DOCS - Earnings call 2 2024

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Operator

Good afternoon. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Doximity's Fiscal Second Quarter 2024 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Perry Gold, Vice President of Investor Relations. your begin may you conference. Perry,

Perry Gold

and Hello Thank CFO; XXXX today and to Dr. Co-Founder fiscal Anna Bryson, welcome Quarter you, are Gross, Earnings and Tangney, call operator. Second the Call. Doximity's on Doximity and With Co-Founder of CEO CFO. Jeffrey Nate me

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

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

be of forward-looking on part our and to As comments views, today, and current These based assumptions we will are risks are subject various making statements and expectations statements. management's uncertainties.

to the forward-looking refer filing and SEC XX-K. other results XX-Q. be outlook. Please filings factors or risk Any upcoming update our the Form any time, including report materially, may subsequent any Actual differ on to statements reports our with on our and filed to in annual we XX-Qs Form from time may Form obligation that disclaim

Form adjust policy we neither done are XXXX. release it through Of that today's such a Doximity's through on disclosure it assumptions as date, be also financial the press on or to provided today's Our forward-looking call, filing is as statements November reasonable nor based X-K. X, reiterate a guidance is believe note, of to of unless a public the

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

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

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

Jeffrey Tangney

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

highlights financials, and new X updates network our today, have We products.

beat that report our in and pleased second end I'm our for line. the of top we the to quarter XX% revenue X% million of delivered our First, over a high $XXX year-on-year. XXXX, growth guidance fiscal

largest rate Our best, fastest retention us who continue of revenue growing know to our XXX%. a with measure net XX be clients and

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

midpoint midpoint Looking X% margin. million guidance million to XX% ahead, also raising growth to a $XXX We're revenue by year-on-year. guidance we're or annual by our or XX% raising our $X X% EBITDA

our model EBITDA We will remain reiterating long-term are XX-plus% margins. guide of fiscally prudent, we and

X-year and However, today, macro said, will withdrawing given still $X stretch internal there. uncertainties we're goal expect to get our XXXX our continued billion a be company we growth fully remain target. to This

CFO, color in Our on minute. a provide Anna this will more

Okay.

a margins. QX X% beat, a our that's X% and highlights, EBITDA XX% financial So raise

Okay.

to our In Turning we've physician useful. now never more short, been network. more used or

now active hit that are underscoring we unique play on patient basis our a in weekly double-digit last quarterly, up monthly, users grew percentages Notably, daily daily Our the integral all and record it's year-on-year. users care. most, highs the quarter day-to-day and role all

and well reach Our hit did and in particularly QX news usage. feed both record

them. mode With leading proud our help widens. feed, succinct decade-long engagement. more most them AI news for interests. AI data We're they on their journal to and learn and on as million higher each to to headlines, now success to X.X improve making role doctors matters We're our articles Our an are medical on over news stay algorithms personalize procedures that and each in up-to-date playing the rewrite subspecialties algorithms read increasing briefs month readable, doctor our and research tap our also each to using based

we of And of XX% all gain with QX, top our platform. scheduling, count Telehealth post EHR fresh COVID, U.S. hit active also now tools tools. enterprise over writing workflow XX products, in workflow prescribers. our We and hospitals highs share top integrated the signing physicians more to over U.S. on to and continue XX XXX,XXX here AI clients as Our unique hospitals

product Now for spotlight. our

new our X service our have products We QX, doctors. in privacy pharmaceutical portal. client for and free new DocDefender is DocDefender.com

a of experience home served full their care product phone patient Just online. their half found already as had had our personal we cell address protects reports health off-hour XX% that U.S. Sadly, being physicians will phone in violence home information of popular Doc numbers easily from family's find dialer doctor online. protects from address. And workers DocDefender Ocean careers. a their Or or callbacks, numbers

from works DocDefender expensive. problems, Me out removals increasingly they're who lines there. services the recent We deserve on the of spike weighed basic the doctors free. brainstorm came shootings toughest This exist, believe in help. so for physician Finder Physician websites people many products, our delete and on Like many heavily but XXX by way idea the protection DocDefender society's best requesting takedowns of serve front for or Similar Summit, our group, we a out technological annual the this to year, of

to [indiscernible] all so our Thousands already physician it DocDefender the of members have and of tested beta was out quarter. the have the to We're great. doctors reviews been weekend. far top roll DocDefender of excited this getter to

Okay.

where I and we update quarter client last portal, self-serve progress out a our clients. have product made for for beta ready an now and this strong incredible on Now pharma our new Phase

a client portal, pharma to clients. so began did we our out with we As by rolling test dozen or hospital

brainstorm see real their So and feedback write far, to Clients like leverage time, our programs better headlines. has the bot integrated positive. in ROI very AI to been seamlessly monitor reports to their IQVIA ability the

up pharma programs ability season, client the targets open clients and to of to expand early by year. the portal add next to from our existing is next Then plan relaunch, we'll this all site. Our in directly upsell layer summer's

about clients. time on clients. It for will to We It products. the reports make it top enablement reach not e-mailing but and serve allow replace point-of-care our white expect spend to us this more newer client teams portal our and glove our rep and smaller easier strengthen service also our longer-tail for will less time peer-to-peer will instead service

By virtue and digital well both offer our believe partner. we're touch that's premier high HCP to tech. to we're client of And service and we reach now high usage, Pharma's become proud unique positioned

innings think will In before. is advent closing, to our care QX care transform sales than innovation better-than-expected its and record digital. in saw product a continued physician more believe And the health portal. ever privacy and with We our profit tech of AI, we decade shift new engagement, client health with this generative early the of still and

continue and more be personally to digital bullish leading first platform put long-term for doctors. honored to our the physicians I've about to opportunity. We're never been

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

Anna Bryson

thanks and everyone the Jeff, Thanks, call on today. to .

exceeding of Second the customers year-over-year our our XXX%. to Similar guidance high We retention rate to quarter quarter net revenue continued existing end revenue with up million, range. prior lead grew and the XX% finished a of to $XXX.X quarters, growth. our

XX our our net XXX%, For fastest retention sophisticated so are customers, most top revenue growing. our customers was at biggest, still higher

had cohort X% of a ago, for that this each contributing quarter basis. XXX the our total is increase ended a XX-month revenue customers We at a we trailing in these XX% from year and in least $XXX,XXX revenue. on XXX customers the This subscription-based with customers accounted

from year some color increase with growth basis. from this, the in ended customers each are is come seeing a largest the more our in customers we To the least we ago. This customers. strongest around mentioned, a XX% contributing a we $X XX subscription-based XX-month cohort revenue As at had on million give quarter trailing this XX

Turning adjusted year to gross EBITDA Adjusted million million our the $XX in margin a to margin profitability. the XX% the quarter for was second margin in year was period. XX% and period. and the XX% versus second quarter in Non-GAAP was prior XX% $XX.X prior compared EBITDA

for capitalization outflow of first for million share year-over-year. million R&D balance of the sheet generated of to program. the prior roughly A in in period. quarter an We the Now of in and to that $XX flow with decrease months included repurchase X year, XX% compared our turning the to million flow, year The in million payments estimated roughly our of second update QX cash the $XX expenses. $XX.X free $XX.X on related taxes cash cash

utilized rate will deductions tax NOLs, of as impact our in will the compensation consider our and all may stock-based from to to depending between that between XX%. upon we taxes vary of nearly modeling XX% effective you estimate be and capitalization XX% be Given the These R&D. rates tax have XX% future, the rate cash we our

we cash marketable $XXX at million the X.X $XX.XX ended million and During the of repurchased $XXX cash, We quarter, representing price securities. average an equivalents second second with quarter million. of shares

repurchase repurchase share programs, $XX As completed has we of an share our outstanding authorized million additional have all today, and Board plan.

shares efforts, repurchase our August decreased total our by outstanding X.X roughly Following release. shares X% million have since share the earnings or

We positive had are pleased shareholder impact by these efforts the value. on have

Share as untouched repurchases available And invest in to M&A. cash by flow. our remain business proceeds been the funded IPO a reminder, and our free have and

outlook. moving Now on our to

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

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

have typical outlook macro due the in over days. increased Incremental budgets later but unlocking, to The occurred rates close improvement has past this our the than reflects environment. an XX been

top our reach platform, returns encouraged to a we customers our that their to desire levels our we're highs is and customers these evident strong their continue engagement deploy deliver remains at With across As in QX increase step-up. revenue for program our all-time Doximity dollars, choice.

contracted. QX we implied please making remember our providing for portion guidance, consider variability the you revenue of it yet and As ranges more wider not are

an I'll Now give financial on targets. our update long-term

we year. our growth targets. year's believe rate the XXXX it similar broader the we macro believe XX backdrop of revenue and market rule With in this past year, to may to unchanged look Given mind, relatively next over withdraw prudent remains last this

longer strong and may face are still cyclical outperform in we market for initially market. we aware growth budget expected. in conviction opportunity have We that our but ability the long-term end than headwinds to

we our profitability, vertical long-term of to As guidance. to XX% long-term our to this, our adjusted deliver model non-GAAP EBITDA we are XX% expect operating margin and best-in-class profile. it a Due highly to XX% sales margins margins. to continue pertains model plus gross efficient reiterating

are excited by ahead, for we value the we As our the to bringing continue the innovation will look and deliver we to industry we are customers.

members. We and power has leadership position Our new our of for and a to potential platform, natural business. market this level new for years clients our will a an believe win-win pharma our to portal our the and of client on personalization come. evolution is for for and exciting efficiency us

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

Operator

from Instructions] Your line first Brian Raymond comes [Operator the Peterson question of James. from

Brian Peterson

love the next year? comment you appreciate that about or I'd guys in 'XX they're budgets, any heard that have you of But calendar from how year to thinking what I any about you So customers get gave. terms have feedback for and color heard just budgets

Anna Bryson

to that Brian. Happy Sure. take one,

it's So will soon little us budgets know too still next exactly year. listen, like look a for what bit

will Our we best this guess saw look the rate growth calendar budget what year. to roughly that similar past is year

And is mid- the to in there bring our buying to our regardless of potential are many both now confident remain we're outperform cycle by excited . And our single-digit AI growth. high new midst market. to around demonstrated we rate and the we what So our things And ability, in the new tools, the of returns reporting customers annual do their growth that now, as products. our are programs. the right about to

right So positive rates. too us now, color in give of to really more happening it's just there's on momentum the soon for business a the growth lot market but

Brian Peterson

that? understand terms when Or the I thinking And [indiscernible] in adding guys maybe of just about and potentially how I Amion, growth are that hoping impact just to Understood. the will how with to new products monetization rate? we're a little to these DocDefender, thinking product about you moving know start to bit with

Jeffrey Tangney

Yes. Brian. This I'll one. Thanks, is Jeff. that take

to patients, is, us think, for users with schedules, thrilled across growth daily so signal our of North user tools really AI of to their growth true we're percent categories. becoming part And help. using the we're highest first, all double-digit treating active the doctors, workflow, I that daily So a our have checking

So of the me, we're really and best to proud the is that, out that, quarter. really of

digital I think competition, of heavy our at COVID, look stay seeing that, if our we space, seeing year-on-year I think out sort if as they're home, you others move they're in at anything, use. not of the declines

regard monitoring similar have opportunities to over monetization and it's we today. start of a for they in drives The we'll and is that check product, our frequently wise, no are product and kind to that, once DocDefender phase of of dialer in a we whack mole good doctors other privacy thing product privacy, their additional come something With that news will specifically, of of sort it they as websites the lot the And time. see it's ongoing But engagement. that's changes. a lot sort there that's back

who of cite new inside their now we us top great associate agreement product, as and did privacy an AMM agreements grow you which BAA remarks, EHRs, at business health except prepared XX mentioned, XX to on probably less do have systems our their or Our front, continues in their with powering enterprise inside to and the news workflows. that we're

Operator

comes next Close Canaccord Your of from line question from Richard the Genuity.

Richard Close

question. Yes.

news preparing of care Are budget demand major there, we're of the Maybe for next at As the point us point traditional latter, you the versus feed? care. news curious expense year, any growing update the the seeing you feed? if maybe on could differences of for I'm and

Anna Bryson

Sure, Richard.

they're suites. care increase we're point I'll thing to as deeper our customers of these how from buying budgets. value first our had are coupled is the annual cycle, with about during and this products can our the product with platform receiving excited our into The conversations excited customers other that when say really peer-to-peer And we've penetrate

past the our more So we've to run returns. the been over the you the point We've higher to customers strong modules care very demonstrated programs peer-to-peer returns. of your year buy, prove have that able

over to forward here our and looking time. expanding our reach customer penetration we're So deepening

Richard Close

you EBITDA any XX% Okay. the level with margins, -- is current But respect you for what's implied the just to plus. long-term third I the And and why for the that then up the guess, reason yes, reported there keep can't quarter?

Anna Bryson

that We with doing continue that we to new portal one. to plan the have I'm and more happy take in that growth a We're more. in today in be to new Sure. invest and client products, business. we'll investing invest

We business have new hire. investing continuing in, and to we're we're lines

from in So perspective, we're our certainly invest continuing to growth.

given as margin plus long-term a is those investments. XX% think . we target appropriate so And

Operator

Ryan from next Your comes from Daniels question the of line William Blair.

Ryan Daniels

could the quicker new some you about deeper pricing? into talked on dive Meaning, portal. you on client I'm users little hoping based the I bit pharma auction-based know are better on a conversion beta ROI. seeing you've pricing sales or

curious seeing So users. you're what initially those with

Jeffrey Tangney

Yes, take Tangney that. Yes, Ryan, here. I'll Jeff

excited And just it been a together. I've fun, calls week to quite ROI of through these It's the a the a the top line results And our the X that's favorite she's client real-time joining bottom which sales that few end delivering, his with at us company it's that the go data, pharma tell the about. at portal we lot So real-time we which him incremental a, just IQVIA again, of to had allows senior it's pharma. was It's of for clients. look meeting day, the marketers this and week provide. of our of because inside insights we're can director integration

Phase Gap] purchase are they've do that about all that for I I that. for front programs. a additional asked want gone waves be well. already So that's we to super have or out [Audio to product the But clients

seen our to in said season so for we fully of articles will think engaged will of relate physicians them co-morbidities that pieces with a can has But your in GPT prepared natural more they that our like whatnot show video Phase deploy out Brainstorm make a it together. really given additional to next docs audience they of put your we and that it that brainstorm of audience extension which this patients and have take many lot messages really fun then and summer so or we who've in that of a that for a market. the II, upsell our your And in our different I demo already one where be see practice, product, to to actually are the things broader or may their bot, or to been all take remarks, easy to how

And of course, with at the say been fun. it's very creating is good my brainstorm bot ideas. just favorite comes But raps. up it's I

won't insurance insurance that why to on approval for do companies they drug an answers reimbursement. rhyming So

something we're That's roll caution that, So high-tech high-touch would in fun with stays but will with way I out we our doing portal. model, it. it. anyway, again, the not we've But a today, to bringing that had on purchasing say with some also

Ryan Daniels

changes the it's sure. solutions just Jeff, of grew my platform have them record want the more in there. then or made as the And you've to reaching these comments color of the now I Sure, a little That's the great. all so all frequently. is good And around that's news I feed most. that you I'm appreciate think color. users, platform more point, for effect I kind if providers the to And follow-up, usage. just of the interesting -- prepared driving curious data comments if said you that your then you, A halo from kind driving daily

Jeffrey Tangney

Yes. Great question, Ryan.

able is our daily record short have I We in to really there. AI and answer users, growth use we has active news way Yes, in our think seen led the our are news more AI. the feed. overall

few a what's new us to we for and at practice of level, and they'll they type for procedure we minutes, that of a news not the are things level, up a think interested get We're their that date purposes. all have intents doctors of just that go medicines in. are years at I up given when and on data on practice feed their So place the a at and the XX but the have cardiology open most

I lot, to So our a think do continue has and AI we been there there. teams helping lean in really

Operator

line from of the Company. comes question Scott next Needham Your from Berg & .

Scott Berg

kind Jeff, speed on I item. want new follow to of up the just

the of kind we numbers, I level that kind results and How return talked those the think Given couple point that announcement? of about you levels think on the have impact about usage kind customers at the of some know they on assume your of last should any had. forth. probably remain this. record haven't the of imagine I there's natural would customers I with But [indiscernible] have your quarters can the you major some correlation for of

Jeffrey Tangney

heard our on engagement Yes, return ROAs, returns of Scott, news which there, had on increased median, spend we I had all terrific what seeing to quarter, studies. it fact, a products answer than say the right, past higher to you're X. short are I'm with ad not ROI you certain we is in we and on but our this being XX announced had And our

continued on return we're our for seeing customers. increases investment our in So .

Scott Berg

for where that et then and long-term I with know does your maybe EBITDA some upside reduce if spend drive if in if drive that marketing sales didn't if And your know it. impacted with down over could cetera, the term probably portal, your [indiscernible]. does and I that sales use margin which marketing, wasn't here self-service kind a actually kind customers as didn't on with forward, adjusted change there? commissions, that more? And in the to of business sales going Great. guess going of follow-up I'm I long that correlations the

Anna Bryson

Sure, Scott.

glove high on to absolutely real-time So pharma and they allow We have where more continue our access service customers to we reporting to having client our buying high for will portal, meet continue platform. and are real-time also aim tech. our new and be white and them our touch to

as Theoretically, in invest percent a make over sales we but that decrease, a to will time, continue could we're revenue as and efficiency yes, to of focus to continue our And the going also marketing on platform. business.

So there perspective. some see increase an we net could from R&D

excuse as our to want margin. as there ahead of increased far get I So

that something high-tech be I we launch this to, guiding very are we think client portal. business XX% proud to this to plus but are be going high-touch and as margin remaining is we

Operator

the Evercore Elizabeth from of comes ISI. question next from Anderson line Your

Unknown Analyst

Could the This business is XQ guide some yet you guide color of Anna, on date? Elizabeth Anderson. us you booked Samir how a the give for you that full left is mentioned on Patel that wider bit much for year wasn't contracted. to

Anna Bryson

Sure, happy that. talk to about

renewals sit So as here book. we have today, left just we'll really to

and most kind we've gotten cycle mid-year upsell of that So part. the for through year-end

positively results our in very that us. ended You QX, can for step-up and in see our actually

growth we So see past XX here. the over did some strong days

is As that to ahead of we look from stemming QX, renewals. most

our is not now. prepared my about in approach taking on uncertainty, more we revenue but how remarks, the continued where booked, just prudent mentioned are portion macro a for really feel we to that I given As we yet guide here good number that of

Unknown Analyst

Got that. it. Appreciate And then quick one question.

in we down to XQ? dollar a step guess your guide, the mentioned keeping you guiding guess, at flat see should looks in looking margin I restructuring? And around of question like my given I on of Just related relatively you're is, XX%. EBITDA what kind -- the is margin year-over-year XQ that first that, to another kind recent of then it basis OpEx you're

Anna Bryson

Sure.

sales largest the QX. XX% deploying of Clients XX% are to about in is QX annual So quarter. budgets their

commissions in well. the bonus becomes quarter and it largest end as So our

will you year. and that a and So we typically step-up OpEx between expect QX this similar QX, in see be to

invest As before, And business our in client this in and new we're we're we're margins mentioned with to to record that continuing guiding our investment portal. also QX. seeing, I even

is a in for record XX% and So good us about this feel QX, we margin EBITDA over really where is. margin

Operator

Piper Tassan Jessica Your question Sandler. the from comes of from next line

Jessica Tassan

wanted the feed? or us care, outside point-of-care news guys understand the those help utilization driving really I Can just of productivity just ask the Congrats point like things more robust with on you users of in about scheduling growth are of users. exceptional monetizing and if tools embedded suite results. to the you education

Jeffrey Tangney

is Jess, this Yes, Jeff.

doctor, within suite, And do answer we The feed. moments our to workflow news to So our someone market. also reply or product and having are with educational yes, about piece to point-of-care I'll a moment another have for a into that. that's as discussed links have perfect people where about paging we is, have products, speak wait our an a we've short for a

we across say full I'd our monetizing suite. are So

from got just answers a that annual question. doctors your at hopefully, they do York, was say hear event clients I'll and share we using I'd XXX in day pharma some just in that So our are did every this our real event of for great record turnout. physicians has been to had market. because New and came client the us a really how differentiator just hearing workflow their us in it

Jessica Tassan

growth is down on based follow-up of Can the million year-to-date, it I a little bit. customers the existing came was just you Q. subscription about My just think this that break from $XX

more So Doximity impressions? more bigger is this more role playing creation a is just in modules, kind campaigns, of or primarily content targeting? Or

Anna Bryson

take happy one, that Jess. to Sure,

mentioned midyear I strong upsell had a our before, of as cycle. So to year-end kind we end

so seen we've past from the largest we've of comes A here lot that increases over seen our And from XX that days. customers. some strong growth

me really XX% which dollar So of indicative one increase the of in our is we customers, the the think up business, as is call you heard stat million the of seen number year-over-year. we've health is and on mention

the And our of of members. cohort indicative So customer that growth customers. that customers modules, is seeing are adding now $XX amongst audience we're we value largest that of plus near-term adding adding million believe These brands, headwinds. macro the we are our irrespective platform, they're they're have

Operator

comes question Nephron the of Percher . Research. Eric from next Your from line

Unknown Analyst

allocate of that on a how how And all to the R&D plays months. to R&D on into perspective in that it's from Question layer to that guidance, physician and primarily total the I duration not XX XX of opportunity. your the in? Does you R&D does headwind, focus I or long-term change over the think cyclical change next the clients, change priorities obviously, this understand

Jeffrey Tangney

Jeff. is this take I'll Richard, that.

level, expect stretch more on we And just a internal mentioned an to XXXX, at this a macro there end. I by remarks, remain you're for I prepared caution really getting company. billion think a viewpoint be right. us. in longer is our goal as And $X mean fully will our I

Sorry, aggressively business. And that just want the to in I invest repeat Eric. we'll continue to

TAM share lot think and new I there's care. We'll of in to pharmaceutical a enablement after hospitals with take companies. point our with peer-to-peer go core continue of in rep to markets

a we're great and we think in So in we're still R&D. investing leaning and position, in

these So caution view longer to more for think, to to macro our the in amongst -- us relative to opportunity as market clients, up we step I an others. continue

Unknown Analyst

the flow a payable. result year? EBITDA flow, a increase heard relative then commentary the strong to prepaid course accounts on cash conversion on cash given just follow-up sure I -- I the expenses And tax, the and make the understand Has the there over want I of in on for in but to been change your outlook

Anna Bryson

seen EBITDA X- to a basis. flow roughly near X-quarter on historically, cash free So we've trailing

But rules through so has and tax the newer And our by capitalization. changed. around NOLs, are we that changed has impacted not what are is that we R&D

EBITDA what cash is by to be. now that changed the whatever our . tax of below has rate flow cash what free expecting be we're may cash magnitude is rate So tax

Operator

Schoenhaus next line KeyBanc. Your the of from question comes from Scott

Scott Schoenhaus

into into Anna, you million assumptions sequential -- mentioned of in And having year cohort? nice a next and $X with color of clearly $XXX,XXX built you're see what's any provide you per and lot growth. customers Can success customers, built just see we higher year kind we of into a weak midyear you on and these upsell? should self-service initial those sort the if next as that that invested or programmatic assumptions revenue

Anna Bryson

that growth. our environment, this said continue our especially Sure. will lead top we before, Like we've believe customers to in

customers. million-plus of our XX at look top of It's cohort our that you of $X XXX% NRR plus. evident So been as

So had we there. . strong success have

think go we 'XX us soon like. too just to we look, what look forward, will beyond As comment fiscal it's on for or

really the by are growth. we've momentum business. still facing we budget and day, in We the the market headwinds seen encouraged at recent cyclical But of are the end

growth that market, is aren't committed while look to rate outperforming to So the remain like. yet we what just exactly we sure going

Operator

Your Securities. of next the Wells from from line question Fargo Bernstein Stan comes

Stanislav Berenshteyn

can update us pharma systems? first, both ROI for you the [indiscernible] an Maybe health on for give and

Jeffrey Tangney

previously, last was was this we've it said than And return, Yes, been median Stan. previously. our higher it quarter had a XX:X

Stanislav Berenshteyn

Got it. one here. quick And maybe one

showing headwinds of you pressuring mentioned on Is I there showing just component price in impact up up guidance, a as volumes? is Just that as preliminary budgets. terms Or well? that's macro are know

Anna Bryson

excited buying too pricing in what that's for we . One to on Once next increases. Sure. like. our environment, baking about, the believe into middle real-time year for comment client nicely. we're we From aggressively portal in reporting especially not are this with But environment portal provided now. pricing annual this price in again, and with to just ROI headwinds, that lower allow than ultimately a to cycle thing of are macro soon perspective, looking us and prices analytics customers. the continue with in will the assumptions us typical are right leaning is We're in the raise our we too

Operator

from Stanley. line comes question of Hettenbach next from Morgan Your Craig the

Craig Hettenbach

think you there over market appropriate really target more strong if see Jeff, term, CAGR of basis? XX% is EBITDA in prior intermediate-term intermediate about performance. range we to that where to think a see of the you nice And a kind is the the the

Jeffrey Tangney

just I our And strong. Craig, too to in really our we're is end the Again, this is Yes, you. ROI hear longer, seeing clients. caution Again, marketplace from good from soon. remains what more think,

a on I I problems. quarter. thing very our lot mentioned to of team and and physician-focused R&D think mentioned the was of are this remains last had we very lot work last about of now client success in strong. XX% got haven't One that was We've R&D in engagement excited call Our our a we've

And that shift. so we're seeing mix

And high-tech soon too we're think growth pleased really I But motion comment offering. clients that I rate. our again, midterm with are think the to on

Craig Hettenbach

And adoption And of follow-up a then quick it do terms think as video just in signpost you for watch on that of the year into into layers marketplace? How any next the in to kind about products. business? the

Jeffrey Tangney

our is done to look being messages, product, haven't at it NRx Video they we . And these the the backs to one to the these a answer before, call had video we news well things to because content and lot never look And able at Craig, sales have inventory. is, and point-of-care real-time And that's Telehealth in you, ultimately bringing tell behavior. always kind ROI the for us a generate is incremental short of analysis I'll is with Well, more our now of very data it for video IQVIA we've window great what all. really changing start that's had all at before does types lift, and we've doctors are communicating hot. look because year-long clients. data cool of engaging real-time able about run

So to we're excited go-to-market this that lean motion more into year.

Operator

next line from comes the from of Truist Securities. Your Jailendra Singh question

Jailendra Singh

first strong to quarter. share as banner losses a My platform. some quarter, I cheaper last guys question, mean, kind market of out on Congrats you called

an automated because Just wondering lack of if the quarter any but moderate that just talked this you that of purchase months were about some those how could I or trends drivers. have reverse of X online curious what been trends later? been that have of platform, and believe have

Jeffrey Tangney

Yes. Thanks, Jailendra. Yes.

sales we've with X% our guidance momentum raise, since then. pleased obviously seen per the So we're

New that were not real lot is issues ROI I doctor's finding competitive of to there's close threat. moderated, go lot And here. back with Our the a of good that quality often I in that from about XXX questions that, competitors, had of some event mentioned. . The are with that QX, these day I say, reaches is and address ROI. will reports of think long the up already there. as rates has did in and raising some get running joke we a they're we client new has Anna daughter, to And third-party whether doctor, York that recently, targeting feedback regard the their their IP think, I'll

Jailendra Singh

other we dialer for guys And insurance I follow they changes got Doximity the the have making Clearly, usage company, the also announced, trend. some Aetna, have tools have reimbursement. providers, is of some then provider one provider announcement? lot And of clients. what care generally your how for coverage critical insurance the feedback should app tools my always of of I around curious case the of but of virtual as audio know follow-up, that since think was and your what you is the from recently providers reimbursement you that platform? And a about you

the feedback Just what's like them? from curious

Nate Gross

is question. Jailendra, a this great Nate. That's

I recent at trend space, broader some more medicine. that's dictated this payer at payers. those by the of you think point, in the if are looking in less moves of business realities the And a is so

a patient of think normal delivery. sort of types a I for Telehealth new of lot for care as legislative still doctor and there's we're certain support seeing a

like parties all circumstance. it the right think I who it use in

here in platform to believe that. can and And numbers the so and they are more see build I they efficiently. our decreases every cuts just much they and said, what of and and stay, face can physicians to think how for Telehealth, and patients side on Telehealth our for engagement we not That year, asked is build their see compensation to patients increasingly to reflects more

can to every to patient every type for we're as not and Telehealth, community with it's to come the it able and with working a just while easy those to are of everyone. only because perfect that's doctors up going and strapped, going economy the not physicians product the be as possible and deliver be works so going And be when that way solutions care make to to lightweight when technology that a up for and seamless fit is

grew those quarter. the daily the really in most charge high. an at and at we're Jeff workflow is jewel last of which what active crown And engagement you thrilled DAU, the tools that all-time Telehealth said, our which is if led use, So look our is

Operator

comes from question the line Jack Partners. Your next Wallace Guggenheim of from

Unknown Analyst

portal there a unlock guide? that little might self-service the the the it that, to for that, as Anna, I but there's a any comments, it's mentioned guide. cohort, extra small part of budget the in of realize unlock your part reason you is there that's to the sounds but be like the portal that forward, would and in case the any extra tied hope be is related going self-service

Anna Bryson

take Sure, not Jack. answer that is short question. to Happy yet. The

for the like in the other environment. this excited unlock we're really is sales potentially. year cycles many next days think XX past could I seen elongated we've just what really, we've industries, But that about that, seen over bring

really those high our dollars growth programs. to think on this year. we August being the So ROI in I incremental customers But August, we've our to past seeing by that over start . days that's strong seen the coming start since encouraged added as are XX didn't of June here where in typically their adding until platform we're really

this driven. been we're self-serve numbers it's to but very year, for soon of what budget But has So a too lot put really next can bring, by excited us. just behind

Unknown Analyst

any supporting launched in maybe And those for Are changes the for then of your or you products launches, in or environment? the current faster given just customers' noticing any some recently planning? those the appetite slower

Jeffrey Tangney

Yes, short more a is in But around had lot that this is there's interest ROR in I'd doing. this results. in what of flight answer also to say environment, Jeff. have programs macro cautionary I'll there's take innovation The that. we're high quality a proven

do they key, they they're year we're the end, absolute at that's ROI do this when the not, math. sit key They on they is the our our year, look And because numbers, HCP look time great of partner. of the one the clients all and their if from down, again, the back digital

wouldn't us So good dollars that that, at this that like And argue meant because frankly, would there's websites drive a there I new news was strong this that's things experimentation digital there was for other just actually towards thrown in that say XXXX. well. market, work and didn't lot maybe XXXX, in I of in

Operator

Bank next line comes question Allen of the America. from Lutz Your from of

Allen Lutz

Anna. this for or one sort of was this intra-year The guess offering I year. point-of-care Jeff introduced

of is this annual business XQ much in to see And is XQ is about that, then care XQ? to expect you Do revenue annual Because how a the as frame I'm way calendar there fiscal to guide? step-up think part [indiscernible] you care in cycle. that any So curious, most of budget related revenue your of or on point of your embedded point in

Jeffrey Tangney

is Jeff. video This product. short Alan, I'll doing may really add care some of Anna color. point take a and Sure. fundamentally is our that, answer well it's The because is

video get that great ability and earlier, watch I to time to doctors patient is lot just XX mentioned to a rates when engagement. minutes the really have join of that's a waiting there month, engaging to that is a reach call, long, are as So every which seconds XX, sitting our for doctors

our broader of all into results data client that again, our together bring it's place. said, and this That back And the -- will it's actually programs. typically playing together portal out with it's one all and selling reinforce this

our little And doing because both a a success point to it's they're candidly, news bundle. super from again, care feed of discretely So point to being they're well. typically, difficult as in sold our

to So is with guess, regard been which Anna, just is, I point-of-care overall, our to has our say, I'd hit. video guidance, product but defer real I what engagement, a

Anna Bryson

it I not the thinking And perspective QX launch about as live. much we're have sensitive our and what lines, Yes. as from because takes embedded guidance, that in time would to time to created far we're these say we products get

at counting from there ramp our not perspective, on And all. big we're so a

Operator

comes from line Jefferies. question Santangelo of the Your next from Glen

Glen Santangelo

you wanted some just the of on follow macroeconomic I climate. Jeff, regarding that to up made the comments

to to I less trying clients benefiting experimentation. willing You maybe a get seems in mean said like your drive that -- I'm this it for it's you sense seemingly environment. towards

trying sense get overall I'm market maybe for And growth. a so to

I to today, the not seeing outperform by be Anna we're following that I'm but growing where for to comfortable your DTC, budgets is Like up you'll landscape growing? lot they were year, to you question. during is sense in get I'm you said a you think, market the growth trying overall as than marketing to think digital on all programmatic pandemic, environment. the feel still get sure remarks, Clearly, trying in And DTP? your that faster. the that of the much Sorry, -- the market faster current competitive And mind? a just I'm market. in this grow it's fast sense as the how able with there's a

however it. you handle to So want

Jeffrey Tangney

first This is crack. Glen. take Great, Jeff. I'll the

budgets way marketing of Fortune pharma industry their estimates and health digitally digital at others spend XX% is norm that IDC general about under on time. programs, So first, pre-COVID and which the by I'll or care our XXX say,

XXX there guesstimate current the of that COVID, our probably some XX% is the does. during was It think I that faster grew it's Fortune half catch-up.

in So percent to reversion is here. of in spent mean mid-XXs bit we COVID terms as of But of what a come post is the out there the a digitally.

these overall, as general could clients more And that days is the marketing. risk all say, the rates given macro invest days in our again, well I'd money investing these at at our at level, just high low caution things that approach of to instead

Again, websites our our see more probably see that delivering we're that of for return. experimentation we'll But any you'll that that shake have XX:X out time, when way. during less those return were come out, and clients, new and will over a tried COVID didn't

Anna? know, I So don't

Anna Bryson

Yes.

now the expectations is Glen, So similar your digits. next we said grew post-COVID Jeff's are right market for macro climate, year, with call macro the And for there What the a and think this our To do in this August over saw year, assuming I year. we're a to roughly look . headwinds, as reversion think last year. we then a time, We rate our contending question, single remains point, we past just year specifically will are growth. this far market maybe downturn. given do upwards to think reset growth what to as mean this similar that on where to to is a of the this be more believe next near-term macro we high we around we'll we mid- phenomenon. continued just

Operator

David comes from question Larson next of line BTIG. the from Your

David Larsen

data just the the provide for what little hearing a can IQVIA, client you ability to a that think quarter been think is clients correct? more heard and I look But through And is time. return tighter that for with I've maybe new run actually color their that's at the it? XX:X integration this themselves portal, long a the around I've

Did can way. real-time new? self-service I correctly that Is you hear that the see a that in ROI

Jeffrey Tangney

early to beta year. this now. that a pharma our unlock. new. it's clients to right make expect think that But And It's that's in is we big something available is again, all next right, David, out of I

has big You're a absolutely right. we've something been in business maker. It's seen difference our that hospital

and we've been data to now our doing been their our them these clients refreshes referral And in business, So where year what a provide show X or able it's their this ROI we've interesting. for of hospital was. quarterly

a you first do time lot with XX-minute it, a it's The of call statistical questions.

the half you hour it's clients it's second third to a time, And e-mail. call. then a our value do time it, an the reminder provide of The And it's -- that them. just we

look Right isn't now, as frequent of mind. historically, what more which clients for and once-a-year a we've back, obviously our done of isn't is as top

unlock a to transparent So more I be think just it and for will to this more our big us do data make available clients.

David Larsen

Yes, think I in there's ROI away. the right enormous value they see can that

are hear drugs, or And something a -- invest especially then certain insurance more, solution area in you for approvals about do tough you why not not? say also I that did economy. have in So a

Jeffrey Tangney

David. We're it, working on

had health So Doc's our in this GPT first that launched have back we of it. We we that year. announced February last that for our was announce we did system clients quarter product

staff that sure medications that have letters in patients their are paying love letters. insurance these . And tools we libraries help easier ensure access back-office need. that and to make well, systems top appeal appeal them the feed better and content doctors course, get to So their that they of would whole make as can write and provide to hospital better they pharma that to get

Operator

further for remarks. queue time. We at I back Jeff have to closing in the call questions will no our this turn

Jeffrey Tangney

like I'd and everyone, for ever every work before. entire team Doximity than thanking the their end hard joining. by for more to serving quarter day just doctors this Thank you, Great.

Operator

you your you This conference today's may and call. concludes now Thank disconnect. for participation,

Doximity (DOCS) 9 Nov 232024 Q2 Earnings call transcript