EX-99.1 2 doximity-20210930xex991.htm EX-99.1 Document

Exhibit 99.1
Doximity Announces Fiscal 2022 Second Quarter Financial Results
Total revenues of $79.4 million, up 76% year-over-year
Net income margin of 45% and adjusted EBITDA margin of 41%
SAN FRANCISCO, Calif., November 9, 2021 -- Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results for the fiscal 2022 second quarter ended September 30, 2021.
“We’re pleased to report another strong financial quarter as the shift to digital among our clients continues,” said Jeff Tangney, co-founder & CEO at Doximity. “We’re particularly proud that our existing clients generated a record 173% net revenue retention rate (for the trailing 12 months), and that our telehealth platform grew to a record of over 330,000 active providers.”
Fiscal 2022 Second Quarter Financial Highlights:
All comparisons, unless otherwise noted, are to the three months ended September 30, 2020.
•Revenue: Revenue of $79.4 million versus $45.1 million, an increase of 76% year-over-year.
•Net income and non-GAAP net income: Net income of $36.1 million versus $10.0 million, representing a 45% margin. Non-GAAP net income of $41.6 million, versus $11.2 million, representing a 52% margin.
•Adjusted EBITDA: Adjusted EBITDA of $32.8 million versus $12.6 million, an increase of 160% year-over-year, representing adjusted EBITDA margins of 41%, versus 28%.
•Net income per share and non-GAAP net income per share: Diluted net income per share was $0.17, versus $0.02, while non-GAAP diluted net income per share was $0.19, versus $0.02.
•Operating cash flow and free cash flow: Operating cash flow of $19.2 million, versus $12.7 million, and free cash flow of $18.1 million, versus $11.3 million.
Financial Outlook
Doximity is providing guidance for its fiscal third quarter ending December 31, 2021 as follows:
•Revenue between $85.8 million and $86.8 million.
•Adjusted EBITDA between $32.0 million and $33.0 million.
Doximity is updating guidance for its fiscal year ending March 31, 2022 as follows:
•Revenue between $326.1 million and $328.1 million.
•Adjusted EBITDA between $127.6 million and $129.6 million.
Lock-up Expiry on November 12, 2021
In connection with the Company’s initial public offering of Class A common stock, its executive officers, directors, and substantially all of its stockholders were parties to lock-up agreements that restrict their ability to sell or transfer their Doximity shares. Pursuant to the terms of the lock-up agreements, the lock-up will expire at the opening of trading on November 12, 2021. Certain of the shares of the Company’s common stock that become eligible for sale in the public market upon the lock-up expiration remain subject to volume and other restrictions of Rule 144 of the Securities Act of 1933, as amended, and restrictions on insider trading in accordance with Company policy.
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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 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 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 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); (ii) our ability to retain existing members or add new members to our platform and maintain or grow their engagement with our platform; (iii) our ability to attract new customers or retain existing customers; (iv) the impact of our prioritization of our members’ interests; (v) breaches in our security measures or unauthorized access to members’ data; (vi) 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 prospectus for our recent offering of shares of Class A common stock shares that was filed with the SEC on June 25, 2021, and in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021, as such risk factors may be updated from time to time in our periodic filings with the SEC. Additional information will be provided in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021. 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
ir@doximity.com
Media Contact:
pr@doximity.com




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DOXIMITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30, 2021March 31, 2021
Assets
Current assets:
Cash and cash equivalents$79,521 $66,393 
Marketable securities663,140 76,141 
Accounts receivable, net 55,681 50,319 
Prepaid expenses and other current assets28,159 10,692 
Deferred contract costs, current3,107 5,856 
Total current assets829,608 209,401 
Property and equipment, net8,004 7,598 
Deferred income tax assets2,112 2,112 
Operating lease right-of-use assets770 1,339 
Intangible assets, net9,067 9,596 
Goodwill18,915 18,915 
Other assets779 2,758 
Total assets$869,255 $251,719 
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Current liabilities:
Accounts payable$781 $1,515 
Accrued expenses15,664 16,285 
Deferred revenue, current78,681 83,272 
Operating lease liabilities, current498 970 
Total current liabilities95,624 102,042 
Deferred revenue, non-current49 220 
Operating lease liabilities, non-current118 284 
Other liabilities, non-current904 972 
Total liabilities96,695 103,518 
Redeemable Convertible Preferred Stock
Redeemable convertible preferred stock— 81,458 
Stockholders' Equity
Preferred stock— — 
Common stock187 83 
Additional paid-in capital674,414 30,357 
Accumulated other comprehensive loss(775)(21)
Retained earnings98,734 36,324 
Total stockholders' equity772,560 66,743 
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity$869,255 $251,719 

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DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
Revenue$79,350 $45,113 $152,019 $81,501 
Cost of revenue(1)
8,951 7,456 16,937 15,331 
Gross profit70,399 37,657 135,082 66,170 
Operating expenses(1):
Research and development15,460 9,866 28,701 19,909 
Sales and marketing21,161 14,145 40,532 27,430 
General and administrative8,827 3,209 16,023 6,311 
Total operating expenses45,448 27,220 85,256 53,650 
Income from operations24,951 10,437 49,826 12,520 
Interest income440 73 516 210 
Other expense, net(20)(93)(51)(383)
Income before income taxes25,371 10,417 50,291 12,347 
Provision for (benefit from) income taxes(10,717)380 (12,119)851 
Net income$36,088 $10,037 $62,410 $11,496 
Undistributed earnings attributable to participating securities— (8,354)(18,326)(9,122)
Net income attributable to Class A and Class B common stockholders, basic and diluted$36,088 $1,683 $44,084 $2,374 
Net income per share attributable to Class A and Class B common stockholders:
Basic$0.19 $0.02 $0.32 $0.03 
Diluted$0.17 $0.02 $0.27 $0.03 
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic186,171 70,591 137,154 69,988 
Diluted216,672 91,830 166,066 88,498 
                            
(1) Costs and expenses include share-based compensation expenses as follows:
Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
Cost of revenue$793 $99 $1,061 $189 
Research and development1,859 281 2,829 545 
Sales and marketing1,866 376 2,894 671 
General and administrative2,154 423 5,015 757 
Total stock-based compensation expense$6,672 $1,179 $11,799 $2,162 
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DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
Cash flows from operating activities
Net income$36,088 $10,037 $62,410 $11,496 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization1,158 928 2,311 1,696 
Deferred income taxes— 260 — 623 
Stock-based compensation, net of amounts capitalized6,672 1,179 11,799 2,162 
Other(72)44 (70)105 
Non-cash lease expense286 643 569 1,294 
Bad debt expense (recovery)288 (84)195 4 
Amortization of premium on marketable securities, net1,264 9 1,561 14 
Amortization of prepaid partner fees231 — 799 — 
Amortization of deferred contract costs2,452 1,593 5,656 3,140 
Changes in operating assets and liabilities, net of effect of acquisition:
Accounts receivable(9,978)(4,028)(5,556)(14,890)
Prepaid expenses and other assets(14,867)(2,707)(18,191)763 
Deferred contract costs(1,483)(1,275)(2,975)(2,755)
Accounts payable(420)89 (292)(275)
Accrued expenses1,958 181 (419)(643)
Deferred revenue(4,198)6,496 (4,763)18,543 
Operating lease liabilities(167)(650)(638)(1,310)
Other liabilities(60)(14)(69)1,494 
Net cash provided by operating activities19,152 12,701 52,327 21,461 
Cash flows from investing activities
Purchases of property and equipment(200)(67)(241)(92)
Capitalized internal-use software(900)(1,379)(1,671)(2,530)
Purchases of marketable securities(1,088,768)— (1,156,143)— 
Maturities of marketable securities24,787 16,000 35,551 34,000 
Sales of marketable securities531,076 — 531,076 — 
Cash paid for acquisition, net of cash acquired— — — (31,634)
Other— (25)— (25)
Net cash provided by (used in) investing activities(534,005)14,529 (591,428)(281)
Cash flows from financing activities
Proceeds from issuance of common stock upon initial public offering after deducting underwriting discounts and commissions— — 553,905 — 
Payments of deferred offering costs(2,214)— (3,982)— 
Proceeds from issuance of common stock upon exercise of stock options2,323 1,124 5,060 1,347 
Taxes paid related to net share settlement of equity awards(56)— (56)— 
Repurchase and retirement of common stock— — (2,698)— 
Net cash provided by financing activities53 1,124 552,229 1,347 
Net increase (decrease) in cash and cash equivalents(514,800)28,354 13,128 22,527 
Cash and cash equivalents, beginning of period594,321 42,603 66,393 48,430 
Cash and cash equivalents, end of period
$79,521 $70,957 $79,521 $70,957 

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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-related charges, amortization of acquired intangible assets, 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, and other (income) expense, net. 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 capitalized internal-use software development cost.
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 Metrics
•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 trailing 12-month (“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.
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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 September 30,Six Months Ended September 30,
2021202020212020
(unaudited)(unaudited)
(in thousands)(in thousands)
Net income$36,088 $10,037 $62,410 $11,496 
Adjusted to exclude the following:
Acquisition and other related expenses— 65 — 144 
Stock-based compensation6,672 1,179 11,799 2,162 
Depreciation and amortization1,158 928 2,311 1,696 
Interest income(440)(73)(516)(210)
Provision for (benefit from) income taxes(10,717)380 (12,119)851 
Other expense, net20 93 51 383 
Adjusted EBITDA$32,781 $12,609 $63,936 $16,522 
Revenue$79,350 $45,113 $152,019 $81,501 
Net income margin45 %22 %41 %14 %
Adjusted EBITDA margin41 %28 %42 %20 %

Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
(unaudited)(unaudited)
(in thousands)(in thousands)
Net cash provided by operating activities$19,152 $12,701 $52,327 $21,461 
Purchases of property and equipment(200)(67)(241)(92)
Capitalized internal-use software(900)(1,379)(1,671)(2,530)
Free cash flow$18,052 $11,255 $50,415 $18,839 
Other cash flow components:
Net cash provided by (used in) investing activities$(534,005)$14,529 $(591,428)$(281)
Net cash provided by financing activities$53 $1,124 $552,229 $1,347 
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Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
(unaudited)(unaudited)
(in thousands)(in thousands)
GAAP cost of revenue$8,951 $7,456 $16,937 $15,331 
Adjusted to exclude the following:
Stock-based compensation(793)(99)(1,061)(189)
Non-GAAP cost of revenue$8,158 $7,357 $15,876 $15,142 
GAAP gross profit$70,399 $37,657 $135,082 $66,170 
Adjusted to exclude the following:
Stock-based compensation793 99 1,061 189 
Non-GAAP gross profit$71,192 $37,756 $136,143 $66,359 
GAAP gross margin89 %83 %89 %81 %
Non-GAAP gross margin90 %84 %90 %81 %
GAAP research and development expense$15,460 $9,866 $28,701 $19,909 
Adjusted to exclude the following:
Stock-based compensation(1,859)(281)(2,829)(545)
Non-GAAP research and development expense$13,601 $9,585 $25,872 $19,364 
GAAP sales and marketing expense$21,161 $14,145 $40,532 $27,430 
Adjusted to exclude the following:
Stock-based compensation(1,866)(376)(2,894)(671)
Amortization of acquired intangibles(265)(257)(530)(514)
Non-GAAP sales and marketing expense$19,030 $13,512 $37,108 $26,245 
GAAP general and administrative expense$8,827 $3,209 $16,023 $6,311 
Adjusted to exclude the following:
Acquisition and other related expenses— (65)— (144)
Stock-based compensation(2,154)(423)(5,015)(757)
Non-GAAP general and administrative expense$6,673 $2,721 $11,008 $5,410 
GAAP operating expense$45,448 $27,220 $85,256 $53,650 
Adjusted to exclude the following:
Acquisition and other related expenses— (65)— (144)
Stock-based compensation(5,879)(1,080)(10,738)(1,973)
Amortization of acquired intangibles(265)(257)(530)(514)
Non-GAAP operating expense$39,304 $25,818 $73,988 $51,019 
GAAP operating income$24,951 $10,437 $49,826 $12,520 
Adjusted to exclude the following:
Acquisition and other related expenses— 65 — 144 
Stock-based compensation6,672 1,179 11,799 2,162 
Amortization of acquired intangibles265 257 530 514 
Non-GAAP operating income$31,888 $11,938 $62,155 $15,340 
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Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
(unaudited)(unaudited)
(in thousands, except per share data)(in thousands, except per share data)
GAAP net income$36,088 $10,037 $62,410 $11,496 
Adjusted to exclude the following:
Acquisition and other related expenses— 65 — 144 
Stock-based compensation6,672 1,179 11,799 2,162 
Amortization of acquired intangibles265 257 530 514 
Income tax effect of non-GAAP adjustments (1)
(1,457)(315)(2,589)(592)
Non-GAAP net income$41,568 $11,223 $72,150 $13,724 
Non-GAAP net income margin52 %25 %47 %17 %
GAAP undistributed earnings attributable to participating securities$— $(8,354)$(18,326)$(9,122)
Impact on undistributed earnings attributable to participating securities due to non-GAAP adjustments— (616)(2,055)(1,162)
Non-GAAP undistributed earnings attributable to participating securities$— $(8,970)$(20,381)$(10,284)
Non-GAAP net income$41,568 $11,223 $72,150 $13,724 
Non-GAAP undistributed earnings attributable to participating securities— (8,970)(20,381)(10,284)
Non-GAAP net income attributable to Class A and Class B stockholders, basic and diluted$41,568 $2,253 $51,769 $3,440 
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic186,171 70,591 137,154 69,988 
Diluted216,672 91,830 166,066 88,498 
Non-GAAP net income per share attributable to Class A and Class B stockholders:
Basic$0.22 $0.03 $0.38 $0.05 
Diluted$0.19 $0.02 $0.31 $0.04 
(1) For the three and six months ended September 30, 2021 and 2020, management used an estimated annual effective non-GAAP tax rate of 21.0%.
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