Doximity (DOCS) 8 Feb 242024 Q3 Earnings call transcript

Company Profile

Participants

Perry Gold	executive
Jeffrey Tangney	executive
Anna Bryson	executive
Brian Peterson	analyst
Ryan MacDonald	analyst
Ryan Daniels	analyst
Richard Close	analyst
Nate Gross	executive
Stephanie Davis	analyst
Elizabeth Anderson	analyst
Allen Lutz	analyst
Glen Santangelo	analyst
Jack Wallace	analyst
Jessica Tassan	analyst
Vikram Kesavabhotla	analyst
Scott Schoenhaus	analyst
Craig Hettenbach	analyst
Stanislav Berenshteyn	analyst
David Larsen	analyst
Eric Percher	analyst

Call transcript

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Operator

Thank you for standing by. My name is Aaron, and I'll be your conference operator for today. At this time, I would like to welcome everyone to the Doximity Fiscal Third Quarter 2024 Earnings Call.

[Operator Instructions]

to of call Investor like Gold, to now President Vice Relations. would turn over the Perry I Please go ahead.

Perry Gold

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

X-K, are well found and on the release them issued press on complete of IR as our at Starting A in our investors.doximity.com. disclosure which press remarks find our published this in results conjunction all related website our quarter, release, website. Form today with can the available our can as of in be you earlier prepared we've

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

of or may materially, our views, management's on that time our the forward-looking forward-looking filing to and in with on on SEC various XX-Q. uncertainties. we annual are update report to will risks other and subject today, filed disclaim current statements These any comments are be differ be and statements. subsequent and risk XX-K, results including As and filings Please we making to any based any statements our Form reports Form the factors to XX-Qs refer time, from obligation may expectations assumptions outlook. and our part Actual Form upcoming

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

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

to or CEO we provide future. metrics dynamics turn greater our Jeff? These offer over updates be and those incremental provide our I the not business. may we call, Co-Founder, metrics details now may of the may call to insights Jeff the would the nature, Tangney. and like to during Finally, may in on into in onetime

Jeffrey Tangney

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

X have a product our updates leadership today: We financials, new highlights hire. and

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

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

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

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

Okay.

Turning now to our physician network.

reached mark. high-water new Our QX engagement a

users Our basis active weekly on up a and unique quarterly, percentages year-on-year. were daily double-digit all monthly,

much to and quarter, use last among users our the continue our how with tools EHR-integrated most, share underscoring As doctors. gain grew daily workflow daily

Doximity and to health out thrilled and their CIOs that third Best system we're row, Telehealth ranked for front, beating KLAS been Teams, On by announce others. #X Platform the in in that Microsoft staff, Video a Zoom has year the many

hospitals XX a using prescribers at clients. major word to the to in new record of unique XXX,XXX now top marketing We clients and our software hospital QX. several add enterprise of as Go-lives allowed U.S. contributed these hospital all count us XX software in workflow systems of as positive This clients mouth them QX.

minutes go both record usage. be the of in highs a when QX, physician the with on also field. newsfeed where in We're latest their proud few new in doctors place news newsfeed personalized Alongside our the check workflow products, and to medicine, they to reach have our hit

phase we will growth, Our AI of fueled. be believe, next

thousands day, has each scut grown administrative helping load. GPT product and organically HIPAA-compliant already to cut and reduce of the we Our their doctors the uses ways love it's all

we're DOCS and Tech convene annual designing to to digital Summit It next top our our our care. doctors alongside up XXX Francisco To patient save that of in be end, sleeves rolling XXth their nation's excited month. San software will time engineers, improve

up May the We unveil also Client in portal. We've Summit our and client to brand great. Pharmaceutical have for XX% early the new of partners, about to our portal early can't wait now reviews been our opened

real-time reports is hit, data it's sales a that prescription seamless coming Our but keeps them engagement portal's bot and brainstorm our AI back.

put brand can get tweak "This The great. the we transparency to and of it manager ease the gets content right again it, As one it, until also high doctors." is use tweak I pharma marks. right it, run portal's

my Another see can top "I client told anytime, it first." that us, results someone I else love without touching anywhere

actually think longer today. when on launch we portal. that modules leverage clients purchase do, to we midsized engagement. But not could reach we're of be and to yet to clients will able new it also unlock make us it To the for we small don't that our clear, It the workflow tail allow easier

other share As year-on-year last our CFO, our new modules a Point grew Anna, over will of moment, quarter. and in Care XXX%

we're monetizing believe our still early in of we workflow innings the So platform.

addition the Commercial Prior XX Officer. our spent note, Chief their and Manager. and announce to that, Greenbaum joins Senior new Lisa as Vice leading Chief to Google, that Officer. I'm of as Commercial years scaling was she she where go-to-market pleased President us Medscape's Verily's Lisa On General from

user. Doximity a pediatrician is Lisa's husband long-time and

here a successful market-leading So are appreciate board. tech our will excited while being for I at We know been relationships us deep both from unique and care clients team month, to and have years. and a she's known The she's firms. on her executive Lisa's insights like it health feels only

we're personally our never more to like who what more continue my have I building excited by to been incredibly together. to mission. I'd end hard or Okay. thanking teammates Doximity proud about work realize

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

Anna Bryson

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

end XX% up to and of grew revenue high range. the year-over-year exceeding million, guidance quarter $XXX.X our Third

quarters, our existing our retention trailing revenue finished prior of net growth. quarter on We XX-month lead rate a basis. with to a customers to XXX% continued Similar the

retention XX our was at XXX%. net customers, top For revenue higher

our biggest, So our most sophisticated remain growing. customers fastest

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

was of period. year a revenue Adjusted EBITDA new by margin represent optimization in the the XX%, outperformance, teams. year Non-GAAP profitability. million our third to XX% driven R&D third continued of non-GAAP prior to in and prior XX% Turning EBITDA our gross in engines across was infrastructure versus margin was period. the $XX.X highs adjusted $XX.X application and XX% for customer gross for and was AI quarter These strength strategic compared G&A million support and QX and EBITDA margin quarter the costs margin adjusted This our our margins. a and

$XX.X the period, in cash program. an third We to flow, repurchase to increase million year turning update of in free the million share our compared our flow cash quarter generated and prior year-over-year. on of an $XX.X sheet balance Now X%

ended a our to cash and taxes with $XXX third We cash, and of rate of cash equivalents securities. paying have are utilized As a NOLs marketable XX% roughly XX%. we at quarter the million reminder, now

as share million quarter, have $XX $XXX share Fiscal ending million repurchase repurchases we M&A. average of to of in by proceeds We shares remain worth the untouched year-to-date, XXXX. by remaining. reminder, repurchased an IPO and a price to efforts our at repurchase price our our still have free third at outstanding shares XXXX, been the December representing $XX.X During decreased over authorization from million business we recent the ending our March XX, flow. repurchased of available average fully XX, roughly have cash funded and X% million. invest have X.X These Share the quarter most And quarter an of $XX.XX. $XX.XX, diluted shares

our buying to recap season. turn I'll of a Now annual

As the their year's for represents our by largest This sales our of is significant when our annual reminder, committing marketing budgets. a next quarter pharma amount. on sign December programs, majority quarter a customers

we in we recognize primarily depending over months, XX will program these next While the on QX, signed the revenue launches. contracts timing of

brands $X brands, with last us. the strong This brand XX million-plus season, brand particularly roughly have million selling X spent this the of growth number we an brands $XX XX% cohort we increase from Of This spending each, our at with saw season, partners, of to year. we had million an million-plus one upfront least that $XX amongst these least year-over-year. $X brands increase grew at

These Care during upfront outside of sit Peer, modules We such modules also by strength Peer of than marketing in our more saw Formulary. as combined Point year-over-year XXX% to that often grew our traditional budgets, season. and

benefited on We a have our their selling from increased expand as our packaged to customers our entire newer across continue basis, modules reach focus platform. on

Now outlook. moving our on to

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

at raising full are to the the million guidance $XXX.X growth $XXX.X our to million, XX% we of For range fiscal revenue the year, representing midpoint.

a the adjusted adjusted of range year-end. million our margin. XX% increased $XXX.X outlook to We representing EBITDA annual upsells are reflects raising $XXX.X EBITDA The million, guidance calendar at stronger-than-expected to

unlocked this past previously, than As incremental budgets mentioned typical later year.

large our our QX became Doximity As customers, for that top available, choice revenue. encouraged are those the in evident remained step-up we which is dollars in a

focused that in Looking excited modules season on fiscal are our ahead, large many the cases require will we deeper of and QX, new In getting live, selling new in which we're brands. these addition several newer investment our programs content. saw new upfront

indicative timing underlying As launch QX growth of a revenue result, more growth. program sales reflects our outlook than

pharma Based to the expect roughly market. X% we X% HCP are once outpace year again calendar grow market digital the can XXXX. in our to upfront on pharma season, our confident selling overall business We

and solutions, opportunity making investment by insights real-time encouraged level and delivering the are by are the We industry-leading continue of in innovative to customers excited ROI. our are Doximity

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

Operator

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

Brian Peterson

customers like strong are to category? the some how to Congrats seen kind they're that strength great some the new Is was it as of how looking quarter. Peer. Anna, new the love buying a just I'd season. Peer new looking Would on understand love products these at to in to products. at understand of hear budget a of

Anna Bryson

question. Yes. for Brian, thanks the and Thanks,

So our newer the growth by excited we're saw modules. really we amongst

of Care our of and to Point the we're Formulary, selling, which season. remarks, mentioned up Peer, buying So new XXX% Peer modules that cohort as was I during in the prepared over includes

really different are program on together, selling about clients reach I our scale of now packaging is new increase the these way products appreciating us we're we're to budget and And allows across overall of the actually the working one think lines. the things these the modules which

The product other believe it reach in turn allows packaged to across thing clients. better our approach does platform, the which our could I for yield that maximize is results the us

doing So modules. amongst we're what about new excited we're and we're strength seeing these here really the

Brian Peterson

budgets faster That's the next I than you of to have I consistently And to great know X%. X% tracking hear. grown guys year know to mentioned kind you for that.

had you factors those you relative gains think think for to levers share do to be? would what the budget, If swing key about

Anna Bryson

Yes. absolutely. Sure,

year X% in past the to the think So and roughly remarks, years we outperform we We've yes, the be proven this XXXX. market prepared any as over calendar the that several grow year can market, will believe don't different. going we is X% in mentioned to

from expand for directly we're internally, to for excited in sell and newer things of invest lot portal next to we've something client that that and the site. our these the We're That's really of excited the is modules. to spending and targets about by and time also about clients these year. available on couple we're really client summer been relaunch, add portal a a excited over modules continuing So the existing newer having to that programs delivering

Operator

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

Ryan MacDonald

-- like usage Scott nice This available now summer talk you a Berg. sort with you selling Can to sort -- on just Ryan see of and comfortable with be summer order you the for on in it, what summer purchasing of Anna, the XX% the the of the up to or Congrats in in the sounds about need for season. mentioned live is using season? -- the customers terms on portal portal be of portal progression to by on by It MacDonald is quarter. track. opening

Jeffrey Tangney

of I'll that They Jeff. portal. We've we're new clients appreciate grown is take I have in the working think real-time few lot this lot terms end And our added to their quite onto of a transparency. to the on that the we've real-time and question clients their show with pleased need we're ability and Ryan, appreciate with data. reactions Yes, spend a business the money investment power aperture. since others, day, been been data the positive. us optimize At the our I've pack really of the a and portal. they the on to They return uniformly programs. that leading our them

decision We pricing started first could have decision. reporting upsells. own The internal on was to focus our really with and

make more to a to see content best to our take step So try thought experience that back a way use as we and personalized really really the physician and better. to they portal the improve it

in turn And hit. coming a do motion. be long which But as helping in upsell our not unlock their will story We're to headlines. has big personalize, video short been We're real us pricing, content, is that the fun. the tool, the years. prepared AI really our to the I do easily, a one detail really into the short of and video helping the The clients decision aids on we remarks, ability take is focus think, more better a mentioned them for

excited Wall us I'll years. about out First, by a we or given while give a others full it's also that of saying in lot today, very feedback beating year our time think the and of I migrate a business. for our that to have even to just X, the portal, is a do XX% And way features we're Street us clients. the that right at the this way strong transition sort rolls just we're really multiple appreciate us over end line this is done. and getting quarters us and we'll But about

Ryan MacDonald

company I Jeff. for additional there then spend what going this helpful similar spend budget over we Super think say, lower environment, level, be we a color, a of 'XX rate. sales of against Or opportunities to market follow-up, spend to the rate, suggesting how couple forward? efficiencies is marketing we customer higher think year, the here? required fiscal for growth will environment and should maybe that And about growth any cost on speaking a quarters roughly into, flat hope should this of now Are is acquisition the for better is expect into drive new prepare level growth fiscal 'XX? the

Anna Bryson

Sure. Ryan. can that take one, I

our been team invest part and on we've teams, the to focused commercial. in investing our particularly continuing So of R&D sales in that's

portal to of As really and terms client of can there. leverage about help And think the ahead we're that, next the should be to we for it the just a think years, that incremental the in it one things few SMB. sales unlock excited pretty over I by, alluded is think Jeff association spend needed if ability how for us high us and capture we of more this, marketing

without client think also about keep when higher portal sales and we but the revenue, sales spend too likely because an pretty I heads consistent hiring percent us think think be marketing the just should needing many as So for a add not we'll team, of due be it unlock fact to there. more go the we can to

Operator

of next the Daniels Our from comes with Blair. Ryan question line

Ryan Daniels

for performance. add you. Jeff, the maybe strong my I'll on one congratulations

engagement one, two, really record all And for you've if an how color programs number providing your across AI. engagement, it talked really that's you're you're bit ROI past, And that number little on can you how that's seeing you on to lift to curious know users know are? referenced of metrics. that? And these can customers I given track. provide specifically then a the what in active is newsfeeds. personalize And about done I'm something using a I You've lot the

Jeffrey Tangney

Jeff. This Yes. question. is Great Ryan. Thanks,

of So our what span AI products really all do. we

more machine I clients, our has is that for using led gets using newsfeed certainly AI to results within AI, So better which learning, our and also think led has more to usage. more program relevant our newsfeed, and terrific.

So mentioned service or appeal our insurance an doctors I come letter which in and letter the DocsGPT a to to organically. in remarks, in write as continues animal product, prepared grow nicely

does also And so to future those sessions over But we can it a what's time, be see in and engagement lot day. of the is news nice breaks there. lead monetized

saying a to directly of medicine, I'll between newsfeed, to for queued of in XXX with accrues products get on end San them top their staying the because lot doctors what's on got our here, I just checking seeing again, new this just here latest date together our We're telehealth think, clients. calls, by exciting. we're up mid-days month in to we've is what excited doctors, Francisco digital very which

administrative And tests while take hour patients, to in and had country. spends very we're work every the X down. they road really And shrink incredible doctor X map say, problem gone hours that for it is spend speak specifically this doing to not well. some hours seeing an our them alpha have that we've X it here, to helping we're going very, average And which suffice

you at others what to of mediocre writing insurance that helping good done has lot It's writing. the mediocre with There's AI in get be fight is health work really or a administrative more quickly. the done to really good care, is and at companies

again, usage. terms accrue newsfeed drive increased excited telehealth So workflow wave us, to will with COVID platform like for our engagement and a will, that just whole of super in another clients of that, that we're our did

Ryan Daniels

kind to portal. ask And yet, helpful a you're only client wanted it color. follow-up, on touch of I maybe real-time to clients. you've value rolled I your it have had like points know more out seems emphasizing of and during to And ROI the opportunity and allowing very about in as service but to XX% That's it's a show just year not the past than purchases kind in great the then Perfect.

seeing able just with you've your more doing you, And curious solutions those clients I'm not you using platform, if are look real that if again, actually more bundled of but been with the they value more, purchasing at they're to time purchasing it. services. on because from

Jeffrey Tangney

The pretty who even some we early now have of clients us January. high-growth but short and the clients answer small, portal been for the adopters have is seen of is end the in become December

So in renew on is I here mantle, fear out to are it and had I'd don't of do far think that of an more. away leaning problem right so we've a have. good they cost that is as get the they bringing to which that and access lock we'll if lot us they or optimization it only don't being in, Doximity warm reviews. this transparency see a say the had how criticism what leader much to it warm, industry them do to spend they They're will asking it, they grabbing just

Operator

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

Richard Close

first to I of some if you year. could to last your know the maybe last I detail year, for more Anna, a go it the bit compares But on time. any new with creation Congratulations. be into content and of color these additional characterize respect new you maybe little modules was there wondering timing it, helpful. how and had would launch commentary

Anna Bryson

growth underlying to more does QX Yes. growth. that's timing And as launch mentioned, program than take again, one. Happy of Sure, once revenue indicative reflect sales our outlook Richard. that

of examples. So couple I'll you a give

First on module the front. new is

mentioned. modules content, new So require spring. planned grew programs are the our launch they're new during that to new our XXX% as these until so contractually year-over-year over not And upfront,

We also saw growth in strong newer brands.

I give contractually example So the until that brand, spring. I'll not a to actually X of mentioned also and planned the X you out another is launch million-plus $XX is it's newer brands

brands prior. newer might So and it's than spring nuances a more that to some seen with we lot is have contributing more newer about modules launches here

Richard Close

be modules are you I modules? it then front know cannibalizing just Okay. that expands at terms and of the legacy thoughts in But on any And whatnot. would all the just whether good. budget new any said feel

Nate Gross

that is take Nate. Sure. I one. This can

So two comments.

often excited do First, the often why products versus high-impact modules than offering analog these new the that Within they digital unlock solutions something about real a for new seen a one of new hasn't more those other market approach, reasons much budgets, been is we're budgets. and before. our interactive that's efficiency are potential on

it's entrance multi-budget to budgets. These a typically also those So are applicable. products great

So they're products exciting clients from them, marketing haven't marketing before. had It's who see our in interest too. we to to these do access understandable more our like classic that clients

than we're just with are great we ways partners end that and interested Doximity growth in our to of as healthy and thing increase think to build Doximity, a are one the module. I leverage to trusted but strategies our to within our gives ROI client. role both opportunity, that leverage us some as really And multimodal are the the our modules also But seeing the the maximum clients maximizing the opportunity buying old development opportunities both that out that delivering reach user, new our is a a increasingly rather buying partner omnichannel in

Operator

from is question with Stephanie of Barclays. Davis line next Our the

Stephanie Davis

you've a for retention, Q&A, market above healthy selling about growth. in the strong Anna, in talked prepared season, revenue the and expectations remarks

unique So timing guidance? it bridge anything of it to [ step-down how you guidance I XQ is question reflective a implied my philosophy? guess beyond ] Or on more And the is religion there? call there conservative do big growth in out the finding is

Anna Bryson

Steph. Happy as you back well, to have

result X the from perspective So a in QX we're of factors. there. of step-down couple I'll things say What is seeing a is

a the can new year-to-year mix due can second, foremost, see And than brands condensed QX and and strategies. to customer did different our products more typical a be season. we as of upsell first stronger So then

timing. we're on So seeing definitely dependent a very launch QX that's

in new we products sure higher time brands, also mix live. making to before we answer have the I new a just enough and those and bake programs gave that to of back Richard, get So we're with

bit a it's So little to directly. answer both, your of question

Stephanie Davis

All right. Super helpful.

have bit maybe know a that echo out Jeff, a of strategy then it's evolution Dialer early and like the But little that that the really product. game would when scaling free product And be for-charge revenue a haven't to DocsGPT for on from sell I thoughts a it's any evolution So the laid going maybe time it and you there. nice-to-have something as Do it's sounds into started you buffer as product. to stand-alone? historically, you more ready

Jeffrey Tangney

Thanks, Steph. Good to have you back. Yes.

You're right the in really first monetization well us. a We're of the about been is as approach purchase best a sense market. that our engagement monetization, that I'm product sort our with in clients an product that's all from And then person. is helping which

sat that of clients end annual they with, reviews again, all all down at and to their the sit and that the they're year our When telling work of the here the the We do partners we the programs think down buy the quarter, to last clearly win from. outgrew of rest terms we're win service. not market in in of ROI. our terms of I easiest this but us We

And we're is, for season best where but think, important easiest the before really, dynamic us. I this is fix we we that. want buy. to not fix the summer, which that So want to product the to that most And

to the still able be goal that monetization. happened summer to upfront of Now the add to already in season. this here the the have be to again, is our X/X engagement we're built But year clear, going

Operator

with of Our Elizabeth ISI. next the from Anderson is Evercore question line

Elizabeth Anderson

talk the gross I if more really a was margin. in nice You about step-up had you little that. a bit wondering could

How you think a modules or go-forward I the like on think customer new ex that, And rate? the mentioned of obviously, something launching strategic that think to do you sustainability sort how AI. support of about about of that?

Anna Bryson

Happy to Sure. Elizabeth. that take one,

right. factor that at you're start due a outperformance did to I'll we absolutely into record on costs this the XX%. customer last margin existing But other really we that a of by see We're We AI optimize productivity absolutely are to of our So gross material was also large saw. saying engines. support non-GAAP revenue our to leaning and up-level our continuing the team. quarter the side, infrastructure

over in pretty the about But I about we saw gross QX, we we at due think think that So good think time, don't at outperformance level. this gross to margins as we'll stay we feel necessarily margin XX% XX% plus. revenue

Elizabeth Anderson

And in of terms XQ just guidance. the it. Got

of obviously, margins how In terms particular, Because of about OpEx if spending some the the up do the a we you gross there? step bit, think EBITDA little on of the I our EBITDA in range. assume sort have your a get like guess, sort marketing into back to versus or prior in expectations, and step-up R&D you sales maybe of also of maybe to there's cadence

to So I take just wanted anything understand fourth account. should there's particular that into if we impacting the quarter in

Anna Bryson

Sure.

years. expense the quarter-over-quarter side, very On prior with you'll That's forecasting we're actually see that growth. consistent

I'll So largest is that you remind QX second our sales quarter.

new year. So pretty we do the also see significant commissions It's in QX.

benefits, go et things we that into effect, match, So XXX(k) cetera. like have new

that and very consistent what seen expenses seeing QX we've QX prior years. in with between step-up we're the So is

Operator

Our with question of next Lutz is line BofA. Allen the from

Allen Lutz

was the in the bit unlocked there? quarter? One talk that did the do a about in you for that the incremental think quarter? Can you in Jeff it inflected delayed budget Was also accelerating Is growth fourth little pharma or And market spend? fourth the share spend dynamic Anna. quarter? all Or flush Doximity industry take

Anna Bryson

industries Sure, like we that Allen. take many other some this last definitely in sales said cycles we quarter, as environment, this elongated one year. well. like Happy saw to past Listen,

of the June time a frame coming platform So year we those seeing in of until added really dollars start in August typically kind our to might incremental start normal May, didn't that this year.

So condensed upsell have much we more just season. that

the our the saw of choices dollars we top of our end ROI. the a when those that become though year of competitive of industry-leading one really strong strength indication is the think Doximity remains And at the because available, market. I that position do just in

year. pleased with the to how we're able end So really were we

Allen Lutz

worth Great. for first-time to you then launching you that spend? with of so first-time much want I mentioned, customer a is $XX Is normal the million new brand a Doximity a for clarify, brand Anna, a mentioned as spring. in to spend that's And think, it -- $XX then is a occurring launch I launch million And of launch? new

Anna Bryson

is of our Sure. brand brand X start saying by I'll customers. top with this a one

customer I with it worked value Is a Doximity of very that and it's So realized has would no. has the long for normal? a Doximity. say time

We past. by of newer things digital-first I in with launching it wouldn't we're launch the typical. in say a categories. one they're the that But strategy brands excited seen many is that it's really haven't as

invest investments more is means that in upfront or have that what that Salesforce other able they've to made they're And don't they prior. digital because

we're start what we we that brand, encouraged this spend hopeful higher at really can saw more brands by new we're see levels. So with and

Operator

Our line is Glen the next from with Jefferies. Santangelo of question

Glen Santangelo

had point. you just at digits. all? a change you in to said faster percentage grow grow to market growing I the 'XX, to suggested that you this X% regarding HCP level. can at than ultimately, the last market you fiscal obviously, think back you is market signaling at at it quarter, same as marketing Or you mid- business I of questions heard -- you sort comments, couple that. is 'XX believe I But And your I if go characterized Are quick that I all? X% read of to expect high moving single in 'XX the the the any And and

Anna Bryson

uncertain I'll expectations in some ago that we're with still as Happy and market to end facing say days seeing rate in growth. macro, market budget cyclical in line growth is our Glen. XX an headwinds we're we're pretty that still one, take the

our and in I'll in upfront did last expectations, particular, has say larger newer changed ahead amongst the brands days of these in modules. what is XX come

is that incrementally share, affecting but macro cognizant to still our and feel some are better So about uncertainty we ability to budgets. continue that's pharma there we gain

Glen Santangelo

mean can take the Anna, season have much happened fiscal I further. maybe comment and one what you 'XX How this you the point? that just at could you I if on step mean all? in I at do third about talked selling quarter. visibility fiscal

of maybe So question 'XX, of next can the is is, that you color you new benefiting you would launches much full great. last fiscal that sort from year? maybe be from And year about us XX-month how benefit give when product the will get the any part that around think

Anna Bryson

for a with think a commit trend that's value a as a willingness is that fiscal find it's give us the say years I strong have update past continue. look can color question and on little next that's several platform a original can where that say we we the on And of the I'll all our we their contract. 'XX, seen trend do 'XX. the to What believe your fiscal more about that we quarter. giving over given further revenue of I full bit definitely Glen. say customers a fiscal We'll start higher percentage on we And But to year to 'XX that's soon will ahead to too upfront. under Sure, you indication fiscal today. enter on

Operator

is [Operator Jack Instructions] Our next from Securities. question Wallace Guggenheim of the with line

Jack Wallace

kind year? last this I compare year And the slightly want question a pertains to How growth to season were did ask you to in as it to if upsell way different a later the as market then get strictly Doximity. rate? the did you growth budget calendar that call shake a a you out amount release 'XX, let's of of in, where for does it, kind in of similar year

Anna Bryson

bit and said, I uncertainty around and say, us. calendar go certainly a There affected more market macro the this less was budget to what and would due continued, end bit growth. by as that past year prior to at I'll headwinds that than was So calendar That's I cyclical a we year. saw budget, It different start condensed little definitely saying little was year-end.

upsell really portal use that can we're of bring. year our the this is What client the ease next excited for season about

Doximity we that, And add for on unlock an if remain think buying that even could budgets ability quickly constrained, be easier relaunch, so us. to make targets, the

Jack Wallace

And a helpful. about top the that -- spend, on what asking you're cross-budget, target, of just How Is the is be points we should That's it. layer those of this of for a TAM incremental? of being if of kind of this growth? or TAM Got the a but extra think this you represents couple opportunity? not few then module I'm what kind -- kind thinking pharma thinking about of should an over this incremental. couple this we of And again, particularly about next years? products, What feels kind are X-year

Nate Gross

that take I can Nate. this Jack, one. is

benefit we So see of portal. bunch a different areas the with

faster alignment one the some and of are of launches better in like some agencies is to the involved stakeholders think be that going with the the process, I in first the process.

I think the things that's list going be like content can AI supported. across to matching, making analytics, that be sure

easier there to in price that also our towards are along advantages us think I come discovery and addition increases discovery. benefit, pricing with price in

med expanding work core programs sorts excitement team; comfortable digital for the actually haven't we'd that's Upsells been spend markets see capacity targets, haven't their who they and TAM And part good to ROI are haven't existing that to also think some other but we're because certainly products. health to of entirely different already whether of see go-to-market devices the our or relaunching able clients past new new tools these are budgets both current been motion who really, in sales with adding and in. modules, adding markets with size of our really a and that then that good quite a and existing today be from in I categories with and one in our starting sales, the we fit really been around, of

Operator

from Piper is question next Our of Tassan line Jessica with the Sandler.

Jessica Tassan

year. an about becomes some pharma in civilian if TV shift I and was to as or thinking election more if just Doximity dollars media expensive. more color kind could hoping allocation guys how media actually you channels provide social shift TV the on dollars of is to Curious

all an pharma's is at about any for different hoping election Just perspective in posturing whether year.

Jeffrey Tangney

that would certainly is in of products much where this have made this Health high large. We're is on it we've but say year experts Jess, that change I there lot are care this, just exciting, innovation, that we noticed a been And yet. pretty that hasn't pretty new Jeff. lot a of hasn't yet. no ticket a the

$XX new brands to million So first-ever million. our and X have we're proud launch brand at $XX

so good. far, so So,

lot I on a here, far, broader we we and on which focus seen consumer, the physicians especially there election-oriented see, think, So approach might more yet. think since haven't pressure, I not

Jessica Tassan

sequential That's on XQ And -- just that. 'XX, the understand maybe step-down it. in better I I wanted then for helpful. Got to Anna.

growth season you of So like in Care, kind the just magnitude Point next X And rate specifically, to expect excluding fiscal 'XX, sales experience those come the year? digits? 'XX of of we XQ mid-single look XQ by of the then should given more down with new that the the XQ as products, sequential would we have online think launches, full about of

Anna Bryson

Jess. Sure,

result, And I'll revenue. and the has their what So about the in launch variations a past several way say years. is programs we've some purchase seasonality our definitely seen quarterly as customers evolved over

be we're So But on our market the in can year. or seasonality seeing success the the is which measuring budgets our our really there their economic about team on goals. customer customers even it's our of how an depending their focus any is consistent thinks basis, strategy, sales think business consistent how about with we annualized given conditions this year, on dynamics, which something and with

quarter. quarter, And So give far next on we're that on that you commentary much number. will more next we as focused annual as update

Operator

question from with Kesavabhotla a This Baird. Vikram is

Vikram Kesavabhotla

I that growth. there X% gains talk be outperformance worse is than one XXXX, will experienced your think the reason do you saw first you year? or of similar last particularly expect about XXXX? outperforming to in of share on My X% market guess in be any when what to better what to to the you you magnitude revenue is Or

to a closer think in think seasonality? you as purchasing unlocking the it that, revert Do do behavior Or than is going about you talked then you of the follow-up there. I'll And to and to leave decisions year. to historical later similar be some initially And of budgets expected cadence you the last XXXX? again it's going

Anna Bryson

say Vikram. Once again, XXXX. comment for to us too it's on Sure, I'll soon fiscal

going upfront I'm not the absolutely to that excited to will during the We our we depth too believe outperform saw there. go what really But in about is say market. platform continue So I buying could the on we scale we're of season.

that us, over an million $X what But quarter. give we To next brands an XX% at to with magnitude, update have spending really which will point of this is we're on encouraged XX increase you year-over-year.

the customers interest with that have think they're just the value from I receiving and our speaks platform. to Doximity

really we're on but quarter. further the that so excited give And growth is we'll next seeing, details how big we're about

Operator

is the of from line Our next Scott question KeyBanc. Schoenhaus with

Scott Schoenhaus

a range, year's from does -- because upsell you revenue? midyear this self-service to upsells on you client didn't year. past a first if think how follow-up using market in even guess, into midyear you increasing current portal? much Is past this as And there visibility the that XX% I lost the way then have portal, would midyear share quantify, it's more you give the are be, a throughout about that onwards the during your upsells

Jeffrey Tangney

that that We Yes, it market this is out through There's don't cycle. data an Jeff. it. exact estimate I'll granularly. share just sources of have not break many take the midyear

visibility, I have I So of a with greater contract said, mean, number percent ever on to have visibility, you With under regard an answer begin we this we'll of exact as there. year overall before. next unfortunately, don't I for share Anna points think more than we,

that's longer being think uncertain in we clients to the commit our exogenous I willing again and just in choose I just with to, this that speaks us. of term to to terms longer-term conservatism us that caution our partner giving change for a and longer, more a that we're think, we're very term market of in more reasons are here Again, spend understanding lot us. a long are are Again, with upfront over not more And good guidance and sign here.

Operator

with Morgan of next question is Our the Stanley. from Hettenbach line Craig

Craig Hettenbach

a At had targets contribution think don't now, you long-term I of on question potentially way time the like still getting how the terms to see of that as a you modules. mix years you Analyst XX% have over kind video know had it is the out. of and these modules ramping? about it framed Day, I but X in to

Anna Bryson

Craig. Sure,

year-over-year the update not necessarily them. long-term really going on encouraged to we're an selling growing the there. the ramped really they've So by and give second we're year we're over But way target XXX%

quite as is continue the go-forward really, much a client modules, packaged focus a selling things say a to in because -- the Doximity that packaged of we'll breaking buying Nate is detail basis them about to as we be unlikely mentioned, as on quite approach it's on as approach out I'll One whole. this

module la So individualized an à as to about it we're thinking carte opposed on basis. that way

Craig Hettenbach

Understood. follow-up And a then as on capital allocation. just

and You a very good back strong buy cash stock. flow used sheet balance to

something Just would opportunity adding terms capabilities still you there set to curious tuck-in that Is the evaluate deals. is platform? for out what in the potential of

Nate Gross

great have to back as exposure be going and disciplined we ever. so Yes, I XX sensitive market right opportunities culture a R&D is as and active years our to think, know, But value internal forward going opportunistic. you Nate. really is now this We're Craig, in the now.

So with really done these we're lucky to focus say, platform we've revenue Amion, but be inorganic which bar able fit, to decisions not high-quality acquisitions with on forced make all and growth. a into a like

to going we're So that of cash. real be thoughtful about use

building towards always address market's going interesting and to I more ways to with lately. doctors. the our become be it's flywheel the But market a many think opportunities in mind serve our

Operator

question Wells Our the Fargo Securities. Stan of with is Berenshteyn next from line

Stanislav Berenshteyn

the newer couple on modules. Maybe a

million year-on-year the about was that $XX how module driven the new sales? we by in growth of much quarter, So incremental, first, just the if think about

Anna Bryson

we're again, new on of packaged a more selling basis. modules Once our

So we breakout. intend do not on that giving

saw on also give we that in some cohort. growth I going aren't any there. detail and to really of mentioned, brands growth But we but As new our further specifically nicely, $XX continued new grew modules larger million-plus nice amongst modules

Stanislav Berenshteyn

the That's you push these now traditional what does the driving And in traditional fall this modules? traditional budget modules in And solution Okay. into a purchase like kind them considerations to kind outside these not of fair. decisions packaging marketing modules the remarks, budgets. new prepared bundled are or it's I guess I if considerations, the market indicated of guess of consideration?

Jeffrey Tangney

is This that. take I'll Jeff.

these lines is with pulling So the short answer we modules. new from new budget are

have a a to digital med to more traditional anymore. X-hour give going becoming dinner a not whole dinners, X-hour of doctors peer-to-peer lot thankfully evening So affairs, things or are up go that many that it's to are because pharma done as

marketing some of budgets. So outside core are pulling those budgets our we from other

as been primarily that clients, biggest I'll glass ones so see far, the if rates, thing XX retention say can been we on the And increase other following is clients, modules our with NRR, The best just regarding the you're you our working sold net longest. the did along the us revenue other to think on top slightly they've job who've I new last expanding, pharmaceutical these, to, large a quarter really that ceiling think, top yet landing And companies great strong inside is hit and that the we're which sign top XX I mega expanding. of especially this we're have a any doing pleased or a players. we X, of just these

sales to, play, folks a where real minimum that And motion and a work land again, we go and there's opportunity today tail a we do with that us think long portal, don't is have Nate meet digital frankly, as more with what that health we other companies with to have medical And to SMB had mentioned. strong the we of lower increase high have because those share device many do. do a above that all market will

Operator

Our is with Larsen the BTIG. next of question line from David

David Larsen

the portal very patient million-plus bit it's many million-plus actually a more on are the to a and brands analysis, ROI good you little maybe Congrats like real-time that? $XX using can With or that? quarter. about how talk seems your regard of Like important. It

linked the very IQVIA line from basically I somehow would and sophisticated IQVIA data. which can IQVIA meetings obviously to products? in the advanced you mean patients actually who they CRM they products, okay, the with identify, up are, And benefit then brand are where where the sell platform with doctors a has are?

Jeffrey Tangney

This David. Jeff. Yes. is Thanks,

I'm the excited So I'll about very say portal. ROI of the portion

things. few a So

the no data doing -- where they're to custom clients to able And months physician their doing and doing would a some data the to a in big understanding and marketing But a that to mentioned. First, it's together project usually companies is it. that leaders wait data do go they're prescription-level license have as There's space where in for unlock patient because optimize our are put not not that well. to be they portal. from at try that's patient-level in we level you've that well and

more I one prepared And words exciting could called really make out week-to-week, be and remarks to that add it's course, that's because quotes being look used And what a basis. or whole in subcategories a the my on subsegments to we we insight level with to may month-to-month it of physicians of sense. which this what are new of at able know

what doctors, getting deal formularies may So relevant really most payers example, they right message for with. or to helping the the

that for for is something and the portal another that is anyway, our reasons, level us. will more again clients think with all insight is of to reason to market-leading So providing them spend that our be these we

David Larsen

important area these Okay. then where doctors formulary, going get because many of mentioned to to And another that's the since know high-cost want especially paid, you the very drugs. very, they're with obviously

thousands You dollars could certain of medications. be of talking tens even hundreds or for

now? formulary. So can forward, you going product that able in an maybe vision be for that? just use talk does it isn't, your you ideal then a is little what bit more one do? on This Like okay, What drug this like where be one. formulary say, about would to And that world, stands would

there Just any be helpful. thoughts very would

Jeffrey Tangney

clients where datasets hot more our year, here because out to my button product it's work gone has past it Yes, an X you're have essentially done We've over invested easier here. hitting David. the for Thanks, the us. the licensed And in well. area very formulary we think leading turnkey, making and with I

that which are we this an up serve have covered for know that medication. and a patient plans we high individual can so doesn't brands on by are by the plans which which covered which So co-pay doctors physician

the course, that's took that all personalized launch wasn't medication. longer great to and news down. originally as be tried us It have to and a data, we up do coverage ended slowing that the plans doctors, great for give for again doctor to And to doctor. pharma they we're when they who it that clients, on on sell for things that level by patients the for able this And And to tell of to clients, need that the news used our great companies would the that us have had them. turnkey would not. And which news

do some an the that more the our effective technology, more message us smart do of clients. will to a type of. able I more think personalized, using licensing example more quickly this for So doing And of it's to be thing is deliver portal

Operator

of final have from with a the Research. we question Eric Percher And line Nephron today

Eric Percher

the dots we're on Nate, the not evolved connect I and the to approach thoughts the the clients, Jeff have it your on ask into to the to changes bit core as your portal portal hearing would And or today. larger tail the you sales early a thoughts the like specifically how year phased comes the to from and tech, -- play? how relationship med in has how approach for

Jeffrey Tangney

to work reports, We large refresh our touch. think very it's that and that. who don't strategic of about the a don't both to spoke the I'd I do And so with more, here think, Eric. consulting, has to last Thanks, plan week's to separate tech like high schedule it I and services. white-glove is our be plan continue to when do August, much able times we from organizations changed say, expect, last great we'll and forth. where need for video be certain of high think us level they I things call continue a email mundane X But

And is I'd see to this. to built early The lot. ability, have out we've them all quite a but what very again, say again, reviews, for rolled here, built XX% of clients little So evolved it we the we've very our been We've strong. got now.

to we'll to all this to day, the a excited that them of the last we're way doing and it a carefully because they've year. sure So We client high-touch X to make if again, we're we, the that. relationship. at of more the again, out end do do wants have high-tech years, it doing this continue want But get this been a to

Eric Percher

the you thought relative then missing what today? there approaching or that you're Has were how to any back missed been you sales to change

Jeffrey Tangney

That's doing, airline booking I question. one us day. make programs a how with, compared had best the that I Probably that have has our and a call sadly that as where doing to doesn't someone website portfolio like good of change can that holdings right, being clients a is opposed to my are every see sort to was a an to or analogy my to day of brokerage website how

whenever really ROI place they again, we've the can of providing they the to So them quality the they think I again, lot to that of gives go ability fixed look that data around by as optimize go opposed addressed on want. comfort a that and that when And of schedules. have the time

Operator

And that would to for will for like any today's the Jeff Tangney question-and-answer back do I it call over comments. closing turn session. to

Jeffrey Tangney

than their in want ever for more team I Thanks all for all so Doximity and And for serving to want day their much. I doctors entire hard thank to the questions before. thank have work everyone every we joining.

Operator

today's and ladies Thank this conclude call. gentlemen, conference And you. will

a great rest disconnect. now may your of You day. Have

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