Q4 total revenues of $111.0 million, up 18%
year-over-year Q4 net income margin of 28% and adjusted EBITDA
margin of 44%
Fiscal year 2023 total revenues of $419.1
million, up 22% year-over-year Fiscal year 2023 net income margin
of 27% and adjusted EBITDA margin of 44%
Doximity, Inc. (NYSE: DOCS), the leading digital platform for
U.S. medical professionals, today announced results of its fiscal
2023 fourth quarter and fiscal year ended March 31, 2023. The
company also announced the appointment of two new senior leadership
members, Craig Overpeck as SVP of commercial operations and Ben
Greenberg as SVP of commercial products.
“With the public health emergency officially over, we’re proud
to emerge with a record number of providers using our physician
cloud in Q4 to power their scheduling, fax, e-signature, and
telehealth needs,” said Jeff Tangney, co-founder and CEO at
Doximity. “We’re also thrilled to welcome Craig Overpeck and Ben
Greenberg to our senior leadership team, as we continue to grow and
scale our commercial businesses.”
Mr. Overpeck joins Doximity with over 25 years of experience
delivering digital solutions to serve and connect physicians. He
served as the U.S. chief operating officer at M3 for over a decade,
and spent more than 16 years as co-founder and chief technology
officer at MDLinx.
Mr. Greenberg also joins Doximity with decades of experience
building digital products. Most notably, he spent more than 11
years at WebMD / Medscape, where he served as vice president of
mobile products and user experience.
Fiscal 2023 Fourth Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months
ended March 31, 2022.
- Revenue: Revenue of $111.0 million, versus $93.7
million, an increase of 18% year-over-year.
- Net income and non-GAAP net income: Net income of $30.7
million, versus $36.7 million, representing a margin of 27.6%,
versus 39.2%. Non-GAAP net income of $42.1 million, versus $44.9
million, representing a margin of 38.0%, versus 47.9%.
- Adjusted EBITDA: Adjusted EBITDA of $48.9 million,
versus $39.4 million, an increase of 24% year-over-year,
representing adjusted EBITDA margins of 44.1%, versus 42.0%.
- Net income per share and non-GAAP net income per share:
Diluted net income per share was $0.14, versus $0.17, while
non-GAAP diluted net income per share was $0.20, versus $0.21.
- Operating cash flow and free cash flow: Operating cash
flow of $46.6 million, versus $47.0 million, a decrease of 1%
year-over-year, and free cash flow of $45.6 million, versus $44.9
million, an increase of 2% year-over-year.
Fiscal Year 2023 Financial Highlights
All comparisons, unless otherwise noted, are to the fiscal year
ended March 31, 2022.
- Revenue: Revenue of $419.1 million, versus $343.5
million, an increase of 22% year-over-year.
- Net income and non-GAAP net income: Net income of $112.8
million, versus $154.8 million, representing a margin of 26.9%,
versus 45.1%. Non-GAAP net income of $154.9 million, versus $180.6
million, representing a margin of 37.0%, versus 52.6%.
- Adjusted EBITDA: Adjusted EBITDA of $184.0 million,
versus $150.3 million, an increase of 22% year-over-year,
representing adjusted EBITDA margins of 43.9%, versus 43.7%.
- Net income per share and non-GAAP net income per share:
Diluted net income per share was $0.53, versus $0.70, while
non-GAAP diluted net income per share was $0.73, versus $0.82.
- Operating cash flow and free cash flow: Operating cash
flow of $179.6 million, versus $126.6 million, an increase of 42%
year-over-year, and free cash flow of $173.4 million, versus $120.9
million, an increase of 43% year-over-year.
Financial Outlook
Doximity is providing guidance for its fiscal first quarter
ending June 30, 2023 as follows:
- Revenue between $106.5 million and $107.5 million.
- Adjusted EBITDA between $39.0 million and $40.0 million.
Doximity is providing guidance for its fiscal year ending March
31, 2024 as follows:
- Revenue between $500 million and $506 million.
- Adjusted EBITDA between $216 million and $222 million.
Conference Call Information
Doximity will host a webcast today at 2:00 p.m. Pacific Time
(5:00 p.m. Eastern Time) to discuss these financial results. To
listen to a live audio webcast, please visit the Company’s Investor
Relations page at https://investors.doximity.com. The archived
webcast will be available on the Company’s Investor Relations page
shortly after the call.
About Doximity
Founded in 2010, Doximity is the leading digital platform for
U.S. medical professionals. The Company's network members include
over 80% of U.S. physicians across all specialties and practice
areas. Doximity provides its verified clinical membership with
digital tools built for medicine, enabling them to collaborate with
colleagues, stay up to date with the latest medical news and
research, manage their careers and on-call schedules, and conduct
virtual patient visits. Doximity's mission is to help doctors be
more productive so they can provide better care for their patients.
For more information, visit www.doximity.com.
Forward-Looking Statements
Statements we make in this press release may include statements
which are not historical facts and are considered forward-looking
within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act, which are usually identified by
the use of words such as “anticipates,” “believes,” “estimates,”
“expects,” “intends,” “may,” “plans,” “projects,” “seeks,”
“should,” “will,” and variations of such words or similar
expressions. We intend these forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act and
Section 21E of the Securities Exchange Act and are making this
statement for purposes of complying with those safe harbor
provisions. These forward-looking statements reflect our current
views about our plans, intentions, expectations, strategies and
prospects, which are based on the information currently available
to us and on assumptions we have made. Although we believe that our
plans, intentions, expectations, strategies and prospects as
reflected in or suggested by those forward-looking statements are
reasonable, we can give no assurance that the plans, intentions,
expectations, or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those
described in the forward-looking statements and will be affected by
a variety of risks and factors including (i) the timing and scope
of anticipated stock repurchases; (ii) the impact of uncertainty in
the current economic environment and macroeconomic uncertainty,
including the resurgence or resolution of the COVID-19 pandemic or
other pandemics, epidemics or infectious diseases; (iii) our
ability to retain existing members or add new members to our
platform and maintain or grow their engagement with our platform;
(iv) our ability to attract new customers or retain existing
customers; (v) the impact of our prioritization of our members’
interests; (vi) breaches in our security measures or unauthorized
access to members’ data; (vii) our ability to maintain or manage
our growth, and other risks and factors that are beyond our control
including, without limitation, those set forth in the section
entitled “Risk Factors” in the Quarterly Report on Form 10-Q for
the fiscal quarter ended December 31, 2022. Additional information
will be provided in our Annual Report on Form 10-K for the annual
period ended March 31, 2023. Moreover, we operate in a very
competitive and rapidly changing environment. New risks and
uncertainties emerge from time to time, and it is not possible for
us to predict all risks and uncertainties that could cause actual
results to differ materially from those contained in our
forward-looking statements. The forward-looking statements made in
this press release relate only to management’s beliefs and
assumptions as of this date. We assume no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
DOXIMITY, INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands)
(unaudited)
March 31, 2023
March 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
158,027
$
112,809
Marketable securities
682,972
685,304
Accounts receivable, net
107,047
81,073
Prepaid expenses and other current
assets
22,289
19,439
Deferred contract costs, current
5,118
5,512
Total current assets
975,453
904,137
Property and equipment, net
11,279
8,488
Deferred income tax assets
34,907
48,558
Operating lease right-of-use assets
13,819
1,087
Intangible assets, net
31,836
7,909
Goodwill
67,940
18,915
Other assets
1,654
2,263
Total assets
$
1,136,888
$
991,357
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
1,272
$
463
Accrued expenses and other current
liabilities
31,245
25,270
Deferred revenue, current
105,238
84,907
Operating lease liabilities, current
1,752
642
Total current liabilities
139,507
111,282
Deferred revenue, non-current
198
78
Operating lease liabilities,
non-current
13,885
447
Contingent earn-out consideration
liability, non-current
15,942
—
Other liabilities, non-current
1,240
956
Total liabilities
170,772
112,763
Stockholders' Equity
Preferred stock
—
—
Common stock
194
192
Additional paid-in capital
762,150
702,589
Accumulated other comprehensive loss
(14,083
)
(15,294
)
Retained earnings
217,855
191,107
Total stockholders' equity
966,116
878,594
Total liabilities and stockholders’
equity
$
1,136,888
$
991,357
DOXIMITY, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per
share data)
(unaudited)
Three Months Ended March
31,
Fiscal Year Ended March
31,
2023
2022
2023
2022
Revenue
$
110,966
$
93,653
$
419,052
$
343,548
Cost of revenue(1)
13,677
11,765
53,490
39,787
Gross profit
97,289
81,888
365,562
303,761
Operating expenses(1):
Research and development
21,541
17,424
80,186
62,350
Sales and marketing
33,148
25,899
123,523
92,129
General and administrative
9,759
10,644
36,745
35,746
Total operating expenses
64,448
53,967
240,454
190,225
Income from operations
32,841
27,921
125,108
113,536
Other income (expense), net
3,875
(16
)
8,048
469
Income before income taxes
36,716
27,905
133,156
114,005
Provision for (benefit from) income
taxes
6,048
(8,821
)
20,338
(40,778
)
Net income
$
30,668
$
36,726
$
112,818
$
154,783
Undistributed earnings attributable to
participating securities
—
—
—
(21,526
)
Net income attributable to Class A and
Class B common stockholders, basic and diluted
$
30,668
$
36,726
$
112,818
$
133,257
Net income per share attributable to Class
A and Class B common stockholders:
Basic
$
0.16
$
0.19
$
0.58
$
0.82
Diluted
$
0.14
$
0.17
$
0.53
$
0.70
Weighted-average shares used in computing
net income per share attributable to Class A and Class B common
stockholders:
Basic
193,829
191,579
193,176
163,484
Diluted
212,742
215,862
213,425
191,017
(1) Costs and expenses include stock-based compensation expense
as follows (in thousands):
Three Months Ended March
31,
Fiscal Year Ended March
31,
2023
2022
2023
2022
Cost of revenue
$
2,425
$
2,006
$
9,634
$
4,979
Research and development
3,167
2,201
12,583
7,065
Sales and marketing
5,027
2,533
16,939
8,108
General and administrative
2,372
3,069
8,678
11,290
Total stock-based compensation expense
$
12,991
$
9,809
$
47,834
$
31,442
DOXIMITY, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended March
31,
Fiscal Year Ended March
31,
2023
2022
2023
2022
Cash flows from operating
activities
Net income
$
30,668
$
36,726
$
112,818
$
154,783
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
2,708
1,368
10,283
5,040
Deferred income taxes
3,834
(9,275
)
13,226
(41,247
)
Stock-based compensation, net of amounts
capitalized
12,991
9,809
47,834
31,442
Non-cash lease expense
537
302
2,027
1,159
Amortization (accretion) of premium
(discount) on marketable securities, net
(29
)
1,469
3,115
4,332
Loss on sale of marketable securities
—
708
1,093
1,231
Amortization of deferred contract
costs
2,428
2,389
8,785
9,755
Other
657
288
1,454
410
Changes in operating assets and
liabilities, net of effect of acquisition:
Accounts receivable
(32,433
)
(11,439
)
(26,242
)
(31,017
)
Prepaid expenses and other assets
(5,372
)
(2,086
)
(3,448
)
(9,089
)
Deferred contract costs
(2,053
)
(2,937
)
(8,462
)
(9,609
)
Accounts payable, accrued expenses and
other liabilities
(2,918
)
571
(195
)
8,664
Deferred revenue
35,625
19,367
17,527
1,828
Operating lease liabilities
(4
)
(296
)
(213
)
(1,107
)
Net cash provided by operating
activities
46,639
46,964
179,602
126,575
Cash flows from investing
activities
Cash paid for acquisition
—
—
(53,500
)
—
Purchases of property and equipment
(21
)
(1,060
)
(1,701
)
(1,912
)
Internal-use software development
costs
(1,005
)
(1,049
)
(4,483
)
(3,785
)
Purchases of marketable securities
(60,303
)
(45,278
)
(190,560
)
(1,317,193
)
Maturities of marketable securities
48,125
6,302
83,139
47,919
Sales of marketable securities
—
16,864
107,182
633,802
Other
—
595
—
595
Net cash used in investing
activities
(13,204
)
(23,626
)
(59,923
)
(640,574
)
Cash flows from financing
activities
Proceeds from issuance of common stock
upon initial public offering after deducting underwriting discounts
and commissions
—
—
—
553,905
Proceeds from issuance of common stock
upon exercise of stock options and common stock warrants
2,471
3,378
9,926
12,612
Proceeds from issuance of common stock in
connection with the employee stock purchase plan
2,418
1,395
4,759
1,395
Taxes paid related to net share settlement
of equity awards
(1,469
)
(381
)
(3,822
)
(817
)
Repurchase of common stock
(15,282
)
—
(85,324
)
(2,698
)
Payments of deferred offering costs
—
—
—
(3,982
)
Net cash provided by (used in)
financing activities
(11,862
)
4,392
(74,461
)
560,415
Net increase in cash and cash
equivalents
21,573
27,730
45,218
46,416
Cash and cash equivalents, beginning of
period
136,454
85,079
112,809
66,393
Cash and cash equivalents, end of
period
$
158,027
$
112,809
$
158,027
$
112,809
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with accounting principles
generally accepted in the United States (“GAAP”), the Company uses
the following non-GAAP measures of financial performance:
- Non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating income, non-GAAP net income, non-GAAP net income margin,
and non-GAAP basic and diluted net income per common share: We
exclude the effect of stock-based compensation expense,
amortization of acquired intangible assets, change in fair value of
contingent earn-out consideration liability, and expenses
associated with acquisitions from non-GAAP gross profit, non-GAAP
gross margin and non-GAAP operating income. Non-GAAP net income and
non-GAAP net income margin are further adjusted for estimated
income tax on such adjustments. We calculate income taxes on the
adjustments by applying an estimated annual effective tax rate to
the adjustments. Non-GAAP basic and diluted net income per common
share is non-GAAP net income attributable to common stockholders
divided by the weighted average number of shares. For both basic
and diluted non-GAAP net income per share, the weighted average
shares we use in computing non-GAAP net income per share is equal
to our GAAP weighted average shares. Non-GAAP gross margin
represents non-GAAP gross profit as a percentage of revenue and
non-GAAP net income margin represents non-GAAP net income as a
percentage of revenue.
- Adjusted EBITDA and adjusted EBITDA margin: We define
adjusted EBITDA as net income before interest, income taxes,
depreciation, and amortization, and as further adjusted for
acquisition and other related expenses, stock-based compensation
expense, change in fair value of contingent earn-out consideration
liability, and other income, net. Net income margin represents net
income as a percentage of revenue and adjusted EBITDA margin
represents adjusted EBITDA as a percentage of revenue.
- Free cash flow: We calculate free cash flow as cash flow
from operating activities less purchases of property and equipment
and internal-use software development costs.
We use these non-GAAP financial measures internally for
financial and operational decision-making purposes and as a means
to evaluate period-to-period comparisons. Non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures and should be
read only in conjunction with our consolidated financial statements
prepared in accordance with GAAP. Our presentation of non-GAAP
financial measures may not be comparable to similar measures used
by other companies. We encourage investors to carefully consider
our results under GAAP, as well as our supplemental non-GAAP
information and the reconciliation between these presentations, to
more fully understand our business. Please see the tables included
at the end of this release for the reconciliation of GAAP to
non-GAAP results.
Key Business Metrics1
- Net revenue retention rate: Net revenue retention rate
is calculated by taking the trailing 12-month (“TTM”)
subscription-based revenue from our customers that had revenue in
the prior TTM period and dividing that by the total
subscription-based revenue for the prior TTM period. Our net
revenue retention rate compares our subscription revenue from the
same set of customers across comparable periods, and reflects
customer renewals, expansion, contraction, and churn. Our net
revenue retention rate is directly tied to our revenue growth rate
and thus fluctuates as that growth rate fluctuates.
- Customers with trailing 12-month
subscription revenue greater than $100,000 and $10
million: The number of customers with TTM subscription
revenue greater than $100,000 and $10 million is a key indicator of
the scale of our business, and is calculated by counting the number
of customers that contributed more than $100,000 and $10 million in
subscription revenue in the TTM period. Our customer count is
subject to adjustments for acquisitions, consolidations, spin-offs,
and other market activity, and we present our total customer count
for historical periods reflecting these adjustments.
1The metric excludes the impact of the AMiON acquisition, which
closed on April 1, 2022, including customers of, and subscription
revenue generated from, the AMiON on-call scheduling and messaging
application, and the impact of such acquisition was immaterial to
the periods presented.
Reconciliation of GAAP to Non-GAAP Financial Measures
The following tables reconcile the specific items excluded from
GAAP metrics in the calculation of non-GAAP metrics for the periods
shown below:
Three Months Ended March
31,
Fiscal Year Ended March
31,
2023
2022
2023
2022
(unaudited)
(in thousands, except
percentages)
Net income
$
30,668
$
36,726
$
112,818
$
154,783
Adjusted to exclude the following:
Acquisition and other related expenses
—
254
30
254
Stock-based compensation
12,991
9,809
47,834
31,442
Depreciation and amortization
2,708
1,368
10,283
5,040
Provision for (benefit from) income
taxes
6,048
(8,821
)
20,338
(40,778
)
Change in fair value of contingent
earn-out consideration liability
405
—
728
—
Other income (expense), net
(3,875
)
16
(8,048
)
(469
)
Adjusted EBITDA
$
48,945
$
39,352
$
183,983
$
150,272
Revenue
$
110,966
$
93,653
$
419,052
$
343,548
Net income margin
27.6
%
39.2
%
26.9
%
45.1
%
Adjusted EBITDA margin
44.1
%
42.0
%
43.9
%
43.7
%
Three Months Ended March
31,
Fiscal Year Ended March
31,
2023
2022
2023
2022
(unaudited)
(in thousands)
Net cash provided by operating
activities
$
46,639
$
46,964
$
179,602
$
126,575
Purchases of property and equipment
(21
)
(1,060
)
(1,701
)
(1,912
)
Internal-use software development
costs
(1,005
)
(1,049
)
(4,483
)
(3,785
)
Free cash flow
$
45,613
$
44,855
$
173,418
$
120,878
Other cash flow components:
Net cash used in investing activities
$
(13,204
)
$
(23,626
)
$
(59,923
)
$
(640,574
)
Net cash provided by (used in) financing
activities
$
(11,862
)
$
4,392
$
(74,461
)
$
560,415
Three Months Ended March
31,
Fiscal Year Ended March
31,
2023
2022
2023
2022
(unaudited)
(in thousands, except per
share data and percentages)
GAAP cost of revenue
$
13,677
$
11,765
$
53,490
$
39,787
Adjusted to exclude the following:
Stock-based compensation
(2,425
)
(2,006
)
(9,634
)
(4,979
)
Amortization of acquired intangibles
(137
)
—
(548
)
—
Non-GAAP cost of revenue
$
11,115
$
9,759
$
43,308
$
34,808
GAAP gross profit
$
97,289
$
81,888
$
365,562
$
303,761
Adjusted to exclude the following:
Stock-based compensation
2,425
2,006
9,634
4,979
Amortization of acquired intangibles
137
—
548
—
Non-GAAP gross profit
$
99,851
$
83,894
$
375,744
$
308,740
GAAP gross margin
87.7
%
87.4
%
87.2
%
88.4
%
Non-GAAP gross margin
90.0
%
89.6
%
89.7
%
89.9
%
GAAP research and development expense
$
21,541
$
17,424
$
80,186
$
62,350
Adjusted to exclude the following:
Stock-based compensation
(3,167
)
(2,201
)
(12,583
)
(7,065
)
Non-GAAP research and development
expense
$
18,374
$
15,223
$
67,603
$
55,285
GAAP sales and marketing expense
$
33,148
$
25,899
$
123,523
$
92,129
Adjusted to exclude the following:
Stock-based compensation
(5,027
)
(2,533
)
(16,939
)
(8,108
)
Amortization of acquired intangibles
(979
)
(252
)
(4,164
)
(1,046
)
Change in fair value of contingent
earn-out consideration liability
(405
)
—
(728
)
—
Non-GAAP sales and marketing expense
$
26,737
$
23,114
$
101,692
$
82,975
GAAP general and administrative
expense
$
9,759
$
10,644
$
36,745
$
35,746
Adjusted to exclude the following:
Acquisition and other related expenses
—
(254
)
(30
)
(254
)
Stock-based compensation
(2,372
)
(3,069
)
(8,678
)
(11,290
)
Non-GAAP general and administrative
expense
$
7,387
$
7,321
$
28,037
$
24,202
GAAP operating expense
$
64,448
$
53,967
$
240,454
$
190,225
Adjusted to exclude the following:
Acquisition and other related expenses
—
(254
)
(30
)
(254
)
Stock-based compensation
(10,566
)
(7,803
)
(38,200
)
(26,463
)
Amortization of acquired intangibles
(979
)
(252
)
(4,164
)
(1,046
)
Change in fair value of contingent
earn-out consideration liability
(405
)
—
(728
)
—
Non-GAAP operating expense
$
52,498
$
45,658
$
197,332
$
162,462
GAAP operating income
$
32,841
$
27,921
$
125,108
$
113,536
Adjusted to exclude the following:
Acquisition and other related expenses
—
254
30
254
Stock-based compensation
12,991
9,809
47,834
31,442
Amortization of acquired intangibles
1,116
252
4,712
1,046
Change in fair value of contingent
earn-out consideration liability
405
—
728
—
Non-GAAP operating income
$
47,353
$
38,236
$
178,412
$
146,278
GAAP net income
$
30,668
$
36,726
$
112,818
$
154,783
Adjusted to exclude the following:
Acquisition and other related expenses
—
254
30
254
Stock-based compensation
12,991
9,809
47,834
31,442
Amortization of acquired intangibles
1,116
252
4,712
1,046
Change in fair value of contingent
earn-out consideration liability
405
—
728
—
Income tax effect of non-GAAP adjustments
(1)
(3,048
)
(2,166
)
(11,194
)
(6,876
)
Non-GAAP net income
$
42,132
$
44,875
$
154,928
$
180,649
Non-GAAP net income margin
38.0
%
47.9
%
37.0
%
52.6
%
GAAP undistributed earnings attributable
to participating securities
$
—
$
—
$
—
$
(21,526
)
Impact on undistributed earnings
attributable to participating securities due to non-GAAP
adjustments
—
—
—
(2,616
)
Non-GAAP undistributed earnings
attributable to participating securities
$
—
$
—
$
—
$
(24,142
)
Non-GAAP net income
$
42,132
$
44,875
$
154,928
$
180,649
Non-GAAP undistributed earnings
attributable to participating securities
—
—
—
(24,142
)
Non-GAAP net income attributable to Class
A and Class B stockholders, basic and diluted
$
42,132
$
44,875
$
154,928
$
156,507
Weighted-average shares used in computing
net income per share attributable to Class A and Class B common
stockholders:
Basic
193,829
191,579
193,176
163,484
Diluted
212,742
215,862
213,425
191,017
Non-GAAP net income per share attributable
to Class A and Class B stockholders:
Basic
$
0.22
$
0.23
$
0.80
$
0.96
Diluted
$
0.20
$
0.21
$
0.73
$
0.82
(1) For the three months and fiscal years ended March 31, 2023
and 2022, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230516005089/en/
Investor Relations Contact: Perry Gold
ir@doximity.com
Media Contact: Amanda Cox pr@doximity.com
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