Doximity, Inc. · NYSE:DOCS
Doximity — Investor Day (June 2023)
55 slides from Doximity's investor day presentation, Jun 6, 2023
Slide 1: Investor Day 2023
INVESTOR DAY 2023 June 6, 2023
Slide 2: Safe Harbor
SAFE HARBOR This presentation and associated commentary may contain forward-looking statements, including statements regarding expectations of future results of operations or financial performance of Doximity, market size and growth opportunities, the calculation of certain of our key financial and op
Slide 3: Agenda
AGENDA Tuesday, June 6; 10:30AM – 12:30PM ET Topic Speaker(s) Intro Jeff Tangney | Co-Founder & CEO Product Demo Nate Gross, MD | Co-Founder & CSO Physician Panel Moderator: Chris Longhurst, MD | CMO & CDO UCSD 10 min Break Commercial Products Ben Greenberg | SVP Commercial Products Commercial Ops C
Slide 4: Kickoff
KICKOFF Jeff Tangney CEO & Co-Founder DOCS Investor Day — June 6, 2023
Slide 5: The Physician Cloud
THE PHYSICIAN CLOUD Mission: help doctors be more productive 80%+ 20/20 of U.S. Physicians Top Hospitals and 50%+ NP/PAs1 and Pharma2 $419m $184m Schedule FY23 Revenue FY23 Adj EBITDA3 Network Phone/ News Fax Values: Physicians First, Docs-’n-Dorks, GSD 1 Telehealth Founded: 2010 Employees : 977 1.
Slide 6: Purpose Built for Medicine
PURPOSE BUILT FOR MEDICINE Professional Network Newsfeed Enterprise Tools (44% US docs) DOCS Investor Day — June 6, 2023
Slide 7: Five Years of Growth & Profit
FIVE YEARS OF GROWTH & PROFIT - 10X+ median ROI - 124% NRR with 2 Top 20 clients 1 - 44% Adj EBITDA 1. See appendix for the definition and a reconciliation of this measure to its nearest GAAP equivalent. 2. See appendix for the definition of this metric. DOCS Investor Day — June 6, 2023
Slide 8: What's Changed Since IPO
WHAT’S CHANGED SINCE IPO Revenue up 2.0x Adj EBITDA1 up 2.8x Enterprise Subs up 1.7x2 Schedule Cross-sell % of All US Physicians (both) Telehealth In Millions In Millions 1. See appendix for the definition and a reconciliation of this measure to its nearest GAAP equivalent. 2. Represents % of all U.S
Slide 9: Workflow Is Our Second Act
WORKFLOW IS OUR SECOND ACT Quarterly Active Telehealth Providers¹ - 86% “part of long-term plan”2 - 96% renewal rate3 - Cross-sell motion: 1. Virtual visits conducted by MD, DO, NP, PA credentials greater than 2 minutes in length 2. KLAS survey data, February 2023 3. Based on # of MD/DO/NP/PA under
Slide 10: Glaring Day-to-Day Inefficiencies
GLARING DAY-TO-DAY INEFFICIENCIES 80% of U.S. HC documents still sent via snail mail and fax1 78% of physicians report health IT related burnout2 73% of $4.3 trillion/yr in US HC is decided by doctors3 1. Keeping it Together Issue Brief on Exchanging Medical Documentation CAQH Nov 2020. Does not inc
Slide 11: 'Cut the Scut' with AI
‘CUT THE SCUT’ WITH AI Half of physician time today is spent on admin work. AI can save 13hr/wk, reducing average doc to 50hr/wk1. DOXIMITY AI LABS DocsGPT.com BestDoc.ai (new) - 000’s doc prompts per week - Builds on hospital Referral/Appt biz - Built-in fax to insurers - Just enter a diagnosis & b
Slide 12: What Hasn't Changed Since IPO
WHAT HASN’T CHANGED SINCE IPO FOUNDER-LED MISSION-DRIVEN TEAM 2011 2021 DOCS N’ DORKS GSD WEEKEND SUMMITS DOCS Investor Day — June 6, 2023
Slide 13: Product
PRODUCT Nate Gross, MD CSO & Co-Founder DOCS Investor Day — June 6, 2023
Slide 14: Adoption
ADOPTION >500,000 Quarterly Active Workflow Providers1 4.8 out of 5, 150K+ Ratings & Reviews2 “This app has changed my professional life.” Secure Email Fax & e-Signature Telehealth Schedule 1. Quarterly Active Workflow Providers counts all unique MDs, DOs, NPs, PAs, CRNAs, Med Students, and Pharmacist
Slide 15: Doxie Award Winners
DOXIE AWARD WINNERS DOCS Investor Day — June 6, 2023
Slide 16: James DuRant, MD
James DuRant, MD Medical Director Novant Health Center for Pediatric Development EHR Picture-in-a-Picture DOCS Investor Day — June 6, 2023
Slide 17: Fatima Stanford, MD
Fatima Stanford, MD Obesity Medicine Harvard Medical School & Mass General Conference Connect DOCS Investor Day — June 6, 2023
Slide 18: Tommy Korn, MD
Tommy Korn, MD Ophthalmologist & CDIO Sharp Healthcare Calendly DOCS Investor Day — June 6, 2023
Slide 19: Lea Ann Chen, MD
Lea Ann Chen, MD Gastroenterology, Rutgers Robert Wood Johnson Medical School DocsGPT Letters of Recommendation DOCS Investor Day — June 6, 2023
Slide 20: Chris Longhurst, MD
Chris Longhurst, MD CMO & CDO UC San Diego Health US News Voting DOCS Investor Day — June 6, 2023
Slide 21: Physician Panel
PHYSICIAN PANEL Moderated by: Chris Longhurst, MD Chief Medical Officer & Chief Digital Officer UC San Diego Health DOCS Investor Day — June 6, 2023
Slide 22: 10-Minute Break
10-MINUTE BREAK DOCS Investor Day — June 6, 2023
Slide 23: Commercial Products
COMMERCIAL PRODUCTS Ben Greenberg SVP Commercial Products DOCS Investor Day — June 6, 2023
Slide 24: Physicians' Favorite App
PHYSICIANS’ FAVORITE APP AppStore Net Promoter Score (NPS)1 45 Drug Reference App 6 Clinical Reference App -52 Medical News App -67 EHR App -88 1 AppStore NPS calculated on reviews from April 2021 to April 2023. NPS = 5 star minus 1-3 star. DOCS Investor Day — June 6, 2023
Slide 25: Core Module Portfolio
CORE MODULE PORTFOLIO We create customized packages for customers Long Form Video Short Form DOCS Investor Day — June 6, 2023
Slide 26: New Vertical Video Offerings
NEW VERTICAL VIDEO OFFERINGS Point of Care Peer to Peer DOCS Investor Day — June 6, 2023
Slide 27: Proof Point: Insurance Coverage Info at Point of Care
PROOF POINT: INSURANCE COVERAGE INFO AT POINT OF CARE Helps Prescribers and Our Customers - Over 80% of physicians say insurance coverage and patient cost are key prescribing factors - Personalized with MD-specific payor data Helps Our Business - Leads to impactful programs with proven results - Help
Slide 28: Ad Load Is Low, Ad Content Is Clinical
AD LOAD IS LOW, AD CONTENT IS CLINICAL Newsfeed Point of Care ~1 in 12 Cards Sponsored ~1 in 100 Calls Sponsored DOCS Investor Day — June 6, 2023
Slide 29: Cookies Are Crumbling
COOKIES ARE CRUMBLING - (2015) Apple Safari Plugins (ad blockers) - (2017) Apple Intelligent Tracking Prevention ITP (cookies) - (2020) Safari 3rd-party cookie Blocking by default (cookies) - (2020) Apple breaks CNAME Cloaking (3P tracker subdomain) - (2021) App Tracking Transparency enforcement (ID
Slide 30: Analysis of 150+ Brand Clients
ANALYSIS OF 150+ BRAND CLIENTS MUCH ROOM TO GROW 2022 Breakdown of Rx Digital HCP Budgets¹ Doximity Share of Rx Digital HCP Mktg¹ 71% Impacted by Cookie Crush We’ve gained 12% share over the last 5 years Jan-Feb 1. Based on analysis of vendor invoicing data from pharmaceutical companies in 2022 and
Slide 31: Commercial Operations
COMMERCIAL OPERATIONS Craig Overpeck SVP Operations DOCS Investor Day — June 6, 2023
Slide 32: Rep Access to U.S. Physicians in Decline
REP ACCESS TO U.S. PHYSICIANS IN DECLINE Pharma Rep Access to U.S. Physicians1 Includes Video Calls The number of “no see” U.S. Physicians continues to % of U.S. Doctors decline after a small rebound post-COVID 1. ZS Associates AccessMonitor DOCS Investor Day — June 6, 2023
Slide 33: While Doximity Digital Access Increases
WHILE DOXIMITY DIGITAL ACCESS INCREASES Pharma Rep Access1 vs. Doximity Growth >80% of all U.S. Physicians reachable on % of U.S. MDs Doximity’s platform 1. ZS Associates AccessMonitor DOCS Investor Day — June 6, 2023
Slide 34: Japan Digital HCP Platforms a Decade Ahead
JAPAN DIGITAL HCP PLATFORMS A DECADE AHEAD Founded 2000 Founded 2010 ~325K Docs ~1M Docs ~$2,100 Rev/Doc ~$400 Rev/Doc in Japan1 in the U.S.2 (M3 FY233) (DOCS FY23) 1. Ministry of Health, Labor and Welfare of Japan. As of 2021. 2. Federation of State Medical Boards physician census 2020. 3. M3 reven
Slide 35: Adjacent Opportunities
ADJACENT OPPORTUNITIES Reimbursement Support Point-of-Care MSL/Education Peer-to-Peer Meetings Clinical Trials Credentialing DOCS Investor Day — June 6, 2023
Slide 36: Focused GTM Strategy
FOCUSED GTM STRATEGY Manufacturers Hospitals Pharma (Large, Medium, Small) Hospital Marketing Medical Devices and Diagnostics Hospital Workflow Hospital Staffing DOCS Investor Day — June 6, 2023
Slide 37: Financials
FINANCIALS Anna Bryson CFO DOCS Investor Day — June 6, 2023
Slide 38: Financial Highlights
FINANCIAL HIGHLIGHTS 1 Significant $18B+ market opportunity in a digitally underindexed industry 2 Substantial room to grow within existing customers 3 Proven profitability with 40%+ adjusted EBITDA margins1 4 Large and growing $840M+ cash balance2 1. For FY22 and FY23. See appendix for the definition
Slide 39: Rx Market Sizing FY19
RX MARKET SIZING Year # Mega Brands Doximity US Rx $ Sales Share FY19 ~300 220B ~1% Note: Each box represents one brand with $100M+ in U.S. sales Estimated Doximity Share of HCP Marketing >50% 20-50% 5-20% <5% No Revenue in Trailing 12 Months Budgets1 1. As of March 31, 2019. Based on data from Eval
Slide 40: Rx Market Sizing FY21
RX MARKET SIZING Year # Mega Brands Doximity US Rx $ Sales Share FY21 ~350 300B ~2% Note: Each box represents one brand with $100M+ in U.S. sales Estimated Doximity Share of HCP Marketing >50% 20-50% 5-20% <5% No Revenue in Trailing 12 Months Budgets1 1. As of March 31, 2021. Based on data from Eval
Slide 41: Rx Market Sizing FY23
RX MARKET SIZING Year # Mega Brands Doximity US Rx $ Sales Share FY23 ~430 350B ~4% Note: Each box represents one brand with $100M+ in U.S. sales Estimated Doximity Share of HCP Marketing Budgets1 >50% 20-50% 5-20% <5% No Revenue in Trailing 12 Months 1. As of March 31, 2023. Based on data from Eval
Slide 42: Growth Vectors: +Brands & +Modules
GROWTH VECTORS: +BRANDS & +MODULES Modules Per Mega Brand Avg Revenue Per Mega Brand1 ~$4m # of Mega Brands We Work With ~$1.5m ~$500k 1. Average revenue per “mega brand” is total revenue for all mega brands divided by the number of mega brands we work with for fiscal 2023. A mega brand is defined as
Slide 43: Top 20 Customers Lead Growth
TOP 20 CUSTOMERS LEAD GROWTH Rev 3x+ 11 in 3yrs $10m+ Custs. Revenue from our 124% Top 20 Net Revenue Top 20 Customers Retention Rate1 in FY23 First $10m+ Cust. 1. Fiscal Year ended March 31. 1. See appendix for the definition of this metric. DOCS Investor Day — June 6, 2023
Slide 44: High Growth, Subscription-Based Revenue
HIGH GROWTH, SUBS. BASED REVENUE Revenue Subscription Revenue Visibility1 49% CAGR 1. Fiscal Year ended March 31. 1. Subscription Revenue Visibility is defined as % of annual subscription-based revenue from deals signed (“contracted”) as of the end of the quarter being reported. This chart is based o
Slide 45: Attractive Margin Profile
ATTRACTIVE MARGIN PROFILE Non-GAAP Gross Profit & Margin1 Adj. EBITDA & Margin1 Free Cash Flow1 50% 90% 107% 87% CAGR CAGR CAGR 90% 44% 44% 87% 85% 87% 31% 88% 23% 11% 1. Fiscal Year ended March 31. 1. See appendix for the definition and a reconciliation of this measure to its nearest GAAP equivalent.
Slide 46: New Repurchase Authorization
NEW REPURCHASE AUTHORIZATION $200 Million Timing: 2 Years 1. Fiscal Year ended March 31. DOCS Investor Day — June 6, 2023
Slide 47: Q&A
Q&A DOCS Investor Day — June 6, 2023
Slide 48: Thank You!
THANK YOU! DOCS Investor Day — June 6, 2023
Slide 49: Demo Booths in Siebert Hall
DEMO BOOTHS IN SIEBERT HALL CORE PRODUCT DEMO (3 BOOTHS) AI PRODUCT DEMO (BIG SCREEN) Learn, Connect, Practice Practical AI in Healthcare al Year ended March 31. Dr. Geetika Baghel Taylor Carroll Dr. Amit Phull Natasha Singh DOCS Investor Day — June 6, 2023
Slide 50: Appendix: Non-GAAP Financial Measures
APPENDIX: NON-GAAP FINANCIAL MEASURES To supplement our 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 gro
Slide 51: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS NON-GAAP GROSS PROFIT & MARGIN Year Ended March 31, 2019 2020 2021 2022 2023 (in thousands) GAAP Gross Profit $74,806 $101,488 $175,701 $303,761 $365,562 Adjusted to exclude the following: Stock-based compensation 194 173 600 4,979 9,634 Amortization of acquired intan
Slide 52: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS ADJUSTED EBITDA & MARGIN Year Ended March 31, 2019 2020 2021 2022 2023 (in thousands) Net Income $7,833 $29,737 $50,210 $154,783 $112,818 Adjustments: Acquisition and other related expenses ‒ 1,158 496 254 30 Stock-based compensation 2,343 2,353 7,252 31,442 47,834 D
Slide 53: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS FREE CASH FLOW Year Ended March 31, 2019 2020 2021 2022 2023 (in thousands) Net cash provided by operating activities $15,306 $26,199 $82,973 $126,575 $179,602 Purchases of property and equipment (114) (285) (245) (1,912) (1,701) Internal-use software development cos
Slide 54: Appendix Slides
APPENDIX SLIDES DOCS Investor Day — June 6, 2023
Slide 55: Our Modules
OUR MODULES I would love to connect on Doximity. If you’re interested in learning more about this new cranioplasty technique or if you would like to discuss a patient, please don’t hesitate to call me on my mobile at... Awareness Interactivity Peer Build brand equity and Replace face-to-face interac