Doximity, Inc. (DOCS) Bundle
A Brief History of Doximity
Doximity, Inc. was founded in 2010 as a social networking platform for healthcare professionals. The company went public on June 24, 2021, trading on the New York Stock Exchange under the ticker symbol DOCS.
Financial Performance Overview
As of September 30, 2024, Doximity reported the following financial metrics:
| Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $263,508,000 | $222,081,000 | $41,427,000 | 19% |
| Net Income | $85,531,000 | $59,008,000 | $26,523,000 | 45% |
| Gross Profit | $236,282,000 | $196,169,000 | $40,113,000 | 20% |
Stock Performance
As of September 30, 2024, Doximity had a total of 186,781,000 shares of Class A and Class B common stock outstanding. The company's stock repurchase program authorized up to $500 million, with $470 million remaining available as of the same date. During the three months ending September 30, 2024, the company repurchased 739,663 shares at an average price of $27.63 per share.
Operating Expenses
Operating expenses for the six months ended September 30, 2024, compared to the same period in 2023 were as follows:
| Expense Type | September 30, 2024 | September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $45,814,000 | $41,889,000 | $3,925,000 | 9% |
| Sales and Marketing | $69,611,000 | $64,656,000 | $4,955,000 | 8% |
| General and Administrative | $19,358,000 | $18,213,000 | $1,145,000 | 6% |
Market Trends
Doximity’s revenue growth has been primarily driven by subscription services, with approximately 95% of revenue derived from subscription customers as of September 30, 2024. The company has also seen a significant increase in its customer base, with 103 customers contributing at least $500,000 in revenue during the trailing twelve months ending September 30, 2024, compared to 92 in the previous year.
Cash Flows and Liquidity
For the six months ended September 30, 2024, Doximity's cash flow metrics were as follows:
| Cash Flow Type | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $109,589,000 | $70,098,000 |
| Cash Provided by Investing Activities | $54,099,000 | $67,224,000 |
| Cash Used in Financing Activities | ($76,225,000) | ($186,946,000) |
As of September 30, 2024, Doximity's principal sources of liquidity included cash and cash equivalents and marketable securities totaling approximately $805.6 million, consisting of U.S. government and agency securities, corporate notes and bonds, and commercial paper.
A Who Owns Doximity, Inc. (DOCS)
Ownership Structure
As of September 30, 2024, Doximity, Inc. has two classes of common stock: Class A and Class B. The total shares outstanding are:
- Class A common stock: 128,216,478 shares
- Class B common stock: 58,564,170 shares
The Class B common stock is convertible into Class A common stock at any time at the option of the holder.
Major Shareholders
The following table outlines the major shareholders of Doximity, Inc. as of September 30, 2024:
| Shareholder | Type of Shares | Number of Shares | Percentage Ownership |
|---|---|---|---|
| Co-founders (Jeff Tangney, et al.) | Class B | 58,564,170 | 31.3% |
| Institutional Investors | Class A | Various | Approximately 50% |
| Public Float | Class A | 128,216,478 | 68.7% |
Recent Stock Activity
As of September 30, 2024, Doximity had a stock repurchase program authorized for up to $500 million, with approximately $470 million remaining available for repurchase. The company repurchased 1,021,233 shares of Class A common stock for an aggregate purchase price of $30 million under this program.
Financial Performance
Doximity reported the following financial metrics for the six months ended September 30, 2024:
- Revenue: $263.5 million
- Net Income: $85.5 million
- Adjusted EBITDA: $142.1 million
The company also reported a net income margin of 32% and an adjusted EBITDA margin of 54%.
Stockholder Equity
As of September 30, 2024, Doximity's stockholder equity is detailed in the following table:
| Component | Value (in thousands) |
|---|---|
| Class A and Class B Common Stock | $187 |
| Additional Paid-In Capital | $863,113 |
| Accumulated Other Comprehensive Income | $2,676 |
| Retained Earnings | $95,220 |
| Total Stockholders' Equity | $961,196 |
Conclusion on Ownership Dynamics
Doximity's ownership structure is characterized by a substantial portion of Class B shares held by co-founders, while institutional and public investors hold Class A shares. The company's strong financial performance, along with active stock repurchase programs, reflects management's commitment to enhancing shareholder value.
Doximity, Inc. (DOCS) Mission Statement
Doximity, Inc. focuses on enhancing the productivity of healthcare professionals and improving patient care through innovative technology solutions. The company aims to connect healthcare professionals via a secure platform, facilitating collaboration and information sharing.
Overview of Doximity's Mission
Doximity's mission statement encapsulates its commitment to transforming the healthcare landscape by providing tools that streamline communication among medical professionals. The platform enables doctors to connect, collaborate, and share critical information securely and efficiently.
Financial Performance Metrics
| Metric | Q2 FY 2024 | Q2 FY 2023 | Change (%) |
|---|---|---|---|
| Revenue | $136.8 million | $113.6 million | 20% |
| Net Income | $44.2 million | $30.6 million | 44% |
| Adjusted EBITDA | $76.1 million | $54.2 million | 40% |
| Net Income Margin | 32% | 27% | 5% |
| Adjusted EBITDA Margin | 56% | 48% | 8% |
Customer Engagement and Retention
As of September 30, 2024, Doximity reported a net revenue retention rate of 116%, up from 114% in the prior year. This indicates that the company is successfully retaining and expanding its customer base.
Key Business Metrics
| Metric | Q2 FY 2024 | Q2 FY 2023 |
|---|---|---|
| Number of Customers with Revenue > $500,000 | 103 | 92 |
| Percentage of Revenue from Large Customers | 83% | N/A |
Investment and Growth Strategy
Doximity has focused on enhancing its platform capabilities and expanding its product offerings. The company capitalized $2.0 million in internal-use software development costs for the three months ended September 30, 2024, compared to $1.5 million for the same period in 2023, reflecting its commitment to innovation.
Stockholder Equity and Repurchase Programs
As of September 30, 2024, Doximity's total stockholders' equity was $961.2 million, an increase from $901.4 million as of March 31, 2024. The company has also initiated a stock repurchase program, having repurchased 1,021,233 shares of Class A common stock for an aggregate purchase price of $30.0 million as of September 30, 2024.
Operational Efficiency
| Operational Metric | Q2 FY 2024 | Q2 FY 2023 |
|---|---|---|
| Operating Expenses | $70.0 million | $67.1 million |
| Income from Operations | $53.1 million | $33.8 million |
Doximity continues to focus on operational efficiency, achieving a significant increase in income from operations, reflecting its effective cost management strategies.
Conclusion
The mission statement of Doximity, Inc. reflects its dedication to enhancing healthcare delivery through innovative technology, solidifying its position as a key player in the healthcare technology sector.
How Doximity, Inc. (DOCS) Works
Business Model
Doximity, Inc. operates a professional network for medical professionals, providing a platform that facilitates communication and collaboration among healthcare providers. As of September 30, 2024, the company had 1.8 million members, including over 80% of U.S. physicians. The business model primarily revolves around subscription services, generating revenue through Marketing Solutions and Hiring Solutions.
Financial Performance
For the three months ended September 30, 2024, Doximity reported revenue of $136.8 million, an increase of 20% from $113.6 million in the same period of 2023. For the six months ended September 30, 2024, revenue reached $263.5 million, representing a year-over-year growth rate of 19% compared to $222.1 million in 2023. The net income for the same quarter was $44.2 million, up from $30.6 million in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $136.8 million | $113.6 million | 20% |
| Net Income | $44.2 million | $30.6 million | 44% |
| Adjusted EBITDA | $76.1 million | $54.2 million | 40% |
Key Financial Metrics
As of September 30, 2024, Doximity reported the following key financial metrics:
- Net Revenue Retention Rate: 116%
- Number of Customers with TTM Subscription Revenue Greater than $500,000: 103
- Adjusted EBITDA Margin: 56%
Cash Flow Analysis
For the six months ended September 30, 2024, Doximity generated net cash from operating activities amounting to $109.6 million, compared to $70.1 million in the same period of 2023. The free cash flow for the same period was $106.3 million, up from $67.3 million in 2023.
| Cash Flow Component | 6 Months Ended September 30, 2024 | 6 Months Ended September 30, 2023 |
|---|---|---|
| Net Cash from Operating Activities | $109.6 million | $70.1 million |
| Free Cash Flow | $106.3 million | $67.3 million |
Revenue Breakdown
Doximity’s revenue is primarily derived from subscription services. For the three months ended September 30, 2024, subscription revenue accounted for approximately 95% of total revenue.
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Subscription Revenue | $129.6 million | $106.7 million |
| Other Revenue | $7.2 million | $7.0 million |
Operating Expenses
For the three months ended September 30, 2024, Doximity's operating expenses totaled $70.0 million, compared to $67.1 million in the same period of 2023. The breakdown of operating expenses is as follows:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development | $17.0 million | $18.0 million |
| Sales and Marketing | $25.0 million | $27.0 million |
| General and Administrative | $8.0 million | $7.0 million |
Market Position and Growth Strategy
Doximity continues to expand its market presence by enhancing its platform offerings and increasing customer engagement. The company’s strategy includes focusing on growing its subscription customer base and enhancing average revenue per user. Doximity's net revenue retention rate of 116% indicates strong customer loyalty and expansion within existing accounts.
Stock Performance
As of September 30, 2024, Doximity's stock performance reflected a positive trend, with shares trading at approximately $30.24, up from $25.00 a year prior.
Conclusion
Doximity, Inc. operates a robust business model centered around subscription services for healthcare professionals, demonstrating significant growth in revenue and net income, driven by customer retention and expansion strategies.
How Doximity, Inc. (DOCS) Makes Money
Revenue Streams
Doximity generates revenue primarily through subscription-based services, which are categorized into three main segments: Marketing Solutions, Hiring Solutions, and Productivity Solutions.
Marketing Solutions
Marketing Solutions includes subscriptions that allow customers, primarily pharmaceutical manufacturers, to share tailored content on the Doximity platform. For the three months ended September 30, 2024, revenue from Marketing Solutions was:
| Period | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (in thousands) |
|---|---|---|---|
| Marketing Solutions | $129,639 | $106,654 | $22,985 |
Hiring Solutions
Hiring Solutions provides access for customers to post job openings and send messages to medical professionals. Revenue from this segment is recognized ratably over the subscription term. Revenue for Hiring Solutions has contributed minimally to total revenue, with a focus on job postings and recruitment services.
Productivity Solutions
Productivity Solutions includes tools that help physicians manage their workflows, such as secure messaging, digital faxing, and telemedicine services. This segment enhances the platform's value proposition to healthcare professionals.
Financial Performance
For the three months ended September 30, 2024, Doximity reported total revenue of $136.8 million, an increase of 20% from $113.6 million in Q3 2023. For the six months ended September 30, 2024, revenue was $263.5 million, up 19% from $222.1 million in the same period in 2023.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $136,832,000 | $113,612,000 | $23,220,000 |
| Net Income | $44,154,000 | $30,602,000 | $13,552,000 |
| Adjusted EBITDA | $76,100,000 | $54,200,000 | $21,900,000 |
Customer Growth and Retention
Doximity's growth is driven by an expanding customer base. As of September 30, 2024, the number of customers contributing over $500,000 in trailing 12-month subscription revenue increased to 103, up from 92 in the prior year. This cohort accounted for approximately 83% of total revenue.
The net revenue retention rate stood at 116% as of September 30, 2024, compared to 114% in the previous year, indicating strong customer retention and expansion within existing accounts.
Cost Structure
Cost of revenue includes expenses related to cloud hosting, personnel for customer support, and third-party services. For Q3 2024, the cost of revenue was $13.7 million, resulting in a gross profit of $123.2 million, yielding a gross margin of 90%.
| Cost Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $13,676,000 | $12,759,000 |
| Gross Profit | $123,156,000 | $100,853,000 |
| Gross Margin | 90% | 89% |
Operational Efficiency
Doximity's operating expenses for Q3 2024 totaled $70.0 million, up from $67.1 million in Q3 2023. The increase was primarily due to higher sales and marketing costs, which rose to $34.4 million from $30.2 million.
| Operating Expenses | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Research and Development | $23,240 | $19,958 |
| Sales and Marketing | $34,367 | $30,201 |
| General and Administrative | $10,103 | $8,966 |
Cash Flow and Liquidity
Doximity reported net cash provided by operating activities of $109.6 million for the six months ended September 30, 2024, compared to $70.1 million in the same period in 2023. The company maintains a strong liquidity position with cash and cash equivalents of $805.6 million as of September 30, 2024.
| Cash Flow Metrics | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $109,589 | $70,098 |
| Net Cash Provided by Investing Activities | $54,099 | $67,224 |
| Net Cash Used in Financing Activities | ($76,225) | ($186,946) |
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Updated on 16 Nov 2024
Resources:
- Doximity, Inc. (DOCS) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Doximity, Inc. (DOCS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Doximity, Inc. (DOCS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.