DocGo reports cybersecurity attack day before reporting increased Q1 earnings
Telehealth and medical transportation company DocGo reported a data breach in an SEC filing on May 7. The company stated it identified a cybersecurity incident in which consumers’ protected health information was accessed and acquired regarding the company’s U.S. ambulance transportation business.
The company said it took steps to contain and respond to the incident, and no other business lines were involved.
It is launching an investigation with help from third-party security experts and will begin notifying individuals if they were affected by the breach.
DocGo said the incident has not had a material impact on the company’s operations or financial security.
MobiHealthNews reached out DocGo representatives regarding the data breach, but the company has not yet responded to a request for comment.
A day after reporting the breach to the SEC, the company released its first-quarter financial results for 2024, citing a substantial increase in total revenue to $192.1 million, up from $113 million in the same period last year.
Revenue from the company’s mobile health services increased 97% year-over-year to $143.9 million in Q1 2024 compared to $72.9 million in Q2 2022.
The company reported $48.2 million in revenue for its transportation services compared to $5.6 million in the first quarter of 2023, a 330% increase.
Reported net income was $10.6 million for Q1 compared to a net loss of $3.9 million in Q1 of last year, and adjusted EBITDA was up 330% to $24.1 million compared to $5.6 million in 2023’s first quarter.
DocGo reported its total cash and cash equivalents at the end of the period equaled $58.9 million, compared with $127.5 million at the same time last year.
The company reiterated its 2024 revenue expectations to $280 to $300 million and adjusted its EBITDA to $65 to $75 million from its previous range of $80 to $85 million.
DocGo said it expects to generate $70 to $80 million in cash flow for the year, up from its previous forecast of $65 to $75 million.
“The reduction in our 2024 guidance is solely a result of the accelerated wind down of migrant-related programs. It is vital to note that our base business performance has been incredibly strong over the years. We expect to generate between $280 to $300 million in our base business in 2024,” Lee Bienstock, CEO of DocGo, said in a statement.
“If you compare this to 2019 – the year before we saw any migrant or COVID-related revenue – our base business revenue was $48 million. This impressive growth is indicative of our ability to execute and deliver transformative long-term performance.”
