1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Competitors
4. Price Chart
5. Valuation
6. Offer Terms
7. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
DOCS
Listed on
2021-06-24
Sector
Information Technology
Subsector
IT Services
Offer Price
$26.00
first filed $20.00–$23.00Shares Offered
23.3M
178.21M
$4.6B
13.1%
Description
We are the leading digital platform for U.S. medical professionals, as measured by the number of U.S. physician members, with over 1.8 million medical professional members as of March 31, 2021. Our members include more than 80% of physicians across all 50 states and every medical specialty. Our mission is to help every physician be more productive and provide better care for their patients. We are physicians-first, putting technology to work for doctors instead of the other way around. That guiding principle has enabled Doximity to become an essential and trusted professional platform for physicians. Our cloud-based platform provides our members with tools specifically built for medical professionals, enabling them to collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers. Doximity membership is free for physicians. Our revenue-generating customers, primarily pharmaceutical manufacturers and healthcare systems, have access to a suite of commercial solutions that benefit from broad physician usage. Physicians are the key decision makers in healthcare, directing more than 73% of the approximately $4.0 trillion in total U.S. healthcare spend(1). Despite their critical role, physicians face challenges caused by fragmented knowledge bases and antiquated technologies. These challenges inhibit physicians’ ability to effectively connect with specialists and colleagues, instantaneously access relevant and up-to-date medical information, and efficiently deliver patient care. Cloud-based software has transformed the ability to network, communicate, and work across most industries, but has been slow to address the specific needs of medical professionals. The impact of antiquated technology is real: according to a survey conducted on behalf of The Physicians Foundation by Merritt Hawkins, 78% of physicians have experienced feelings of professional burnout, with electronic health record design and interoperability identified as one of the factors they find least satisfying about medical practice(2). Doximity’s cloud-based platform puts modern software tools in the hands of physicians and other medical professionals. Our members have come to rely on us to help them efficiently manage their work day. At the core of our platform is the largest medical professional network in the nation, which creates proximity within our community of doctors and hundreds of thousands of other medical professionals. Our verified member profiles digitize the traditional curriculum vitae, highlighting clinical expertise and reflecting the unique training, certifications, research, and employment affiliations that differentiate medical professionals. Our members can search and connect with colleagues and specialists, which allows them to better coordinate patient care and streamline referrals. In addition, they can discover career opportunities unique to their clinical skill sets. Our Doximity app enjoyed a 4.8/5 star rating with over 100,000 reviews in the Apple App Store as of March 31, 2021. We support physicians in an era of information overload, by solving signal-to-noise challenges with our news tools. Our newsfeed addresses the ever increasing sub-specialization of medical expertise and volume of medical research by delivering news and information that is relevant to each individual physician's patient population, clinical practice, and professional relationships. We support physicians in their day-to-day practice of medicine with mobile-friendly and easy-to-use clinical workflow tools such as voice and video telehealth, secure messaging, and digital faxing. Our focus on clinician-centric product design and productivity has led to high levels of health professional adoption and endorsement. We had over 300,000 unique active providers use our telehealth tools in the quarter ended March 31, 2021. Our business model is designed to both respect and support physicians while driving value for our customers. We monetize our platform today through our Marketing, Hiring, and Telehealth Solutions. Our Marketing Solutions enable our pharmaceutical and health system customers to get the right content, services, and peer connections to the right medical professionals through a variety of modules. We count 20 out of the top 20 pharmaceutical manufacturers and 20 of the top 20 hospitals and health systems in the U.S. News & World Report Best Hospitals Honor Roll among our customers. Our Hiring Solutions provide digital recruiting capabilities to health systems and medical recruiting firms. Our Hiring Solutions enable our customers to identify, connect with, and hire from our network of both active and passive potential medical professional candidates, who might otherwise be missed through traditional recruiting channels. In early 2020 we launched our enterprise-level Telehealth Solutions for health systems. Our Telehealth Solutions, which include voice and video dialer, are designed to easily connect patients with care providers. We delivered over 63 million telehealth visits in fiscal 2021. As a result, we have seen rapid adoption of our commercial Telehealth Solutions, with subscription agreements signed with over 150 health systems, including 6 of the top 10 hospitals and health systems in the U.S. News & World Report Best Hospitals Honor Roll, as of March 31, 2021. The ecosystem we have created in the medical community benefits from powerful network effects. Medical professional engagement with our platform increases as the breadth and utility of our tools expands, attracting even more members and driving broader and more effective communication and collaboration among healthcare professionals. This also drives greater value for our pharmaceutical and health system customers that seek to interact with specific groups of physicians. In turn, the insights that we gain from increased use of our platform enable us to invest in improving our tools and solutions to meet the changing needs of our members, customers, and the patients that they care for, ultimately creating a win-win-win for all constituents in our ecosystem. Over the past ten years, our member interactions have enabled us to build a vast, interactive data set intelligently combining proprietary information and previously siloed public information. When coupled with our customized algorithms and our team of analysts, engineers, and clinical experts, we believe this gives us unique, unparalleled insight into the specific needs of medical professionals in the United States that would be highly challenging and time consuming for any competitor to replicate. Our subscription-based business model and strong relationships with both pharmaceutical manufacturers and health systems drive highly visible revenue. We do not generate revenue from membership of medical professionals, other than a de minimis amount generated from member subscriptions for Dialer Pro. We are able to grow revenue from existing customers through an effective land and expand strategy, demonstrated by our 153% net revenue retention rate as of March 31, 2021. Our business model has delivered high revenue growth at scale, while increasing profitability. (1) Center for Medicare & Medicaid Services, including categories of hospital care, physician and clinical services, retail prescription drugs, nursing care facilities & continuing care retirement communities, home healthcare, and durable medical equipment. (2) 2018 Survey of America's Physicians Practice Patterns and Perspectives, The Physicians Foundation by Merritt Hawkins, September 2018. --- We were incorporated in Delaware in April 2010 under the name 3MD Communications, Inc. In June 2010, we changed our name to Doximity, Inc. Our principal executive offices are located at 500 3rd St., Suite 510, San Francisco, CA 94107, and our telephone number is (650) 549-4330. Our website address is www.doximity.com.
Priced in line with its peers
| Metric | Value | Peer median | Among peers | Trend |
|---|---|---|---|---|
Revenue / EV | n/c | 12.3% | — | |
Growth-adjusted revenue / EV (1/ERG) | n/c | 1.66 | — | |
Rule of 40 | 118% | 20.4% | ||
Gross margin | 84.9% | 71.4% | ||
Magic number | 2.29 | 1.03 | ||
Stock comp / revenue | 3.5% | 4.5% | ||
Deferred revenue growth | 86.8% | — | — | |
Earnings / price (E/P) | 1.1% | -1.2% | ||
Sales / price (S/P) | 4.5% | 8.7% | ||
EBITDA / EV | n/c | 1.7% | — | |
Free cash flow / EV | n/c | 1.1% | — | |
Book / price (B/P) | 1.4% | 7.6% | ||
Growth-adjusted E/P (1/PEG) | 0.84 | 0.08 | ||
Revenue growth | 77.8% | 24.9% | ||
Operating margin | 25.8% | -4.2% | ||
EBITDA margin | 27.6% | 15.9% | ||
Net margin | 24.3% | -4.2% | ||
Free cash flow margin | 40.0% | 3.9% | ||
Return on equity | 75.2% | -2.5% | ||
Return on assets | 19.9% | -2.0% | ||
Revenue / capital raised | 6.82 | 2.66 | ||
Net cash / market cap | n/c | -3.2% | — | |
Debt / equity | n/c | 0.91 | — | |
Current ratio | 2.05 | 2.25 | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
Value per share at competitors' multiples: n/m
Fewer than 3 comparable competitors (2): too few for a range.| Company | Stage (operating) | Mkt cap | Revenue | Earnings / price | Sales / price | Revenue / EV | EBITDA / EV | Free cash flow / EV | Book / price |
|---|---|---|---|---|---|---|---|---|---|
| This IPO, at the offer | Profitable | $4.6bn | $207M | 1.1% | 4.5% | n/m | n/m | n/m | 1.4% |
| Median, comparable | — | — | — | — | — | — | |||
GDRX Text similarity comparable | Profitable | $1.2bn | $785M | 1.3% | 64.7% | 55.9% | 11.6% | 14.0% | 53.3% |
WAY Text similarity comparable | Profitable | $5.4bn | $1.3bn | 2.5% | 23.4% | 18.5% | 6.5% | 3.9% | 75.0% |
TDOC Named in prospectus | Scaling | $1.6bn | $2.5bn | -9.7% | 154% | 310% | — | 32.9% | 80.7% |
AMWL Named in prospectus | Scaling | $202M | $211M | -28.2% | 104% | 988% | -166% | -90.4% | 105% |
META Named in prospectus | Profitable | $1640.3bn | $241.6bn | 4.6% | 14.7% | 14.1% | 6.1% | 1.7% | 16.6% |
GOOGL Named in prospectus | Profitable | $3636.2bn | $471.1bn | 6.5% | 13.0% | 12.7% | — | 0.5% | 18.6% |
DH Text similarity | Scaling | $140M | $227M | -112% | 162% | 187% | -193% | 19.9% | — |
WEAV Weave Communications, Inc. · IPO 2021, at its offer (over 6 months old: not compared)Text similarity | Scaling | $1.5bn | $80M | -2.7% | 5.3% | 5.5% | -2.1% | -1.2% | — |
▲ Priced at $26.00, 21% above the midpoint of the first filed range ($20.00–$23.00, 2021-06-15).
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2021-06-15 | S-1/A | $20.00–$23.00 | — | 23,300,000 | $500.9M |
| 2021-06-22 | S-1/A | $20.00–$23.00 | — | 23,300,000 | $500.9M |
| 2021-06-25 | 424B4 | — | $26.00 | 23,300,000 | $605.8M |
Doximity, Inc. income statement, cash flows and balance sheet, FY Mar 2023 to FY Mar 2026, as reported in SEC filings.
| Metric | FY Mar 2023after listing | FY Mar 2024after listing | FY Mar 2025after listing | FY Mar 2026after listing |
|---|---|---|---|---|
| Revenue | $419M | $475M | $570M | $645M |
| Gross profit | $366M | $425M | $515M | $575M |
| Operating income | $125M | $164M | $228M | $215M |
| Net income | $113M | $148M | $223M | $196M |
| Revenue growth | — | 13.5% | 20.0% | 13.1% |
| Gross margin | 87.2% | 89.3% | 90.2% | 89.1% |
| Operating margin | 29.9% | 34.5% | 39.9% | 33.3% |
| Net margin | 26.9% | 31.0% | 39.1% | 30.4% |
| Metric | FY Mar 2023after listing | FY Mar 2024after listing | FY Mar 2025after listing | FY Mar 2026after listing |
|---|---|---|---|---|
| Operating cash flow | $180M | $184M | $273M | $326M |
| Capital expenditures | ($1.7M) | ($147K) | — | — |
| Free cash flow | $178M | $184M | — | — |
| Metric | FY Mar 2023after listing | FY Mar 2024after listing | FY Mar 2025after listing | FY Mar 2026after listing |
|---|---|---|---|---|
| Total assets | $1.1B | — | $1.3B | $1.1B |
| Total liabilities | $171M | — | $182M | $173M |
| Total equity | $966M | $901M | $1.1B | $951M |
| Cash & equivalents | $158M | $96.8M | $210M | $219M |