seeing increased interest from major helping systems for our transitional care management mobile health offering, remote patient monitoring, virtual care management, and readmission reductions and more, all of which are designed to help keep patients out of the hospital and healthy in their homes.

Dr. <unk>: Overall, we saw 13% revenue growth to date in 2024 compared to the first half of 2023, and we still expect medical transportation to grow in the neighborhood of 15% or more annually over the near term.

Dr. <unk>: We're in the final stages of contracting with one of the largest hospital networks in New Jersey for a mobile health program to provide physical and wellness checks to their enterprise customers located across the state and we're seeing increased interest from major health systems for our transitional care management mobile health offering remote patient monitoring virtual care management.

Lee Bienstock: And we're seeing increased interest from major health systems for our transitional care management mobile health offerings, remote patient monitoring, virtual care management, readmission reductions, and more, all of which are designed to help keep patients out of the hospital and healthy in their homes. In our Municipal Population Health Vertical, we recently launched our first mobile X-ray program for the City of New York and are planning seasonal vaccination programs for clients in Texas, New York, and Washington, D.C.

Dr. <unk>: And readmission reduction and more all of which are designed to help keep patients out of the hospital and healthy in their homes.

Lee Bienstock: In our municipal population health vertical, we recently launched our first mobile X-ray program for the city of New York, and our planning seasonal vaccination programs for clients in Texas, New York, and Washington DC. In addition, we won a project from the state of New Mexico to provide nursing care and mobile vaccination clinics, nursing call centers across the state, and behavioral health services for the New Mexico Behavioral Health Institute. Separately, we want a contract to provide X-ray technicians at multiple sites for a new customer in Arizona, and lastly, we're proud of the deep clinical expertise and mobile health care services we've provided as part of the humanitarian response in New York.

Lee Bienstock: In our Municipal Population Health Vertical, we recently launched our first mobile X-ray program for the City of New York and are planning seasonal vaccination programs for clients in Texas, New York, and Washington, D.C. In addition, we won a project from the state of New Mexico to provide nursing care and mobile vaccination clinics, nursing call centers across the state, and behavioral health services for the New Mexico Behavioral Health Institute. In addition, we won a contract to provide x-ray technicians at multiple sites for a new customer in Arizona.

Dr. <unk>: And our municipal population health vertical we recently launched our first mobile X-ray program for the city of New York, and our planning seasonal vaccination programs for clients in Texas, New York and Washington DC. In addition.

Lee Bienstock: In addition, we won a project from the state of New Mexico to provide nursing care and mobile vaccination clinics, nursing call centers across the state, and behavioral health services for the New Mexico Behavioral Health Institute. Separately, we want a contract to provide x-ray technicians at multiple sites for a new customer in Arizona.

Dr. <unk>: We won a project from the state of New Mexico to provide nursing care and mobile vaccination clinics nursing call centers across the state and behavioral health services for the New Mexico Behavioral Health Institute.

Dr. <unk>: Separately, we won a contract to provide X-ray technicians at multiple sites for a new customer in Arizona.

Lee Bienstock: And lastly, we're proud of the deep clinical expertise and mobile health care services we've provided as part of the humanitarian response in New York. In Q2 alone, our clinicians facilitated nearly 200,000 patient interactions on these programs, including 150,000 behavioral health encounters and nearly 50,000 medical encounters, including over 42,000 for intake and triage, 8,000 vaccinations, and 2,600 quantifier blood tests. This is all in keeping with our historical municipal work, bringing care to vulnerable patients across various public health initiatives for many populations, including uninsured individuals, the LGBTQ+ community, both sheltered and unsheltered homeless populations, and newly arrived asylum seekers outside a traditional medical setting.

Lee Bienstock: And lastly, we're proud of the deep clinical expertise and mobile healthcare services we've provided as part of the humanitarian response in New York. In Q2 alone, our clinicians facilitated nearly 200,000 patient interactions on these programs, including 150,000 behavioral health encounters and nearly 50,000 medical encounters, including over 42,000 for intake and triage, 8,000 vaccinations, and 2,600 quantification blood tests. This is all in keeping with our historical municipal work, bringing care to vulnerable patients across various public health initiatives for many populations, including uninsured individuals, the LGBTQ+ community, both sheltered and unsheltered homeless populations, and newly arrived asylum seekers outside of traditional medical settings.

Dr. <unk>: And lastly, we're proud of the deep clinical expertise in mobile health care services, we provided as part of the humanitarian response in New York.

Lee Bienstock: In Q2 alone, our clinicians have facilitated over nearly 200,000 patient interactions on these programs, including 150,000 behavioral health encounters and nearly 50,000 medical encounters, including over 42,000 for intake and triage, 8,000 vaccinations, and 2,600 quantifier on blood tests. This is all in keeping with our historical municipal work bringing care to vulnerable patients across various public health initiatives for many populations, including uninsured individuals, the LGBTQ plus community, both sheltered and unsheltered homeless populations, and newly arrived the sound seekers outside of traditional medical settings.

Dr. <unk>: In Q2 alone our clinicians have facilitated over nearly 200000 patient interactions on these programs, including 150000 behavioral health encounters and nearly 50000 medical encounters including over 42000 for intake in triage 8000 vaccination in 'twenty 600 quantify around blood.

Dr. <unk>: This is all in keeping with our historical municipal work, bringing care to vulnerable patients across various public health initiatives for many populations, including uninsured individuals the LGBTQ plus community both sheltered in unchartered homeless populations and newly arrived asylum seekers outside of true.

Dr. <unk>: Additional medical settings.

Lee Bienstock: Collectively, we are performing in line with the guidance announced as part of last quarter's earnings relief and reaffirming our 2020-24 guidance of 600 to 650 million in revenue and 65 to 75 million in adjusted EBITDA, while raising our cash flow from operations expectations to 80 to 90 million, up from 70 to 80 million. Additionally, we continue to expect revenues from our base business to show strong sequential growth in the second half of 2024 and be approximately 400 million in 2025. I want to reiterate that the 2025 revenue expectation in our base business is not overall revenue guidance for 2025, given we expect some migrant-related revenues next year.

Lee Bienstock: Collectively, we are performing in line with the guidance announced as part of last quarter's earnings relief and reaffirming our 2020-2024 guidance of $600 to $650 million in revenue and $65 to $75 million in adjusted EBITDA while raising our cash flow from operations expectation to $80 to $90 million, up from $70 to $80 million. Additionally, we continue to expect revenues from our base business to show strong sequential growth in the second half of 2024 and be approximately $400 million in 2025.

Speaker Change: Collectively we are performing in line with the guidance announced as part of last quarter's earnings release, and reaffirming our 2000 2024 guidance of $600 million to $650 million in revenue and $65 million to $75 million and adjusted EBITDA, while raising our cash flow from operations expectation to $80 million to $90 million up.

Dr. <unk>: $70 million to $80 million. Additionally, we continue to expect revenues from our base business to show strong sequential growth in the second half of 2024 and be approximately $400 million in 2025.

Lee Bienstock: I want to reiterate that the 2025 revenue expectation for our base business is not overall revenue guidance for 2025, given we expect some migrant-related revenues next year. I think one of the most important takeaways from the quarter would be the quality and quantity of new opportunities entering the pipeline. As we work with New York City to coordinate a tapering down of migrant-related work, it has freed up considerable bandwidth to pursue other opportunities.

Lee Bienstock: I want to reiterate that the 2025 revenue expectation for our base business is not overall revenue guidance for 2025, given we expect some migrant related revenues next. I think one of the most important takeaways from the quarter would be the quality and quantity of new opportunities entering the pipeline. As we work with New York City to coordinate a tapering down of migrant-related work, it has freed up considerable bandwidth to pursue other opportunities.

Speaker Change: I want to reiterate that the 2025 revenue expectation in our base business is not overall revenue guidance for 2025, given we expect some migrant related revenues next year.

Lee Bienstock: I think one of the most important takeaways from the quarter would be the quality and quantity of new opportunities entering the pipeline as we work with New York City to coordinate a tapered down of migrant-related work. It has freed up considerable bandwidth to pursue other opportunities. As I mentioned, some of these opportunities are maturing to the contracting phase, and I expect multiple new programs to roll out in the second half of 2024. This will directly complement our traditional RFP channel and provide another conduit for growth. At the end of the day, we have the technology, logistical infrastructure, and balance sheet to offer large scale last mile deployments with national health care providers, payers, hospitals, and municipalities.

Speaker Change: I think one of the most important takeaways from the quarter would be the quality and quantity of new opportunities entering the pipeline.

Speaker Change: As we work with New York City to coordinate a taper down of micro related work. It is freed up considerable bandwidth to pursue other opportunities as I mentioned some of these opportunities are maturing to the contracting phase and I expect multiple new programs to rollout in the second half of 2024. This will directly complement our traditional RFP.

Lee Bienstock: As I mentioned, some of these opportunities are maturing to the contracting phase, and I expect multiple new programs to roll out in the second half of 2024. This will directly complement our traditional RFP channel and provide another conduit for growth. At the end of the day, we have the technology, logistical infrastructure, and balance sheet to offer large-scale, last-mile deployments with national healthcare providers, payers, hospitals, and municipalities. Combine that with the very broad scope of clinical services that Docgo offers, and we feel we are in an excellent strategic position going forward. I will now hand over the call to Norm to cover the financials. Norm, please go ahead.

Speaker Change: And provide another conduit for growth.

Speaker Change: At the end of the day, we have the technology logistical infrastructure and balance sheet to offer large scale last mile deployments with national health care providers payers and hospitals and municipalities.

Lee Bienstock: Combine that with the very broad scope of clinical services that DocGo, DocGo offers, and we feel we are in an excellent strategic position going forward.

Speaker Change: And by that with the very broad scope of clinical services that <unk> offers and we feel we are in an excellent strategic position going forward.

Norman Rosenberg: I will now hand over the call to Norm to discover the financials.

Speaker Change: Now handover the call to norm to cover the financials norm. Please go ahead. Thank.

Norman Rosenberg: Norm, please go ahead. Thank you, Lee, and good afternoon. Total revenue for the second quarter of 2024 was $164.9 million, a 31% increase from the second quarter of 2023. Mobile Health revenue for the second quarter of 2024 was $116.7 million, a 46% increase from the second quarter of 2023. We experienced growth across several projects, business lines, and geographies. However, the bulk of the year-over-year revenue gains related to the migrant-related projects we operated in New York for both HPD and H&H.

Norm: Thank you, Lee, and good afternoon. Total revenue for the second quarter of 2024 was $164.9 million, a 31% increase from the second quarter of 2023. Mobile health revenue for the second quarter of 2024 was $116.7 million, up 46% from the second quarter of 2023. We experienced growth across several projects, business lines, and geographies.

Norm: Thank you Lee and good afternoon total.

Norm: Total revenue for the second quarter of 2024 was $164 9, Million% to 31% increase from the second quarter of 2023 mobile health revenue for the second quarter of 2024 was $116 7 million up 46% from the second quarter of 2023, we experienced growth across several projects business.

Norm: However, the bulk of the year-over-year revenue gains were related to the migrant-related projects we operated in New York for both HPD and H&H. As we projected on our last earnings call, these migrant-related revenues declined sequentially in Q2, reflecting the wind-down of some sites in New York City, which began in mid-May. These migrant-related revenues are expected to continue to decline sequentially as we go through the rest of 2024.

Speaker Change: <unk> lines and geographies. However, the bulk of the year over year revenue gains related to the migrant related projects. We operated in New York for both HBV at HMH as we projected on our last earnings call. These migrant related revenues declined sequentially in Q2, reflecting the wind down of some sites in New York City, which began in mid May These migrant related.

Norman Rosenberg: As we projected on our last earnings call, these migrant-related revenues declined sequentially in Q2, reflecting the wind down of some sites in New York City, which began in mid-May. These migrant-related revenues are expected to continue to decline sequentially as we go through the rest of 2024. Transportation services revenue increased to $48.2 million in Q2 of 2024, which was 6% higher than the transport revenues we recorded in the second quarter of 2023. The largest gains occurred in our three biggest markets, New York, Pennsylvania, and the UK. In the second quarter, mobile health revenue is accounted for about 71% of total revenues and transport for the remaining 29%.

Norm: Revenues are expected to continue to decline sequentially as we go through the rest of 2024.

Norm: Transportation services revenue increased to $48.2 million in Q2 of 2024, which was 6% higher than the transport revenues we recorded in the second quarter of 2023. The largest gains occurred in our three biggest markets, New York, Pennsylvania, and the U.K. In the second quarter, mobile health revenues accounted for about 71% of total revenues, and transport for the remaining 29%. Net income was $5.9 million in Q2 of 2024 compared with net income of $1.3 million in the second quarter of 2023.

Speaker Change: Transportation services revenue increased to $48 2 million in Q2 of 2024, which was 6% higher than the transport revenues. We recorded in the second quarter of 2023, the largest gains occurred in our three biggest markets, New York, Pennsylvania, and the U K in the second quarter mobile health revenues accounted for about 71% of total <unk>.

Speaker Change: Revenues and transport for the remaining 29%.

Norman Rosenberg: Net income was $5.9 million in Q2 of 2024 compared with net income of $1.3 million in the second quarter of 2023. The higher net income reflects higher revenues and wider margins.

Norm: Net income was $5 9 billion in Q2 of 2024 compared with net income of $1 3 million in the second quarter of 2023, the higher net income reflects higher revenues and wider margins.

Norm: The higher net income reflects higher revenues and wider margins. Adjusted EBITDA for the second quarter of 2024 was $17.2 million, up from $9.1 million in last year's second quarter. The adjusted EBITDA margin was 10.4% in Q2, up from 7.3% in the second quarter of 2023. This was the third consecutive quarter of double-digit adjusted EBITDA margin. As you saw in our earnings release, beginning with the second quarter, we are now presenting both GAAP gross margin and adjusted gross margin. GAAP gross margin includes depreciation charges and the cost of goods sold, while adjusted gross margin does not factor in depreciation charges.

Norm: The higher net income reflects higher revenues and wider margins. Adjusted EBITDA for the second quarter of 2024 was $17.2 million, up from $9.1 million in last year's second quarter. The adjusted EBITDA margin was 10.4% in Q2, up from 7.3% in the second quarter of 2023. This was the third consecutive quarter of double-digit adjusted EBITDA margins. As you saw in our earnings release, beginning with the second quarter, we are now presenting both GAAP gross margin and adjusted gross margin. GAAP gross margin includes depreciation charges and the cost of goods sold, while adjusted gross margin does not factor in depreciation charges.

Norman Rosenberg: Adjusted EBITDA for the second quarter of 2024 was $17.2 million, up from $9.1 billion in last year's second quarter. The adjusted EBITDA margin was 10.4% in Q2, up from 7.3% in the second quarter of 2023. This was the third consecutive quarter of double-digit adjusted EBITDA margins.

Speaker Change: Adjusted EBITDA for the second quarter of 2024 was $17 2 million up from $9 $1 billion in last year's second quarter. The adjusted EBITDA margin was 10, 4% in Q2 up from seven 3% in the second quarter of 2023. This was the third consecutive quarter of double digit adjusted.

Speaker Change: EBITDA margins.

Norman Rosenberg: As you've seen in our earnings release, beginning with the second quarter, we are now presenting both GAAP gross margin and adjusted gross margin. GAP gross margin includes depreciation charges in the cost of goods sold, while adjusted gross margin does not factor in depreciation charges. For the purpose of comparing our historically reported numbers, please note that what we have starkly referred to as gross margin is now and will henceforth be referred to as adjusted gross margin. We have included a reconciliation table in our earnings release to clarify this and to allow for clean year-over-year comparison.

Norm: As you've seen in our earnings release, beginning with the second quarter. We are now presenting both GAAP gross margin and adjusted gross margins GAAP gross margin includes depreciation charges and the cost of goods sold while adjusted gross margin does not factor in depreciation charges for the purpose of comparing our historically reported numbers. Please note that what we have historically referred.

Norm: For the purpose of comparing our historically reported numbers, please note that what we have historically referred to as gross margin is now and will henceforth be referred to as adjusted gross margin. We have included a reconciliation table in our earnings release to clarify this and to allow for a clean year-over-year comparison. Total gap gross margin percentage during the second quarter of 2024 was 31.3%, up from 30.3% in the second quarter of 2023.

Speaker Change: Two as gross margin is now and will henceforth be referred to as adjusted gross margin. We have included a reconciliation table in our earnings release to clarify this and to allow for clean year over year comparisons.

Norman Rosenberg: Lewis. Total gap gross margin per cent during the second quarter of 2024 was 31.3 percent. From 30.3 percent in the second quarter of 2023, the adjusted gross margin was 33.9 percent compared to 33.4 percent in the second quarter of 2023. During 2024 to date, we've seen solid improvements in both overtime rates and subcontractor costs in the mobile health area. During the second quarter of 2024, subcontracted labor accounted for 24 percent of total labor costs as compared to 21 percent in the second quarter of 2023. The year-over-year increase was driven primarily by the migrant-related projects, which tend to feature more subcontracted labor than to our core mobile health projects.

Speaker Change: Total GAAP gross margin percentage during the second quarter of 2024 was 31, 3% up from 33% in the second quarter of 2023. The adjusted gross margin was 33, 9% compared to 33, 4% in the second quarter of 2023 during 2024 to date, we've seen solid improvements in <unk>.

Norm: The adjusted gross margin was 33.9%, compared to 33.4% in the second quarter of 2023. During 2024 so far, we've seen solid improvements in both overtime rates and subcontractor costs in the mobile health area. During the second quarter of 2024, subcontracted labor accounted for 24% of total labor costs, as compared to 21% in the second quarter of 2023. The year-over-year increase was driven primarily by migrant-related projects, which tend to feature more subcontracted labor than do our core mobile health projects.

Speaker Change: Both overtime rates and subcontractor costs in the mobile help area. During the second quarter of 2024 subcontracted labor accounted for 24% of total labor cost as compared to 21% in the second quarter 2023, the year over year increase was driven primarily by the migrant related projects, which tend to feature more subcontracted Lee.

Speaker Change: <unk> been to our core mobile health projects. However, sub contracted labor has declined sequentially since peaking in the fourth quarter of last year at over 30% of total labor cost and we expect this decline to continue over the remainder of 2024 overtime accounted for six 7% of total hours worked in the second quarter of 2020.

Norm: However, subcontracted labor has declined sequentially since peaking in the fourth quarter of last year at over 30% of total labor costs, and we expect this decline to continue over the remainder of 2024. Overtime accounted for 6.7% of total hours worked in the second quarter of 2024, compared to 9% in the second quarter of 2023. Overtime hours have declined as a percentage of total hours in each of the last four quarters.

Norm: However, subcontracted labor has declined sequentially since peaking in the fourth quarter of last year at over 30% of total labor costs, and the expectation is for it to decline further over the remainder of 2024. Overtime accounted for 6.7% of total hours worked in the second quarter of 2024, compared to 9% in the second quarter of 2023. Overtime hours have declined as a percentage of total hours in each of the last four quarters.

Norman Rosenberg: However, subcontracted labor has declined sequentially since peaking in the fourth quarter of last year at over 30 percent of total labor costs. And we expect this decline to continue over the remainder of 2024. Over time accounted for 6.7 percent of total hours worked in the second quarter of 2024 compared to 9 percent in the second quarter of 2023. Over time, hours have declined as a percentage of total hours in each of the last four quarters. While there's still some room for further improvement, we're getting very close to our target of 5 percent of total hours worked.

Speaker Change: Four compared to 9% in the second quarter of 2023 overtime hours have declined as a percentage of total hours in each of the last four quarters. While there is still some room for further improvement, we're getting very close to our target of 5% of total hours worked.

Norm: While there's still some room for further improvement, we're getting very close to our target of 5% of total hours worked. For example, during the second quarter of 2024, adjusted gross margin from the mobile health segment was 35.9 percent, compared to 34.9 percent in the second quarter of 2023. Adjusted gross margins for the mobile health segment have now improved for three consecutive quarters since the third quarter of 2023, which had been impacted by significant project launch and ramp-up related costs relating to the migrant program.

Norm: While there's still some room for further improvement, we're getting very close to our target of 5% of total hours worked. For example, during the second quarter of 2024, adjusted gross margin from the mobile health segment was 35.9% compared to 34.9% in the second quarter of 2023. Adjusted gross margins for the mobile health segment have now improved for three consecutive quarters since the third quarter of 2023, which had been impacted by significant project launch and ramp-up related costs relating to the MIHRM program.

Speaker Change: During the second quarter of 2024, adjusted gross margin from the mobile Health segment was 35, 9% compared to 34, 9% in the second quarter of 2023, adjusted gross margins for the mobile health segments have now improved for three consecutive quarters since the third quarter of 2023, which had been impacted by significant project launch and ramp up really.

Norman Rosenberg: During the segment was 35.9 percent compared to 34.9 percent in the second quarter of 2023. Adjusted gross margins for the mobile health segment have now improved for three consecutive quarters since the third quarter of 2023, which had been impacted by significant project launch and ramp-up related costs relating to the migrant programs. In the transportation segment, adjusted gross margins were 29.1 percent in Q2, down from 30.7 percent in Q2 of 2023. Transportation margins and Q2 were impacted by increased subcontractor costs in one of our markets as we were not able to hire quickly enough to align with the timing of an increase in volumes from certain customers.

Speaker Change: Cost relating to the Biogen programs.

Norm: In the transportation segment, adjusted gross margins were 29.1% in Q2, down from 30.7% in Q2 of 2023. Transportation margins in Q2 were impacted by increased subcontractor costs in one of our markets, as we were not able to hire quickly enough to align with the timing of an increase in volumes from certain customers.

Speaker Change: In the transportation segment adjusted gross margins were 29, 1% in Q2 down from 37% in Q2 of 2023 transportation margins in Q2 were impacted by increased subcontractor costs and one of our markets as we were not able to hire quickly enough to align with the timing of an increase in volumes from certain.

Norm: Looking ahead, however, we expect that transportation gross margins will improve at the current level in Q3 and beyond, despite some anticipated wage pressures in certain geographies, as the market for EMTs remains tight, and they should be back above 30% as they have been for the past four quarters prior to Q3. Looking at operating costs, SG&A as a percentage of total revenues was 27.7% in the second quarter of 2024, much lower than the 32.1% seen in the second quarter of 2023. We executed a targeted reduction in force during Q1, which resulted in some cost savings that were realized in Q2.

Norman Rosenberg: Looking ahead, however, we expect the transportation gross margins will improve in the current level in Q3 and beyond, despite some anticipated wage pressures and certain geographies, as the market for EMTs remains tight. And they should be back above 30 percent, as they have been for the past four quarters prior to Q2. Looking at operating costs, SQNA as a percentage of total revenues was 27.7 percent in the second quarter of 2024, much lower than the 32.1 percent seen in the second quarter of 2023. We executed a targeted reduction in forced during Q1, which resulted in some cost savings that were realized in Q2.

Speaker Change: Customers looking ahead. However, we expect the transportation gross margins will improve from the current level in Q3 and beyond despite some anticipated wage pressures in certain geographies as the market for MTS remains tight and it should be back above 30% as they have been for the past four quarters prior to Q2.

Speaker Change: Looking at operating costs SG&A as a percentage of total revenues was 27, 7% in the second quarter of 2020 for much lower than the 32, 1% seen in the second quarter of 2020, we executed a targeted reduction enforced during Q1, which resulted in some cost savings that were realized in Q2.

Norman Rosenberg: We took a big step forward in the second quarter toward our goal of fortifying our balance sheet. As of June 30, 2024, our total cash and cash equivalence, including restricted cash, was $85.8 million as compared to $58.9 million as of the end of the first quarter of 2024 and also higher than the $72.2 million we add on our balance sheet as of the end of 2023. The increase in cash was driven by strong collections during the second quarter, which also resulted in it declining our accounts receivable compared to both those at the end of the first quarter and the levels at the end of 2023.

Norm: We took a big step forward in the second quarter toward our goal of fortifying our balance sheet. As of June 30, 2024, our total cash and cash equivalents, including restricted cash, were $85.8 million, as compared to $58.9 million at the end of the first quarter of 2024 and also higher than the $72.2 million we had on our balance sheet as of the end of 2023. The increase in cash was driven by strong collections during the second quarter, which also resulted in a decline in our accounts receivable compared to both those at the end of the first quarter and the levels at the end of 2023.

Speaker Change: We took a big step forward in the second quarter toward our goal of fortifying our balance sheet as of June 32024, our total cash and cash equivalents, including restricted cash was $85 8 million as compared to $58 9 million at the end of the first quarter of 2024 and also higher than the $72 2 million.

Operator: Good day everyone, and welcome to the docgo, second quarter, 2024 earnings conference call. At this time, all participants are in a listen only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one on your telephone keypad. You may withdraw yourself from the queue by pressing star two. Please note this call may be recorded. I'll be standing by if you should need any assistance.

Speaker Change: We had on our balance sheet as of the end of 2023. The increase in cash was driven by strong collections. During the second quarter, which also resulted in a decline in our accounts receivable compared to both those at the end of the first quarter and the levels at the end of 2023, specifically looking at our project with New York City's Department of housing preservation that development HBK.

Norm: Specifically, looking at our project with New York City's Department of Housing Preservation and Development, HPD, as of today, we have collected more than 99% of the year-end 2023 accounts receivable for this project. And we've received assurances from our partners at the city that we will be paid for the services provided under the terms of the contract.

Norman Rosenberg: Specifically, looking at our project with New York City's Department of Housing Preservation Development, HPD, as of today we have collected more than 99 percent of the year-end 2023 accounts receivable for this project, and we've received assurances from our partners at the city that we will be paid for the services provided under the terms of the country.

Mike Cole: It is my pleasure to turn the program over to Mike Cole, Vice President of Investor Relations. Thank you operator.

Speaker Change: As of today, we have collected more than 99% of the year end 2023 accounts receivable for this project.

Speaker Change: And we've received assurances from our partners at the city that will be paid for the services provided under the terms of the contract at.

Norman Rosenberg: Correct. At quarter end, we had approximately $185 million in our accounts receivable from the various migrant programs, which represented about 72% of our total company AR. That compares to $210 million in accounts receivable from these various migrant programs as of the end of Q1, which represented about 75% of total AR. Our day sales outstanding, or DSO, which we calculate based on trailing 12 month revenues, came out to 127 days at the end of Q2, which was down from 147 days at the end of Q1, but still higher than the 96 days sales outstanding at this point last year, which was, of course, before the migrant-related programs ramped up.

Norm: At quarter end, we had approximately $185 million in our accounts receivable from the various migrant programs, which represented about 72% of our total company AR. That compares to $210 million in accounts receivable from these various migrant programs as of the end of Q1, which represented about 75% of total AR. Our Day Sales Outstanding, or DSO, which we calculate based on trailing 12-month revenues, came out to 127 days at the end of Q2, which was down from 147 days at the end of Q1, but still higher than the 96-day sales outstanding at this point last year, which was, of course, before the migrant-related programs ramped up.

Speaker Change: At quarter end, we had approximately $185 million in our accounts receivable from the various micro programs, which represented about 72% of our total company AAR that compares to $210 million in accounts receivable from these various micron programs as of the end of Q1, which represented about 75% of total here.

Speaker Change: Our days sales outstanding or DSO, which we calculated based on trailing 12 month revenues came out to 127 days at the end of Q2, which was down from 140 147 days at the end of Q1, but still higher than the 96 days sales outstanding at this point last year, which was of course before the migrant related programs ramped up.

Mike Cole: Forward-looking statements are inherently subject to substantial risks, uncertainties, and assumptions, many of which are beyond our control and which may cause our actual results or outcomes or the timing of results or outcomes to differ materially from those contained in our forward-looking statements. These risks, uncertainties, and assumptions include but are not limited to those discussed in our risk factors and elsewhere in DACA's annual report on Form 10K, quarterly reports on Form 10K, and other reports and statements filed by DACA with the SEC to which your attention is directed. Actual outcomes and results or the timing of results or outcomes may differ materially from what is expressed or implied by these forward-looking statements.

Norm: As these migrant-related programs continue to wind down over the second half of 2024, our balance sheet is expected to benefit substantially as we collect this AR and bring our DSO more closely in line with their historical levels, leading to an improvement in cash flow from operations. In addition to working capital needs, during Q2, we used our cash balances to execute our stock buyback program. During the quarter, we repurchased about 1.4 million shares for an aggregate amount of approximately $4.9 million.

Speaker Change: As these migrant related programs continue to wind down over the second half of 2024, our balance sheet is expected to benefit substantially as we collect this AAR.

Speaker Change: And bring our DSO more closely in line with the historical levels, leading to an improvement in cash flow from operations.

Norman Rosenberg: In addition to working capital uses during Q2, we used our cash balances to execute our stock buyback program. During the quarter, we repurchased about 1.4 million shares for an aggregate amount of approximately $4.9 million. We spent approximately $10 million so far on our repurchases this year, and we recently authorized a new repurchased program through the end of the year of up to $26 million, which was the approximate amount remaining under the prior authorization that had expired on July 30th, 2024. As we mentioned on last quarter's earnings call, we expect sequentially lower migrant-related revenue over the remainder of the year due to the ongoing wind down of certain migrant projects.

Speaker Change: In addition to working capital uses during Q2, we used our cash balances to execute our stock buyback program during the quarter, we repurchased about one 4 million shares for an aggregate amount of approximately $4 9 billion.

Norm: We have spent approximately $10 million so far on our repurchases this year, and we recently authorized a new repurchase program through the end of the year of up to $26 million, which was the approximate amount remaining under the prior authorization that had expired on July 30, 2024. As we mentioned on last quarter's earnings call, we expect sequentially lower migrant-related revenue over the remainder of the year due to the ongoing wind-down of certain migrant projects.

Norm: We've spent approximately $10 million so far on our repurchases this year, and we recently authorized a new repurchase program through the end of the year of up to $26 million, which was the approximate amount remaining under the prior authorization that expired on July 30, 2024. As we mentioned on last quarter's earnings call, we expect sequentially lower migrant-related revenue over the remainder of the year due to the ongoing wind-down of certain migrant projects.

Mike Cole: In addition, today's call contains references to non-gap financial measures. Reconciliation of these non-gap financial measures to the most directly comparable gap financial measures are provided directly as part of this call or included in our earnings release or on the current report on Form 8K that includes our earnings release, which is posted on our website.go.com as well as filed with the SEC. The information contained in this call is accurate as of only the date discussed.

Speaker Change: We spent approximately $10 million so far on our repurchases this year and we recently authorized a new repurchase program through the end of the year of up to $26 million, which was the approximate about remaining under the prior authorization that had expired on July 32024 as.

Speaker Change: As we mentioned on last quarter's earnings call, we expect sequentially lower margin related revenue over the remainder of the year due to the ongoing wind down of certain micron projects. However, we expect the collection of receivables mentioned above to lead to a continued improvement in our working capital as we collect older larger invoices and as our cash outflows decreased in line with lower micro project.

Norm: However, we expect the collection of receivables mentioned above to lead to a continued improvement in our working capital. As we collect older, larger invoices, and as our cash outflows decrease in line with the lower migrant project expenditures, we expect to see a continued increase in our cash balance over time, although the specific timing of these large cash inflows remains unpredictable. While it's difficult to predict our cash inflows and cash balances on a month-to-month or even on a quarter-to-quarter basis, we do now expect to generate cash flow from our operations of $80 million to $90 million in 2024, which represents a $10 million increase in the range that we gave last quarter.

Norman Rosenberg: However, we expect the collection of receivables mentioned above to lead to a continued improvement in our working capital. As we collect older, larger invoices and as our cash outflows decrease in line with the lower migrant project expenditures, we expect to see a continued increase in our cash balance over time, although the specific timing of these large cash inflows remains unpredictable. While it's difficult to predict our cash inflows and cash balances on a month-to-month or even on a quarter-to-quarter basis, we do now expect to generate cash flow from operations of $80 million to $90 million in 2024, which represents a $10 million increase in the range that we gave last quarter.

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

Speaker Change: <unk>, we expect to see a continued increase in our cash balance over time, although specific timing of these large cash inflows remains unpredictable, while it's difficult to predict our cash inflows and cash balances on a month to month or even on a quarter to quarter basis. We do now expect to generate cash flow from operations of $80 million $90 million in 2024, which were.

Lee Bienstock: At this time, it is now my pleasure to turn the call over to Mr. Lee Beansock, CEO of .go. Lee, please go ahead. Thank you, Mike, and thank you all for joining us today. We had an excellent performance in the second quarter, recording 164.9 million in revenue and 17.2 million in adjusted EBITDA, driven by strong operational execution while also making substantial progress with new business development and cash collections. We are seeing a lot of momentum working through the sales pipeline.

Speaker Change: Represents a $10 million increase in the range that we gave last quarter.

Norm: Given that we generated $26 million in cash flow from operations in the first half of 2024, we're looking at an additional $54 million to $64 million in cash flow from operations in the back half of the year, which will be driven in large part by collections of our large municipal invoices. At this point, I'd like to turn the call back to the operator for our Q&A session. Operator, please go ahead.

Norman Rosenberg: Given that we have generated $26 million in cash flow from operations in the first half of 2024, we're looking at an additional $54 million to $64 million in cash flow from operations in the back half of the year, which will be driven in large part by collections of our large municipal invoices.

Speaker Change: Given that we have generated $26 million in cash flow from operations in the first half of 2024, we're looking at an additional 54 million to $64 million in cash flow from operations in the back half of the year, which will be driven in large part by collections of our large municipal invoices.

Operator: At this point, I'd like to turn the call back to the operator for our Q&A session.

Speaker Change: At this point I'd like to turn the call back to the operator for our Q&A session. Operator. Please go ahead.

Lee Bienstock: Early this year, we launched an initiative to specifically pursue dialogue with prospective partners across our three customer verticals as well as partnership opportunities with virtual only providers who want to utilize our in-person capability to complement their own. Lawrence. There is no doubt that the healthcare industry is increasingly looking for mobile delivery solutions to create greater access to care while lower in costs. Telemedicine has a number of advantages, but on a standalone basis it also has significant limitations.

Operator: Operator, please go ahead. Certainly, at this time, if you would like to ask a question, please press star one now on your telephone card to withdraw yourself from the queue. You may press star two. Once again, that is star one to ask a question.

Operator: Certainly, at this time, if you would like to ask a question, please press star 1 now on your telephone keypad. To withdraw yourself from the queue, you may press star 2. Once again, that is star 1 to ask a question. We'll take our first question from Sarah James of Cantor Fitzgerald. Hi, this is Gabba.

Speaker Change: Certainly at this time I would like to ask a question. Please press star one now on your telephone keypad to withdraw yourself from the queue. You May press star two once again that is star one to ask a question.

Gabrielle Ingoglia: We'll take our first question from Sarah James of Cancer Fitzgerald.

Speaker Change: We will take our first question from Sarah James of Cantor Fitzgerald.

Gabrielle Ingoglia: Hi, this is Gabby and Goliath on for Sarah. I had a quick question if you could expand on what's driving. I think the term you use was a flurry of recent contract wins, and if what you've seen behind that has to do with the end market or more so internal company strategies.

Gabrielle Ingoglia: Sure. Hi Gabby. It's actually both.

Gabby: Sure. Hi Gabby. It's actually both.

Speaker Change: Hi, This is Gabby Anglia on for Sarah I had a quick question. If you could expand on what's driving I think the Chinese as a flurry of recent contract wins and.

Lee Bienstock: The dialogue that we're having with these potential strategic partners revolves around Docgo's unique ability to deliver last mile physical care. We are seeing strong results from this effort with several new relationships in the contracting phase and others working their way through the sales pipeline. I'm really excited to share those opportunities with you as a mature. I'm also very proud of our operational execution in Q2. It was a significant undertaking to wind down the downstate migrant-related locations under our contract with HPD, but we did so seamlessly and we concurrently began the process of right sizing our cost structure accordingly.

Speaker Change: If what you have seen behind that has to do with end market or more so internal company strategies.

Lee Bienstock: So, first off, we are seeing more and more adoption from the marketplace for in-home care, for driving care to where patients need it, for addressing patients who don't have access to good care or who are drifters. And so we've seen strong interest from hospital systems, from insurance partners of ours to bring care to those members, to those patients. So we're absolutely seeing that.

Lee Bienstock: So first off, we are seeing more and more adoption from the marketplace for in-home care, for driving care to where patients need it, for addressing patients who don't have access to good care or who are drifters. And so we've seen strong interest from hospital systems, from insurance partners of ours to bring care to those members, to those patients. So we're absolutely seeing that.

Lee Bienstock: Hi, Gabby. It's actually both. First off, we are seeing more and more adoption from the marketplace for in-home care, for driving care to where patients needed for addressing patients who don't have access to good care or drifters. We've seen strong interest from hospital systems, from insurance partners of ours, to bring care to those members, to those patients. We're absolutely seeing that at the same time, we're also seeing the ROI of our programs, of our pilots that we run with our insurance partners, where we have been successful in reducing hospital re-admissions, ER re-admissions, and, as we shared with one of our longest standing partners, we were able to reduce those hospital re-emissions by like 50%, which is very significant.

Speaker Change: Sure Hi, Gaby, it's actually both so first off we are seeing more and more adoption.

Speaker Change: From the marketplace for in home care for driving care to where patients needed for addressing pay.

Speaker Change: Patients, who don't have access to the care are drifters and so we've seen strong interest from hospital systems from insurance are partners of ours to bring care <unk> members to those patients. So we're absolutely seeing that at the same time, we're also seeing the ROI of our programs.

Lee Bienstock: At the same time, we're also seeing the ROI of our programs, of our pilots that we run with our insurance partners, where we have been successful in reducing hospital readmissions, and ER readmissions. And, as we shared with one of our longest-standing partners, we were able to reduce those hospital remissions by fifty percent, which is very significant, right?

Lee Bienstock: I think we did an exceptional job managing this process and we expect to see margin improvement going forward as those right sizing initiatives take hold. We also made significant progress during the quarter with our cash collections. Our cash flow from operations exceeded 35 million in Q2 of 2024 driving up our cash balance by more than 25 million relative to the end of Q1. I think it's important to note that the cash balance also reflects the fact that we repurchase the approximately $5 million worth of Docgo shares during the period and nearly $10 million since the start of 2024.

Speaker Change: Of our pilots that we run with our insurance partners, where we have been successful in reducing hospital Readmissions ER Readmissions and as we shared with one of our longest standing partners, we were able to reduce those hospital remissions by 50%, which is very significant right. So if we were able to keep pace.

Lee Bienstock: So if we're able to keep patients out of the hospital, that saves the health plans money; that saves the hospital systems money because they get penalized for quality and for other metrics when patients are bouncing back to the hospitals after they discharge them. And, of course, most importantly, patients don't want to be in the hospital; they want to be happy at home. And so we've really seen the strong market adoption, but also our programs are working. We're expanding our programs, we're adding more and more clinical offerings to those programs, we're adding more geographies, and that's helping us sign additional...

Speaker Change: <unk> out of the hospital that sees the health plans money, let's say as the hospital systems money, because they get penalized for quality and.

Speaker Change: Other metrics when patients are bouncing back to the hospitals after their discharge then.

Lee Bienstock: So, if we're able to keep patients out of the hospital, that saves health plans money, and that saves the hospital systems money, because they get penalized for quality and for other metrics when patients are bouncing back to the hospital after they've been discharged. And, of course, most importantly, patients don't want to be in hospitals. They want to be happy at home.

Lee Bienstock: We continue to work with our large municipal customers to try and normalize the payment process and expect continued strong cash flow from operations over the coming quarters. We expect this to give us the resources to further strengthen our balance sheet, support potential additional stock repurchases and of course continue to support the strong growth we project ahead.

Speaker Change: Of course, most importantly patient.

Speaker Change: Patients don't want to be in the hospitals, they want to be happy at home and so we've really seen the strong market adoption, but also our programs are working we're expanding our programs, we're adding more and more clinical offerings to those programs, we're adding more geographies and thats, helping us sign additional contracts.

Gabrielle Ingoglia: Contract.

Lee Bienstock: As a result, we are increasing our cash flow from operations guidance from 70 to 80 million to an updated range of 80 to 90 million per 2024.

Gabrielle Ingoglia: Okay, awesome.

Speaker Change: Okay Awesome. Thank you guys.

Gabrielle Ingoglia: Thank you, guys.

Speaker Change: Yes.

Michael Latimore: We'll take our next question from Mike Latimore of Northland Capital Markets. Great. Yeah. Thanks very much.

Lee Bienstock: And so we've really seen strong market adoption, but also, our programs are working. We're expanding our programs. We're adding more and more clinical offerings to those programs. We're adding more geographies, and that's helping us sign additional.

Speaker Change: We will take our next question from Mike Latimore of Northland capital markets.

Lee Bienstock: We also announced the establishment of a world-class medical advisory board which includes a prominent group of physicians and specialists from leading national institutions.

Mike Latimore: We'll take our next question from Mike Latimore of Northland Capital Market.

Michael Latimore: We'll take our next question from Mike Latimore of Northland Capital Markets.

Mike Latimore: Great. Thanks very much.

Lee Bienstock: I think it's, did the, did your core business grow 30% plus in the quarter year of it? So the core business didn't grow 30% quarter over quarter. The core business was relatively flat, quarter over quarter. We do anticipate very strongly the core business to grow as the year progresses in the back half of the year, as all those new contracts and new programs start to come into full bloom and start to expand. And so the core business maintained, you know, relatively stable quarter over quarter. Then we have programs ramping in the core business and now and in the back half of the year.

Lee Bienstock: Great, yeah, thanks very much. I guess, did your core business grow 30% plus in the quarter year over year?

Speaker Change: Yes.

Mike Latimore: Just your core business grow 30% plus in the quarter.

Lee Bienstock: The advisory board were offered council and expertise on our clinical offerings and published medical research on the impact of the company's programs on patient outcomes. We are excited to leverage their expertise to continue developing innovative healthcare solutions for those that need it most.

Lee Bienstock: So the core business didn't grow 30% quarter over quarter. The core business was relatively flat quarter over quarter. We do anticipate very strongly the core business will grow as the year progresses in the back half of the year, as all those new contracts and new programs start to come into full bloom and start to expand. And so the core business was relatively stable quarter over quarter. And we have programs ramping up in the core business now and in the back half.

Lee Bienstock: So the core business didn't grow 30% quarter over quarter. The core business was relatively flat quarter over quarter. We do anticipate very strongly the core business will grow as the year progresses in the back half of the year, as all those new contracts and new programs start to come into full bloom and start to expand. And so the core business was relatively stable quarter over quarter. We have programs ramping up in the core business now and in the back half of the year.

Speaker Change: So the core business didn't grow 30% quarter over quarter.

Michael Latimore: When you say quarter over quarter, are you meaning sequentially or year over?

Speaker Change: <unk> business was relatively flat quarter over quarter.

Speaker Change: We do anticipate very strongly the core business to grow as the year progresses in the back half of the year as all of those new contracts and new programs start to come into full bloom and start to expand and so the core business maintained relatively stable quarter over quarter.

Lee Bienstock: As I usually do, I would now like to spend some time covering our three key customer verticals, payers and providers, hospital systems, and municipal population health. In our payer and provider customer vertical, we have had a flurry of recent contract wins with several of those opportunities having considerable room for expansion over time. One key leading indicator for this vertical is the number of patients.co has been assigned for care gap closure services and we have more than doubled that number on a sequential basis in Q2 over Q1.

Speaker Change: We have programs ramping in the core business.

Speaker Change: Now in in the back half of the year.

Michael Latimore: When you say quarter over quarter, you mean sequentially, or you're over here, sequentially from Q1 to Q2. So I think the goal is to grow the business 30% year over year next year. And I think you talked about mobile transport growing 15% year over year. So you're expecting mobile transport to accelerate to 30% plus next year. So mobile transport, we expect to grow in that 15 to 20% range. Specifically on transport, right now, as we shared so far, transport for the year year to date for 2024 has grown 13%. So in line, and we have a number of expansions happening in the back half of the year on the transport side.

Speaker Change: Yes.

Mike Latimore: When you say quarter over quarter, are you meaning sequentially or year over?

Speaker Change: When you say quarter over quarter, you're meeting sequentially or year over year.

Lee Bienstock: I think the goal is to grow the business 30% year-over-year next year, and I think you talked about mobile transport growing 15% year-over-year, so you're expecting mobile transport to accelerate to 30% year-over-year. 30% plus next.

Lee Bienstock: sequentially from Q1 to Q2. So I think that you know the goal is to grow the business 30% year-over-year next year, and I think you talked about mobile transport growing 15% year-over-year, so you're expecting mobile transport...

Speaker Change: Sequentially from Q1 to Q2.

Speaker Change: So.

Speaker Change: Okay.

Speaker Change: Inc.

Speaker Change: The goal is to grow the business, 30% year over year next year, and I think you've talked about mobile transport growing 15% year over year, so youre expecting level transport to accelerate.

Lee Bienstock: We are seeing strong results from these programs and the customer ROI is becoming increasingly apparent, for example, one of our customers has observed a 50% reduction in all cause readmissions for complex patients that receive our care post discharge. In addition, our quality measure and care gap closure programs enable payers to maintain or improve quality ratings, which can further impact payer financials in a material way. During the second quarter, we added a top 10 payer in Southern California and plans are in place to expand with that same customer in New York.

Lee Bienstock: 30% plus next.

Speaker Change: 30% plus.

Lee Bienstock: The mobile transport we expect to grow in that 15 to 20 percent range, specifically on transport. Right now, as we shared, so far, transport for the year, year to date for 2024, has grown 13 percent. So in line, and we have a number of expansions happening in the back half of the year on the transport side. And then, of course, those will continue to expand into next year as we win more and more business on the transport side, which we recently announced. Actually, we won multiple new transport wins in Dover, Delaware, in New Jersey, and other geographies for us.

Lee Bienstock: The mobile transport we expect to grow in that 15 to 20 percent range, specifically on transport. Right now, as we shared, so far, transport for the year, year to date for 2024 has grown 13 percent. So in line with that, we have a number of expansions happening in the back half of the year on the transport side. And then, of course, those will continue to expand into next year as we win more and more business on the transport side, which we recently announced. Actually, we won multiple new transport wins in Dover, Delaware, New Jersey, and other geographies for us.

Speaker Change: The mobile transport, we expect to grow in that 15% to 20% range specifically on transport right now as we shared.

Speaker Change: So far transport for the year year to date for 2024 has grown 13% in line and we have a number of expansions happening in the back half of the year on the transport side and then of course those will continue to expand into next year as we as we win more and more business on the transport side, which we recently announced actually we won multiple new <unk>.

Lee Bienstock: And then, of course, those will continue to expand into next year as we win more and more business on the transport side, which we recently announced. Actually, we won multiple new transport wins in Dover, Delaware, in New Jersey, and other geographies for us. So we expect that medical transportation to continue to grow in that 15% perhaps even up to 20% range into next year on the mobile health business. And that's where we're seeing even larger growth, particularly as we're focusing our efforts and expanding our initial customers in the insurance and provider space, as well as in the hospital system space for the transitional care, social determinants of health, and other in-home care gap closure metrics.

Lee Bienstock: Our work with hospital systems continues to perform well. We had a new medical transport, we had new medical transport wins in New York and Delaware with key extensions in New Jersey and the UK. Overall, we saw 13% revenue growth today in 2024 compared to the first half of 2023 and we still expect medical transportation to grow in the neighborhood of 15% or more annually over the near term.

Speaker Change: Four wins in Dover, Delaware, and New Jersey, and other <unk>.

Lee Bienstock: So we expect that medical transportation to continue to grow at that 15 percent, perhaps even up to 20 percent range into next year in the mobile health business. That's where we're seeing even larger growth, particularly as we're focusing our efforts and expanding our initial customers in the insurance and provider space, as well as in the hospital system space for transitional care, social determinants of health, and other in-home care gap closure metrics.

Speaker Change: Geography for us so we expect that medical transportation to continue to grow in that 15%, perhaps even up to 20% range into next year on the mobile health business, that's what we're seeing.

Speaker Change: Even larger growth, particularly as we are focusing our efforts in expanding our initial customers in the insurance and provider space as well as in the hospital system space for the transitional care, social determinants of health and other in home care gap closure metrics next year as well, we do anticipate significant growth in.

Lee Bienstock: We're in the final stages of contracting with one of the largest hospital networks in New Jersey for a mobile health program to provide physical and wellness checks to their enterprise customers located across the state and we're seeing increased interest from major health systems for our transitional care management mobile health offering, remote patient monitoring, virtual care management and readmission reductions and more, all of which are designed to help keep patients out of the hospital and healthy in their homes.

Lee Bienstock: Next year as well, we do anticipate significant growth in our primary care offering and our remote patient monitoring offering as well. So all of those contracts that we're signing, we have signs. We're expanding right now, and into the back half of this year will obviously catalyze the growth into 2025 as well.

Lee Bienstock: Next year as well, we do anticipate significant growth in our primary care offering and our remote patient monitoring offering as well. So all of those contracts that we're signing, we have signed, we're expanding right now, and into the back half of this year, we'll obviously catalyze growth into 2025 as well.

Lee Bienstock: Next year as well, we do anticipate significant growth in our primary care offering and our remote patient monitoring offering as well. So all of those contracts that we're signing, we have signed, and we're expanding right now and into the back half of this year will obviously catalyze growth into 2025 as well.

Speaker Change: Our primary care offering and our remote patient monitoring offering as well so all of those contracts that we're signing we have signed we're expanding right now and into the back half of this year, we'll obviously catalyze the growth into 2025 as well.

Lee Bienstock: In our municipal population health vertical, we recently launched our first mobile x-ray program for the city of New York and our planning seasonal vaccination programs for clients in Texas, New York and Washington DC. In addition, we want a project from the state of New Mexico to provide nursing care and mobile vaccination clinics, nursing call centers across the state and behavioral health services for the New Mexico Behavioral Health Institute. Separately, we want a contract to provide x-ray technicians at multiple sites for a new customer in Arizona and lastly, we're proud of the deep clinical expertise and mobile health care services we've provided as part of the humanitarian response in New York.

Speaker Change: Okay.

Lee Bienstock: And it does seem like, obviously, your business will diversify quite a bit. Any sense of how many customers, maybe sort of 10% plus customers next year, though?

Speaker Change: And.

Michael Latimore: And it does seem like obviously your business will diversify quite a bit. Any sense of how many customers maybe to the 10% plus customers next year though. Right now, I think that would be we have to project out probably less than five customers would be more than 10% of total revenue, probably in that range. But we do, and as you're saying, that is a big focus of ours. We want to diversify our customer base. We want to bring on more and more customers that have the opportunity to grow into very significant customers. And as they're growing, significant customers, no one or two customers represents significant customer concentration for us.

Speaker Change: It does seem like obviously your business well diversified quite a bit.

Speaker Change: Any sense of how many customers, maybe sort of 10% plus customers next year, though.

Lee Bienstock: Right now, I think that would be If we had to project out probably less than five customers, it would be more than 10% of total revenue, probably in that range. But we do, and as you're saying, that is a big focus of ours.

Lee Bienstock: Right now, I think that would be If we had to project out, probably less than five customers would be more than 10% of total revenue, probably in that range. But we do, and as you're saying, that is a big focus of ours.

Speaker Change: Right now I think that would be.

Speaker Change: If we have to project out probably less than five customers would be more than 10% of total revenue probably in that range.

Lee Bienstock: We want to diversify our customer base. We want to bring in more and more customers that have the opportunity to grow into very significant customers. And as they're growing into very significant customers, no one or two customers represent significant customer concentration for us. That is absolutely part of our strategy.

Speaker Change: But we do and as Youre, saying that is a big focus of ours, we want to diversify our customer base, we want to bring on more and more customers that have the opportunity to grow into very significant customers and as they are growing at significant customers no one or two customers represent significant customer concentration for us that is absolutely part of our strategy.

Lee Bienstock: We want to diversify our customer base. We want to bring in more and more customers that have the opportunity to grow into very significant customers. And as they're growing into significant customers, no one or two customers represent significant customer concentration for us. That is absolutely part of our strategy.

Lee Bienstock: In Q2 alone, our clinicians have facilitated over nearly 200,000 patient interactions on these programs, including 150,000 behavioral health encounters and nearly 50,000 medical encounters, including over 42,000 for intake and triage, 8,000 vaccinations and 2600 quantifier on blood tests. This is all in keeping with our historical municipal work bringing care to vulnerable patients across various public health initiatives for many populations, including uninsured individuals, the LGBTQ plus community, both sheltered and unsheltered homeless populations, and newly arrived the sound seekers outside of traditional medical settings.

Lee Bienstock: That is absolutely part of our stress.

Michael Latimore: Kennedy. Yeah, very good.

Speaker Change: Yes.

Michael Latimore: Very good. Thanks very much.

Mike Latimore: Very good. Thanks very much.

Michael Latimore: Thanks very much. Absolutely.

Speaker Change: Very good thanks, so much.

David Larsen: We'll take our next question from David Larsen of BTIG. Hey, can you please talk a little bit more about fiscal 25 revenue expectations to, I guess, the $400 million. It sounds to me like what you said was it could actually come up higher than $400 million if there's some New York City migrant revenue in there.

Speaker Change: Absolutely.

David Larsen: We'll take our next question from David Larsen of BTIG.

Speaker Change: We will take our next question from David Larsen of BTG.

Lee Bienstock: Hey, can you please talk a little bit more about fiscal 25 revenue expectations, I guess, the $400 million? It sounds to me like what you said was it could actually come in higher than $400 million if there's some New York City migrant revenue in there. And then, I guess, within the mobile health portion of that $400 million, I think we talked about that being maybe $175, with $50 of that coming from payers.

Lee Bienstock: Hey, can you please talk a little bit more about Fiscal 25 revenue expectations, I guess the $400 million? It sounds to me like what you said was it could actually come in higher than $400 million if there's some New York City migrant revenue in there. And then, I guess within the mobile health portion of that $400 million, I think we talked about that being maybe $175 million, with $50 million of that coming from payers.

David Larsen: Hi can you please talk a little bit more about fiscal 'twenty five revenue expectations, I guess, the $400 million it sounds to me like.

Speaker Change: What you said was it could actually come in higher than $400 million, if theres, Some New York City migraine revenue in there and then.

David Larsen: And then I guess within the mobile health portion of that $400 million, I think we talked about that being maybe $175, with 50 of that coming from payers. Maybe just talk a little bit more about that payer component, like, what will that 50? How does that compare to like what you would expect for fiscal 24, and what are the different pieces of it? So thanks very much. Appreciate it.

Speaker Change: Yes within the mobile health portion of that $400 million I think we.

Speaker Change: We talked about that being maybe 175 with 50 of that coming from payers can you just talk a little bit more about the payer component like.

Lee Bienstock: Collectively, we are performing in line with the guidance announced as part of last quarter's earnings release and reaffirming our 2020-24 guidance of 600 to 650 million in revenue and 65 to 75 million in adjusted EBITDA while raising our cash flow from operations expectations to 80 to 90 million up from 70 to 80 million. Additionally, we continue to expect revenues from our base business to show strong sequential growth in the second half of 2024 and be approximately 400 million in 2025. I want to reiterate that the 2025 revenue expectation in our base business is not overall revenue guidance for 2025 given we expect some migrant related revenues next year.

Lee Bienstock: Can you just talk a little bit more about that payer component, like what that 50 would be, how does that compare to what you would expect for fiscal 24, and what are the different pieces of it? So thanks very much. I appreciate it.

Lee Bienstock: Can you just talk a little bit more about that payer component? What will that 50 be, how does that compare to what you would expect for fiscal 24, and what are the different pieces of it? So thanks very much. I appreciate it.

Speaker Change: What will that 50, how does that compare to like what you would expect for fiscal 'twenty four and what are the different pieces of it. So thanks very much I appreciate it.

Lee Bienstock: Absolutely, Dave. Great to hear from you. So, as you mentioned for 2025, we expect the base business to be $400 million. And we don't expect some of the wraparound migrant revenues to continue into next year, things like the security and some of the wraparound services that we were providing on an emergency basis. What we do think will extend possibly into next year on the migrant side, which would be additionally additional revenue, is particularly the clinical services and the population health services and the infectious disease control and the screening and the behavioral health care and the depression screening and all those medical expertise that could potentially continue on into next year.

Lee Bienstock: Absolutely, Dave. Great to hear from you. So, as you mentioned, for 2025, we expect the base business to be $400 million, and we don't expect some of the wraparound migrant revenues to continue into next year, things like security and some of the wraparound services that we were providing on an emergency basis. What we do think will extend possibly into next year on the migrant side, which would be additional revenue, is particularly the clinical services and the population health services and the infectious disease control and the screening and the behavioral health care and the depression screening and all those medical expertise that could potentially continue into next year.

Lee Bienstock: Absolutely, Dave; great to hear from you. So, as you mentioned, for 2025, we expect the base business to be $400 million. And we don't expect some of the wraparound migrant revenues to continue into next year, things like security and some of the wraparound services that we were providing on an emergency basis. What we do think will extend possibly into next year on the migrant side, which would be additional revenue, is particularly the clinical services and the population health services and the infectious disease control and the screening and the behavioral health care and the depression screening and all those medical expertise that could potentially continue into next year.

David Larsen: Absolutely Dave Great Great to hear from you. So as you mentioned for 2025, we expect the base business to be $400 million and we.

Speaker Change: We don't expect some of the wrap around migrant revenues to continue into next year things like the security and some of the wraparound services that we're providing as an emergency basis.

Speaker Change: But we do think will extend possibly into next year on the migraine side, which would be additionally, additional revenue is particularly the clinical services in the population health services and the infectious disease control and the screening and the behavioral health care and the depression screening and all of those medical expertise that could potentially continue.

Lee Bienstock: I think one of the most important takeaways from the quarter would be the quality and quantity of new opportunities entering the pipeline. As we work with New York City to coordinate a tapered down of migrant related work, it has freed up considerable bandwidth to pursue other opportunities. As I mentioned, some of these opportunities are maturing to the contracting phase and I expect multiple new programs to roll out in the second half of 2024. This will directly complement our traditional RFP channel and provide another conduit for growth.

Speaker Change: On into next year, and that's really what we're planning for but the $400 million in the base business is really comprised of the revenues. We expect in the hospital systems in the both hustle systems, both transitions of care and medical transportation for the hospital systems municipal programs population health programs.

Lee Bienstock: And that's really what we're planning for. But the $400 million in the base business is really comprised of the revenues we expect in the hospital systems in both hospital systems, both transitions of care and medical transportation for the hospital systems, municipal programs, population health programs with municipalities and with our payer vertical. As you mentioned, the payer vertical, we're projecting to be $50 million of that revenue in next year. That's going to come from three revenue streams. The first revenue stream is going to be the care gap closures that we're conducting in the home. For every care gap close, we collect a rate that's negotiated with the payers.

Lee Bienstock: And that's really what we're planning for. But the $400 million in the base business is really comprised of the revenues we expect in the hospital systems, in both hospital systems, both transitions of care and medical transportation for the hospital systems, municipal programs, population health programs, with municipalities, and with our payer vertical. As you mentioned, the payer vertical, we're projecting $50 million of that revenue from that vertical next year. That's going to come from three revenue streams.

Lee Bienstock: At the end of the day, we have the technology, logistical infrastructure and balance sheet to offer large scale last mile deployments with national healthcare providers, payers, hospitals and municipalities. Combine that with the very broad scope of clinical services that Docgo offers and we feel we are in an excellent strategic position going forward.

Speaker Change: <unk> and with our payer vertical as you mentioned the payer vertical we're projecting to be $50 million of that revenue in next year, that's going to come from three revenue streams. The first revenue stream is going to be the care gap closures that we're that we're conducting in the home for every care gap closed we collect the rate.

Lee Bienstock: The first revenue stream is going to be the care gap closures that we're conducting in the home. So as the care gap closes, we collect a rate that's negotiated with the payers. And so we're ramping that up considerably. We shared, we doubled the number of patients at the top of the funnel quarter over quarter. So from Q1 to Q2 of this year, we doubled the number of patients that our health plan partners have assigned to us.

Lee Bienstock: The first revenue stream is going to be the care gap closures that we're conducting in the home. So when the care gap closes, we collect a rate that's negotiated with the payers. And so we're ramping that up considerably. We shared, we doubled the number of patients at the top of the funnel quarter over quarter. So from Q1 to Q2 of this year, we doubled the number of patients that our health plan partners have assigned to us.

Speaker Change: That is negotiated with the payers and so we're ramping that up considerably we shared we doubled the number of patients at the top of the funnel quarter over quarter. So from Q1 to Q2 of this year. We've doubled the number of patients that our health plan partners have assigned to us. So that is a really good harbinger for the opportunity that we have in front of.

Norman Rosenberg: I will now hand over the call to Norm to discover the financials. Norm, please go ahead. Thank you, Lee, and good afternoon. Total revenue for the second quarter of 2024 was $164.9 million, a 31% increase from the second quarter of 2023. Mobile health revenue for the second quarter of 2024 was $116.7 million, a 46% from the second quarter of 2023. We experienced growth across several projects, business lines and geographies. However, the bulk of the year over year revenue gains related to the migrant related projects we operated in New York for both HPD and H&H.

Lee Bienstock: And so we're ramping that up considerably. We shared. We doubled the number of patients at the top of the funnel quarter over quarter. So from Q1 to Q2 of this year, we've doubled the number of patients that our health plan partners have assigned to us. So that is a really good harbinger for the opportunity that we have in front of us as we go throughout this year and into next. And we have a number of opportunities also in the pipeline that are going to come to fruition in the back half of this year and into next year.

Lee Bienstock: So that is a really good harbinger for the opportunities that we have in front of us as we go throughout this year and into next. And we have a number of opportunities also in the pipeline that are going to come to fruition in the back half of this year and into next year. So one of those revenue streams with the payers is going to be the care gap closures. We also have the opportunity with those patients that are being assigned to us to become their primary care provider, and we will create a capitated rate for us as part of their primary care provider for the patients, and so that'll be the second revenue stream, and then the third with the payer vertical will be Giuseppe Gastini.

Speaker Change: US as we go throughout this year and into next and we have a number of opportunities also in the pipeline that are going to come to fruition in the back half of this year and into next year.

Lee Bienstock: So one of those revenue streams with the payers is going to be the care gap closures. We also have the opportunity with those patients that are being assigned to us to become their primary care provider and create a capitated rate for us as part of their primary care provider for the patients. And so that will be the second revenue stream. And then the third with the payer vertical will be the patients that we monitor. And we shared last quarter that we have 50,000 patients that we're currently monitoring. Let me expect to go to 70,000 patients next year.

Speaker Change: One of those revenue streams with the payers is going to be the care gap closures. We also have the opportunity with those patients that are being assigned to us to become their primary care provider.

Norman Rosenberg: As we projected on our last earnings call, these migrant related revenues declined sequentially in Q2, reflecting the wind down of some sites in New York City which began in mid May. These migrant related revenues are expected to continue to decline sequentially as we go through the rest of 2024. Transportation services revenue increased to $48.2 million in Q2 of 2024, which was 6% higher than the transport revenues we recorded in the second quarter of 2023.

Speaker Change: <unk>.

Lee Bienstock: And We luôn ??? ???? ???? stick nedeni ?? ?????? income and create a capitated rate for us as part of their primary care provider for the patients, and that will be the second revenue stream, and then the third with the payer vertical will be, the patients that we monitor, and we shared last quarter that we have 50,000 patients that we're currently monitoring, and we expect that to grow to 70,000 patients next year. And all of those three revenue streams will be comprised in that $50 million that we're projecting for next year.

Speaker Change: And create a catheter heated rate for us as part of their primary care provider for the patients and so that will be the second revenue stream and in the third with the payer vertical will be.

Speaker Change: The patients that we monitor and we shared last quarter that we have 50000 patients that we're currently monitoring and we expect that to grow to 70000 patients next year and all of those three revenue streams will be comprised in that $50 million that we're projecting for next year.

Lee Bienstock: And all of those three revenue streams will be comprised in that 50 million that we're projecting. for next year.

Norman Rosenberg: The largest gains occurred in our three biggest markets, New York, Pennsylvania and the UK. In the second quarter, mobile health revenues accounted for about 71% of total revenues and transport for their remaining 29%. Net income was $5.9 million in Q2 of 2024, compared with net income of $1.3 million in the second quarter of 2023. The higher net income reflects higher revenues and wider margins. Adjusted EBITDA for the second quarter of 2024 was $17.2 million up from $9.1 million in last year's second quarter. The adjusted EBITDA margin was 10.4% in Q2 up from 7.3% in the second quarter of 2023. This was the third consecutive quarter of double digit adjusted EBITDA margins.

David Larsen: That's very helpful. It sounds to me like you're delivering to America kind of exactly what this country needs. All of the health plans this quarter seem to be talking a lot about, you know, higher medical cost ratios, higher Medicare Advantage utilization, you know, higher Medicaid utilization, you know, pressure on their, you know, Medicare cost ratios.

David Larsen: That's very helpful. It sounds to me like you're delivering to America kind of exactly what this country needs.

Speaker Change: That's very helpful. It sounds to me like you're delivering to America kind of exactly what this country needs all of the health plans this quarter seem to be talking a lot about.

Lee Bienstock: All of the health plans this quarter seem to be talking a lot about, you know, higher medical cost ratios, higher Medicare Advantage utilization, you know, higher Medicaid utilization, you know, pressure on their Medicare cost ratios. How does that impact Docgo, if at all? Is that a good thing or a bad thing? And why?

Speaker Change: Higher medical cost ratio is higher Medicare advantage utilization.

Speaker Change: Higher Medicaid utilization.

Speaker Change: Pressure on there.

Speaker Change: Mike your cost ratios, how does that impact Darko.

Lee Bienstock: How does that impact, DocGo, if at all, is that a good thing or a bad thing and why? So we think it's, we think we fit nicely into that environment because ultimately what our goal is, is we're trying to provide more proactive care, right? So we're going into the home and doing a colon cancer screening or a bone density scan or a depression screen. We're doing social determinants of health work. And so we're going into the home, and we're going to serve those members, all with the goal of catching chronic conditions or helping manage chronic conditions before they become more acute, catastrophic, and more costly.

Mike: At all is that a good thing or a bad thing and why.

Lee Bienstock: So we think it's We think we fit nicely into that environment because ultimately, what our goal is, is we're trying to provide more proactive care, right? So we're going into the home and doing a colon cancer screening or a bone density scan or a depression screen. We're doing social determinants of health work.

Mike: So we think it's.

Speaker Change: We think we fit nicely into that environment, because ultimately what our goal is as we are trying to provide more proactive care wait so we're going into the home and doing a colon cancer screening or a bone density scan or a depression screen, we're doing social determinants of health work and so we're going into the home and we're going to serve those members.

Norman Rosenberg: As you've seen in our earnings release, beginning with the second quarter, we are now presenting both GAP gross margin and adjusted gross margin. GAP gross margin includes depreciation charges in the cost of goods sold, while adjusted gross margin does not factor in depreciation charges. For the purpose of comparing our historically reported numbers, please note that what we have starkly referred to as gross margin is now and will henceforth be referred to as adjusted gross margin. We have included a reconciliation table in our earnings release to clarify this and to allow for clean year-over-year comparison.

Lee Bienstock: And so we're going into the home, and we're going to serve those members with the goal of catching chronic conditions or helping manage chronic conditions before they become more acute, catastrophic, and more costly. So that really is our value proposition, and that fits in nicely in the environment that you're describing, which is rising costs and all that being driven, perhaps from patients that are not getting the care they need, perhaps during the pandemic. Perhaps they didn't have good access to care, and obviously, the plans are seeing that. So we fit very nicely into that. That's what our value proposition is.

Lee Bienstock: And so we're going into the home, and we're going to serve those members all with the goal of catching chronic conditions or helping manage chronic conditions before they become more acute, catastrophic, and more costly. So that really is our value proposition, and that fits in nicely in the environment that you're describing, which is rising costs and all that being driven, perhaps from patients that are not getting the care they need, perhaps during the pandemic. Perhaps they didn't have good access to care, and obviously, the plans are seeing that. So we fit very nicely into that. That's what our value proposition is.

Speaker Change: All with the goal of catching chronic conditions are helping manage chronic conditions. The corp. Before they become more acute catastrophic and more costly. So that really is our value prop and that fits in nicely in the environment that you're describing which is rising costs and all of that being driven perhaps from patients that were not getting the care.

Lee Bienstock: So that really is our value profit. That fits in nicely in the environment that you're describing, which is rising costs and all that being driven perhaps from patients that we're not getting the care they needed, perhaps during the pandemic, perhaps they didn't have good access to care, and obviously the plans are seeing that. So we fit very nicely into that. That's what our value prop is. We think the investment they're making with us actually saves them money and obviously improves patient outcomes, which again is what the whole system wants. So we feel like we're really of the moment of the time.

Norman Rosenberg: Lewis. Total gap gross margin per cent during the second quarter of 2024 was 31.3% from 30.3% in the second quarter of 2023. The adjusted gross margin was 33.9% compared to 33.4% in the second quarter of 2023. During 2024 to date, we've seen solid improvements in both overtime rates and subcontractor costs in the mobile health area. During the second quarter of 2024, subcontracted labor accounted for 24% of total labor costs as compared to 21% in the second quarter of 2023.

Speaker Change: He needed perhaps during the pandemic, perhaps even have good access to care and obviously that the plans are seeing that so we fit very nicely into that that's what our value prop is.

Lee Bienstock: We think the investment they're making with us actually saves them money and obviously improves patient outcomes, which again is what the whole system wants. So we feel like we're really in the moment, of the time; we feel like we have the right solution for the right need in the marketplace today, and we feel like we're able to save the health plan's money, we're able to save patients heartache and help manage their care.

Speaker Change: We think the investment, they're making with us actually saves them money and obviously improves patient outcomes, which again is what the whole system wants. So we feel like we're really of the moment of the time, we feel like we have the right solution for the right need in the marketplace today, and we feel like we're able to save the health plans money.

Lee Bienstock: We feel like we have the right solution for the right need in the marketplace today, and we feel like we're able to save the health plans money. We're able to save patients' heartache and help manage their care.

Speaker Change: To save patient's heart Ache and help manage their care and then as you go through the continuum that really we're looking to participate in right. We go from care gap, which again is meant to be proactive care to us becoming a primary care provider for that for those patients now were increasing.

Lee Bienstock: And then, as you go through the continuum that really we're looking to participate in, right, we go from care gap, which again is meant to be proactive care, to us becoming a primary care provider for those patients. Now we're increasing the care that's available to those drifter patients, those unattached patients, those patients that don't have good primary care. Primary care is a very good indicator whether or not a patient is getting the care they need, the proactive care they need, and the longitudinal care they need. And so we play again very well into that model.

Lee Bienstock: And then as you go through the continuum that we're looking to participate in, right, we go from the care gap, which again is meant to be proactive care, to us becoming a primary care provider for those patients. Now we're increasing the care that's available to those drifter patients, those unattached patients, those patients that don't have good primary care. You know, primary care is a very good indicator of whether or not a patient is getting the care they need, the proactive care they need, and the long-term care that they need.

Lee Bienstock: And then as you go through the continuum that we're looking to participate in, right, we go from the care gap, which again is meant to be proactive care, to us becoming the primary care provider for those patients. Now we're increasing the care that's available to those drifter patients, those unattached patients, those patients that don't have good primary care. You know, primary care is a very good indicator of whether or not a patient is getting the care they need, the proactive care they need, and the..., the long-term care that they need.

Norman Rosenberg: The year-over-year increase was driven primarily by the migrant-related projects which tend to feature more subcontracted labor than to our core mobile health projects. However, subcontracted labor has declined sequentially since peaking in the fourth quarter of last year at over 30% of total labor costs and the expected decline to continue over the remainder of 2024. Over time, accounted for 6.7% of total hours worked in the second quarter of 2024 compared to 9% in the second quarter of 2023.

Speaker Change: The care that's available to those drift or patients those unattached patients those patients that don't have good primary care primary care is a very good indicator of whether or not a patient is getting the care they need the proactive care they need and the.

Speaker Change: The longitudinal care they need and so we play again.

Lee Bienstock: And so we fit, again, very well into that model. And then, eventually, the contracts we're signing do have the ability for us to participate in the value arrangements that you're describing, those Medicare Advantage arrangements that you're describing. Once we feel comfortable with that and once we feel like we truly are able to impact that patient's total cost of care and health outcomes, which again is where our medical advisory board comes in, we're going to be publishing research to that effect.

Lee Bienstock: And so we fit, again, very well into that model. And then, eventually, the contracts we're signing do have the ability for us to participate in the value arrangements that you're describing, those Medicare Advantage arrangements that you're describing. Once we feel comfortable with that, and once we feel like we truly are able to impact that patient's total cost of care and health outcomes, which again is where our medical advisory board comes in, we're going to be publishing research to that effect.

Norman Rosenberg: Over time, hours have declined as a percentage of total hours in each of the last four quarters. While there's still some room for further improvement, we're getting very close to our target of 5% of total hours worked. During the second quarter of 2024, adjusted gross margin from the mobile health segment was 35.9%, compared to 34.9% in the second quarter of 2023. Adjusting gross margins for the mobile health segment have now improved for three consecutive quarters since the third quarter of 2023 which had been impacted by significant project launch and ramp up related costs relating to the migrant programs.

Speaker Change: Very well into that model and then eventually the contracts. We're signing do you have the ability for us to participate in the value arrangements that youre, describing those Medicare advantage arrangement that youre, describing once we feel comfortable with that and once we feel like we truly are.

Lee Bienstock: And then eventually the contracts we're signing do have the ability for us to participate in the value arrangements that you're describing, those Medicare Advantage arrangements that you're describing. Once we feel comfortable with that and once we feel like we truly are able to impact that patient's total cost of care and health outcomes, which again is where our medical advisory board comes. We're going to be publishing research to that effect. So we have long-term plans in this space. We have very good early indicators of the value proposition, the impact we're having on patients, and we really feel like in a world where perhaps the pendulum swung to virtual-only digital.

Speaker Change: Able to impact that patients total cost of care and health outcomes, which again is where our medical advisory Board comments, we're going to be publishing research to that effect. So we have long term plans in this space. We have very good early indicators of the value proposition the impact we're having on patients and we really feel like any worse.

Norman Rosenberg: In the transportation segment, adjusted gross margins were 29.1% in Q2, down from 30.7% in Q2 of 2023. Transportation margins in Q2 were impacted by increased subcontractor costs in one of our markets as we were not able to hire quickly enough to align with the timing of an increase in volumes from certain customers. Looking ahead, however, we expected transportation gross margins will improve in the current level in Q3 and beyond despite some anticipated wage pressures and certain geographies as the market for EMTs remains tight and they should be back above 30% as they have been for the past four quarters prior to Q2.

Lee Bienstock: So we have long-term plans in this space. We have very good early indicators of the value proposition, the impact we're having on patients, and we really feel that in a world where perhaps the pendulum swung to virtual only, digital, we think that has a role to play, but we feel very strongly that we add the in-person component. And so, as more and more AI tools come to market, as more and more digital offerings come to market, we can be the partner that helps bring those directly to patients in their homes.

Speaker Change: <unk>, where perhaps the pendulum swung to virtual only digi.

Speaker Change: Digital we think that has a role to play, but we feel very strongly that we add the in person component and so as more and more AI tools come to market as more and more digital.

Lee Bienstock: We think that has a role to play, but we feel very strongly that we add the in-person component. And so, as more and more AI tools come to market, as more and more digital offerings come to market, we can be the partner that helps bring those directly to patients in their home. And so we can be that last mile that helps mobilize and commercialize technology that we're building, and then also technology that we can partner on with other partners in the space.

Speaker Change: Digital offerings come to market, we can be the partner that helps bring those directly to patients in their home and so we can be that last mile that helps mobilize and commercialize the technology that we're building and then also technology that we can partner on with other partners in this space. So all to say we're really.

Lee Bienstock: And so we can be that last mile that helps mobilize and commercialize the technology that we're building, and then also technology that we can partner on with other partners in the space. So all to say, we're really excited about our plans. We really like where we fit in the healthcare ecosystem, and we really feel like we have a lot to bring to the space, both for our payer partners, our hospital systems, and municipalities, but actually, even more importantly for the patients, because as the patients are healthier and healthier, getting the proactive care they need, ultimately, they cost the system less money, which again is what everything is aligned to do.

Lee Bienstock: So all to say, we're really excited about our plans. We really like where we fit in the healthcare ecosystem, and we really feel like we have a lot to bring to the space both for our payer partners or hospital systems, municipalities, but actually even more importantly for the patients because as the patients are healthier and healthier and getting the proactive care they need, ultimately they cost the system less money, which again is what everything is a lie to do. today.

Speaker Change: Cited about our plans, we really like where we sit in the health care ecosystem, and we really feel like we have a lot to bring to the space. Both for our payer partners are hospital systems municipalities, but actually even more importantly for the patients because as the patients are healthier and healthier and.

Norman Rosenberg: Looking at operating costs, SKNA as percentage of total revenues was 27.7% in the second quarter of 2024 much lower than the 32.1% seen in the second quarter of 2023. We executed a targeted reduction in force during Q1 which resulted in some cost savings that were realized in Q2. We took a big step forward to the second quarter toward our goal of fortifying our balance sheet. As of June 30, 2024 our total cash and cash equivalents including restricted cash was $85.8 million as compared to $58.9 million as of the end of the first quarter of 2024 and also higher than the $72.2 million we add on our balance sheet as of the end of 2023.

Speaker Change: Getting the proactive care they need ultimately they cost the system less money, which again is what everything is aligned to do today.

David Larsen: Great. Thanks very much. I'll hop back in the queue.

David Larsen: Great. Thanks very much. I'll hop back on the queue. Thanks, Dave.

Speaker Change: Great. Thanks, very much I'll hop back in the queue.

Dave: Thanks, Dave.

Operator: And once again, that is star one to ask a question.

Peto Chickering: And once again, that is star number one to ask a question. We'll move next to Peto Chickering of Deutsche Bank.

Dave: Once again that is star one to ask a question, we'll move next to Peter Chickering with Deutsche Bank.

Philip Chickering: We'll move next to Pito Chickering of Deutsche Bank. Yeah. I got to know, guys.

Norm: Hey, good afternoon guys. One more bridge question for you on 2025 margins. I think, you know, previously you talked about transport in the 33% range and base level health in the high 30s, and SG&A in a 23% range, so these are blended all together. So we should be thinking about 10% margins for next year on the $40 million of revenue.

Peto Chickering: Hey, good afternoon guys. One more bridge question for you on 2025 margins. I think, you know, previously you talked about transport in the 33% range and base level health in the high 30s, and SNA in the 23% range. So these are blended all together. So we used to be thinking about 10% margins for next year on $40 million of revenue.

Speaker Change: Yes.

Peter Chickering: Afternoon, guys.

Norman Rosenberg: One more bridge question for you in 2025 margins. I think, you know, previously he talked about transport and the three creeps in range and based on the health and the high 30s, S&A and 20 creeps in range. So these are blended all together. So we used to be thinking about 10% margins for next year on the 40 million dollars revenue.

Peter Chickering: A brief question for you in 2025 margins.

Norman Rosenberg: The increase in cash was driven by strong collections during the second quarter which also resulted in a decline in our accounts receivable compared to both those at the end of the first quarter and the levels at the end of 2023. Specifically, looking at our project with New York City's Department of Housing Preservation and Development, as of today we have collected more than 99% of the year end 2023 accounts receivable for this project and we've received the assurances from our partners at the city that we will be paid for the services provided under the terms of the country.

Peter Chickering: Previously if you could talk about transport, 33% range and based on the health and the high thirties.

Speaker Change: SG&A in the 20% range. So these are blended altogether. So we still be thinking about 10% margins for next year on the $40 million of revenue.

Norman Rosenberg: Hey, it's Norm. Yeah. That's exactly how we're laying it out. Nothing has changed for us in the last three months or so in terms of how that common size analysis works. We would think about 10% would be our target for the, for the event on margin; obviously, we would go off from there. So we'd like to see; we ideally like to model it out of 12, 12 and a half percent or higher. But, you know, we sort of put the floor in there at about 10%. Okay. So, you know, versus a commentary from last quarter, we sort of talk about 12 and not percentage.

Peter Chickering: Yes.

Norm: Hey, it's Norm. Yeah, that's exactly how we're laying it out. Nothing has changed for us in the last three months or so in terms of how that common size analysis works. We would think about 10% would be our target for the event margin. Obviously, we would go off from there. So we'd like to see, we ideally would like to model it out at 12, 12.5% or higher, but we sort of put the floor in there at about 10%. Okay.

Peto Chickering: Hey, it's Norm. Yeah, that's exactly how we're laying it out. Nothing has changed for us in the last three months or so in terms of how that common size analysis works. We would think about ten percent would be our target for the event margin. Obviously, we would go off from there. So we'd like to see, we ideally like to model it out at twelve.

Norm: Hey, its norm, yes, that's exactly how we're laying it out and I think it has changed for us in the last three months or so in terms of how that common size analysis works. When we think about 10% would be would be our target for the for the EBITDA margin. Obviously, we would go up from there so we'd like to see we ideally like to model it out of 12 12.

Norman Rosenberg: Correct. At quarter end, we had approximately $185 million in our accounts receivable from the various migrant programs, which represented about 72% of our total company AR. That compares to $210 million in accounts receivable from these various migrant programs as of the end of Q1, which represented about 75% of total AR. Our day sales outstanding, or DSO, which we calculate based on trailing 12 month revenues, came out to 127 days at the end of Q2, which was down from 147 days at the end of Q1, but still higher than the 96 days sales outstanding at this point last year, which was of course before the migrant-related programs ramped up.

Speaker Change: 5% or higher.

Speaker Change: But we sort of put the Florida in there at about 10%, Okay. So versus our commentary from last quarter or are we sort of talked to talk about total 9% did anything change from last quarter to this quarter or was it just the base of 10 and target a telephone ties exactly it's exactly the same okay got it.

Peto Chickering: Okay, so, you know, versus your commentary from last quarter, when you started talking about 12.9 percent, did anything change from last quarter to this quarter, or is this the base of 10 and the target of 12.5? Exactly. It's exactly the same. Okay, got it. Second question, would you expect the cash flow conversions to be on that, you know, $40 million of EBITDA next year, ignoring the catch-up of the DSOs and migrant programs?

Norm: Okay, so, you know, versus your commentary from last quarter, when you started talking about 12.9%, is there any change from last quarter to this quarter, or is it just the base of 10 and the target of 12.5? Exactly. It's exactly the same.

Norman Rosenberg: Adding change from last quarter to this quarter, or is it the base of 10 and target of 12.5? Exactly. It's exactly the same. Okay. Got it.

Norman Rosenberg: Second question. Would expect the cash looking versions to be on that, you know, $40 million VBIT next year, ignoring the catch-up of the DSOs and migrant programs? Sure. And it is kind of hard to ignore the catch-up on DSOs. It's such a big factor in 2024. But the thinking is that most of that will be done by the end of this year, although I will say I do think there's going to be some catch-up in the first quarter of next year, as we get our DSOs more in line.

Speaker Change: Would you expect the cash flow conversion has to be on that $40 million EBITDA next year, ignoring the catch up of the Dsos Michael.

Speaker Change: Programs.

Norm: Sure, and it's kind of hard to ignore the catch-up on DSOs because it's such a big factor in 2024. But the thinking is that most of that will be done by the end of this year, although I will say I do think there's going to be some catch-up in the first quarter of next year as we get our DSOs more in line. But let's put that aside. So on that $40 million of VBDI, I would say, you know, we typically would be able to pull out maybe $30 in cash flow, right? You're paying some tax, you have some other, maybe some interest expense in there as well. So I would say that it should convert pretty well.

Peto Chickering: Sure, and it's kind of hard to ignore the catch-up on DSOs. It's such a big factor in 2024, but the thinking is that most of that will be done by the end of this year, although I will say I do think there's going to be some catch-up in the first quarter of next year as we get our DSOs more in line. So with that aside, so on that $40 million of EBITDA, I would say we would typically be able to pull out maybe $30 in cash flow. You're paying some tax. You have some other – maybe some interest expense in there as well. So I would say that it should convert pretty well. Okay. And then there's the last question.

Speaker Change: Sure.

Speaker Change: Hard to ignore the catch up on Dsos and such a big factor in 2024, but the thinking is that most of that will be done by the end of this year, Although I will say I do think theres going to be some catch up in the first quarter of next year.

Norman Rosenberg: As these migrant-related programs continue to wind down over the second half of 2024, our balance sheet is expected to benefit substantially as we collect this AR and bring our DSO more closely in line with their historical levels, leading to an improvement in cash flow from operations. In addition to working capital uses, during Q2, we used our cash balances to execute our stock buy back program. During the quarter, we repurchased about 1.4 million shares for an aggregate amount of approximately $4.9 million.

Speaker Change: We get our DSO is more in line, but let's put that aside.

Norman Rosenberg: But let's put that aside. So, on that $40 million of VBIT die, I would say, you know, we typically would be able to pull out maybe 30 in cashflow. Right? You got you paying some tax. You have some other, you know, maybe some interest expense in there as well. So, I would say that it should convert pretty well. Okay.

Speaker Change: So on that $40 million of EBITDA I would say, we typically we'd be able to pull out maybe 30% cash flow right, you've got you're paying some tax.

Speaker Change: You have some you have some other <unk>.

Speaker Change: Maybe some interest expense in there as well so I would say that it should convert pretty well, okay and then last question.

Norman Rosenberg: We spent approximately $10 million so far on our repurchases this year, and we recently authorized a new repurchased program through the end of the year of up to $26 million, which was the approximate amount remaining under the prior authorization that had expired on July 30, at 2024. As we mentioned on last quarter's earnings call, we expect sequentially lower migrant-related revenue over the remainder of the year due to the ongoing wind down of certain migrant projects.

Peto Chickering: Okay, and then last question. Have you lost any mobile health customers this year? And as you look at the customer base from 2021 and 2022, what percent of those have increased their scope with you? Thanks so much.

Norm: Okay, and then last question. Have you lost any mobile health customers this year? And as you look at the customer base from 2021 and 2022, what percent of those have increased their scope with you? Thanks so much.

Lee Bienstock: And then the last question.

Lee Bienstock: Like, have you lost any mobile health customers this year? And as you look at the customer base from 2021 in 2022, what percent of those have increased your scope with you?

Speaker Change: We launched our mobile health customers this year and as you look at the customer base from 2021, and 2022 what percent of those have increased scope with you. Thanks so much.

Lee Bienstock: So, thanks so much. Absolutely. So, we actually announced; we did launch multiple new payers this year. We also shared that we won multiple new contracts. We just want to contract with the state of New Mexico. We're providing mobile vaccination clinics, nursing, and virtual call centers, and other behavioral health care work for the New Mexico Behavioral Health Institute. So, we're launching that. We also announced that we want a partnership with one of the largest outpatient physician radiology groups in Arizona that has the opportunity also to expand to Texas and other states in the coming weeks. So, we've won those new contracts; those are mobilizing and launching as we speak.

Lee Bienstock: Absolutely. So we actually announced that we launched multiple new payers this year. We also shared that we won multiple new contracts. We just won a contract with the state of New Mexico. We're providing mobile vaccination clinics, nursing and virtual call centers, and other behavioral health care work for the New Mexico Behavioral Health Institute. So we're launching that.

Speaker Change: Absolutely. So we actually announced we did launch some we launched multiple new payers this year.

Speaker Change: Also shared that we won multiple new contracts. We just won a contract with the state of New Mexico, We're providing mobile vaccination clinics nursing and virtual call centers.

Norman Rosenberg: However, we expect the collection of receivables mentioned above to lead to a continued improvement in our working capital. As we collect older larger invoices and as our cash outflows decrease in line with the lower migrant project expenditures, we expect to see a continued increase in our cash balance over time, although specific timing of these large cash inflows remains unpredictable. While it's difficult to predict our cash inflows and cash balances on a month-to-month or even on a quarter to quarter basis, we do now expect to generate cash flow from operations of $80 million to $90 million in 2024, which represents a $10 million increase in the range that we gave last quarter.

Speaker Change: And other behavioral health care work for Mexico, New Mexico Behavioral Health Institute. So we're launching that we also announced that we want a partnership with one of the largest outpatient physician radiology groups in Arizona that has the opportunity also to expand to Texas and other states in the coming weeks. So we've won those new cott.

Lee Bienstock: We also announced that we won a partnership with one of the largest outpatient physician radiology groups in Arizona that has the opportunity also to expand to Texas and other states in the coming weeks. So we've won those new contracts, and they are mobilizing and launching as we speak. In addition to those municipal contracts, we've also won multiple payer contracts that are expanding. Almost every single one of our payer contracts that we're mobilizing right now has expanded over the course of this year.

Speaker Change: Tracks those are mobilizing and launching as we speak in addition, those munis. In addition to those municipal contracts. We've also won multiple payer contracts that are.

Lee Bienstock: In addition to those municipal contracts, we've also won multiple payer contracts that are expanding. Almost every single one of our payer contracts that we're mobilized right now has expanded over the course of this year. And a huge portion, a large portion of our hospital system contracts are also expanding with us as well through the year. So, we've continued to expand the customers we have. I think you see us also signing new customers and placing a lot of focus there as we're freeing up resources from the migrant-related projects that obviously consume a lot of resources over the course of the last year.

Norman Rosenberg: Given that we have generated $26 million in cash flow from operations in the first half of 2024, we're looking at an additional 54 million to 64 million in cash flow from operations in the back half of the year, which will be driven in large part by collections of our large municipal invoices.

Speaker Change: That are expanding almost every single one of our payer contracts that were mobilized right now has expanded over the course of this year.

Lee Bienstock: And a huge portion, a large portion of our hospital system contracts are also expanding with us through the year. So we continue to expand the number of customers we have. I think you see us also signing new customers and placing a lot of focus there as we are freeing up resources from the migrant-related projects that obviously consumed a lot of resources over the course of the last year, and now those resources are freeing up to launch new contracts, and that's exactly what we're doing.

Lee Bienstock: And a huge portion, a large portion of our hospital system contracts are also expanding with us through the year. So we continue to expand the number of customers we have. I think you see us also signing new customers and placing a lot of focus there as we're freeing up resources from the migrant-related projects that obviously consumed a lot of resources over the course of the last year, and now those resources are freeing up to launch new contracts, and that's exactly what we're doing.

Speaker Change: A huge portion a large portion of our hospital system contracts are also expanding with us as well through the year. So.

Operator: At this point, I'd like to turn the call back to the operator for our Q&A session. Operator, please go ahead. Certainly at this time, if you would like to ask a question, please press star one now on your telephone card to withdraw yourself from the Q. You may press star two. Once again, that is star one to ask a question.

Speaker Change: We continue to expand the customers. We have I think you see us also signing new customers and placing a lot of focus there as we are freeing up resources from from the migrant related projects that obviously consumed a lot of resources over the course of the last year and now those resources are freeing up to launch with new newly signed contracts.

Lee Bienstock: And now those resources are freeing up to launch with newly signed contracts. And that's exactly what we're doing.

Gabrielle Ingoglia: We'll take our first question from Sarah James of Canter Fitzgerald. Hi, this is Gabby and Goliath on First Sarah. I had a quick question if you could expand on what's driving.

Speaker Change: And that's exactly what we're doing.

Lee Bienstock: Great.

Speaker Change: Great. Thanks, so much.

David Grossman: We'll take our next question from David Grossman of Stiefel. Good afternoon. Thank you.

David Grossman: We'll take our next question from David Grossman of Stiefel.

Speaker Change: We'll take our next question from David Grossman of Stifel.

Lee Bienstock: I think the term you use was a flurry of recent contract wins and if what you've seen behind that has to do with the end market or more so internal company strategies. Hi, Gabby. It's actually both. First off, we are seeing more and more adoption from the marketplace for in-home care, for driving care to where patients needed for addressing patients who don't have access to good care or drifters. We've seen strong interest from hospital systems, from insurance partners of ours to bring care to those members to those patients.

David Grossman: Good afternoon. Thank you.

Norm: Good afternoon. Thank you.

David Grossman: Good afternoon, and thank you.

David Grossman: So just two quick questions, Sarah, for you, Norma. Sorry, I'm traveling in the airport. Sorry if this is disclosed in the filing, but it looks like the transport margins were relatively low at EBITDAL line, maybe even breakeven-ish. Am I seeing that correctly? And if so, you know, other than the subcontractor class, you mentioned anything else going on in the margins? Sure. Yeah, let's talk about that. And it really was all contained within the margin piece, but that was a pretty big delta. The margins, as we mentioned, for the quarter, were 29.1% for transport, which, you know, about four or five points lower than what we've seen lately.

David Grossman: So just two quick questions will start for your normal Im sure Im traveling into airports sorry, sorry, if this is.

David Grossman: So, just two quick questions to start off for you, Norm. I'm sorry, I'm traveling in the airport, so I'm sorry if this is disclosed in the filing, but it looks like the transport margins were relatively low at the EBITDA line, maybe even breakeven-ish. Am I seeing that correctly? And if so, other than subcontractor costs, did you mention anything else going on in the margins? Sure. Yeah

David Grossman: So, just two quick questions to start off for you, Norm. I'm sorry, I'm traveling in the airport, so I'm sorry if this is disclosed in the filing, but it looks like the transport margins were relatively low at the EBITDA line, maybe even break-even-ish. Am I seeing that correctly? And if so, other than subcontractor costs, did you mention anything else going on in the margins? Sure.

Speaker Change: Disclosed in the filings it looks like.

David Grossman: The transport margins were relatively low at EBITDA line may be breakeven ish am I seeing that correctly and if so other than the subcontractor costs, you mentioned or anything else going on in the margins.

Norm: Yeah, let's talk about that. And it really was all contained within the margin piece, but that was a pretty big delta. The margins, as we mentioned, for the quarter were 29.1% for transport, which is about four or five points lower than what we've seen lately. So there are a couple of factors. There are subcontractors in that one particular market that we mentioned. That will remain a factor, but a much, much smaller factor in Q3, and then towards the back end of Q3, it will disappear as a factor.

Speaker Change: Yes, let's talk about that and it really was all contained within the margin piece, but that was a pretty big Delta.

Speaker Change: The margins as we mentioned for the quarter were 29, 1% for transport, which is about four to five points lower than what we've seen lately. So there are a couple of factors with the subcontractors in that one particular market that we mentioned.

Lee Bienstock: So we're absolutely seeing that. At the same time, we're also seeing the ROI of our programs, of our pilots that we run with our insurance partners, where we have been successful in reducing hospital re-admissions, ER re-admissions, and as we shared with one of our longest standing partners, we were able to reduce those hospital re-admissions by 50%, which is very significant. So if we were able to keep patients out of the hospital, that saves the health plans money, that saves the hospital systems money because they get penalized for quality and for other metrics when patients are bouncing back to the hospitals after they've discharged them.

Norman Rosenberg: So there are a couple of factors with the subcontractors in that one particular market that we mentioned. That will remain a factor, but a much, much smaller factor in Q3, and then towards the back end of Q3 that will disappear as a factor. The other thing was we had an adjustment of workers' comp premiums going back to 2021, which takes back to when we were on the New York State Insurance Fund here in New York. We're now self-insured. And for one reason or the other, they didn't complete their work on our 2021 planned year until in the last few weeks here.

David Grossman: That will remain.

David Grossman: Factors, but a much much smaller factor in Q3, and then towards the back end of Q3 that will disappear as a factor the other thing was.

Norm: The other thing was we had an adjustment of workers' comp premiums going back to 2021, which dates back to when we were on the New York State Insurance Fund here in New York. We're now self-insured. And for one reason or the other, they didn't complete their work on our 2021 planned year until the last few weeks here.

David Grossman: We had a.

Speaker Change: We had an adjustment of workers' comp premiums going back to 2021, which dates back to when we were on the New York State Insurance Fund here in New York, We're now self insured.

Speaker Change: For one reason or the other they didn't complete their work on our 2021.

David Grossman: The overall adjustment in premium from that period three years ago was about $2 million. If I look at how it breaks down, and some of it is mobile health, and some of it is transport, but that costs transport probably two points of margin. So if I take those two factors, the non-recurring old insurance adjustment, and then I add to that the subcontractors, I would say that costs us somewhere between four and four and a half points of gross margin. So between the two, you're talking about four points. You're talking about well over a million dollar impact on the business because of that.

Speaker Change: Planned year until in the last few weeks here. The overall adjustment in premium from that period three years ago was about $2 million. If I look at how it breaks down and some of it is mobile health and some of it is transport, but that cost transport probably two points of margin. So if I think those two factors.

Lee Bienstock: And of course, most importantly, patients don't want to be in the hospital. They want to be happy at home. And so we've really seen the strong market adoption, but also our programs are working, we're expanding our programs, we're adding more and more clinical offerings to those programs, we're adding more geographies, and that's helping us sign additional services.

Norman Rosenberg: The overall adjustment in premium from that period three years ago was about $2 million. If I look at how it breaks down and some of it is mobile health and some of it is transport, but that cost transport probably two points of market. So if I take those two factors, the, you know, the non-retiring, old insurance adjustment. And then I added at the subcontractors, I would say that cost us somewhere between four and four and a half points of four and four and a half points of gross margin. So, between the two you're talking about, you know, four points that you're talking about, you know, well over a million dollar impact on the business because of that.

Gabrielle Ingoglia: Contract. Okay, awesome, thank you guys.

David Grossman: The nonrecurring old insurance adjustment.

Speaker Change: And then I add to that the subcontractors I would say that cost us somewhere between four and four five points of.

Michael Latimore: We'll take our next question from Mike Latimore of Northland capital markets. Great, yeah, thanks very much. I think it's, did the, did your core business grow 30% plus in the quarter year of it? So the core business didn't grow 30% quarter over quarter. The core business was relatively flat quarter over quarter. We do anticipate very strongly the core business to grow as the year progresses in the back half of the year as all those new contracts and new programs start to come into full bloom and start to expand. And so the core business maintained, you know, relatively stable quarter over quarter and we have programs ramping in the core business and now and in the back half of the year.

Speaker Change: 404, five points of gross margin.

David Grossman: So between the two you are talking about four points.

David Grossman: You're talking about well over $1 million.

David Grossman: Impact on the on the business because of that.

Norman Rosenberg: Got it.

Norm: Got it. And then just quickly on free cash flow. So I was just going through the mental math on kind of the disclosures with the share repurchase. And you probably had some other things in there. But did the core business generate cash flow excluding working capital?

Norm: Got it. And then just quickly on free cash flow. So I was just going through the mental math on kind of the disclosures with the share repurchase, and you probably had some other things in there. But did the core business generate cash flow excluding working capital?

David Grossman: Got it and then just quickly on the free cash flow.

Norman Rosenberg: And then just quickly in the free cash flow. So I was just going through the, you know, the mental map on, you know, kind of the disclosures with the shared repurchase. And you probably had some, some other things in there, but did the court business generate cash flow, excluding working capital, in the quarter? Yes, it did. Yeah, and we, you know, we published the, we published a cash flow statement here. So you'll, yeah, you would have, you would have seen, you would have seen a positive number from what we call the P and L cash flow as well.

Speaker Change: So I was just going through the the mental math on.

Speaker Change: Kind of the disclosures with the share repurchase and you've probably got some other things in there, but did that to the core business generate cash flow excluding working capital.

David Grossman: in the quarter? Yes, it did. Yeah. And we, you know, we published the cash flow statement here. So you'd, yeah, you would have, you would have seen a positive number from what we call the P&L cash flow as well. But obviously, we were aided in the period by, you know, from the other stuff that comes in from the business itself.

Speaker Change: Quarter, Yes, it did yes.

David Grossman: We published a cash flow statement here.

Speaker Change: So youll, yes, you would you would have seen you would've seen a positive number from what we call the P&L cash flow as well, but obviously we were aided in the period from.

Norman Rosenberg: But obviously we were aided in the period from, you know, from the other stuff that comes in from the, from the business itself. Right.

Lee Bienstock: When you say core over quarter, you mean sequentially or you're over here? sequentially from two ones to keep to right. Okay, so I think that, you know, the goal is to grow the business 30% year over year next year. And I think you talked about mobile transport growing 15% year over year. So you're expecting mobile transport to accelerate to 30% plus next year. So mobile transport, we expect to grow in that 15 to 20% range specifically on transport right now as we shared so far transport for the year year to date for 2024 has grown 13%.

Speaker Change: From the other stuff that comes in from the.

Speaker Change: From the business itself.

Lee Bienstock: Right. And then, just lastly for you, Lee, you talked about, you know, doubling the assigned lives, you know, sequentially. Can you just give us a sense of how we can think about how that converts to revenue over the next several months and, you know, how to interpret that statistics from a P&L standpoint?

Speaker Change: Alright, and then just lastly for Ya Li.

Lee Bienstock: And then just lastly for you, the, you know, you talked about, you know, doubling the assigned lives, you know, sequentially. Can you just give us a sense of, you know, how we can think about how that converts to revenue over the next several months. And, you know, how to interpret that statistics from a P and L standpoint. Sure. So that doubling of the lives being assigned to us, that's the top of the funnel. That's the metric that we're very focused on to start. And what will happen is those assigned lives to us will move towards, move through the funnel.

Speaker Change: Talked about doubling the size lives sequentially.

Speaker Change: Sequentially can you just give us a sense of.

Speaker Change: How we can think about how that converts to revenue over the next several months.

Speaker Change: How to interpret that statistics from a P&L standpoint.

Lee Bienstock: Sure. So that doubling of the lives being assigned to us, that's the top of the funnel. That's the metric that we're very focused on to start. What will happen is those assigned lives to us will move through the funnel, visit those patients in their homes, close their care gaps, and in some cases, will close multiple care gaps, and that will start generating revenue for those care gaps closed.

Lee Bienstock: Sure. So that doubling of the lives being assigned to us is the top of the funnel. That's the metric that we're very focused on to start. What will happen is those assigned lives to us will move towards, move through the funnel. We'll go and visit those patients in their homes. We'll close their care gaps. In some cases, we'll close multiple care gaps, and that will start generating revenue for those care gaps closed.

Ya Li: Sure so that doubling of the lives being assigned to us thats the top of the funnel. That's the metric that we're very focused on to start.

Lee Bienstock: And all the while, we're also going to continue to add to the top of the funnel. But as those patients move through the funnel, we'll close those care gaps, and a portion of those lists will result in visits from us.

Speaker Change: What will happen is those assign lives to us we'll move towards move through the funnel will go and visit those patients in their home will close their care gaps in some cases, we'll close multiple care gaps and.

Lee Bienstock: So in line, and we have a number of expansions happening in the back half of the year on the transport side. And then of course those will continue to expand into next year as we as we win more and more business on the transport side, which we recently announced actually we won multiple new transport wins in in Dover Delaware in New Jersey and other geographies for us. So we expect that medical transportation to continue to grow in that 15% perhaps even up to 20% range into next year on the mobile health business.

Lee Bienstock: We'll go and visit those patients in their home. We'll close their care gaps. In some cases, we'll close multiple care gaps. And, and that will start generating revenue there for those care gaps closed. And all the while, we also are going to continue to add to the top of the funnel. But as those patients move through the funnel, we'll close those care gaps. A portion of those lists will result in visits from us. A portion of those patients will remain unengaged, no matter how much or how convenient, you know, our services are. But we've been very successful so far, engaging, unengaged, unattached patients.

Speaker Change: And that will start generating revenue there for those care gaps closed and all the while we also are going to continue to to add to the top of the funnel, but as those patients move through the funnel will close care gaps a portion of those lists.

Speaker Change: Will result in visits from US a portion of those patients will remain on engaged on no matter, how much or how convenient our services are but we've been very successful so far.

Lee Bienstock: A portion of those patients will remain unengaged, no matter how much or how convenient our services are. But we've been very successful so far in engaging unengaged, unattached patients. And so a percentage of the list; it's too early right now for us to publish and post what the conversion rate is on the top of the funnel into care gap closure. But right now, our partners are very happy with what we've been able to achieve with the conversion rate.

Lee Bienstock: A portion of those patients will remain unengaged no matter how much or how convenient our services are. But we've been very successful so far in engaging unengaged, unattached patients. And so a percentage of the list; it's too early right now for us to publish and post what the conversion rate is on the top of the funnel into care gap closure. But right now, our partners are very happy with what we've been able to achieve with the conversion rate.

Lee Bienstock: That's where we're seeing even larger growth, particularly as we're focusing our efforts and expanding our initial customers in the insurance and provider space as well as in the hospital system space for the transitional care, social determinants of health and other in home care gap closure metrics. Next year as well, we do anticipate significant growth in our primary care offering and our remote patient monitoring offering as well. So all of those contracts that we're signing, we have signed, we're expanding right now and into the back half of this year will obviously catalyze the growth into 2025 as well.

Speaker Change: Engaging.

Speaker Change: <unk> engaged unattached patients and so what percentage of the list. It's too early right now for us to to publish and post what the conversion rate is on the top of the funnel into care gap closure, but right now our partners are very happy with what we've been able to achieve on the conversion rate, but the revenue will be generated and is being generated off of the <unk>.

Lee Bienstock: And so a percentage of the list, it's too early right now for us to publish and post what the conversion rate is on the top of the funnel into care gap closure. But right now our partners are very happy with what we've been able to achieve on the conversion rate. But the revenue will be generated and is being generated off of the care gaps that are closed. And that will happen; it heads happening now. It'll happen more in Q3; it'll happen more in Q4 is our plan. And then, once we are able to close those care gaps, then we're able to convert some of those patients, again, another percentage of those patients, into primary care patients for our PCP practice.

Lee Bienstock: But revenue will be generated and is being generated off of the care gaps that are closed. And that will happen. It's happening now.

Norm: It'll happen more in Q3. It'll happen more in Q4, according to our plan. And then once we are able to close those care gaps, then we're able to convert some of those patients, again, another percentage of those patients into primary care patients for our PCP practice. And then we'll be able to build fee-for-service and then eventually a capitated rate for those patients. That will happen later on in the year and more so in 2025.

Speaker Change: <unk> that are closed and that will happen. It is happening now it will happen more in Q3, it will happen more in Q4.

Norm: It'll happen more in Q3. It'll happen more in Q4 is our plan. And then once we are able to close those care gaps, then we're able to convert some of those patients, again, another percentage of those patients into primary care patients for our PCP practice. And then we'll be able to build fee-for-service and then eventually a capitated rate for those patients. That will happen later on in the year and more so in 2025.

Speaker Change: As our plan and then once we are able to close those care gaps than we were able to convert some of those patients again another percentage of those patients into primary care patients for our PCP practice, and then we'll be able to bill fee for service and then eventually a catheter rate for those patients that will happen later on in the year and more so.

Lee Bienstock: And it does seem like obviously your business will diversify quite a bit any sense of how many customers maybe to the 10% plus customers next year though. Right now, I think that would be, we had to project out probably less than five customers would be more than 10% of total revenue probably in that range, but we do and as you're saying, that is a big focus of ours. We want to diversify our customer base.

Lee Bienstock: And then we'll be able to build fee-for-service and then eventually a capitated rate for those patients. That will happen later on in the year and more so into 2025. But the initial metric after the top of the funnel is the number of patients we were able to close care gaps for. And then again, later on in the year and it's next year, they'll convert over into PCP patients for, again, another revenue stream. We won't risk share or value-based arrangements with these partners. Even though they are included, the ability to do so is included in the contract; that won't happen until next year.

Norm: But the initial metric after the top of the funnel is the number of patients we're able to close care gaps for. And then again, later on in the year and into next year, they'll convert over into PCP patients for, again, another revenue stream. We won't risk-share or value-based arrangements with these partners, even though they are included; the ability to do so is included in the contract. That won't happen until now.

Norm: But the initial metric after the top of the funnel is the number of patients we're able to close care gaps for. And then again, later on in the year and into next year, they'll convert over into PCP patients for, again, another revenue stream. We won't have risk-share or value-based arrangements with these partners, even though they are included. The ability to do so is included in the contract. That won't happen until next year,

Speaker Change: Into 2025.

Speaker Change: But the initial metric after the top of the funnel is the number of patients were able to close care gaps for and then again later on in the year and into next year I will convert over into <unk>.

Speaker Change: <unk> patients for again, another revenue stream, we won't risk share or value based arrangements with these partners. Even though they are included the ability to do so is included in the contract that won't happen until next year.

Lee Bienstock: We want to bring on more and more customers that have the opportunity to grow into very significant customers and as they're growing significant customers, no one or two customers represents. You know, significant customer concentration for us, that is absolutely part of our stress. Peter G. Yeah, very good. Thanks very much. Absolutely.

Norman Rosenberg: and Michael here. And that's sort of the further down the funnel. Yep. And Dave, just certainly back to your prior question, just to put a real number on it. And we provided the cash flow statement, obviously for the six months, but we also broke out the three months of the Q2 number. We generated about $37 million in operating cash flow in Q2. I would say about a third of that came from the business itself. No, there's an income and adding back all the non-cash expenses. And then the changes in the working capital categories were about two thirds of that.

David Grossman: And that's sort of the further down the funnel. Yep. And Dave, just circling back to your prior question, just to put a real number on it, and we provided the cash flow statement, obviously, for the six months, but we also broke out the three months of the Q2 number. We generated about $37 million in operating cash flow in Q2. I'd say about a third of that came from the business itself, in other words, net income and adding back all the non-cash expenses. And then the changes in the working capital categories were about two-thirds of that, so about 24 of them versus 12, which combined to $36, $37 million.

Speaker Change: Sort of further down the funnel.

Speaker Change: Dave just circling back to your prior question just to put a real number on it.

Speaker Change: And we provided the cash flow statement, obviously for the six months, but we also broke out the three months of the Q2 number we generated about $37 million in operating cash flow in Q2, I would say about a third of that came from the business itself.

David Larsen: We'll take our next question from David Larsen of BTIG. Hey, can you please talk a little bit more about fiscal 25 revenue expectations, I guess the $400 million. It sounds to me like what you said was it could actually come higher than $400 million if there's some New York City migrant revenue in there. And then, I guess within the mobile health portion of that $400 million, I think we talked about that being maybe $175 with 50 of that coming from payers.

Speaker Change: There was a net income and adding back the noncash expenses and then the changes in the working capital categories. We're about two thirds of that so about 24 that versus well, which combine to 36 $37 million for the quarter.

Norman Rosenberg: So about 24 that. That versus 12, which combined to $36, $37 million for the court. Got it.

David Larsen: Maybe just talk a little bit more about that payer component like, what will that 50, how does that compare to like what you would expect for fiscal 24, and what are the different pieces of it. So thanks very much. Appreciate it.

Speaker Change: Okay.

Speaker Change: Okay got it alright, guys. Thanks very much.

Norm: Got it. All right, guys. Thanks very much.

David Grossman: All right, guys. Thanks very much. Thanks, Dave.

Speaker Change: Thank you Sir.

Matt Cheon: We'll take our next question from Ryan MacDonald of Need Him.

Ryan Macdonald: We'll take our next question from Ryan MacDonald of Needham.

Speaker Change: We will take our next question from <unk>.

Ryan Macdonald: Ryan Macdonald of Needham.

Matt Cheon: Yeah, hey, this is Matt Cheon for Ryan. Thanks for taking the questions. Wanted to double-click on Caregap Closure. So nice to see that doubling, but curious how much of that was. Driven by new pair relationships versus expansions with existing. And as you look to the back half. Of the years, pairs of stress about star ratings and medical costs. Is there an opportunity that your existing pairs give you incremental lists of patients to target beyond those initial lists. And if so, is that contemplated in the current guidance. Yes, and yes. So, to answer your first question, Matt, great to hear from you.

Matt Shea: Yeah, hey, this is Matt Shea on for Ryan. Thanks for taking the questions. Wanted to double click on Care Gap Closure. So nice to see that doubling, but curious how much of that was driven by new payer relationships versus expansions with existing things. And as you look to the back half of the year, as payers are stressed about star ratings and medical costs, is there an opportunity that your existing payers give you incremental lists of patients to target beyond those initial lists? And if so, is that contemplated in the current guidance?

Matt Shea: Yeah, hey, this is Matt Shea on for Ryan. Thanks for taking the questions. Wanted to double click on Care Gap Closure. So nice to see that doubling, but curious how much of that was driven by new payer relationships versus expansions with existing ones. And as you look to the back half of the year, as payers are stressed about star ratings and medical costs, is there an opportunity that your existing payers give you incremental lists of patients to target beyond those initial lists? And if so, is that contemplated in the current guidance?

Ryan Macdonald: Yes, Hey, this is Matt Shea on for Ryan. Thanks for taking the questions I wanted to double click on care gap closure.

Speaker Change: So nice to see that doubling but curious how much of that was driven by new payer relationships various expansions with existing and as you look to the back half of the year as payers are stressed about star ratings and medical costs is there an opportunity that your existing payers give you incremental list of patients to target beyond those initial list and if so is there.

Lee Bienstock: Absolutely Dave, great to hear from you. So as you mentioned, for 2025, we expect the base business to be $400 million. And we don't expect some of the wraparound migrant revenues to continue into next year, things like the security and some of the wraparound services that we were providing as an emergency basis. What we do think will extend possibly into next year on the migrant side, which would be additionally additional revenue, is particularly the clinical services and the population health services and the infectious disease control and the screening and the behavioral health care and the depression screening and all those medical expertise that could potentially continue on into next year.

Lee Bienstock: And that's really what we're planning for. But the $400 million in the base business is really comprised of the revenues we expect in the hospital systems in the both hospital systems, both transitions of care and medical transportation for the hospital systems, municipal programs, population health programs with municipalities and with our payer vertical. As you mentioned, the payer vertical, we're projecting to be 50 million of that revenue in next year. That's going to come from three revenue streams.

Speaker Change: That contemplated in the current guidance.

Lee Bienstock: Yes and yes. So to answer your first question, Matt, great to hear from you.

Matt Shea: Yes and yes. So to answer your first question, Matt, great to hear from you.

Speaker Change: Yes, and yes, so to answer your first question, Matt Great to hear from you on the care gap closure side, the doubling from Q1 to Q2.

Lee Bienstock: The on the Caregap Closure side is doubling from Q1 to Q2. It came from both. It came from expansion with the partners we already had, but we did sign a new partner, and the list they provided alone represented a doubling with that new, very large partner that we've been working on. And we signed, and now are mobilizing with right now as we speak. So we did get additional expansion from our current customers, and we did get essentially a doubling from a new very large pair that we brought on. And then on the back half of the year, we do see momentum in the back half of the year as plans are trying to close out Caregap as they're looking for their partners to increase velocity as they're trying to get to as many patients as they can before the year end.

Lee Bienstock: On the Care Gap Closure side, the doubling from Q1 to Q2, came from both. It came from expansion with the partners we already had, but we did sign a new partner, and the list they provided alone represented a doubling with that new, very large partner that we've been working on and we signed and are mobilizing with right now as we speak. So we did get additional expansion from our current customers, and we did get essentially a doubling from a new very large payer that we brought on.

Speaker Change: Came from both came from expansion with our with the partners, we already had but we did sign a new partner and the.

Speaker Change: The list they provided alone represented a doubling with a new very large part of that we've been working on.

Speaker Change: And we signed and now are mobilizing with right now as we speak so.

Speaker Change: We did get additional expansion from our current customers and we did get essentially a doubling from a new very large payer that we brought on.

Lee Bienstock: And then in the back half of the year, we do see momentum in the back half of the year as plans are trying to close out care gaps, as they're looking for their partners to increase velocity, as they're trying to get to as many patients as they can before the year end. We do see that catalyzing the business in the back half of the year, and so we are planning for that. We're increasing capacity for that right now in all the markets we serve, and we do think that will be a tailwind in the back half of the year. Absolutely not.

Speaker Change: And then on the back half of the year, we do see momentum in the back half of the year as plans or are trying to close closeout care gaps as they're looking for their partners to increase velocity as they're trying to get to as many patients as they can before the year end, we do see that momentum, we do see that catalyze the business.

Lee Bienstock: The first revenue stream is going to be the care gap closures that we're conducting in the home. For every care gap close, we collect a rate that's negotiated with the payers. And so we're ramping that up considerably. We shared, we doubled the number of patients at the top of the funnel quarter over quarter. So from Q1 to Q2 of this year, we've doubled the number of patients that our health plan partners have assigned to us.

Lee Bienstock: We do see that momentum. We do see that catalyzed the business in the back half of the year. And so we are planning for that. We're increasing capacity for that right now in all the markets we serve. And we do think that will be a tailwind in the back half of the year. Absolutely. Awesome. Good to hear.

Speaker Change: In the back half of the year and so we are planning for that we're increasing capacity for that right now in all the markets. We serve and we do think that will be a tailwind in the back half of the year absolutely.

Matt Shea: And then I think last quarter, and now this quarter, too, you know, it sounds like health system partners are adding mobile health to transport contracts, or at least adding more mobile health programs. Curious how much white space there is for you to go after with mobile health for health systems? Any way to think about the penetration rate or opportunity there? And are you replacing existing vendors, or are these more greenfield opportunities? So we're just going to

Matt Shea: Awesome. It's good to hear.

Speaker Change: Good to hear.

Lee Bienstock: And then I think last quarter and now this quarter too, you know, it sounds like health system partners are adding mobile health on the transport contracts or at least adding more mobile health programs. Curious how much white space there is for you to go after with mobile health for health systems. Any way to think about penetration rate or opportunity there and are you replacing existing vendors? Are these more green field opportunities? So we're just scratching the surface right now in our mobile health with our hospital systems. We're in a great place because we already have been working deeply with hospital systems for years on medical transportation.

Speaker Change: And then I think last quarter and now this quarter too it sounds like health system partners are adding mobile health onto transport contracts or at least adding more mobile health programs curious how much white space. There is for you to go after with mobile health for health systems any way to think about penetration rate or opportunity. There are you, replacing existing vendors or are these more.

Matt Shea: And then I think last quarter and now this quarter, too, you know, it sounds like health system partners are adding mobile health to transport contracts or at least adding more mobile health programs. Curious how much white space there is for you to go after with mobile health for health systems? Any way to think about the penetration rate or opportunity there? And are you replacing existing vendors? Or are these more greenfield opportunities? So, we're just

Lee Bienstock: So that is a really good harbinger for the opportunity that we have in front of us as we go throughout this year and into next. And we have a number of opportunities also in the pipeline that are going to come to fruition in the back half of this year and into next year. So one of those revenue streams with the payers is going to be the care gap closures. We also have the opportunity with those patients that are being assigned to us to become their primary care provider and create a capitated rate for us as part of their primary care provider for the patients.

Speaker Change: Hold opportunities.

Lee Bienstock: So, we're just scratching the surface right now in our mobile health with our hospital systems. We're in a great place because we have already been working deeply with hospital systems for years on medical transportation. We've become a trusted partner. We have close relationships.

Speaker Change: So we're just scratching the surface right now and our mobile mobile health with our hospital systems.

Speaker Change: We're in a great place because we already have been working deeply with hospital systems for years on medical transportation, we've become a trusted partner, we have close relationships and so we're leveraging those relationships for other parts of the hospital to do patient monitoring for the hospital systems on the cardiac side and then also to do transitions of care.

Lee Bienstock: And so that will be the second revenue stream. And then the third with the payer vertical will be the patients that we monitor. And we shared last quarter that we have 50,000 patients that we're currently monitoring. Let me expect that to go to 70,000 patients next year. And all of those three revenue streams will be comprised in that 50 million that we're projecting, for next year.

Lee Bienstock: We've become a trusted partner. We have close relationships. And so we're leveraging those relationships for other parts of the hospital to do patient monitoring for the hospital systems on the cardiac side and then also to do transitions of care on the cardiac monitoring side. It's typically displacing current current service providers. They're already used, you know cardiac monitoring has been in place. We have a very unique value proposition that you know our adherence is usually in the 90% range. We've shown that we can have patient adherence rates in 90% when the competitive set is typically in the 60% range.

Lee Bienstock: And so, we're leveraging those relationships for other parts of the hospital to do patient monitoring for the hospital systems, on the cardiac side, and then also to do transitions of care. On the cardiac monitoring side, it's typically displace current service providers that are already used. Cardiac monitoring has been in place. We have a very unique value proposition that our adherence is usually in the 90% range. We've shown that we can have patient adherence rates of 90% when the competitive set is typically in the 60% range.

Lee Bienstock: And so, we're leveraging those relationships for other parts of the hospital to do patient monitoring for the hospital systems on the cardiac side and then also to do transitions of care. On the cardiac monitoring side, it's typically displace current service providers that are already used. Cardiac monitoring has been in place. We have a very unique value proposition that our adherence is usually in the 90% range. We've shown that we can have patient adherence rates of 90% when the competitive set is typically in the 60% range.

Speaker Change: Sir on the cardiac monitoring side, it's typically displacing current.

Lee Bienstock: That's very helpful. It sounds to me like you're delivering to America kind of exactly what this country needs. All of the health plans this quarter seem to be talking a lot about, you know, higher medical cost ratios, higher Medicare advantage utilization, you know, higher Medicaid utilization, you know, pressure on their, you know, Medicare cost ratios. How does that impact Docgo, if at all? Is that a good thing or a bad thing and why?

Speaker Change: Current service providers, they're already use cardiac monitoring has been in place we have a very unique value proposition that our adherence.

Speaker Change: Is usually in the 90% range. We've shown that we can have patient adherence rates of 90% when the when the competitive set is typically in the 60% range. So we've been able to sell through that and we've been leveraging the hustle system customers and relationships that we have to introduce our cardiac monitoring offering and we're going to invest a lot more there throughout throughout the year.

Lee Bienstock: So, we've been able to sell through that. And we've been leveraging the hospital system customers and relationships that we have to introduce our cardiac monitoring offering. And we're going to invest a lot more there throughout the year and into next year.

Lee Bienstock: So, we've been able to sell through that, and we've been leveraging the hospital system customers and relationships that we have to introduce our cardiac monitoring offering. And we're going to invest a lot more there throughout the year and into next year.

Lee Bienstock: So we've been able to sell through that, and we've been leveraging the hospital system customers and relationships that we have to introduce our cardiac monitoring offering, and we're going to invest a lot more there throughout the year and into next year. We've been doing that.

Speaker Change: Into next year, and we've been doing that.

Lee Bienstock: And then a transition to care space. I think there are existing providers that serve that space today. And so we are competing with some of those providers. But at the same time, it's still pretty white space. I think hospital systems are starting to realize that there are mobile health programs they can utilize for lower acuity care in the home post discharge to try and ameliorate patient re-admission. And there are a lot of services and prevention that can be done in the home post discharge, where you don't have to have the patient come back to the hospital system or perhaps go unvisited, and they do end up bouncing back.

Lee Bienstock: And then, in the transitions of care space, I think there are existing providers that serve that space today. And so, we are competing with some of those providers. But at the same time, it's still a pretty wide space. I think hospital systems are starting to realize that there are mobile health programs they can utilize for lower acuity care in the home, post-discharge, to try and reduce patient readmission. And there are a lot of services and prevention that can be done in the home post-discharge, where you don't have to have the patient come back into the hospital system or perhaps go unvisited, and they do end up bouncing back. And so, that's the value proposition.

Lee Bienstock: And then in the transitions of care space, I think there are existing providers that serve that space today. And so, we are competing with some of those providers. But at the same time, it's still a pretty wide space. I think hospital systems are starting to realize that there are mobile health programs they can utilize for lower acuity care in the home post-discharge to try and reduce patient readmission. And there are a lot of services and prevention that can be done in the home post-discharge where you don't have to have the patient come back into the hospital system or perhaps go unvisited, and they do end up bouncing back. And so that's the value proposition.

Speaker Change: And then on the transitions of care space I think there are existing providers that serve that space today and so we are competing with some of those providers, but at the same time, its still pretty white space I think hustle systems are starting to realize that there are mobile health programs. They can utilize for lower acuity care in the home.

Lee Bienstock: So we think it's, we think we fit nicely into that environment because ultimately what our goal is, is we're trying to provide more proactive care. Right? So we're going into the home and doing a colon cancer screening or a bone density scan or a depression screen. We're doing social determinants of health work. And so we're going into the home and we're going to serve those members all with the goal of catching chronic conditions or helping manage chronic conditions before they become more acute, catastrophic and more costly.

Speaker Change: Post discharge to try and ameliorate patient.

Speaker Change: Patient readmission and there are a lot of services and prevention that can be done in the home post discharge, where you don't have to have the patient come back to the hospital system or perhaps go on visited and they do end up bouncing back and so that's the value prop I think there is white space. There there is competition that's in the space and.

Lee Bienstock: So that really is our value prop and that fits in nicely in the environment that you're describing, which is rising costs and all that being driven perhaps from patients that we're not getting the care they needed perhaps during the pandemic, perhaps they didn't have good access to care and obviously the plans are seeing that. So we fit very nicely into that. That's what our value prop is. We think the investment they're making with us actually saves them money and obviously improves patient outcomes, which again is what the whole system wants.

Lee Bienstock: And so that's the value prop. I think there is white space there. There is competition that's that's in the space. I think we're placing more and more resources to that to be able to try and fill as much of that white space here as it's becoming more and more of a momentum with the hospital systems. Thanks, appreciate it, Collar.

Lee Bienstock: I think there is a wide space there. There is competition that's in the space, but I think we're placing more and more resources into that to be able to try and fill as much of that white space here as it's becoming more and more of a momentum with the hospital.

Speaker Change: I think we are placing more and more resources to that to be able to try and fill as much of that white space here and as it's becoming more and more momentum with the hospital systems.

Speaker Change: Thanks, I appreciate the color.

John Pinney: We'll take a question from Richard Close of Calacore Genuity.

Richard Close: We'll take a question from Richard Close of Canaccord Genuity.

Speaker Change: We will take a question from Richard close of Canaccord Genuity.

Lee Bienstock: So we feel like we're really of the moment of the time. We feel like we have the right solution for the right need in the marketplace today and we feel like we're able to save the health plans money, we're able to save patients heartache and help manage their care. And then as you go through the continuum that really we're looking to participate in, right, we go from care gap which again is meant to be proactive care to us becoming a primary care provider for those patients.

John Pinney: Hi, John Pinney on for Richard Close. Thanks for the question. So, just a quick question here. Are you still expecting for the base business to 80 to 300? That's still on the high end, roughly 105 million mobile health and 195 million transportation? Yes, that's still the projection for this year: 280 to 300 million in the base business for this year. And your breakdown is pretty close now. Okay, great.

John Pinney: Hi John Pinney, on behalf of Richard Close. Thanks for the question. So, just a quick question here. Are you still expecting for the base business 280 to 300? Is that still on the high end, roughly 105 million mobile health and 195 million transportation?

John Penny: Hi, John Penny on behalf of Richard Close. Thanks for the question. So, just a quick question here. Are you still expecting the base business to be 280 to 300? Is that still on the high end, roughly 105 million mobile health and 195 million transportation?

Speaker Change: Hi, John <unk> on for Richard close Thanks for the questions.

Speaker Change: So just.

John: Quick question here are you still expecting for the base business $2 80 to 300 is that still on the high end roughly 105 million mobile health on the $195 million transportation.

Lee Bienstock: Yes, that's still the projection for this year, 280 to 300 million in base business for this year. And your breakdown is pretty close.

Lee Bienstock: Yes, that's still the projection for this year 280 to 300 million in base business for this year. And your breakdown is pretty, pretty close.

Speaker Change: Yes, that's still that's still the <unk>.

Speaker Change: <unk> for this year $280 to $300 million of base business for this year and your breakdown is.

Lee Bienstock: Now we're increasing the care that's available to those drifter patients, those unattached patients, those patients don't have good primary care. Primary care is a very good indicator whether or not a patient is getting the care they need, the proactive care they need and the longitudinal care they need. And so we play again very well into that model. And then eventually the contracts we're signing do have the ability for us to participate in the value arrangements that you're describing, those Medicare advantage arrangements that you're describing.

Speaker Change: It's pretty pretty close to him.

John Pinney: Okay, great. And then I guess last quarter, you discussed targets of like 10, 2025 targets of 10k PCP patients, 65k care gap closures, and 70k remote patient monitoring. Can you give any commentary on where you expect to be tracking to in 2024 with those metrics?

John Penny: Okay, great. And then I guess last quarter you discussed targets of like 10, 2025 targets of 10k PCP patients, 65k care gap closures, and 70k remote patient monitoring. Can you give any commentary on where you expect to be tracking to in 2024 with those metrics?

Lee Bienstock: And then I guess last quarter you'd discuss like targets of like 10, 20, 25 targets of 10K, PCP patients, 65K care gap closures, 70K, remote patient monitoring. Can you like give any commentary of like where you expect to be tracking to in 2024 with those metrics? So, absolutely, John. So, those metrics, as you're sharing, we shared last quarter that we are projecting to do 65,000 care gaps closed, 10,000 PCP patients, as I mentioned, working through the funnel from care gaps to PCP, and then 70,000 patients monitored. We shared last quarter; we have 50,000 patients monitored to date.

Speaker Change: Okay great.

Speaker Change: And then I guess last quarter you discussed like.

Lee Bienstock: Once we feel comfortable with that and once we feel like we truly are able to impact that patient's total cost of care and health outcomes, which again is where our medical advisory board comes, we're going to be publishing research to that effect. So we have long term plans in this space. We have very good early indicators of the value proposition, the impact we're having on patients, and we really feel like in a world where perhaps the pendulum swung to virtual only digital.

Speaker Change: <unk> targets of 2025 targets of 10-K, PCP patients 65, K care gap closures 70, K remote patient monitoring can you give any commentary of like where do you expect to be tracking to in 2024 with those metrics.

Lee Bienstock: So, absolutely, John. So those metrics that you're sharing, we shared last quarter that we are projecting to close 65,000 care gaps, 10,000 PCP patients, as I mentioned, working through the funnel from care gap to PCP, and then 70,000 patients monitored. We shared last quarter that we're at 50,000 patients monitored to date, and we shared that last quarter, and we'll continue to share that number periodically as we make more and more progress toward that, probably as we end 2024 and start 2025. But we're not.

Lee Bienstock: So, absolutely, John. So those metrics that you're sharing, we shared last quarter that we are projecting to close 65,000 care gaps, 10,000 PCP patients, as I mentioned, working through the funnel from care gap to PCP, and then 70,000 patients monitored. We shared last quarter that we're at 50,000 patients monitored to date. We shared that last quarter, and we'll continue to share that number periodically as we make more and more progress toward that, probably as we end 2024 and start 2025. But we're not.

Speaker Change: So absolutely John so those metrics as Youre sharing we shared last quarter that we.

Speaker Change: We are projecting 265000 care gaps closed 10000, PCP patients as I mentioned working through the funnel from Carryout. The PCP and then 70000 patients monitored.

Speaker Change: Last quarter were 50000 patients monitored to date, we shared that last quarter and we will continue to share that number periodically as we're making more and more progress to that probably.

Lee Bienstock: We shared that last quarter, and we'll continue to share that number periodically as we're making more and more progress to that probably as we end 2024 into 2025. But we're tracking to those metrics for next year. We are putting the partnerships in place; either we've signed them and are launching them now, or we have many of those partnerships in the pipeline to be signed and launched at the end of this year and to next. And so, when we look at the bottoms-up projection of those numbers, we have either the customers today to scale with, and we're going to be adding new customers to help us reach those numbers next year.

Speaker Change: As we end 2024 into 2025.

Speaker Change: But we are we're tracking to those metrics for next year, we are putting the partnerships in place either we sign them and are launching them now or we have many of those partnerships in the pipeline to.

Lee Bienstock: We're tracking to those metrics for next year. We are putting the partnerships in place. Either we've signed them and are launching them now, or we have many of those partnerships in the pipeline to be signed and launched at the end of this year into next. And so when we look at the bottom-up projection of those numbers, we have the customers today to scale with, and we're gonna be adding new customers to help us reach those numbers next year.

John Pinney: Great, thanks. And I guess I have one last question here.

Lee Bienstock: We think that has a role to play, but we feel very strongly that we add the in-person component. And so as more and more AI tools come to market, as more and more digital offerings come to market, we can be the partner that helps bring those directly to patients in their home. And so we can be that last mile that helps mobilize and commercialize technology that we're building, and then also technology that we can partner on with other partners in the space.

Speaker Change: <unk> signed and launched at the end of this year into next and so when we look at the bottoms up projection of those numbers, we have either the customers today to scale with and we're going to be adding new customers to help us reach those numbers next year.

John Pinney: Great, thanks.

John Penny: Great, thanks. And I guess I have one last question here.

John Pinney: You mentioned that the Medical Advisory Board is helping with, you know, part of the value add there is getting clinical studies up and going. Has that been something that has potentially been a hindrance for additional payer partnerships? And do you have any studies that you can comment on during the call and what would potentially help going forward? Thanks. Absolutely. So we're very excited.

Speaker Change: Okay, great. Thanks.

Lee Bienstock: And I guess one last question here. You mentioned, like the Medical Advisory Board, is helping with part of the value ads; there is getting clinical studies up and going. Is that been something that has potentially been a hindrance for additional payer partnerships? And do you have any, like, studies that you can comment on on the call, and what would potentially help going forward? Thanks.

Speaker Change: And I guess one last question here you mentioned like the medical Advisory Board.

Lee Bienstock: So all to say, we're really excited about our plans, we really like where we fit in the healthcare ecosystem, and we really feel like we have a lot to bring to the space both for our payer partners, our hospital systems municipalities, but actually even more importantly for the patients because as the patients are healthier and healthier and getting the proactive care they need, ultimately they cost the system less money, which again is what everything is aligned to do, today.

Speaker Change: Helping with.

Speaker Change: Part of the.

Speaker Change: Value add there is getting clinical studies up and going is that been something that has potentially been a hindrance for additional payer partnerships and do you have any like studies that you can comment on on the call and what would potentially help going forward. Thanks.

Lee Bienstock: Absolutely, so we're very excited about the Medical Advisory Board. You can check out who's on that Medical Advisory Board on our website. We're very, very proud of the physicians we're adding. And really, the guiding light on the Medical Advisory Board is as we're getting more and more into primary care and specialty care, right? We have programs: cardiology, nephrology, endocrinology. We want to make sure that we have world-class leading physicians that are developing the clinical programs in those specialties to go along with the primary care that we're providing. Because many of the patients that we're going to have in our primary care practice have one or more chronic conditions relating to heart health and stage renal disease, diabetes, and so on.

Lee Bienstock: You mentioned that the Medical Advisory Board is helping with, you know, part of the value add there is getting clinical studies up and going. Has that been something that has potentially been a hindrance for additional payer partnerships? And do you have any studies that you can comment on during the call and what would potentially help going forward? Thanks. Absolutely, so we're very excited.

Lee Bienstock: Absolutely not. So we're very excited about the Medical Advisory Board. You can check out who's on our Medical Advisory Board on our website. We're very, very proud of the physicians we're adding. And really, the guiding light on the Medical Advisory Board is as we're getting more and more into primary care and specialty care, right, we have programs for cardiology, nephrology, endocrinology; we want to make sure that we have world-class leading physicians that are developing the clinical programs in those specialties to go along with the primary care that we're providing. Because many of the patients that we're going to have in our primary care practice have one or more chronic conditions relating to heart health, end-stage renal disease, diabetes, and so on.

Lee Bienstock: Absolutely not. So we're very excited about the Medical Advisory Board. You can check out who's on our Medical Advisory Board on our website. We're very, very proud of the physicians we're adding. And really, the guiding light on the Medical Advisory Board is that as we're getting more and more into primary care and specialty care, right, we have programs for cardiology, nephrology, endocrinology. We want to make sure that we have world-class leading physicians that are developing clinical programs in those specialties to go along with the primary care that we're providing because many of the patients that we're going to have in our primary care practice have one or more chronic conditions relating to heart health, end-stage renal disease, diabetes, and so on.

Speaker Change: Absolutely. So we're very excited about the medical Advisory Board.

Speaker Change: You can check out who's on that medical Advisory board on our website, where very very.

David Larsen: Great, thanks very much. I'll hop back in the queue. Thanks, Dave.

Operator: And once again, that is star one to ask a question.

Speaker Change: Proud of the physicians were adding and really the the guiding light on the medical Advisory Board is as we're getting more and more into primary care and specialty care right. We have programs cardiology neurology endocrinology, we want to make sure that we have world class leading positions that are developing the clinical programs in those specialties to go along.

Philip Chickering: We'll move next to Pito Chickering of Deutsche Bank. Yeah, I got to know guys. One more bridge question for you in 2025 margins. I think, you know, previously, he talked about transport and the three creeps in range and based on the health and the high 30s, S&A and 20 creeps in range. So we sort of blended all together. So we used to be thinking about 10% margins for next year on the 40 million dollars revenue.

Speaker Change: With the primary care that we're providing because many of the patients that we're going to have in our primary care practice.

Speaker Change: Have one or more chronic conditions relating.

Speaker Change: To heart health and stage renal disease diabetes, and so on and so we have those physicians now as part of our company really guiding the clinical programs that we're going to be that we're going to be providing and delivering for our primary care patients. So we're very excited about the medical advisory Board.

Philip Chickering: Hey, it's Norm. Yeah, that's exactly how we're laying it out. Nothing has changed for us in the last three months or so in terms of how that common size analysis works. We would think about 10% would be our target for the, even on margin, obviously, we would go up in there. So we'd like to see, we ideally like to model it out at 12, 12 and a half percent or higher. But, you know, we sort of put the floor in there at about 10%.

Lee Bienstock: And so we have those physicians now as part of our company, really guiding the clinical programs that we're going to be providing and delivering for our primary care patients. So we're very excited about the Medical Advisory Board. One of the main goals, in addition to helping us develop those clinical offerings, is going to be to publish medical research in leading medical journals on the efficacy and the clinical outcomes of those mobile health programs that we're delivering to really show the impact that we're having, but in general, what increasing access via mobile healthcare can do for the broader industry.

Lee Bienstock: And so we have those physicians now as part of our company, really guiding the clinical programs that we're going to be providing and delivering for our primary care patients. So we're very excited about the Medical Advisory Board. One of the main goals, in addition to helping us develop those clinical offerings, is going to be to publish medical research in leading medical journals on the efficacy and the outcomes, the clinical outcomes, of those mobile health programs that we're delivering to really show the impact that we're having but, in general, what increasing access via mobile health care can do, in general, for the broader industry.

Lee Bienstock: One of the main goals, in addition to helping us develop those clinical offerings, is going to be to publish medical research in leading medical journals on the efficacy and the outcomes, the clinical outcomes of those mobile health programs that we're delivering to really show the impact that we're having, but in general, what increasing access via mobile healthcare can do in general for the broader industry. And we are leading the publishing research and leading medical journals as well as publishing white papers as well. And it hasn't been a hindrance, but I strongly believe that with that clinical research with those medical outcomes, we can really utilize that to supercharge our pipeline and our sales efforts because that will really show the efficacy of the mobile health programs. We do use it today.

Speaker Change: One of the main goals in addition to helping US develop those clinical offerings is going to be to publish medical research in leading medical journals on the efficacy and the outcomes clinical outcomes of those mobile health programs that we're delivering to really show the impact that we're having but in general what increasing.

Philip Chickering: Okay, so, you know, versus a commentary from last quarter, we sort of talked about 12 and not percentage. Adding change from last quarter to this quarter, or is it the base of 10 and target of 12.5? Exactly. It's exactly the same. Okay, got it. Second question, would expect the cash looking versions to be on that, you know, about 40 million dollars via the next year, ignoring the catch-up of the DSOs and migrant programs?

Speaker Change: Access via mobile healthcare can do in general for the broader industry and we are leading the charge there and so we are going to be targeting publishing research in leading medical journals as well as publishing white papers as well.

Lee Bienstock: And we are leading the charge there, and so we are going to be targeting publishing research and leading medical journals, as well as publishing white papers as well. And it hasn't been a hindrance, but I strongly believe that with that clinical research, with those medical outcomes, we can really utilize that to supercharge our pipeline and our sales efforts, because that will really show the efficacy of the mobile health programs. We do use it today, and we do share, as I did, the programs that we're running today are having a material impact on ED readmission avoidance, closing care gaps, and increasing the heat of star measures for the health plans.

Philip Chickering: Sure. And it's kind of hard to ignore the cash-up on DSOs. It's such a big factor in 2024. But the thinking is that most of that will be done by the end of this year, although I will say I do think there's going to be some cash-up in the first quarter of next year as we get our DSOs more in line. But let's put that aside. So, on that 40 million dollars of Biba Die, I would say, you know, we typically would be able to pull out maybe 30 in cash-love, right? You've got you paying some tax, you have some mother, maybe some interest expense in there as well. So, I would say that it should convert pretty well.

Speaker Change: It hasnt been a hindrance, but I strongly believe that with that.

Norman Rosenberg: Okay, and then the last question.

Speaker Change: Clinical research with those medical outcomes.

Speaker Change: We can really utilize that to supercharge, our pipeline and our sales efforts because that will really show the efficacy of the mobile health programs. We do use it today, we do share as I did the programs that we're running today is having a material impact on readmission avoidance and closing <unk>.

Lee Bienstock: We do share, as I did, the programs that we're running today is having a material impact on ED re-admission avoidance and closing care gaps and increasing heat of star measures for the health plans. And so we do utilize those metrics in data-driven sales and data-driven business development today. We just think it's going to take it to the next level when it is published in clinical research and is a very structured clinical study. And so we use; it's not a hindrance today, we use data to sell today and to show the efficacy of our programs. I think there's an opportunity for us to take that to the next level in a very structured clinical format.

Lee Bienstock: We do share, as I did, the programs that we're running today are having a material impact on ED readmission avoidance, closing care gaps, and increasing the heat of star measures for the health plans. And so we utilize those metrics and data-driven sales and data-driven business development today. We just think it's going to take it to the next level when it is published in clinical research and is a very structured clinical study. And so we use, it's not a hindrance today; we use data to sell today and to show the efficacy of our programs.

Speaker Change: <unk> and increasing heat to star measures for the health plans and so we do utilize those metrics and data driven sales and data driven business development. Today, we just think it's going to take it to the next level. When it is published in clinical research and is a very structured clinical study and so we use it.

Lee Bienstock: And so we do utilize those metrics in data-driven sales and data-driven business development today. We just think it's going to take it to the next level when it is published in clinical research and is a very structured clinical study. And so we use, it's not a hindrance today; we use data to sell today and to show the efficacy of our programs.

Lee Bienstock: Like, have you lost any mobile health customers this year? And as you look at the customer base from 2021 in 2022, what percent of those have increased your scope with you?

Lee Bienstock: So, thanks so much. Absolutely. So, we actually announced we did launch multiple new payers this year. We also shared that we won multiple new contracts. We just want to contract with the state of New Mexico, we're providing mobile vaccination clinics, nursing and virtual call centers, and other behavioral health care work for the New Mexico Behavioral Health Institute. So, we're launching that. We also announced that we won a partnership with one of the largest outpatient physician radiology groups in Arizona, that has the opportunity also to expand to Texas and other states in the coming weeks.

Speaker Change: It's not a hindrance today, we use data to sell to.

Speaker Change: Today and to show the efficacy of our programs I think there is an opportunity for us to take that to the next level in a very structured clinical.

Lee Bienstock: I think there's an opportunity for us to take that to the next level in a very structured clinical format, and I'm really excited for the Medical Advisory Board to take that on. We actually had our first meeting with the Medical Advisory Board in person just last week, and it's very exciting to see the people that we have now as part of our company. It's probably the leading medical advisory board that you'll find for a company like ours in space.

Lee Bienstock: And I'm really excited for the Medical Advisory Board to undertake that.

Speaker Change: Format, and I'm really excited for the medical Advisory Board to undertake that we actually had our first meeting with the medical Advisory Board in person just last week.

Lee Bienstock: We actually had our first meeting with the Medical Advisory Board in person just last week. And it's very exciting to see the people that we have now as part of our company. It's probably the leading Medical Advisory Board that you'll find for a company like ours in space.

Speaker Change: And it's very exciting to see the people that we have now as part of our company is probably the leading medical advisory board that Youll find.

Speaker Change: For a company like ours in the space.

Lee Bienstock: Great, thank you.

Speaker Change: Great. Thanks, guys.

Lee Bienstock: So, we've won those new contracts, those are mobilizing and launching as we speak. In addition to those municipal contracts, we've also won multiple payer contracts that are expanding. Almost every single one of our payer contracts that we're mobilized right now has expanded over the course of this year. And a huge portion, a large portion of our hospital system contracts are also expanding with us as well through the year. So, we've continued to expand the customers we have.

Speaker Change: Okay.

Operator: And this concludes our question-and-answer session for today.

Operator: And this concludes our question and answer session for today. I'd be happy to return the call to Lee for a closing comment.

Speaker Change: And this concludes our question and answer session for today I'd be happy to return the call to Lee for closing comments.

Lee Bienstock: I'd be happy to return the call to Lee for closing comments. Thank you so much.

Lee Bienstock: Thank you so much. I want to thank everybody for joining us and hope to speak to you soon. Be well.

Lee: Thank you so much I want to thank everybody for joining us and hope to speak to you soon.

Lee Bienstock: I want to thank everybody for joining us, and I hope to speak to you soon. Be well.

Operator: This does conclude the .go 2nd quarter 2024 earnings conference call.

Operator: This does conclude the Docgo 2nd Quarter 2024 Earnings Conference Call. You may now disconnect your lines, and everyone, have a great day. Dale Appleton, and Ryan. Thank you. Thank you.

Operator: This does conclude the DocGo, second quarter 2024 earnings conference call. You may now disconnect your lines, and everyone have a great day.

Speaker Change: This does conclude the Doc go to second quarter 2024 earnings Conference call. You May now disconnect your lines and everyone have a great day.

Operator: You may now disconnect your lines, and everyone have a great day.

Subtitling by Ennius LAiC: Subtitling by Ennius LAiC.

Unnamed: [music]

Lee: [music].

Lee Bienstock: I think you see us also signing new customers and placing a lot of focus there as we're freeing up resources from the migrant-related projects that obviously consume a lot of resources over the course of the last year. And now those resources are freeing up to launch with newly signed contracts, and that's exactly what we're doing.

Lee: Hum.

Lee Bienstock: Great.

Lee Bienstock: Thanks so much.

Lee: Okay.

David Grossman: We'll take our next question from David Grossman of Stefel. Good afternoon. Thank you.

Norman Rosenberg: So just two quick questions, Sarah, for you, Norma. Sorry, I'm traveling in the airport. Sorry, if this is disclosed in the filing, but it looks like the transport margins were relatively low at EBIT outline, maybe even breakevenish. Am I seeing that correctly? And if so, you know, other than the subcontractor class, you mentioned anything else going on in the margins? Sure. Yeah, let's talk about that. And it really was all contained within the margin piece, but that was a pretty big delta.

Speaker Change: Okay.

Speaker Change: Yeah.

Norman Rosenberg: The margins, as we mentioned, for the quarter, were 29.1% for transport, which now is about four or five points lower than what we've seen lately. So there are a couple of factors. There were the subcontractors in that one particular market that we mentioned. That will remain a factor, but a much, much smaller factor in Q3 and then towards the back end of Q3 that will disappear as a factor. The other thing was we had an adjustment of workers' comp premiums going back to 2021, which dates back to when we were on the New York State Insurance Fund here in New York.

Speaker Change: Okay.

Speaker Change: Uh-huh.

Speaker Change: [music].

Speaker Change: Hum.

Speaker Change: Hmm.

Speaker Change: [music].

Speaker Change: Hmm.

Speaker Change: Uh huh.

Speaker Change: Hum.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Uh-huh.

Speaker Change: Hmm.

Speaker Change: [music] alone.

Norman Rosenberg: We're now self-insured. And for one reason or the other, they didn't complete their work on our 2021 plan year until in the last few weeks here. The overall adjustment in premium from that period three years ago was about $2 million. If I look at how it breaks down and some of it is mobile health and some of it is transport, but that cost transport probably two points of market. So if I take those two factors, the non-retiring old insurance adjustment, and then I add to that the subcontractors, I would say that costs us somewhere between four and four and a half points of four and four and a half points of gross margin. So between the two, you're talking about four points that you're talking about, well over a million dollar impact on the business because of that. Got it.

Speaker Change: Hum.

Speaker Change: [music].

Speaker Change: Hum.

Speaker Change: [music].

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: [music].

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Speaker Change: Okay.

Speaker Change: [music].

Norman Rosenberg: And then just quickly and the free cash flow. So I was just going through the mental math on the disclosures with the Shervery purchase. And you probably had some other things in there, but did the court business generate cash flow excluding working capital in the quarter? Yes, it did. Yeah, and we published the cash flow statement here. So you would have seen a positive number from what we call the P&L cash flow as well, but obviously we were aided in the period from the other stuff that comes in from the business itself. Right.

Speaker Change: Uh-huh.

Speaker Change: [music].

Lee Bienstock: And then just lastly, you talked about doubling the assigned lives sequentially. Can you just give us a sense of how we can think about how that converts to revenue over the next several months and how to interpret that statistics from a P&L standpoint? Sure. So that doubling of the lives being assigned to us, that's the top of the funnel. That's the metric that we're very focused on to start. And what will happen is those assigned lives to us will move towards, move through the funnel.

Lee Bienstock: We'll go and visit those patients in their home, we'll close their care gaps. In some cases, we'll close multiple care gaps. And that will start generating revenue there for those care gaps closed. And all the while, we also are going to continue to add to the top of the funnel. But as those patients move through the funnel, we'll close those care gaps. A portion of those lists will result in visits from us.

Speaker Change: Okay.

Lee Bienstock: A portion of those patients will remain unengaged no matter how much or how convenient our services are. But we've been very successful so far, engaging unengaged unattached patients. And so for percentage of the list, it's too early right now for us to publish and post what the conversion rate is on the top of the funnel into care gap closure. But right now, our partners are very happy with what we've been able to achieve on the conversion rate.

Lee Bienstock: But revenue will be generated and is being generated off of the care gaps that are closed and that will happen, it has happening now, it'll happen more in Q3, it'll happen more in Q4 is our plan. And then once we are able to close those care gaps, then we're able to convert some of those patients, again, another percentage of those patients into primary care patients for our PCP practice. And then we'll be able to build fee for service and then eventually a capitated rate for those patients.

Lee Bienstock: That will happen later on in the year and more so into 2025. But the initial metric after the top of the funnel is the number of patients available to close care gaps for. And then again, later on in the year and next year, they'll convert over into PCP patients for, again, another revenue stream. We won't risk share or value-based arrangements with these partners. Even though they are included, the ability to do so is included in the contract. That won't happen until next year, and Michael here. And that's sort of the further down the funnel. Yep.

Norman Rosenberg: And Dave, just certainly back to your prior question, just to put a real number on it. And we provided the cash flow statement, obviously, for the six months, but we also broke out the three months of the Q2 number. We generated about $37 million in operating cash flow in Q2. I would say about a third of that came from the business itself. No, there's an income and adding back all the non-cash expenses. And then the changes in the working capital categories were about two thirds of that. So about 24 that versus 12, which combined to 36, $37 million for the court. Got it.

David Grossman: Alright guys, thanks very much. Thanks, Dave.

Matthew Shea: We'll take our next question from Ryan MacDonald of Needham. Yeah, hey, this is Matt Shea on for Ryan. Thanks for taking the questions. Wanted to double click on Caregap Closure. So nice to see that doubling, but curious, how much of that was driven by new pair relationships versus expansions with existing. And as you look to the back half of the years, pairs of stress about star ratings and medical costs, is there an opportunity that your existing pairs give you incremental lists of patients to target beyond those initial lists.

Matthew Shea: And if so, is that contemplated in the current guidance? Yes, and yes, so I'll answer your first question Matt. Great to hear from you. The on the Caregap Closure side is doubling from Q1 to Q2. It came from both. It came from expansion with the partners we already had, but we did sign a new partner and the list they provided alone represented a doubling with that new very large partner that we've been working on.

Matthew Shea: And we signed and now are mobilizing with right now as we speak. So we did get additional expansion from our current customers and we did get essentially a doubling from a new very large pair that we brought on. And then on the back half of the year, we do see momentum in the back half of the year as plans are trying to close close out Caregap as they're looking for their partners to increase velocity as they're trying to get to as many patients as they can before the year end.

Matthew Shea: We do see that momentum. We do see that catalyzed the business in the back half of the year. And so we are planning for that. We're increasing capacity for that right now in all the markets we serve. And we do think that will be a tailwind in the back half of the year, absolutely. Awesome. Good to hear.

Lee Bienstock: And then I think last quarter and now this quarter two, you know, it sounds like health system partners are adding mobile health on the transport contracts or at least adding more mobile health programs curious how much white space there is for you to go after with mobile health for health systems. Any way to think about penetration rate or opportunity there and are you replacing existing vendors or are these more green field opportunities.

Lee Bienstock: So we're just scratching the surface right now in our mobile mobile health with our hospital systems. We're we're in a great place because we already have been working deeply with hospital systems for years on medical transportation. We've become a trusted partner. We have close relationships. And so we're leveraging those relationships for other parts of the hospital to do patient monitoring for the hospital systems on the cardiac side. And then also to do transitions of care on the cardiac monitoring side is typically displacing current current service providers.

Lee Bienstock: They're already used, you know, cardiac monitoring has been in place. We have a very unique value proposition that our adherence is usually in the 90% range. We've shown that we can have patient adherence rates in 90% when the when the competitive set is typically in the 60% range. So we've been able to sell through that and we've been leveraging the hospital system customers and relationships that we have to introduce our cardiac monitoring offering.

Lee Bienstock: And we're going to invest a lot more there throughout throughout the year and into next year. We've been doing that. And then a transition to care space. I think there are existing providers that serve that space today. And so we are competing with some of those providers. But at the same time, it's still pretty white space. I think hospital systems are starting to realize that there are mobile health programs they can utilize for lower acuity care in the home post discharge to try and ameliorate patient re admission.

Lee Bienstock: And there are a lot of services and prevention that can be done in the home post discharge where you don't have to have the patient come back to the hospital system or perhaps go unvisited and they do end up bouncing back. And so that's the value prop. I think there is white space there. There is competition that's that's in the space. I think we're placing more and more resources to that to be able to try and fill in much of that white space here and as it's becoming more and more momentum with the hospital systems. Thanks. Appreciate color.

John Pinney: We'll take a question from Richard Close of Callacore Genuity. Hi, John Penny on for Richard Close. Thanks for the questions. So just a quick question here. Are you still expecting for the base business to 80 to 300 that's still on the high end roughly 105 million mobile health and 195 million transportation? Yes, that's still that's still the projection for this year. 280 to 300 million the base business for this year and you break down is pretty pretty close.

Lee Bienstock: Great. And then I guess last quarter you discussed like targets of like 10 in 2025 targets of 10k PCP patients 65k care gap closures 70k remote patient monitoring. Can you like give any commentary of like where you expect to be tracking to in 2024 with those metrics? So absolutely, John, so those metrics as you're sharing we shared last quarter that we're going to we are projecting to do 65,000 care gaps closed and 1000 PCP patients as I mentioned working through the funnel from care gap to PCP and then 70,000 patients monitored.

Lee Bienstock: We share last quarter we're 50,000 patients monitored to date we share that last quarter and we'll continue to share that number periodically as we're making more progress to that probably as we end 2024 into 2025. But we're we're we're tracking to those metrics for next year we are putting the partnerships in place either we've signed them and are launching them now or we have many of those partnerships in the pipeline to be signed and launched at the end of this year into next.

Lee Bienstock: And so when we look at the bottoms up projection of those numbers we have either the customers today to scale with and we're going to be adding new customers to help us reach those numbers next year.

John Pinney: Great. Thanks.

Lee Bienstock: And I guess one last question here. You mentioned like the medical advisory board is you know helping with you know part of the value ads there is getting clinical studies up and going. Is that been something that that has potentially been a hindrance for additional payer partnerships and do you have any like studies that you can comment on on the call and what would potentially help going forward. Thanks. Absolutely. So we're very excited about the medical advisory board.

Lee Bienstock: You can check out who's on that medical advisory board on on our website. We're very very proud of the physicians ran and really the guiding light on the medical advisory board is as we're getting more and more into primary care. And specialty care right we have programs a cardiology nephrology endocrinology we want to make sure that we have world class leading physicians that are developing the clinical programs in those specialties to go along with the primary care that we're providing as many of the patients that we're going to have in our primary care practice.

Lee Bienstock: We just have one or more chronic conditions relating to heart health and stage renal disease diabetes and so on. And so we have those physicians now as part of our company really guiding the clinical programs that we're going to be providing and delivering for our primary care patients. And so we're very excited about the medical advisory board. One of the main goals in addition to helping us develop those clinical offerings is going to be to publish medical research and leading medical journals on the efficacy and the outcomes, the clinical outcomes of those mobile health programs that we're delivering to really show the impact that we're having.

Lee Bienstock: But in general, what increasing access via mobile healthcare can do in general for the broader industry. And we are leading the charge there. And so we are going to be targeting publishing research and leading medical journals as well as publishing white papers as well. And it hasn't been a hindrance, but I strongly believe that with that clinical research with those medical outcomes, we can really utilize that to super charge our pipeline and our sales efforts because that will really show the efficacy of the mobile health programs.

Lee Bienstock: We do use it today. We do share, as I did the programs that we're running today, is having a great material impact on ED re-admission avoidance and closing care gaps and increasing heat of star measures for the health plans. And so we do utilize those metrics and data driven sales and data driven business development today. We just think it's going to take it to the next level when it is published in clinical research and is a very structured clinical study.

Lee Bienstock: And so we use, it's not a hindrance today, we use data to sell today and to show the efficacy of our programs. I think there's an opportunity for us to take that to the next level in a very structured clinical format. And I'm really excited for the Medical Advisory Board to undertake that. We actually had our first meeting with the Medical Advisory Board in person just last week. And it's very exciting to see the people that we have now as part of our company.

Lee Bienstock: It's probably the leading Medical Advisory Board that you'll find for a company like ours in the space.

Lee Bienstock: Great.

Lee Bienstock: Thank you.

Operator: And this concludes our question and answer session for today.

Lee Bienstock: I'd be happy to return the call to Lee for closing comments. Thank you so much.

Lee Bienstock: I want to thank everybody for joining us and hope to speak to you soon. Be well.

Operator: This does conclude the dot go to second quarter, 2024 earnings conference call. You may now disconnect your lines and everyone have a great day.

Operator: [inaudible] Jackson, Michael Jackson, Michael Jackson,

Q2 2024 DocGo Inc Earnings Call

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