Core Business seems Solid But Revenue and Margins Remain Pressured

研报英文原文证据摘录

Core Business seems Solid But Revenue and Margins Remain Pressured

Investment Thesis

We rate shares of DocGo (DCGO) Neutral. DCGO is an industry market leader due mainly to its breadth and depth of services and

solutions in the mobile health and medical transportation space with mobile care, telehealth, and on-demand medical mobility

capabilities. We like DCGO’s competitive standing in the industry for both its mobile health and transportation solutions. DCGO’s

range of mobile health solutions is highlighted by the company’s ability to accommodate a range of needs for a wide client base.

DCGO impacts nearly every stakeholder in the healthcare universe. Its customers include hospitals and health systems, healthHEALTHCARE plans, and governments and municipalities, which have aligned objectives and realize cost-savings with DCGO, but the company’s

IT reach extends beyond them to healthcare professionals who benefit from increased productivity and patients themselves who see

improved care and outcomes. There is a growing shift away from fee-for-service pricing and care models and towards value-based

ones that DCGO is built to support. Mobile health and medical transportation fit into the VBC puzzle, and DCGO has positioned itselfAND as a leader to capture opportunities in the growing spaces. We estimate that the TAM for mobile health is ~$265B and that the TAM

for transportation services is $7B-$13B. Both markets are still growing after new trends that developed out of the pandemic. DCGO

continues to expand into high-value areas like remote patient monitoring that integrate with its existing offerings and bolster its

cross-selling opportunities. We like the low market penetration rate for both of DCGO’s services, and we also like DCGO’s revenue