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Doximity Announces Fiscal 2023 First Quarter Financial Results
[August 04, 2022]

Doximity Announces Fiscal 2023 First Quarter Financial Results


Q1 total revenues of $90.6 million, up 25% year-over-year
Q1 operating cash flow of $44.8 million, up 35% year-over-year
Q1 free cash flow of $42.6 million, up 32% year-over-year

SAN FRANCISCO, Aug. 4, 2022 /PRNewswire/ -- Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results for the fiscal 2023 first quarter ended June 30, 2022.

"We're pleased that a record number of physicians, NPs, and PAs used our Doximity Dialer over 200,000 times per workday last quarter to reach and provide more convenient care for their patients," said Jeff Tangney, co-founder and CEO at Doximity. "We believe this shows that the 'new normal' has set in with our users as they adopt a more mobile, hybrid schedule."

Doximity Appoints Phoebe Yang to its Board of Directors and Launches ESG Site: More information can be found in our press releases at https://investors.doximity.com

Fiscal 2023 First Quarter Financial Highlights

All comparisons, unless otherwise noted, are to the three months ended June 30, 2021.

  • Revenue: Revenue of $90.6 million, versus $72.7 million, an increase of 25% year-over-year.
  • Net income and non-GAAP net income: Net income of $22.4 million, versus $26.3 million, representing a margin of 25%, versus 36%. Non-GAAP net income of $30.8 million, versus $30.6 million, representing a margin of 34%, versus 42%.
  • Adjusted EBITDA: Adjusted EBITDA of $33.5 million, versus $31.2 million, an increase of 8% year-over-year, representing adjusted EBITDA margins of 37%, versus 43%.
  • Net income per share and non-GAAP net income per share: Diluted net income per share was $0.10, versus $0.09, while non-GAAP diluted net income per share was $0.14, versus $0.11.
  • Operating cash flow and free cash flow: Operating cash flow of $44.8 million, versus $33.2 million, and free cash flow of $42.6 million, versus $32.4 million.

Financial Outlook

Doximity is providing guidance for its fiscal second quarter ending September 30, 2022 as follows:

  • Revenue between $99.5 million and $100.5 million.
  • Adjusted EBITDA between $40.0 million and $41.0 million.

Doximity is revising its guidance for its fiscal year ending March 31, 2023 as follows:

  • Revenue between $424.0 million and $432.0 million.
  • Adjusted EBITDA between $178.0 million and $186.0 million.

Conference Call Information

Doximity will host a webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these financial results. To listen to a live audio webcast, please visit the Company's Investor Relations page at https://investors.doximity.com. The archived webcast will be available on the Company's Investor Relations page shortly after the call.

About Doximity

Founded in 2010, Doximity is the leading digital platform for U.S medical professionals. The company's network members include over 80% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, and conduct virtual patient visits. Doximity's mission is to help doctors be more productive so they can provide better care for their patients. For more information, please visit www.doximity.com.

Forward-Looking Statements

Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which are usually identified by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "seeks," "should," "will," and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors including (i) the timing and scope of anticipated stock repurchases; (ii)  the impact of the COVID-19 pandemic (including the impact to our industry or on our customers' industries, impact on general economic conditions, and government responses, restrictions, and actions related to the pandemic); (iii) our ability to retain existing members or add new members to our platform and maintain or grow their engagement with our platform; (iv) our ability to attract new customers or retain existing customers; (v) the impact of our prioritization of our members' interests; (vi) breaches in our security measures or unauthorized access to members' data; (vii) our ability to maintain or manage our growth, and other risks and factors that are beyond our control including, without limitation, those set forth in the section entitled "Risk Factors" in the Annual Report on Form 10-K that was filed with the SEC on May 27, 2022. Additional information will be provided in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements. The forward-looking statements made in this press release relate only to management's beliefs and assumptions as of this date. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:
Perry Gold
[email protected]

Media Contact:
Amanda Cox
[email protected]





DOXIMITY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)


(unaudited)



June 30, 2022


March 31, 2022

Assets




Current assets:




Cash and cash equivalents

$                    110,092


$                    112,809

Marketable securities

666,162


685,304

Accounts receivable, net

76,021


81,073

Prepaid expenses and other current assets

18,258


19,439

Deferred contract costs, current

3,610


5,512

Total current assets

874,143


904,137

Property and equipment, net

11,381


8,488

Deferred income tax assets

49,348


48,558

Operating lease right-of-use assets

11,563


1,087

Intangible assets, net

35,430


7,909

Goodwill

67,940


18,915

Other assets

1,126


2,263

Total assets

$                 1,050,931


$                    991,357

Liabilities and Stockholders' Equity




Current liabilities:




Accounts payable

$                            916


$                            463

Accrued expenses and other current liabilities

25,253


25,270

Deferred revenue, current

93,907


84,907

Operating lease liabilities, current

677


642

Total current liabilities

120,753


111,282

Deferred revenue, non-current

203


78

Operating lease liabilities, non-current

11,092


447

Contingent earn-out consideration liability, non-current

15,668


Other liabilities, non-current

1,049


956

Total liabilities

148,765


112,763





Stockholders' Equity




Preferred stock


Common stock

193


192

Additional paid-in capital

715,282


702,589

Accumulated other comprehensive loss

(17,925)


(15,294)

Retained earnings

204,616


191,107

Total stockholders' equity

902,166


878,594

Total liabilities and stockholders' equity

$                 1,050,931


$                    991,357


 

 

DOXIMITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)



Three Months Ended
June 30,


2022


2021

Revenue

$       90,639


$       72,669

Cost of revenue(1)

13,077


7,986

Gross profit

77,562


64,683

Operating expenses(1):




Research and development

19,022


13,241

Sales and marketing

28,134


19,371

General and administrative

8,724


7,196

Total operating expenses

55,880


39,808

Income from operations

21,682


24,875

Other income, net

804


45

Income before income taxes

22,486


24,920

Provision for (benefit from) income taxes

103


(1,402)

Net income

$       22,383


$       26,322

Undistributed earnings attributable to participating securities


(15,581)

Net income attributable to Class A and Class B common stockholders, basic and diluted

$       22,383


$       10,741

Net income per share attributable to Class A and Class B common stockholders:




Basic

$           0.12


$           0.12

Diluted

$           0.10


$           0.09

Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:




Basic

192,947


87,599

Diluted

214,954


114,920

 

 

(1) Costs and expenses include share-based compensation expenses as follows:



Three Months Ended
June 30,


2022


2021

Cost of revenue

$         2,122


$            268

Research and development

2,552


970

Sales and marketing

3,074


1,028

General and administrative

1,758


2,861

Total stock-based compensation expense

$         9,506


$         5,127

 

DOXIMITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


(unaudited)



Three Months Ended
June 30,


2022


2021

Cash flows from operating activities




Net income

$     22,383


$     26,322

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

2,370


1,153

Deferred income taxes

105


Stock-based compensation, net of amounts capitalized

9,506


5,127

Non-cash lease expense

401


283

Amortization of premium on marketable securities, net

1,455


297

Loss on sale of marketable securities

37


Amortization of deferred contract costs

2,767


3,204

Other

(30)


(93)

Changes in operating assets and liabilities, net of effect of acquisition:




Accounts receivable

5,533


4,421

Prepaid expenses and other assets

1,246


(2,858)

Deferred contract costs

(866)


(1,492)

Accounts payable, accrued expenses and other liabilities

(6,109)


(2,257)

Deferred revenue

6,152


(461)

Operating lease liabilities

(198)


(471)

Net cash provided by operating activities

44,752


33,175

Cash flows from investing activities




Cash paid for acquisition

(53,500)


Purchases of property and equipment

(710)


(41)

Internal-use software development costs

(1,415)


(771)

Purchases of marketable securities

(8,870)


(67,375)

Maturities of marketable securities

8,271


10,764

Sales of marketable securities

14,724


Net cash used in investing activities

(41,500)


(57,423)

Cash flows from financing activities




Proceeds from issuance of common stock upon initial public offering after deducting underwriting discounts and commissions


553,905

Proceeds from issuance of common stock upon exercise of stock options and common stock warrants

3,014


2,737

Taxes paid related to net share settlement of equity awards

(109)


Repurchase of common stock

(8,874)


(2,698)

Payments of deferred offering costs


(1,768)

Net cash provided by (used in) financing activities

(5,969)


552,176

Net increase (decrease) in cash and cash equivalents

(2,717)


527,928

Cash and cash equivalents, beginning of period

112,809


66,393

Cash and cash equivalents, end of period

$   110,092


$   594,321

 

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses the following non-GAAP measures of financial performance:

  • Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income margin, and non-GAAP basic and diluted net income per common share: We exclude the effect of stock-based compensation expense, amortization of acquired intangible assets, change in fair value of contingent earn-out consideration liability, and expenses associated with acquisitions from non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating income. Non-GAAP net income and non-GAAP net income margin are further adjusted for estimated income tax on such adjustments. We calculate income taxes on the adjustments by applying an estimated annual effective tax rate to the adjustments. Non-GAAP basic and diluted net income per common share is non-GAAP net income attributable to common stockholders divided by the weighted average number of shares. For both basic and diluted non-GAAP net income per share, the weighted average shares we use in computing non-GAAP net income per share is equal to our GAAP weighted average shares. Non-GAAP gross margin represents non-GAAP gross profit as a percentage of revenue and non-GAAP net income margin represents non-GAAP net income as a percentage of revenue.
  • Adjusted EBITDA and adjusted EBITDA margin: We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, change in fair value of contingent earn-out consideration liability, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.
  • Free cash flow: We calculate free cash flow as cash flow from operating activities less purchases of property and equipment and internal-use software development costs.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.

Key Business Metrics1

  • Net revenue retention rate: We calculate net revenue retention rate by taking the trailing 12-month ("TTM") subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period. Our net revenue retention rate compares our subscription revenue from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction, and churn.
  • Customers with trailing 12-month subscription revenue greater than $100,000: We calculate the number of customers with TTM product revenue greater than $100,000 by counting the number of customers that contributed more than $100,000 in subscription revenue in the TTM period. The number of customers with TTM subscription-based revenue of at least $100,000 is a key indicator of the scale of our business. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.

1 The metrics exclude the impact of the AMiON acquisition, which closed on April 1, 2022, including customers of and subscription revenue generated from the AMiON on-call scheduling and messaging application and was immaterial to the periods presented.

Reconciliation of GAAP to Non-GAAP Financial Measures

The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:


Three Months Ended
June 30,


2022


2021


(unaudited)


(in thousands, except
percentages)

Net income

$   22,383


$   26,322

Adjusted to exclude the following:




Acquisition and other related expenses

30


Stock-based compensation

9,506


5,127

Depreciation and amortization

2,370


1,153

Provision for (benefit from) income taxes

103


(1,402)

Change in fair value of contingent earn-out consideration liability

(54)


Other income, net

(804)


(45)

Adjusted EBITDA

$   33,534


$   31,155





Revenue

$   90,639


$   72,669

Net income margin

25 %


36 %

Adjusted EBITDA margin

37 %


43 %

 


Three Months Ended
June 30,


2022


2021


(unaudited)


(in thousands)

Net cash provided by operating activities

$       44,752


$       33,175

Purchases of property and equipment

(710)


(41)

Internal-use software development costs

(1,415)


(771)

Free cash flow

$       42,627


$       32,363

Other cash flow components:




Net cash used in investing activities

$     (41,500)


$     (57,423)

Net cash provided by (used in) financing activities

$        (5,969)


$     552,176

 


Three Months Ended June 30,


2022


2021


(unaudited)


(in thousands, except percentages)

GAAP cost of revenue

$         13,077


$           7,986

Adjusted to exclude the following:




Stock-based compensation

(2,122)


(268)

Amortization of acquired intangibles

(137)


Non-GAAP cost of revenue

$         10,818


$           7,718





GAAP gross profit

$         77,562


$         64,683

Adjusted to exclude the following:




Stock-based compensation

2,122


268

Amortization of acquired intangibles

137


Non-GAAP gross profit

$         79,821


$         64,951





GAAP gross margin

86 %


89 %

Non-GAAP gross margin

88 %


89 %





GAAP research and development expense

$         19,022


$         13,241

Adjusted to exclude the following:




Stock-based compensation

(2,552)


(970)

Non-GAAP research and development expense

$         16,470


$         12,271





GAAP sales and marketing expense

$         28,134


$         19,371

Adjusted to exclude the following:




Stock-based compensation

(3,074)


(1,028)

Amortization of acquired intangibles

(1,063)


(265)

Change in fair value of contingent earn-out consideration liability

54


Non-GAAP sales and marketing expense

$         24,051


$         18,078





GAAP general and administrative expense

$           8,724


$           7,196

Adjusted to exclude the following:




Acquisition and other related expenses

(30)


Stock-based compensation

(1,758)


(2,861)

Non-GAAP general and administrative expense

$           6,936


$           4,335





GAAP operating expense

$         55,880


$         39,808

Adjusted to exclude the following:




Acquisition and other related expenses

(30)


Stock-based compensation

(7,384)


(4,859)

Amortization of acquired intangibles

(1,063)


(265)

Change in fair value of contingent earn-out consideration liability

54


Non-GAAP operating expense

$         47,457


$         34,684





GAAP operating income

$         21,682


$         24,875

Adjusted to exclude the following:




Acquisition and other related expenses

30


Stock-based compensation

9,506


5,127

Amortization of acquired intangibles

1,200


265

Change in fair value of contingent earn-out consideration liability

(54)


Non-GAAP operating income

$         32,364


$         30,267

 


Three Months Ended June 30,


2022


2021


(unaudited)


(in thousands, except per share
data and percentages)

GAAP net income

$         22,383


$        26,322

Adjusted to exclude the following:




Acquisition and other related expenses

30


Stock-based compensation

9,506


5,127

Amortization of acquired intangibles

1,200


265

Change in fair value of contingent earn-out consideration liability

(54)


Income tax effect of non-GAAP adjustments (1)

(2,243)


(1,132)

Non-GAAP net income

$         30,822


$        30,582

Non-GAAP net income margin

34 %


42 %





GAAP undistributed earnings attributable to participating securities

$                 —


$       (15,581)

Impact on undistributed earnings attributable to participating securities due to non-GAAP adjustments


(1,947)

Non-GAAP undistributed earnings attributable to participating securities

$                 —


$       (17,528)





Non-GAAP net income

$         30,822


$        30,582

Non-GAAP undistributed earnings attributable to participating securities


(17,528)

Non-GAAP net income attributable to Class A and Class B stockholders, basic and diluted

$         30,822


$        13,054





Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:




Basic

192,947


87,599

Diluted

214,954


114,920





Non-GAAP net income per share attributable to Class A and Class B stockholders:




Basic

$              0.16


$             0.15

Diluted

$              0.14


$             0.11

(1) For the three months ended June 30, 2022 and 2021, management used an estimated annual effective non-GAAP tax rate of 21.0%.

 

Cision View original content:https://www.prnewswire.com/news-releases/doximity-announces-fiscal-2023-first-quarter-financial-results-301600197.html

SOURCE Doximity, Inc.


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