Mobile health services provider DocGo Inc. on Monday reported second-quarter earnings that fell short of analyst expectations and lowered its full-year adjusted EBITDA guidance.
The company posted adjusted EBITDA of $22.1 million for the quarter ended June 30, below the $25.3 million average estimate from three analysts surveyed by Visible Alpha. Revenue totaled $162.7 million, also trailing the $170.2 million forecast.
DocGo attributed the underperformance to softer demand in its core mobile health services segment and elevated operating costs. The company said higher labor expenses and supply chain pressures weighed on profitability despite a 12% year-over-year increase in revenue.
Management revised its 2024 adjusted EBITDA outlook to a range of $90 million to $95 million, down from the prior guidance of $100 million to $110 million. The company maintained its revenue forecast of $650 million to $680 million for the year.
DocGo’s stock fell 5.2% in after-hours trading following the results. The company’s shares have declined about 15% year-to-date, underperforming the S&P 500’s 12% gain over the same period.
Analysts at William Blair maintained their neutral rating on the stock, citing near-term margin pressures but long-term growth potential in the mobile health services market.
