Michael Latimore's questions to DocGo Inc (DCGO) leadership • Q4 2024
Question
Aditya Dagaonkar, on behalf of Michael Latimore, asked about the expected cash flow from operations as a percentage of EBITDA for 2025. He also inquired about the subcontracted labor expense as a percentage of total revenue.
Answer
CFO Norman Rosenberg explained that cash flow from operations is expected to be "significantly higher" in 2025 than the $70 million generated in 2024, driven by the collection of a large accounts receivable balance, particularly ~$150 million in migrant-related AR. He stated that subcontracted labor costs have dropped from over 40% at their peak to about 24% now, and he expects this to fall below 20% of revenue in Q1 2025.