Earnings call transcript Q4 2023

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Operator

Hello, and welcome to Doximity's Fiscal Q4 2023 Earnings Call.

I will now pass the call over to Doximity's Vice President of Investor Relations, Perry Gold, to kick off the call. Please go ahead.

Perry Gold

Thank you, operator. Hello, and welcome to Doximity's fiscal 2023 fourth quarter earnings call. call Dr. Jeff the CEO Co-Founder on Doximity; of me today Tangney, are and With Co-Founder CSO; Gross, Nate and CFO. and Anna Bryson,

A Form website X-K, at can results of which release as of on in all as disclosure our available well related press today issued be our in investors.doximity.com. are the earlier complete found our

a today's call replay on available be reminder, is a As our will being recorded website. and

management's Actual today, comments statements part will views, making forward-looking update assumptions our outlook. statements These are we risks on differ any As statements. to are based or to and and be we current any and results expectations various of obligation materially, forward-looking disclaim subject and may uncertainties.

XX-K, filings the Form reports our any any other Please time-to-time, the filed Form with and XX-K subsequent for year. our to refer risk Form factors XX-Qs and the that filing on including in from may SEC upcoming be on annual report

believe based be Our are forward-looking date, as of to reasonable statements on XXth, today's that May XXXX. assumptions we

neither as through guidance a done is financial the X-K. adjust Of note, call, nor guidance release press disclosure, policy financial of the adjust reiterate on public such a it Doximity's is nor through unless the today's also filing a or provided it Form to

Today, understanding metrics we can found believe of will be historical release. we discuss to the certain GAAP comparable non-GAAP today's our in A aid metrics that reconciliation financial results. in earnings

provide be metrics in updates not we in incremental our into may to call, may These dynamics the future. offer we metrics those or nature, business. one-time greater during may the provide of Finally, on the and details may insights

over Tangney. like Jeff? Co-Founder, CEO now and our to to I turn the call would Jeff

Jeffrey Tangney

quarter joining thank you and call. Perry for our Thanks fourth everyone earnings

today updates have and We our financials, senior growth hires. two network three

report range. our of to delivered the for fourth revenue the XXXX, I'm million we fiscal end our quarter our topline. guidance of $XXX in pleased beating that First, high

million $XXX grew year-on-year. we fiscal March XX% full ended year in For revenue XXst, had our and

As XX medicine, best are our top brands the of top and a hospitals of companies. clients the in reminder, pharmaceutical the all including all XX

platform thousands interactive about with worth per Our patient new which of patient. be them allows connect right referrals, the dollars positions each can treatments efficiently of and to

clients' investment, or ROI, We our prescription claims then data. return and measure third-party on using

Our pricing return median a fuels client ROI XX:X better, or guides is profitability. which our our and

also Speaking above strong X% XX% our an our in EBITDA with of end was the adjusted of bottom-line margin $XX QX which, guidance. million, which high or of was

strong free was flow million. Our cash similarly at $XX

EBITDA million. was For $XXX fiscal margin the XX% our or year, full

year, the two million, investments. balance a to cash cash $XXX grew During our record while new made we major

First, in we future up $XX scheduling buy company. Amion.com, plus SaaS million in $XX million to a physician to cash, earnouts invested

Long-term, of second, $XX.XX price share. both our at bought investments. And an average per own feel we about of these good million stock $XX of we

call reduced alongside telephony a we're year our integrated as daily and colleagues from from buybacks service. our the call their Amion's by engagement shares become of XXX,XXX into doctors cornerstone has their we've call Our our and increasingly patients schedules schedules. suite, it our outstanding about productivity short, X% way In dialer physician own this EHRs

million. Looking to is our million $XXX which next XX% ahead, guidance million, of growth year revenue our $XXX midpoint for at $XXX is

We're had expect tough upsell we as terms of which is In of XX% than year. under is more visibility, time revenue belt tightening prepared contract, at over this another already for our typically to subscription of guide macro we continue. year

our XX% expect to $XXX by grow midpoint, is headwinds, at million guidance and for the this we macro all, continues bottom-line despite XX% the year the top which last roughly year. EBITDA margins both had adjusted Our In year. we

network now our turning growth. to Okay,

users. a achieved QX. hit Our quarterly highs Across record our entire we fresh platform, number in active usage of

we're ended, with to e-signature, of officially a telehealth power provisions scheduling, using record needs. QX physician proud fax, emergency providers and cloud their pandemic number to in our emerge As

were record providers. a alone tools telehealth used XXX,XXX Our by unique

that Our for enterprise electronic we most products To caring integration today, MEDITECH, record, States. a announced health the help hospital new third with providers EHR, streamline end, spend the more workflows patients. United in widely and their used or time

all the workforce per top now of XX% MEDITECH, Epic, research. by Our comprise tools integrate three beds namely collectively with EHRs, class the market and who of Cerner hospital

face Alongside today. excited digitizing the and that workloads many to our continue we're partners, EHR paper-based legacy physicians

will always As physicians grow continue we and business, our a first. keeping to invest product-led software while company,

to we a By connecting Bloomberg a profile call hub doctors finding we to and more than them, calling workflow their the in daily viewing messaging is to on cloud, LinkedIn. communications become a whose work believe which their analogous is or usage cardiologist from physician

communications, medical proven DocsGPT.com our fax, has needed varied hit helping get a fax, doctors AI approval in and of writing Speaking draft ensures many patients. others care for new site their yes, the seamlessly to

to it's glad spend we're doctors the If an Not half old for an tracking they time their training, per Not that Done. There's study paperwork. it's nearly in phrase Documented, help day of AMA on reduce medical Well,

chief e-mail, to DocsGPT five in bad "pretty As a us top a is an ass.". department from hospital it put

week. responses This DocsGPT are most accuracy. serve another helping and us useful one doctors has is on feedback prioritize with most. of help our word AI can and grading continuous now utility mouth and clinical grown prompts steadily thousands sharing identify and where via of each prompts roadmap thousands Doctors clinician to their

as and experience. Vice new brings of a Today, are senior industry two team, US a the COO Greenberg. our Japanese wealth Craig knowledge Okay, hire Ben network turning new physician announce the our of to we at MX, to Craig Senior and joins Overpeck President Operations and the served as over updates. for thrilled leadership decade. additions Commercial to now Craig us

$XX that grew million During revenue around to million. MX $XXX from time, its

as Headed products. where VP industry Ben also Commercial at mobile joins served the more experience Senior Product years of President as he of and spent Products. us and XX Vice brings decades of Ben than WebMD/Medscape, their

and to Day opportunity Investor Craig Exchange. York hear broadcast both Ben You'll live from New upcoming our the June at have from on which will Xth, Stock directly an

next excited our host years inaugural hear physician our been month. IPO are we're panel Day Investor two Speaking longer of excited from technology and products, experts, and nearly latest model. term to discuss a we our since our of which, demo to It's

We'll short have at person of lunch a and in look live demos attend New many Exchange. Stock live presentation the We seeing after our those just you can in few weeks. who York forward to for

of this thanking like our engagement never platform, Doximity With across provider productive. members have Okay, end we're to make entire I'd personally to proud work about realize mission record I quarters more to continue excited all. with and our more to nearly be team our journey been to who incredibly doctors hard on building, X,XXX you what by consecutive I'm

And it hand Anna? that, guidance. our with to CFO, over Anna I'll and financials to Bryson, our discuss

Anna Bryson

thanks everyone today. call and to the Jeff on Thanks

year the to XX-plus year-over-year We our another as Rule achieved end high to guidance in quarter are million, a Fourth up range. company and have fiscal XX% XXXX. proud grew of exceeding of $XXX revenue

growth Of subscription QX, note, XX% our from our to XX% saw QX. of up in revenue, total reaccelerate which in XX% comprises revenue,

we momentum in are the environment positive encouraged core this see our business. marketing While remains to macro uncertain,

revenue our $XXX.X to to years, grew the year rate existing our increase prior customers growth. Similar Full retention a lead a finished of million, year year-over-year. continued XXX%. to net revenue We XX% with

customers year. year XXX these in retention cohort higher contributing $XXX,XXX total least revenue. from XX year was customers, ago XXX%. accounted with at the XX% of ended net a top a We revenue customers our the and This had at XX% subscription-based XXX this for customers For is our we increase the each in revenue for

customers in our up budgets $XX eight-figure from ago. revenue. XX Additionally, This is with with platform. significantly we just ended the continued to our each two the customers scale up the quickly largest We customers had million year two more than years contributing on

an top These and pharmaceutical of XX XX XX each. brands across are customers over average manufacturers all purchase

reminder, represents no individual or XX% revenue. more customer of and brand a or of no our X% revenue our more represents As

the to flat the year gross in period. Non-GAAP was fourth margin our XX%, quarter profitability. Turning versus prior

XXXX. and margin flat full with also fiscal fiscal For gross year, the non-GAAP XX% was

Adjusted year $XX.X adjusted compared fourth margin XX% million XX% and quarter EBITDA a million was period. EBITDA to $XX.X margin prior the for the and was in

fiscal year and flat adjusted fiscal $XXX XX% margin XXXX. full was adjusted the was EBITDA with year-over-year. EBITDA For Full XX% million, growing year,

sheet, year with flow, fiscal turning ended and our cash, $XXX update cash an balance Now, on program. equivalents, million the We to and of cash our repurchase share securities. marketable

of In $XX.XX. QX, worth repurchased million of price shares we at $XX an average

price we For worth the of $XX.XX. of at full $XX average an fiscal year, shares repurchased million

the the year prior We fourth million $XX.X cash million in in flow generated to quarter compared $XX.X free period. of

XX% compared full year-over-year. $XXX.X the to we fiscal of flow generated increase XXXX, $XXX.X free cash an For of million million in fiscal year,

moving Now, to outlook. our on

we range million $XX million the first expect at fiscal of expect $XXX.X in growth of we midpoint range EBITDA the the to representing quarter in XX% million, adjusted adjusted the $XX of revenue XXXX, and margin. XX% EBITDA a to For representing million, $XXX.X

For expect $XXX we a margin. in to to the representing the adjusted fiscal EBITDA range EBITDA year, XX% midpoint. And $XXX million, expect million million, full million in $XXX range of at revenue growth we XX% the the of representing $XXX adjusted

annual of guidance As under XX% subscription-based of have revenue our over contract. we today,

to come to XX% new the come from from upsells another expect and X% remaining renewals We customers. and

is mid-year macro the about year, a renewal upsell of To are down continued historical of we rate. given the percentage upsell last uncertainty, further, component modeling break which our and half similar to

in years, have been many launch and few to launching downturn, customers' the rapid the has products and in there buying changing led macro dynamics move last shifts revenue the behavior. new digital, to Over curve. our A some quarterly our of

currently a into year. to saw fiscal are we move XXXX, quarterly assuming will what cadence revenue XXXX, fiscal and we As roughly to leading our buying behavior we mirror last customers' similar launching

update an for vertical We'd our on to new approvals also products. we delays like regulatory with the getting video give faced

client. that two launch We one are and few but live report have the will from of remainder received the next programs based happy strategies. or gone on quarter to A have all over we approvals client now our these

engagement and the incredibly data contributors encouraging, to next very believe these long, large programs not several is years. peer-to-peer will point-of-care offerings run our While growth and we have be and ROI the over our preliminary for new

we will term product dive June on financial Investor Finally, targets. longer and Day our to Xth, inaugural host are on discuss our we our a do excited where deeper

questions. turn that, With operator I it over to will for the

Operator

questions. We for will now the open lines

for have minutes Q&A. We XX

go of Peterson line the from Brian comes question Please with James. Raymond ahead. first Our

Brian Peterson

Hi guys. the for Thanks taking questions.

Jeff. So, for first one

kind XX were that you on days that a anything on there changed ago? that on upsell on up perspective the just You curious mentioned hearing be customers from that you're followed if guys you Is that I'd well. year thinking and upsells what tougher versus expect annual I And as of dynamic?

Jeffrey Tangney

Yes, thanks Brian. Jeff. This is

upsell for tough said we're season. prepared a I So,

are here exciting isn't Of products upsells, should the course, and upsells. that that low lead of hope we to and for we queue prepared some think in have we're it we but the

If couple we're you know the and dozen overall few a a we're of in getting going clients a more week, couple the where about spend top of talking look weeks with of days at to our next I'll industry, a together. together lot landscape together because

the out just we within low driven digital and we look the Index the if was at up quarters in with Standard and ad pharma. this a by overall February. year growth that say overall a the you that's terms would will and the Media shift of spend put in showed in pharma it XX% overall line I teens eMarketer January stat few thought growth that be ago data, And that's in XX% to

only some the we actually because uncertain But The overall conservative the cause an year, drug being ETF think X% With certainly want short don't we this optimism for last we're is year, launches it's in as after again. some pharma year. I is US throughout new uncertain to have be the the and answer in macro we big grow down year.

Brian Peterson

encouraging And help contributing Thanks back-end guys. be that's June? is the year? from the on to of follow-up point more maybe Thanks ROI, much Or the revenue to engagement think right it on contribution that any how will loaded to stats, It's about care. Jeff. to this see product

Jeffrey Tangney

on will launch provide for at Yes, that a the all more step one, product we've I the really well. color first Anna the some done but say, numbers. I'll but clients I'll launched just for this, think take

the engagement The As than Anna IQVIA, XX of we've we've data much what first based weeks from seen. the on seen. also higher her prepared remarks, better than what said much is ROI, in

couple So, of can this go. all a boil doctor on And a a down you if we're telehealth really excited before where visit. a patient in about it minutes sees

them camera very X decisions at their room making have are of that a We of to the now own those covered reminders, there minutes in quick sitting the doctors close insurance a to kind million just much time month medications easier, are remind by their beautiful an being made. in staring patients' plans, empty that actual

up it's pretty space we So, here. a think we've opened unique that

review. where conservative we're it get do and the approved that to legal we being say themselves it, But They a meeting have hasn't client have through them tomorrow department do one industry. we I med most hoping approval. legal get the to the finalize pride in with will on

But that right will throughout this I'll on to I we you're see in year Anna few that. roll maybe it and a think turn Anna? with the numbers

Anna Bryson

just of here, one for those gone have approval received clarify client, to have Yes, a sure. few all we And only the live. Brian but

left we to launch. programs So, do few quite have still a

developed also more typical on strategies these think more for other and without are internally, than strategy ROI digital having definitely products. robust have clients since content newer formats collaboration I we're proven our

programs expect that revenue these we result a of coming little contribution weeks, will and from to But in do products. in get bit months, back live a the new more these half-weighted

Brian Peterson

Thanks Understood. guys.

Operator

The ahead. next Scott the of question go Please comes Berg with from Needham. line

Scott Berg

Thanks last revenue question four new Is mindful from kind for the other I modest Brian's everyone. products, of there growth of a from two kind that Anna. for driving contribution I quarters are follow-up -- is my guess is these acceleration this there? that revenue taking questions. guess I dynamics to items through directly that be of Hi have the to there Is year? the you, in

Anna Bryson

new is products Sure, there. bit we will that's these once get reacceleration piece primary think a able the little be live, we see to of I

as reaccelerate piece, our remarks actually that seen prepared is other on in I in mentioned -- are to proud revenue my The have we growth QX. subscription

at back look XX%. in the we our we is saw subscription XX% if from revenue That's So, that QX, growth QX. up

indication launching XXXX good have think momentum we're our a business our that's in calendar customers' I the So, we as year programs. of

coming we as well of months kind then like live in will So, once new products there. weeks, uptick feel the further see a we get we those and even

Scott Berg

mentioned Great. your backgrounds two you one comes big the this kind that Obviously, new And afternoon. then industry, relative from from interesting obviously. a hires to Jeff, business the of press released follow-up, because titles, were

the of going these What small, looking Or I company do all operate expect you them to incremental big have the guess, than opportunities changes? goals for are you before? for more to that and done customer, any side, might all you bring On maybe sort wholesale what be you? differently are go-to-market commercial to

Jeffrey Tangney

Thanks say Scott. Yes. Well, I'd they're not replacing anyone.

have changes revenue. over us. wholesale to or we're Craig team the players join platform So, like no they've to each strategy. physician our But in to scaling $X.X much two mean businesses Ben excited key own well in I and both been billion

productively and looking continue with we're team for us help So, clients product out help to strategy and build to them our work more more more channels. across

like us. with have in ton over revenue, our excited said, businesses you Again, a scaling both million they in $X.X them in experience industry. of to So, bring directly

are the if bit great bring that is built teams two I little a These it's have this the just we would The markets ago, go that are five reality on the to we companies believe us years been are is when folks, allowed great tougher built, them say that's and board. could market when time I'll hired have. tougher.

with folks what great our and So, investing bring. team Craig Ben keep experience we're to growing in excited keep and to like

Scott Berg

taking Thanks have. That’s Great. all for I my questions.

Operator

Please comes ahead. the Richard of with next from Canaccord The question Close line Genuity. go

Richard Close

you quarter the think there hit revenue fourth isn't go to quarter want thanks XQ maybe the revenue expected? about that to questions. a coming understand maybe back if else on anything in talked again, you better I I Congratulations I the step-up to slight maybe quarter Yes, to the call, Anna, first just was year. for first that and just that?

Anna Bryson

question, good Sure. a Yes, it's Richard.

So, the that assumed based back on be February, in of QX flattish had we trajectory would launches.

from programs gone have in mentioned I few our only a of products. my those new live As prepared remarks,

that's QX resulted similar really look that's to the in year. seeing that to actually pretty And piece we're so last big

actually the represented seeing what see today. look curve is over to fiscal our QX pretty that didn't the if at we're that new XXXX. And which hope similar back years, we annual revenue, total about of XX% is products we because see, in two historically QX looking our So, exactly we line from step-up last to with

it's So, to actually pretty similar historics.

Richard Close

Okay, was talk that's I landscape. could about helpful. Jeff, wondering if maybe the you competitive

whatnot. I the DeepIntent, got and just You is the but IQVIA acquiring mentioned it's but on times, you just curious competitive any it's whether changing guys? curious FTC's environment things some that, just to on say for tougher I'm think

Nate Gross

one. is this taking I'll Nate. that Richard, start Hey

So, front. no changes major on competitive the

on everyone within high and crumbling digital, entry. to there as think knows, I are cookies barriers call this are

Our But regulation, which competition on of some for physician net network has digital that has never whole, from we been is had a the suffered privacy stronger. positive faced us.

draw we're revenue physicians' our Our technologies. of those technologies. protecting physicians-first more approach we advantaged on a over so do and cookie on don't is We banners was those ever means or lean who based hard on privacy. line X% heavily our

Within digital that both permanent analog doctors where next there are for fax, habits competition, through healthcare built, few lens we that use new the we're mail, only dependency the position but tools of technologies, us our a among to paperwork, a shift or being system these partners not there is of shift think and doctors it's on our years. continued snail the mobile will the seeing it's whether the among

Richard Close

Thank Okay. you.

Operator

line the Securities. Sandy of with Draper Guggenheim from comes ahead. question next The Please go

Sandy Draper

if on a then medical But But I also to it growth recruiting for question my like for I just much. the subscription of on in sort pickup note be trend. slowdown side. in, back could would is I back outlook there going what If of sort the obviously for recruiting I revenue get revenue. what's just and quarterly your first wanted looks sense medical XXXX? be Thanks very in guess recruiting, medical a the out, the

Anna Bryson

Yes, sure. Happy to take that one, Sandy.

part actually and Curative, due in temporary the large Omicron So, there was lapping only physician our That's is really where growth to the of placements is business year non-subscription increase wave. a the that logos permanent temporary staffing, and we year-over-year. saw which flat we're a it fact during

If year, revenue back XXX% to over last quarter. you see QX grew Curative's of go you in that actually can

So, here. we're pretty really some facing just compares tough

tough these business. some we and past As will we that momentum in positive we're look growth ahead, and we believe reaccelerate get compares Curative's seeing do

definitely we core marketing lead momentum which However, pleased see growth reaccelerate points will is in that in which our topline really growth, to part believe of business so business. QX, to continue to why positive our that the largest our we're the there

Sandy Draper

Okay, great. question. Thanks. And one then numbers just

to I customers -- compares said is XXX to But just model, you think my make The XXX least to want that and if to I year. think in revenue. want XXX look a numbers $XXX,XXX I different I I sure there was last right? have said know you that update little that. XXX need I at with from

Anna Bryson

that answer But short out. -- comes there's is there's the Absolutely. in pharma -- you'll we'll of in Yes, industry. that the XX-K see a M&A lot

at that buying And what Horizon. buying got the Biohaven, acquisitions for looking numbers. apples-to-apples so is out do we You've we're net number Amgen truly Pfizer we

XX-K footnote see pharma as that refers consolidation to it pertains to in industry. M&A the in you'll So, the a

Sandy Draper

really great. helpful. Thanks. Okay, That’s

Operator

Blair. with the comes ahead. Please question Daniels from of The William Ryan next line go

Ryan Daniels

start. know million about first taking time. about was revenue maybe and talked I $XXX the being sales of the in for up the thanks past you for the performance, for broke XX% we've and indicator future And Anna, deferred sequentially the one mark questions. to it not but Yes, ultimate maybe

of little was bit I there? driving what's you the color curious of just level strength could if on a So, offer

Anna Bryson

our Sure. first in program to seeing customers running. request the is invoice calendar more receive the We're of year that their

strong QX for So, us. really ended a billings up becoming quarter

You that up can significantly. that they're in see our both see can ARs, and deferred quite our you in

show of have to we business as revenue deferred a because of really would caution never doesn't deferred our billing, amount But thought means I a we've for backlog in which meaningful continue up really metric milestone-based significant balance. of revenue kind our

shows strength point. it quarter, still I put much wouldn't too because data just on this that So, weight

Ryan Daniels

have talk Okay, then very fair review. takes just about enough. with there hospital to the your a product market. some puts And We there's pharmaceutical for Jeff, But on a lot high the med one for and legal I maybe know ROI been hospitals. you market. get update also

that So, get love update to an is how market on progressing? I'd Thanks.

Jeffrey Tangney

that unique as part with in XX,XXX Yes. ranking The really end clients And last through leader our of this market short of for of -- Thanks class we the best-in-class well. really pleased the the say emerging that providers pandemic plan. XX% here. the say answer in it's providing that and IT part emerging are I'm of is going active Ryan. really hospitals, I the we're over long-term telephony quarter, the telehealth we're their doctors, where our will

good enforced for XXX-plus become we've that work of one with. the HIPAA-compliant which public of because rules the that been gone bit us news health is the -- with actually, And positive always of have public during now emergency, the we've through that's privacy emergency HIPAA for us health is the every end the lax reviews committee were of with again, and we the clients sort and good always

this I using aren't think some hospitals for will net some be that come because a us benefit have now that anything, So, the HIPAA-compliant if our way. will solutions been of

for things well overall, So hospital pretty the in us go market.

Ryan Daniels

Okay, great. you Thank much. so

Operator

with Wells Securities, LLC. Fargo from comes ahead. Berenshteyn go question of Stan the Please next line The

Stan Berenshteyn

Hi, moving thanks your model. questions. competitor economics more to recently my taking about revenue a for to ask wanted -- I talked performance-based

contracted your of high platform on your I'd ROI. performance-based Thanks. thoughts that book you your whether or drive contracts upside love pursue generates something can to business? So. to

Jeffrey Tangney

great Yes, question. a that's

of descriptions. pricing for have us provide basis our program we becomes and programs run most that So, on do that year next ROIs to and the we a

that some with the again, really best, probably can the At And in the a We sorts guarantees in small we mid-tier do gain big of they have aren't share giving the there, ROI companies. percentage, pharma approach. believe worth overhead. especially, economics just see done you of our contracts, you some is don't but companies, what

great out it's are that it. others So there doing

core I that selling or basis clients to think, on generally It proposition ROI approve. do. charging creates charging we've But on our seen ROI percentage we remain the to basis. core an don't and anomalies that will a what budget again,

ROI. continue that to this improve we'll our But wouldn't ton We'll upside to from share a point, more. continue -- light So, gain charge at don't there'd be expect deals. I of I

Stan Berenshteyn

it, question And Got Anna as a for then a follow-up. helpful. maybe

Just on capital there? deployment, benefit you there's incremental are you some R&D, get reinvestment increasing S&M? comfortable rates with can current across from the you think Do spend

Anna Bryson

products Sure, as as physicians such Stan. it's invest we in peer-to-peer and and as continuing we for R&D especially question And great more are customers particular, products DocsGPT more and a such certainly our point-of-care. focus on to S&M in for

why actually flat fact invest. that that's margins because So, our of you we're year-over-year see the EBITDA to continuing

continuing in, definitely that we're cognizant our maintain while very leaning run we're Now, we're of said, profitable also business we and a -- to margins. do

the as comfortable well. of high continue enough also share via very deliver investment I with value we're fact very we the generate repurchases cash to are So, able think to free our shareholders to we we're that with level comfortable and flow to have

Stan Berenshteyn

Great. Thanks so much.

Operator

Davis Please comes the next question SVB go Stephanie of ahead. with The from line Securities.

Stephanie Davis

question. thanks for taking my Hey folks,

talked go you Jeff, because first about hires the want market. to talent you these and new I make know is available why So, in one,

what folks in greater get year? have goals on first we'll with to hope these there more be us seeing. the such folks follow-on you predictability tell the in commercial impacts any for did you'll you Or hoping sort your side. was senior Are of I any But

Jeffrey Tangney

dollar and Ben live our looking we packages and about at growth tell Xth, experience Thanks Craig ton the programs a Exchange. you actually and bonus our more They're New in Steph. up them they Good Investor question. June of to with topline lead for Day, their to York coming have Yes, this are Stock signs have and going overall both there. definitely

So, a more. to I'll let speak it bit them

we around win-win I mega have, engagement really not record workflow patient, with a lot their colleague with of say physicians it calling But a think network, this calling but that colleagues, the and their us engaging a checking from news, avenues day-to-day suffice professional that for us to also of calendar for around only up opens and growth. and channel

Stephanie Davis

tight have revenues? you at bit look then at growth It built there right. anything and the expectations I guidance, Anna, there? campaign XQ wait metric the looks like a Day. about is that's of that than deferred sit XX% for historically. the rate When you coming us much little could some higher kind had tell All I'll it's Investor the in delta the And into timing growth of versus driving beyond a

Anna Bryson

how Sure. with Back program to seeing running. I in is the first customers a Ryan's well, in want question the receive on calendar the be our little year we're their so that thing think main of to difference a bit this as to just invoice is billed they're requesting

we just a in had QX. billings quarter strong really So, really,

mentioned deferred our business as have thought billing. I a So, would meaningful about as put weight of the really in milestone-based before, it revenue. We've our I never for much too metric because

something being that deferred much much so too I that isn't in. I'd weight up balance So, put think revenue

Stephanie Davis

you. Thank Helpful.

Operator

of with The go Please the comes Tassan ahead. next line question Jessica from Sandler. Piper

Jessica Tassan

new much so taking thanks for on my and questions Hi, hires. congrats the

have So, I they peer-to-peer was studies just ROI and just hoping you modules, so point-of-care and yet? explain maybe they're attached how given don't that pricing the could new you're

the half pricing as see think can towards XXXX? at XXXX inflect which And generated, FY point we you solutions studies maybe maybe back kind these discounted of of or are being might those until of

Anna Bryson

Jess, take Sure at happy that a to I'm one. stab

So, you are absolutely right, these are very new products, very innovative products.

the own we the potential our ROI constantly are We've run of are tests. That premium. pricing ways monitoring could first. at a what non-sponsored be. in We programs said, them We've these run

did we data at. points So, few be priced they should quite a what good around have

opportunistic these And show to these think we said, on we so getting start with be once back, first studies pricing once the be prelims we that first continue ROI will opportunistic ROI studies that than start as back, which Now, likely median, getting are to you know. there. able we pricing higher we significantly our

also to right what So, fit. products. for thoughtful these the to new be be we're that on we're But could long-term trying find trying

Jessica Tassan

then in That's my convened Tech And really helpful. Summit DOCS March. your be, XXth you Annual I would think quick follow-up guys

learnings XXXX? any to heading we just be from should that So, that into thinking Thanks. you event that highlight want FY about or

Jeffrey Tangney

Yes, out XXX We over weekend physicians, country, Francisco great to over feedback of physicians top lot this had from the is of chairs Jeff. with departments. a come them around We the got their two-day all. San

I'll and about more product bit about leave a their pipeline that. at lives time this working I at Yes, easier. the we'll Again, them but our save our just more I'll Investor make I've and to little things excited it on been guess Day, talk we're say never

there that to can more say is of one lot half the Keep on again, GPT and And ability typing, usually around paperwork. GPT day, spend a average, XX.X excites doctors more time what help I'll at us. home, day, opposed to excitement treat patients in mind, night. as at folks, including a a their a of hours and doing doctors do. half of spend lot

comes mouth, unique things got what on it's grow doctors And without been doctors and with find new quarter I helpful this using all to of our thousands a most word pretty DocsGPT this it part, when throughout window we've into actually of it steadily think having any technology. marketing

Jessica Tassan

you. Thank Great.

Operator

question comes go The Evercore with ISI. Anderson Please ahead. next from Elizabeth

Elizabeth Anderson

from levels. I for R&D of some could was how heard that terms in about so areas more detail you wondering for differ if and wonder much said overall -- the of they the this sort the maybe XXXX past go Thanks year in I question. years? I focus into maybe OpEx of you

Nate Gross

can I that Nate, is this take Elizabeth, one. Hey

recent that upcoming our the product improvements So, been focused on. Investor has highlight actually of again, we'll some at our team Day,

means to and -- to physicians-first fortunate a R&D which are to once. our multiple are sizable focus and able make We have in areas on team, doctors' we pretty at them saving despite we're for cultural time, impacts able

we integrate physician so build of they're synergies extra disparate that we building cloud, series to to functionalities. that start and we're not features see between invest different a features those we As out our time so

of do our one workflow that a is has leapfrog Amion product with we next coordinated. more ensure some suite, into integration physician communication our example, say, navigating that For can there, so appropriately seamless quickly or acquisition spent time R&D elements now to, substantial a product care key the after who's

investment focus no it's, in early that of lot just already, But There's also one were of administrative reducing burden. impact. has physician's a meaningful mentioned amount GPT technologies interest a such course, as of can cutting-edge around our been there, decent have surprise that that we area that's

our proprietary we're impact to And achieve XX% due technologies with of others these to network in can't physicians effect an Doximity, market data. leverage the our to at and that able over

Elizabeth Anderson

helpful. the give should maybe different gross thought it very there? And margin on That's you make across and -- cadence us going of there fiscal something the that are Anna you. we to takes sort to one about sort out year? Is it any for from think last would Thanks. curious of anything Is how any of, year? Thanks. Just the we details more call it puts about of

Anna Bryson

in very look last to year. margin looked gross we to see it little looked in our expect already Similarly, throughout the mirrored to they to very increase can of that expect how we year. starts and where similar guide light EBITDA is you it And out answer kind adjusted similar to short QX QX our look a then margins continues how it our The Sure. year. last bit

EBITDA XXXX. fiscal to between gross to margin, similar So very, revenue, look very we're expecting

Elizabeth Anderson

much. Perfect. Thanks so

Operator

from The next of David question the ahead. Please Larsen with BTIG. comes line go

David Larsen

little have forth? little of generate And revenue ChatGPT save exactly price so in Thanks. practices can Can will work about Will bit around a the you terms that money DocsGPT Hi. any it? much actually themselves you it burdens, it? FTEs, bit doc how from and and looks and you you a talk like administrative what It more like does? done

Jeffrey Tangney

Yes, David, this is take Jeff, that. I'll

you're So, it saved ton doctors right, I of think time. a

do I That's get with. is obviously think companies letter work a into thousands other what prior out we're fax are said, I authorization the insurance believe to helpful The of of pharma integration or help already, or main there approval them not drug with. to themselves to something letter that is who many they the send appeal from or a companies. we letter super systems a And lot or like help preauthorization drug there our doctors week. fax, it it a is seamlessly have a not, has queries doing because

think to on to But lot documentation they the burdens for online, hold. a I that doctors have have. wait the call handle easier it ability automate Again, some number, of excessive can X-XXX get to make that they

Yes, you're that is the site right powered ChatGPT. by

not they've along. they So, wed year products a them with now. other And we think to can it, we're certainly got about partnered we a use with although as been Open working continue leading product, AI. We've that come for to

But opportunities we lot of a think there's here.

questions. day, being both. a end with a there's lot an the is physician and communication job job lot of information and help a it think out At can a of I the

Board. from I Advisory will our XXX-doctor share little vignette one

of jargon see they're level, medically also in grade the out, a helping And the a that that that that that them appeal something DocsGPT they places understand taught seventh insurance ability not understand in the medical it's in translate to letters, main school. technical it. not One just so but reading patient they can of is writing kind

to with we're them it. excited help So, out

business transaction parties terms has news course, the think another our physicians. we here just both gets I exciting of companies. have the those hospital that lot the But of really both reimbursement, is helping benefit and clients. direct with is pharma a and for pharmaceutical of to of hospitals In good access both it, It's to ways of around that channel monetize model a which,

David Larsen

driving your Thank that basis Anna, is And pretty points. very G&A What's of by it the Thanks sustainable? revenue costs side, you. significantly in looks a percentage year-over-year that? Great. over like improved And much. the G&A then, on XXX as quarter

Anna Bryson

as was lot were increase Sure, certainly investment. of it's great you a look a we an there And IPO, kind going in if investment. question. front-loaded to saw, We we back naturally, G&A of that

So, areas and being need marketing. in sales as more as we're invest now R&D to as We G&A, don't to we're focus able invest as and such to and in possible. able strongly on efficient

do G&A that it to ahead, expect we about today. revenue is at maintain look as we So, the similar percentage of

David Larsen

Great. very much. Thanks

Operator

call Q&A closing now I The for Tangney has back Jeff will call CEO, pass concluded. of the to now Doximity's remarks. portion the

Jeffrey Tangney

record you I'd and, in entire Thank New see at members, clients, hope for We of of team. number a few now. of you our the our like to physician end thanking Bye many joining. you. Exchange Thank live York our by weeks. Stock course, to

Operator

conference for This Thank call. concludes joining. you today's

You may now disconnect your lines.

Doximity (DOCS) 16 May 232023 Q4 Earnings call transcript