DocGo Inc. (NASDAQ: DCGO), a provider of mobile health services, has secured a $4 million contract extension through its subsidiary Exceptional Medical Transportation to continue delivering 911 basic life support services in Atlantic City.
The renewed agreement, effective from August 1, 2024, includes the possibility of further extensions, potentially prolonging the partnership until 2027.
Exceptional Medical Transportation is tasked with managing approximately 22,000 calls and transporting around 14,000 patients annually in Atlantic City. The company maintains three ambulances in service around the clock, adding a fourth during the peak tourist season from May to September. This emergency service is crucial for the city, which hosts nearly 27 million visitors each year alongside its 39,000 residents.
John Wolfram, Operations Manager at Exceptional Medical Transportation, expressed pride in the ongoing relationship with Atlantic City, emphasizing the company's commitment to providing professional emergency responses and high standards of care.
Atlantic City Mayor Marty Small, Sr. lauded the decade-long partnership with Exceptional Medical Transportation, highlighting its significant role in ensuring the well-being of both residents and visitors.
Lee Bienstock, CEO of DocGo, echoed the sentiments, acknowledging the dedication of the Exceptional Medical Transportation staff and the company's mission to deliver quality medical care and emergency services. He underlined the contract extension as evidence of the exceptional service provided to Atlantic City.
DocGo's business includes mobile health, remote patient monitoring, and ambulance services, aiming to bridge the gap between physical and virtual care.
DocGo reported a significant increase in revenue and net income for the first quarter of 2024. The mobile health services provider saw a 70% increase in revenue, reaching $192.1 million, and a record adjusted EBITDA of $24.1 million. Net income also saw a substantial upturn, rising to $10.6 million from a net loss in the previous year.
In addition, DocGo recently announced a partnership with Spect to offer in-home eye disease screenings, focusing on diabetic retinopathy. The collaboration aims to improve accessibility to essential eye exams for diabetic patients, using Spect's portable retinal camera technology.
Furthermore, DocGo has adjusted its 2024 guidance due to the accelerated wind-down of certain migrant services projects. The firm now projects revenues between $600 million to $650 million and adjusted EBITDA of $65 million to $75 million.
InvestingPro Insights
As DocGo Inc. (NASDAQ:DCGO) solidifies its presence in Atlantic City with the contract extension for 911 basic life support services, the company's financial health and market performance offer additional insights. According to InvestingPro data, DocGo currently has a market capitalization of $353.45 million, reflecting its valuation in the market. The company's aggressive share buyback program, as noted in an InvestingPro Tip, suggests confidence from management in the company's value proposition and future prospects.
InvestingPro data also shows a notable revenue growth of 61.46% over the last twelve months as of Q1 2024, indicating a strong expansion of DocGo's business operations. This aligns with the company's strategic initiatives, such as the recent contract extension in Atlantic City. Furthermore, DocGo's gross profit margin stands at 32.83%, which demonstrates the company's ability to maintain profitability in its service delivery.
InvestingPro Tips highlight that analysts predict DocGo will be profitable this year, which is supported by the company's performance over the last twelve months. With a P/E ratio of 16.44, the company trades at a valuation that reflects its earnings potential. Additionally, there are 9 more InvestingPro Tips available for DocGo, offering deeper insights for those interested in the company's financial nuances and investment potential.
For investors and industry observers, these metrics and tips provide a broader context for evaluating DocGo's recent business developments and their implications for the company's financial health and future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.