DocGo (DCGO) Morgan Stanley 24th Annual Global Healthcare Conference summary

Business overview and growth strategy

• Provides mobile health, medical transportation, and telehealth services across the U.S. and U.K., with 700,000 patient transports and 1 million telehealth visits annually.

• Focuses on chronic condition management, remote monitoring 55,000 patients, and in-home care for 150,000 patients per year.

• Integrated tech platform matches clinicians and diagnostics to patient needs, optimizing care delivery both virtually and in-person.

• Recent acquisitions, such as PTI and SteadyMD, have expanded capabilities in mobile phlebotomy and virtual care, with strong year-over-year revenue growth.

• Market expansion is driven by anchor customers and embedded demand, prioritizing profitability and integration with existing workflows.

Profitability and financial targets

• Targets adjusted EBITDA positivity by year-end, with $240 million of projected 2026 revenue from currently profitable business lines.

• Non-profitable service lines are being eliminated or redesigned, with ongoing efforts to optimize gross margin from 30.5% to 34%.

• SG&A reductions include a $3 million quarterly cut and a major RIF, aiming for a profitable run-rate by year-end.

• Automation and AI initiatives are expected to save $6 million on SG&A, focusing on non-clinical administrative tasks.

• Capital allocation prioritizes tech investment, debt reduction, and maintaining existing fleet over new CapEx.

Hicuity Health acquisition and integration

• Acquiring Hicuity Health, a virtual care platform specializing in tele-ICU and virtual nursing, to enhance hospital-to-home care continuity.

• Hicuity brings $65 million in revenue and $4.5 million adjusted EBITDA, with further synergies expected post-integration.

• $52 million in assumed debt, with up to $100 million in available funding; debt service plans include profitability, receivables collection, and potential asset sales.

• Integration aims to reduce hospital readmissions and provide value to hospitals and insurers by bridging care transitions.

• A deep-dive webinar on integration plans and growth vectors is scheduled for later in the month.