(Mark One)
For the quarterly period ended June 30, 2022
For the transition period from to
Commission file number 001-40508
Doximity, Inc.
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation or Organization)
(I.R.S. Employer Identification Number)
500 3rd St.
Suite 510
San Francisco, CA 94107
(Address of principal executive offices, including zip code)
(650) 549-4330
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of exchange on which registered
Class A common stock, $0.001 par value per share
DOCSThe New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes No
The registrant had outstanding 110,471,370 shares of Class A common stock and 82,990,960 shares of Class B common stock as of July 29, 2022.


This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:
our expectations regarding our revenue, expenses, and other operating results;
our future financial performance;
our expectations and management of future growth;
our ability to acquire new members and successfully retain existing members;
our ability to acquire new customers and successfully retain existing customers;
our ability to achieve or maintain our profitability;
future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements;
the costs and success of our sales and marketing efforts, and our ability to promote our brand;
our ability to effectively manage our growth, including our ability to identify, retain, and recruit personnel, and maintain our culture;
our ability to comply with laws and regulations;
our ability to successfully defend litigation brought against us;
our ability to maintain, protect, and enhance our intellectual property rights and any costs associated therewith;
our ability to maintain data privacy and data security;
our ability to respond to rapid technological changes;
the effects of the COVID-19 pandemic or other pandemic, epidemic, or infectious diseases;
our expectations regarding the impact of the COVID-19 pandemic and the end of the COVID-19 pandemic on our business;
our ability to compete effectively with existing competitors and new market entrants;
the growth rates of the markets in which we compete;
the increased expenses associated with being a public company;
the sufficiency of our cash and cash equivalents and marketable securities to meet our liquidity needs;
our ability to comply with modified or new laws and regulations applying to our business;
our ability to successfully identify, acquire, and integrate companies and assets;
our expectations regarding the time during which we will be, and the risks related to our status as, an emerging growth company under the Jumpstart Our Business Startups Act, or JOBS Act;
developments and projections relating to our competitors and our industry, including competing solutions;
impact from future regulatory, judicial, and legislative changes or developments that may affect our customers’ or our business; and
the risks related to our Class A common stock and our dual class common stock structure.
We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, results of operations, financial condition, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. 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 have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and you are cautioned not to unduly rely upon these statements.

Item 1. Condensed Consolidated Financial Statements (Unaudited)
(in thousands, except per share data)
June 30, 2022March 31, 2022
Current assets:
Cash and cash equivalents$110,092 $112,809 
Marketable securities666,162 685,304 
Accounts receivable, net of allowance for doubtful accounts of $380 and $359 at June 30, 2022 and March 31, 2022, respectively
76,021 81,073 
Prepaid expenses and other current assets18,258 19,439 
Deferred contract costs, current3,610 5,512 
Total current assets874,143 904,137 
Property and equipment, net11,381 8,488 
Deferred income tax assets49,348 48,558 
Operating lease right-of-use assets11,563 1,087 
Intangible assets, net35,430 7,909 
Goodwill67,940 18,915 
Other assets1,126 2,263 
Total assets$1,050,931 $991,357 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$916 $463 
Accrued expenses and other current liabilities25,253 25,270 
Deferred revenue, current93,907 84,907 
Operating lease liabilities, current677 642 
Total current liabilities120,753 111,282 
Deferred revenue, non-current203 78 
Operating lease liabilities, non-current11,092 447 
Contingent earn-out consideration liability, non-current15,668  
Other liabilities, non-current1,049 956 
Total liabilities148,765 112,763 
Commitments and contingencies (Note 12)
Stockholders' Equity
Preferred stock, $0.001 par value; 100,000 shares authorized as of June 30, 2022 and March 31, 2022, respectively; zero shares issued and outstanding as of June 30, 2022 and March 31, 2022, respectively
Class A and Class B common stock, $0.001 par value; 1,500,000 shares authorized as of June 30, 2022 and March 31, 2022, respectively; 193,336 and 192,398 shares issued and outstanding as of June 30, 2022 and March 31, 2022, respectively
193 192 
Additional paid-in capital715,282 702,589 
Accumulated other comprehensive loss(17,925)(15,294)
Retained earnings204,616 191,107 
Total stockholders' equity902,166 878,594 
Total liabilities and stockholders’ equity$1,050,931 $991,357 
The accompanying notes are an integral part of these condensed consolidated financial statements.

(in thousands, except per share data)
Three Months Ended June 30,
Revenue$90,639 $72,669 
Cost of revenue13,077 7,986 
Gross profit77,562 64,683 
Operating expenses:
Research and development19,022 13,241 
Sales and marketing28,134 19,371 
General and administrative8,724 7,196 
Total operating expenses55,880 39,808 
Income from operations21,682 24,875 
Other income, net804 45 
Income before income taxes22,486 24,920 
Provision for (benefit from) income taxes103 (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:
Basic192,947 87,599 
Diluted214,954 114,920 
The accompanying notes are an integral part of these condensed consolidated financial statements.

(in thousands)
Three Months Ended June 30,
Net income$22,383 $26,322 
Other comprehensive loss
Change in unrealized loss on available-for-sale-securities, net of tax of $894 and $0, respectively
Total other comprehensive loss(2,631)(48)
Comprehensive income$19,752 $26,274 
The accompanying notes are an integral part of these condensed consolidated financial statements.

(in thousands)
Three Months Ended June 30, 2022
Redeemable Convertible
Preferred Stock
Class A and Class B
Common Stock
Additional Paid-In
Accumulated Other Comprehensive LossRetained EarningsStockholders' Equity
Balance as of March 31, 2022 $ 192,398 $192 $702,589 $(15,294)$191,107 $878,594 
Stock-based compensation— — — — 8,445 — — 8,445 
Exercise of stock options and common stock warrants— — 1,204 1 3,022 — — 3,023 
Vesting of restricted stock units— — 8 — — — — — 
Tax withholding on shares under stock-based compensation awards— — — — (109)— — (109)
Repurchase and retirement of common stock— — (274)— — — (8,874)(8,874)
Common stock warrant expense— — — — 1,335 — — 1,335 
Other comprehensive loss— — — — — (2,631)— (2,631)
Net income— — — — — — 22,383 22,383 
Balance as of June 30, 2022 $ 193,336 $193 $715,282 $(17,925)$204,616 $902,166 
Three Months Ended June 30, 2021
Redeemable Convertible
Preferred Stock
Class A and Class B
Common Stock
Additional Paid-In
Accumulated Other Comprehensive LossRetained EarningsStockholders' Equity
Balance as of March 31, 202176,287 $81,458 82,910 $83 $30,357 $(21)$36,324 $66,743 
Stock-based compensation— — — — 5,176 — — 5,176 
Exercise of stock options— — 3,685 4 3,031 — — 3,035 
Repurchase and retirement of common stock— — (181)— (2,698)— — (2,698)
Common stock warrant expense— — — — 12 — — 12 
Other comprehensive loss— — — — — (48)— (48)
Conversion of redeemable convertible preferred stock upon initial public offering(76,287)(81,458)76,287 76 81,382 — — 81,458 
Issuance of common stock upon initial public offering, net of offering costs— — 22,506 22 548,430 — — 548,452 
Net income— — — — — — 26,322 26,322 
Balance as of June 30, 2021 $ 185,207 $185 $665,690 $(69)$62,646 $728,452 
The accompanying notes are an integral part of these condensed consolidated financial statements.

(in thousands)
Three Months Ended June 30,
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 amortization2,370 1,153 
Deferred income taxes105  
Stock-based compensation, net of amounts capitalized9,506 5,127 
Non-cash lease expense401 283 
Amortization of premium on marketable securities, net1,455 297 
Loss on sale of marketable securities37  
Amortization of deferred contract costs2,767 3,204 
Changes in operating assets and liabilities, net of effect of acquisition:
Accounts receivable5,533 4,421 
Prepaid expenses and other assets1,246 (2,858)
Deferred contract costs(866)(1,492)
Accounts payable, accrued expenses and other liabilities(6,109)(2,257)
Deferred revenue6,152 (461)
Operating lease liabilities(198)(471)
Net cash provided by operating activities44,752 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 securities8,271 10,764 
Sales of marketable securities14,724  
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 warrants3,014 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 period112,809 66,393 
Cash and cash equivalents, end of period
$110,092 $594,321 
Supplemental disclosures of cash flow information
Cash paid for taxes$ $131 
Non-cash financing and investing activities
Conversion of redeemable convertible preferred stock to common stock$ $81,458 
Unpaid deferred offering costs$ $2,214 
Capitalized stock-based compensation for internal-use software development costs$274 $61 
Property and equipment included in accounts payable and accrued expenses$632 $71 
Operating lease right-of-use assets obtained in exchange for operating lease liabilities$10,877 $ 
The accompanying notes are an integral part of these condensed consolidated financial statements.


1.  Description of Business
Description of Business
Doximity, Inc. (the “Company”) was incorporated in the state of Delaware in April 2010 as 3MD Communications, Inc. and is headquartered in San Francisco, California. The Company subsequently changed its name to Doximity, Inc. in June 2010. The Company provides an online platform, which enables physicians and other healthcare professionals to collaborate with their colleagues, securely coordinate patient care, stay up to date with the latest medical news and research, and manage their careers. The Company’s customers primarily include pharmaceutical companies and health systems that connect with healthcare professionals through the Company’s digital Marketing and Hiring Solutions. Marketing Solutions provide customers with the ability to share tailored content on the network. Hiring Solutions enable customers to identify, connect with, and hire from the network of both active and passive potential physician candidates.
Initial Public Offering
In June 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 22,505,750 shares of its Class A common stock at $26.00 per share, including 3,495,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares. The Company received proceeds of $548.5 million after deducting underwriting discounts and commissions as well as deferred offering costs. In connection with the IPO, all 76,286,618 shares of the Company’s outstanding redeemable convertible preferred stock automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis.
Deferred offering costs, which consist of direct incremental legal, consulting, banking, and accounting fees relating to the Company’s planned initial public offering, were capitalized. Upon the consummation of the IPO, $5.5 million of deferred offering costs were offset against proceeds.
Stock Split
On June 8, 2021, the Company’s board of directors and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation effecting a 2-for-1 forward split of the Company’s issued and outstanding stock, including outstanding stock-based instruments and redeemable convertible preferred stock. The par value of the common and redeemable convertible preferred stock was not adjusted as a result of the stock split. As such, the Company has reclassified amounts from additional paid-in capital to common stock. All issued and outstanding shares of common stock, stock-based instruments, redeemable convertible preferred stock, and per-share amounts included in the accompanying condensed consolidated financial statements have been adjusted to reflect this stock split for all periods presented.
2.  Summary of Significant Accounting Policies
There have been no material changes to the significant accounting policies of the Company as compared to those described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022 and filed with the SEC on May 27, 2022.
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with U.S. GAAP. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022.

The accompanying condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, stockholders’ equity, and cash flows. The results of operations for the three months ended June 30, 2022, shown in this report are not necessarily indicative of the results to be expected for the full year ending March 31, 2023.
Certain prior year amounts were reclassified, as applicable, to conform to the current year presentation.
Fiscal Year
The Company’s fiscal year ends on March 31st. Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year.
Use of Estimates
The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts stated in the condensed consolidated financial statements and accompanying notes. These judgments, estimates, and assumptions are used for, but not limited to, revenue recognition, the fair values of acquired intangible assets and goodwill, the useful lives of long-lived assets, the valuation of the Company’s common stock and stock-based awards, fair value of contingent earn-out consideration, and deferred income taxes. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the potential long-term impact and duration of the ongoing COVID-19 pandemic.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage risk exposure, the Company invests cash equivalents and marketable securities in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. The Company places its cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any.
Concentrations of credit risk with respect to accounts receivable are primarily limited to certain customers to which the Company makes substantial sales. The Company’s significant customers that represented 10% or more of revenue or accounts receivable, net for the periods presented were as follows:
RevenueAccounts Receivable, Net
Three Months Ended June 30,June 30, 2022March 31, 2022
Customer A*11 %16 %21 %
* Less than 10%
For the purpose of assessing the concentration of credit risk for significant customers, the Company defines a customer as an entity that purchases the Company’s services directly or indirectly through marketing agencies. The majority of marketing agencies have a pass-through arrangement for collection purposes, except one marketing agency which accounted for 18% and 17% of accounts receivable, net as of June 30, 2022 and March 31, 2022, respectively.

Accounting Pronouncements Recently Adopted
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, that simplifies the accounting for income taxes by removing certain exceptions to the general principles in such areas as intraperiod tax allocation, year-to-date losses in interim periods, and deferred tax liabilities related to outside basis differences. Amendments also include simplifications in other areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements, and interim recognition of enactment of tax laws or rate changes. Most amendments within this guidance are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company adopted this guidance on April 1, 2022, and the adoption of this guidance did not have a material impact on the condensed consolidated financial statements.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customer, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Topic 606, Revenue from Contracts with Customers, as if it had originated the contracts. Previously, the Company recognized contract assets and contract liabilities at the acquisition date based on fair value estimates, which had resulted in a reduction to unearned revenue on the balance sheet, and therefore, a reduction to revenues that would have otherwise been recorded as an independent entity. The Company adopted this guidance on April 1, 2022, using the prospective approach. The adoption is applicable to business combinations occurring on or after April 1, 2022, including the Company’s acquisition of certain assets of the AMiON on-call scheduling and messaging application used by scheduling staff and physicians completed on April 1, 2022 (the “AMiON” Acquisition). See Note 8—Business Combinations for additional discussion regarding the AMiON acquisition.
3. Revenue Recognition
The Company’s revenue is primarily derived from the sale of subscriptions for the following solutions:
Marketing Solutions: Hosting of customer-sponsored content on the Doximity platform and providing access to the Company’s professional database of healthcare professionals for referral or marketing purposes during the subscription period.
Hiring Solutions: Providing customers access to the Company’s professional tools where recruiters can access the Company’s database of healthcare professionals, allowing customers to send messages for talent sourcing and to share job postings during the subscription period.
The Company determines revenue recognition in accordance with ASC 606, Revenue from Contracts with Customers, through the following five steps:
1) Identify the contract with a customer
The Company considers the terms and conditions of its contracts and the Company’s customary business practices in identifying its contracts under ASC 606. The Company determines it has a contract with a customer when the contract has been approved by both parties, it can identify each party’s rights regarding the services to be transferred and the payment terms for the services, it has determined the customer to have the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s payment history or, in the case of a new customer, the customer’s credit and financial information.
Contractual terms for Marketing Solutions contracts are generally 12 months or less. The contractual term for Hiring Solutions contracts is typically 12 months. Customers are generally billed for a portion of the contract upon contract execution and then billed throughout the remainder of the contract based on various time-based milestones. Certain Marketing Solutions contracts are cancellable with a 30-day notice period. The Company is not required to refund any prepayment fees invoiced and customers are responsible for prorated amounts to cover services that were provided but payment was not made. Hiring Solutions contracts are noncancellable and customers are billed in annual, quarterly, or monthly installments in advance of the service period.

2) Identify the performance obligations in the contract
Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract.
Marketing Solutions customers may purchase a subscription for a specific module to be used over a defined period of time. These customers may purchase more than one module with either the same or different subscription periods. Modules are the core building blocks of the customers’ marketing plan and can be broadly categorized as Awareness, Interactivity, and Peer. As an example, the Company’s Awareness modules may include:
A sponsored article, including a headline that appears in the targeted member’s newsfeed.
Short, animated videos that are presented in targeted members’ newsfeeds.
Short-form content that is presented within the targeted members’ newsfeeds.
Each module targets a consistent number of Doximity members per month for the duration of the subscription period. The Company treats each subscription to a specific module as a distinct performance obligation because each module is capable of being distinct as the customer can benefit from the subscription to each module on their own and each subscription can be sold standalone. Furthermore, the subscriptions to individual modules are distinct in the context of the contract as (1) the Company is not integrating the services with other services promised in the contract into a bundle of services that represent a combined output, (2) the subscriptions to specific modules do not significantly modify or customize the subscription to another module, and (3) the specific modules are not highly interdependent or highly interrelated. The subscription to each module is treated as a series of distinct performance obligations because it is distinct and substantially the same, satisfied over time, and has the same measure of progress.
Marketing Solutions customers may also purchase integrated subscriptions for a fixed subscription fee that are not tied to a single module but allow customers to utilize any combination of modules during the subscription period, subject to limits on the total number of modules launched in a given period of time, active at any given time, and members targeted. These represent stand-ready obligations in that the delivery of the underlying sponsored content is within the control of the customer and the extent of use in any given period does not diminish the remaining services.
Subscriptions to Hiring Solutions provide customers access to the platform to place targeted job postings and send a fixed number of monthly messages. Each subscription is treated as a series of distinct performance obligations that are satisfied over time.
3) Determine the transaction price
The transaction price is determined based on the consideration the Company expects to be entitled to in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur.
The Company may generate sales through the use of third-party media agencies that are authorized to enter into contracts on behalf of an end customer. The Company acts as the principal in these transactions since it maintains control prior to transferring the service to the customer and is primarily responsible for the fulfillment that occurs through the Company’s platform. The Company records revenue for the amount to which it is entitled from the third-party media agencies as the Company does not know and expects not to know the price charged by the third-party media agencies to its customers.
Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental entities.

4) Allocate the transaction price to performance obligations in the contract
If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative stand-alone selling price (“SSP”). The determination of a SSP for each distinct performance obligation requires judgment. The Company determines SSP for performance obligations based on overall pricing objectives, which take into consideration market conditions and customer-specific factors, including a review of internal discounting tables, the type of services being sold, and other factors. The estimate of SSP is based on historical sales of standalone services. The Company estimates the SSP for arrangements where standalone sales do not provide sufficient evidence of the SSP. The Company believes the use of its estimation approach and allocation of the transaction price on a relative SSP basis to each performance obligation results in revenue recognition in a manner consistent with the underlying economics of the transaction and the allocation principle included in ASC 606.
5) Recognize revenue when or as the Company satisfies a performance obligation
Revenue is recognized when or as control of the promised goods or service is transferred to the customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. Subscriptions represent a series of distinct goods or services because the performance obligations are satisfied over time as customers simultaneously receive and consume the benefits related to the services as the Company performs. In the case of module specific subscriptions, a consistent level of service is provided during each monthly period the sponsored content is available on the Company’s platform. The Company commences revenue recognition when the first content is launched on the platform for the initial monthly period and revenue is recognized over time as each subsequent content period is delivered. The Company’s obligation for its integrated subscriptions is to stand-ready throughout the subscription period; therefore, the Company considers an output method of time to measure progress towards satisfaction of its obligations, with revenue commencing upon the beginning of the subscription period.
The Company treats Hiring Solutions subscriptions as a single performance obligation that represents a series of distinct performance obligations that is satisfied over time. Revenue recognition commences when the customer receives access to the services.
Revenue Disaggregation
Revenue consisted of the following (in thousands):
Three Months Ended June 30,
Subscription$83,715 $68,375 
Other6,924 4,294 
Total revenue$90,639 $72,669 
Other revenue consists of fees earned from the temporary staffing and permanent placement of healthcare professionals.
Contract Balances
Timing of revenue recognition may differ from the timing of invoicing to customers. A majority of customers are invoiced throughout the contract while others are billed upfront. Marketing Solutions customers are generally billed for a portion of the contract upon contract execution and then billed throughout the remainder of the contract based on various time-based milestones, starting when the tailored content is first shared on the Doximity platform. The Company’s contracts do not contain significant financing components.
The Company records unbilled revenue when revenue is recognized in amounts for which it is contractually entitled but exceeds the amounts the Company has a right to bill as of the end of the period. The Company records unbilled revenue on the condensed consolidated balance sheets within prepaid expenses and other current assets. The Company’s unbilled revenue balances were $1.9 million and $1.4 million as of June 30, 2022 and March 31, 2022, respectively.

Deferred revenue consists of noncancelable customer billings or payments received in advance of revenue recognition. Deferred revenue balances are generally expected to be recognized within 12 months. Since the majority of the Company’s contracts have a duration of one year or less, the Company has elected not to disclose remaining performance obligations in accordance with the optional exemption in ASC 606. Remaining performance obligations for contracts with an original duration greater than one year are not material.
Revenue recognized for the three months ended June 30, 2022 and 2021 from amounts included in deferred revenue as of the beginning of the period was $54.7 million and $49.5 million, respectively. Revenue recognized for the three months ended March 31, 2022 from amounts included in deferred revenue as of the beginning of the period was $46.4 million.
Deferred Contract Costs
The Company capitalizes sales compensation that is considered to be incremental and recoverable costs of obtaining a contract with a customer.
Sales compensation earned for the renewal of Marketing Solutions contracts is commensurate with compensation earned for a new or expansion Marketing Solutions contract, whereas compensation for the renewal of Hiring Solutions subscription contracts is earned at a lower rate than for new and expansion Hiring Solutions subscription contracts.
Deferred compensation for Marketing Solutions contracts and Hiring Solutions renewal contracts is amortized over the weighted-average contractual term, ranging from 7 months to 13 months. Deferred compensation tied to new and expansion contracts for Hiring Solutions is amortized on a straight-line basis over the expected period of benefit of 4 years, which is determined by the nature of the Company’s technology and services, the rate at which the Company continually enhances and updates its technology, and its historical customer retention. The portion of deferred compensation expected to be recognized within one year of the balance sheet date is recorded as deferred contract costs, current, and the remaining portion is recorded as other assets on the condensed consolidated balance sheets. Amortized costs are included in cost of revenues and sales and marketing expense in the condensed consolidated statements of operations. Certain sales compensation that are not considered incremental costs are expensed in the same period as they are earned.
The Company capitalized $0.9 million and $1.5 million of contract acquisition costs for the three months ended June 30, 2022 and 2021, respectively. Amortization of deferred contract costs was $2.8 million and $3.2 million for the three months ended June 30, 2022 and 2021, respectively.
Deferred contract costs are periodically analyzed for impairment. There were no impairment losses relating to deferred contract costs during the three months ended June 30, 2022 and 2021.
4.  Investments
The cost, gross unrealized gains and losses, and fair value of investments are as follows (in thousands):
As of June 30, 2022
Cost or
Fair Value
Cash equivalents:
Money market funds$98,332 $— $— $98,332 
Total cash equivalents98,332   98,332 
Marketable securities:
Asset-backed securities5,935  (99)5,836 
Commercial paper5,090  (50)5,040 
Corporate notes and bonds122,676  (2,363)120,313 
Sovereign bonds7,740  (389)7,351 
U.S. government and agency securities548,740  (21,118)527,622 
Total marketable securities690,181  (24,019)666,162 
Total cash equivalents and marketable securities$788,513 $ $(24,019)$764,494 

As of June 30, 2022, the contractual maturities of the Company’s available-for-sale debt securities were as follows (in thousands):
Fair Value
Due within one year$196,873 
Due in one year to three years469,289 
The cost, gross unrealized gains and losses, and fair value of investments were as follows (in thousands):
As of March 31, 2022
Cost or
Fair Value
Cash equivalents:
Commercial paper$2,686 $ $ $2,686 
Money market funds20,072 — — 20,072 
Total cash equivalents22,758   22,758 
Marketable securities:
Asset-backed securities7,791  (51)7,740 
Commercial paper9,436  (53)9,383 
Corporate notes and bonds129,900  (1,796)128,104 
Sovereign bonds8,770  (334)8,436 
U.S. government and agency securities549,901  (18,260)531,641 
Total marketable securities705,798  (20,494)685,304 
Total cash equivalents and marketable securities$728,556 $ $(20,494)$708,062 
As of June 30, 2022 and March 31, 2022, the Company has recognized accrued interest of $2.0 million and $2.1 million, respectively, which is included in prepaid expenses and other current assets in the condensed consolidated balance sheets.
The unrealized losses associated with the Company’s debt securities were $24.0 million as of June 30, 2022. As the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or until the cost basis is recovered, the Company did not recognize any impairment on these securities as of June 30, 2022. The Company did not recognize any credit losses related to the Company’s debt securities during the three months ended June 30, 2022. The fair value related to the debt securities with unrealized losses for which no credit losses were recognized was $666.2 million as of June 30, 2022.
The unrealized losses associated with the Company’s debt securities were not material as of June 30, 2021. The Company did not recognize any credit losses or impairment related to the Company’s debt securities during the three months ended June 30, 2021.
5. Fair Value Measurements
Available-for-sale debt securities are recorded at fair value on the condensed consolidated balance sheets. The carrying value of cash equivalents, accounts receivable, accounts payable, and accrued expenses and other current liabilities approximate their respective fair values due to their short maturities.
Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Inputs that are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2—Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
The following tables present the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands):
As of June 30, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$98,332 $ $ $98,332 
Total cash equivalents98,332   98,332 
Marketable securities:
Asset-backed securities 5,836  5,836 
Commercial paper 5,040  5,040 
Corporate notes and bonds 120,313  120,313 
Sovereign bonds 7,351  7,351 
U.S. government and agency securities526,160 1,462  527,622 
Total marketable securities526,160 140,002  666,162 
Total cash equivalents and marketable securities$624,492 $140,002 $ $764,494 
Contingent earn-out consideration liability$ $ $21,080 $21,080 
Total contingent earn-out consideration liability$ $ $21,080 $21,080 
As of March 31, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$ $2,686 $ $2,686 
Money market funds20,072   20,072 
Total cash equivalents20,072 2,686  22,758 
Marketable securities:
Asset-backed securities 7,740  7,740 
Commercial paper 9,383  9,383 
Corporate notes and bonds 128,104  128,104 
Sovereign bonds 8,436  8,436 
U.S. government and agency securities530,174 1,467  531,641 
Total marketable securities530,174 155,130  685,304 
Total cash equivalents and marketable securities$550,246 $157,816 $ $708,062 
During the three months ended June 30, 2022 and 2021, the Company had no transfers between levels of the fair value hierarchy.

Contingent Earn-out Consideration Liability
The following table summarizes the changes in the contingent earn-out consideration liability (in thousands):
Three Months Ended June 30,
Beginning fair value$ 
Additions in the period21,134 
Change in fair value(54)
Ending fair value$21,080 
The contingent earn-out consideration liability relates to the AMiON acquisition, which closed on April 1, 2022. The fair value of the liability is remeasured at each reporting date until the related contingency is resolved, with any changes to the fair value recognized as sales and marketing expense in the condensed consolidated statement of operations.
To determine the fair value of the contingent earn-out consideration liability, the Company used the discounted cash flow method. The significant inputs used in the fair value measurement of the contingent earn-out consideration liability are the discount rate and the timing and amounts of the future payments, which are based upon estimates of future achievement of the performance metrics. As these inputs are not based on observable market data, they represent a Level 3 measurement within the fair value hierarchy. Changes in the significant inputs used would significantly impact the fair value of the contingent earn-out consideration liability.
See Note 8—Business Combinations for additional discussion regarding the AMiON acquisition.
6.  Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
June 30, 2022March 31, 2022
Furniture and equipment$2,469 $336 
Computers and software745 769 
Leasehold improvements702 796 
Internal-use software development costs16,747 15,057 
Total property and equipment20,663 16,958 
Less: accumulated depreciation and amortization(9,282)(8,470)
Total property and equipment, net$11,381 $8,488 
Depreciation and amortization expense on property and equipment for the three months ended June 30, 2022 and 2021 was $1.2 million and $0.9 million, respectively. Included in these amounts was amortization expense for internal-use software development costs of $1.1 million and $0.8 million for the three months ended June 30, 2022 and 2021, respectively. The amortization of the internal-use software development costs is included in cost of revenue in the condensed consolidated statements of operations.
During the three months ended June 30, 2022 and 2021, the Company capitalized $1.7 million and $0.8 million, respectively, of internal-use software development costs, which are included in property and equipment, net in the condensed consolidated balance sheets.
No impairment was recognized on property and equipment during the three months ended June 30, 2022 and 2021.

7.  Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
June 30, 2022March 31, 2022
Accrued commissions$4,034 $6,653 
Accrued payroll, bonus, and related expenses7,043 8,015 
Employee contributions under employee stock purchase plan1,863 621 
Rebate liabilities1,244 4,933 
Sales and other tax liabilities1,213 785 
Current portion of contingent earn-out consideration liability5,412  
Other4,444 4,263 
Total accrued expenses and other current liabilities$25,253 $25,270 
8.  Business Combinations
AMiON Acquisition
On April 1, 2022, the Company completed the acquisition of the assets of the AMiON on-call scheduling and messaging application used by scheduling staff and physicians (“the AMiON acquisition”) to further expand our physician cloud platform. The acquisition-date fair value of the consideration was $74.6 million, consisting of $53.5 million in cash and $21.1 million in fair value of contingent earn-out consideration.
Under the definitive agreement for the AMiON acquisition, the Company will pay contingent earn-out consideration of up to $24.0 million, of which $4.0 million is a minimum guarantee and the remaining $20.0 million is subject to the achievement of certain operational performance metrics over the next four years. The contingent earn-out consideration is payable in cash in annual installments over the next four years. The contingent earn-out consideration is classified as a liability, the short-term portion of which is included in accrued expenses and other current liabilities and the long-term portion is in contingent earn-out consideration liability, non-current in the condensed consolidated balance sheets. See Note 5—Fair Value Measurements for additional information regarding the valuation of the contingent earn-out consideration liability.
Additionally, in May 2022, 93,458 restricted stock units (“RSUs”) with a grant date fair value of $32.99 per share were granted to the eligible employees joining the Company in connection with the AMiON acquisition. The shares will vest on a quarterly basis over four years based on continued service. The aggregate grant date fair value of these RSUs will be accounted for as post-acquisition stock-based compensation expense and will be recognized on a straight-line basis over the requisite service period.

The AMiON acquisition was accounted for as a business combination. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill as shown below. The purchase consideration allocation was as follows (in thousands):
Assets acquired:
Accounts receivable$447 
Customer relationships27,200 
Software technology820
Total assets acquired$29,167 
Liabilities assumed:
Deferred revenue$2,925 
Other liabilities633 
Net assets acquired, excluding goodwill25,609 
Total purchase consideration$74,634 
Goodwill generated from the AMiON acquisition represents the future benefits from the development of future customer relationships and the assembled workforce. Goodwill from this business combination is deductible for income tax purposes.
Intangible assets acquired are comprised of customer relationships, trademarks, and software technology with estimated useful lives of 9 years, 3 years, and 18 months, respectively. The fair value assigned to the customer relationship was determined primarily using the multiple period excess earnings method cost approach, which estimates the direct cash flows expected to be generated from the existing customers acquired. The results of operations of this business combination have been included in the condensed consolidated financial statements from the acquisition date.
The acquisition-related costs were not material and were recorded as general and administrative expense in the condensed consolidated statements of operations.
Separate operating results and pro forma results of operations for AMiON have not been presented as the effect of this acquisition was not material to the Company’s financial results.
9.  Intangible Assets and Goodwill
Intangible Assets
Intangible assets, net consisted of the following (in thousands):
June 30, 2022March 31, 2022
Customer relationships$37,069 $9,869 
Other intangibles1,531 11 
Total intangible assets38,600 9,880 
Less: accumulated amortization(3,170)(1,971)
Total intangible assets, net$35,430 $7,909 
Amortization expense for intangible assets was $1.2 million and $0.3 million for the three months ended June 30, 2022 and 2021, respectively.
No impairment charges on intangible assets were recorded during the three months ended June 30, 2022 and 2021.

As of June 30, 2022, future amortization expense is as follows (in thousands):
Year Ending March 31, Amount
Remainder of 2023$3,594 
Total future amortization expense$