Doximity, Inc. · NYSE:DOCS
Doximity — Investor Day (June 2023)
47 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
DOCS Investor Day — June 6, 2023 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
Slide 3: Agenda
DOCS Investor Day — June 6, 2023 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 Com
Slide 4: Kickoff
DOCS Investor Day — June 6, 2023 KICKOFF Jeff Tangney CEO & Co-Founder
Slide 5: The Physician Cloud
DOCS Investor Day — June 6, 2023 THE PHYSICIAN CLOUD 1. As of 3/31/23. 2. Top 20 Pharmaceutical Manufacturers based on data from FiercePharma, Top 20 hospitals based on U.S. News & World Report’s Best Hospitals 2021-2022 Rankings as of 3/31/23. 3. See appendix for the definition and a reconciliation
Slide 6: Five Years of Growth & Profit
DOCS Investor Day — June 6, 2023 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. - 10X+ median ROI - 124% NRR with Top 20 clients - 44% Adj EBITDA 1 2 FIVE YEARS OF GROWTH & PROFIT
Slide 7: What's Changed Since IPO
DOCS Investor Day — June 6, 2023 Revenue up 2.0x Adj EBITDA1 up 2.8x WHAT’S CHANGED SINCE IPO 1. See appendix for the definition and a reconciliation of this measure to its nearest GAAP equivalent. 2. Represents % of all U.S. MDs and DOs covered by paid Doximity enterprise subscriptions. As of 3/31.
Slide 8: Workflow Is Our Second Act
DOCS Investor Day — June 6, 2023 Quarterly Active Telehealth Providers¹ WORKFLOW IS OUR SECOND ACT 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 enterprise subscriptions retained in FY2
Slide 9: Glaring Day-to-Day Inefficiencies
DOCS Investor Day — June 6, 2023 GLARING DAY-TO-DAY INEFFICIENCIES of U.S. HC documents still sent via snail mail and fax1 80% of physicians report health IT related burnout2 78% 1. Keeping it Together Issue Brief on Exchanging Medical Documentation CAQH Nov 2020. Does not include email. 2. 2018 Sur
Slide 10: 'Cut the Scut' with AI
DOCS Investor Day — June 6, 2023 ‘CUT THE SCUT’ WITH AI DocsGPT.com - 000’s doc prompts per week - Built-in fax to insurers - Psych & PCP biggest users - Adding to our post-call flow Half of physician time today is spent on admin work. AI can save 13hr/wk, reducing average doc to 50hr/wk1. DOXIMITY
Slide 11: What Hasn't Changed Since IPO
DOCS Investor Day — June 6, 2023 WHAT HASN’T CHANGED SINCE IPO WEEKEND SUMMITS FOUNDER-LED MISSION-DRIVEN TEAM DOCS N’ DORKS GSD 2011 2021
Slide 12: Product
DOCS Investor Day — June 6, 2023 PRODUCT Nate Gross, MD CSO & Co-Founder
Slide 13: Purpose Built for Medicine
DOCS Investor Day — June 6, 2023 PURPOSE BUILT FOR MEDICINE Professional Network WorkflowNewsfeed
Slide 14: Adoption
DOCS Investor Day — June 6, 2023 ADOPTION “This app has changed my professional life.” 4.8 out of 5, 150K+ Ratings & Reviews2 Quarterly Active Workflow Providers1 >500,000 1. Quarterly Active Workflow Providers counts all unique MDs, DOs, NPs, PAs, CRNAs, Med Students, and Pharmacists who used at le
Slide 15: Physician Panel
DOCS Investor Day — June 6, 2023 PHYSICIAN PANEL Moderated by: Chris Longhurst, MD Chief Medical Officer & Chief Digital Officer UC San Diego Health
Slide 16: Commercial Products
DOCS Investor Day — June 6, 2023 COMMERCIAL PRODUCTS Ben Greenberg SVP Commercial Products
Slide 17: Physicians' Favorite App
DOCS Investor Day — June 6, 2023 PHYSICIANS’ FAVORITE APP 1 AppStore NPS calculated on reviews from April 2021 to April 2023. NPS = 5 star minus 1-3 star. -88 -67 -52 45 AppStore Net Promoter Score (NPS)1 Drug Reference App Clinical Reference App Medical News App EHR App 6
Slide 18: Core Module Portfolio
DOCS Investor Day — June 6, 2023 CORE MODULE PORTFOLIO Long Form Video Short Form We create customized packages for customers
Slide 19: New Vertical Video Offerings
DOCS Investor Day — June 6, 2023 NEW VERTICAL VIDEO OFFERINGS Point of Care Peer to Peer
Slide 20: Proof Point: Insurance Coverage Info at Point of Care
DOCS Investor Day — June 6, 2023 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 p
Slide 21: Ad Load Is Low, Ad Content Is Clinical
DOCS Investor Day — June 6, 2023 AD LOAD IS LOW, AD CONTENT IS CLINICAL Newsfeed ~1 in 12 Cards Sponsored Point of Care ~1 in 100 Calls Sponsored
Slide 22: Cookies Are Crumbling
DOCS Investor Day — June 6, 2023 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 Trac
Slide 23: Analysis of 150+ Brand Clients: Much Room to Grow
DOCS Investor Day — June 6, 2023 ANALYSIS OF 150+ BRAND CLIENTS MUCH ROOM TO GROW 2022 Breakdown of Rx Digital HCP Budgets¹ Doximity Share of Rx Digital HCP Mktg¹ 1. Based on analysis of vendor invoicing data from pharmaceutical companies in 2022 and Doximity estimates. 71% Impacted by Cookie Crush
Slide 24: Commercial Operations
DOCS Investor Day — June 6, 2023 COMMERCIAL OPERATIONS Craig Overpeck SVP Operations
Slide 25: Rep Access to U.S. Physicians in Decline
DOCS Investor Day — June 6, 2023 REP ACCESS TO U.S. PHYSICIANS IN DECLINE 1. ZS Associates AccessMonitor Pharma Rep Access to U.S. Physicians1 The number of “no see” U.S. Physicians continues to decline after a small rebound post-COVID % o f U .S . D oc to rs Includes Video Calls
Slide 26: While Doximity Digital Access Increases
DOCS Investor Day — June 6, 2023 WHILE DOXIMITY DIGITAL ACCESS INCREASES 1. ZS Associates AccessMonitor Pharma Rep Access1 vs. Doximity Growth >80% of all U.S. Physicians reachable on Doximity’s platform % o f U .S . M D s
Slide 27: Japan Digital HCP Platforms a Decade Ahead
DOCS Investor Day — June 6, 2023 JAPAN DIGITAL HCP PLATFORMS A DECADE AHEAD ~325K Docs in Japan1 ~1M Docs in the U.S.2 ~$2,100 Rev/Doc (M3 FY233) ~$400 Rev/Doc (DOCS FY23) Founded 2000 Founded 2010 1. Ministry of Health, Labor and Welfare of Japan. As of 2021. 2. Federation of State Medical Boards p
Slide 28: Adjacent Opportunities
DOCS Investor Day — June 6, 2023 ADJACENT OPPORTUNITIES Clinical Trials Peer-to-Peer Point-of-Care Reimbursement Support Credentialing Meetings MSL/Education
Slide 29: Focused GTM Strategy
DOCS Investor Day — June 6, 2023 FOCUSED GTM STRATEGY Hospital Marketing Hospital Workflow Hospital Staffing Manufacturers Hospitals Pharma (Large, Medium, Small) Medical Devices and Diagnostics
Slide 30: Financials
DOCS Investor Day — June 6, 2023 FINANCIALS Anna Bryson CFO
Slide 31: Financial Highlights
DOCS Investor Day — June 6, 2023 FINANCIAL HIGHLIGHTS Significant $18B+ market opportunity in a digitally underindexed industry Substantial room to grow within existing customers Proven profitability with 40%+ adjusted EBITDA margins1 Large and growing $840M+ cash balance2 1 2 3 4 1. For FY22 and FY
Slide 32: Rx Market Sizing FY19
DOCS Investor Day — June 6, 2023 Estimated Doximity Share of HCP Marketing Budgets1 1. As of March 31, 2019. Based on data from Evaluate Pharma and Doximity estimates. Note: Each box represents one brand with $100M+ in U.S. sales Year FY19 RX MARKET SIZING # Mega Brands ~300 US Rx $ Sales 220B Doxim
Slide 33: Rx Market Sizing FY21
DOCS Investor Day — June 6, 2023 1. As of March 31, 2021. Based on data from Evaluate Pharma and Doximity estimates. >50% 20-50% 5-20% <5% No Revenue in Trailing 12 Months RX MARKET SIZING Year FY21 # Mega Brands ~350 US Rx $ Sales 300B Note: Each box represents one brand with $100M+ in U.S. sales E
Slide 34: Rx Market Sizing FY23
DOCS Investor Day — June 6, 2023 1. As of March 31, 2023. Based on data from Evaluate Pharma and Doximity estimates. >50% 20-50% 5-20% <5% No Revenue in Trailing 12 Months RX MARKET SIZING Year FY23 # Mega Brands ~430 US Rx $ Sales 350B Note: Each box represents one brand with $100M+ in U.S. sales E
Slide 35: Growth Vectors: +Brands & +Modules
DOCS Investor Day — June 6, 2023 GROWTH VECTORS: +BRANDS & +MODULES # of M eg a B ra nd s W e W or k W ith ~$500k ~$1.5m ~$4m Modules Per Mega Brand Avg Revenue Per Mega Brand1 1. Average revenue per “mega brand” is total revenue for all mega brands divided by the number of mega brands we work with
Slide 36: Top 20 Customers Lead Growth
DOCS Investor Day — June 6, 2023 1. Fiscal Year ended March 31. First $10m+ Cust. 11 $10m+ Custs. 124% Top 20 Net Revenue Retention Rate1 in FY23 1. See appendix for the definition of this metric. Rev 3x+ in 3yrs TOP 20 CUSTOMERS LEAD GROWTH Revenue from our Top 20 Customers
Slide 37: High Growth, Subscription-Based Revenue
DOCS Investor Day — June 6, 2023 HIGH GROWTH, SUBS. BASED REVENUE 1. Fiscal Year ended March 31. 49% CAGR Revenue Subscription Revenue Visibility1 1. Subscription Revenue Visibility is defined as % of annual subscription-based revenue from deals signed (“contracted”) as of the end of the quarter bei
Slide 38: Attractive Margin Profile
DOCS Investor Day — June 6, 2023 ATTRACTIVE MARGIN PROFILE 1. Fiscal Year ended March 31. Non-GAAP Gross Profit & Margin1 Adj. EBITDA & Margin1 Free Cash Flow1 87% 50% CAGR 88% 87% 85% 90% 90% 11% 23% 31% 44% 44% 107% CAGR 87% CAGR 1. See appendix for the definition and a reconciliation of this meas
Slide 39: Financial Outlook
DOCS Investor Day — June 6, 2023 FINANCIAL OUTLOOK
Slide 40: Target: $1B+ in FY28
DOCS Investor Day — June 6, 2023 TARGET: $1B+ IN FY28 1. Fiscal Year ended March 31. Revenue - Shift to digital: continued market growth and share gains - Expansion opportunities: peer to peer and point of care - Top customers lead growth: increase in number of 8-figure customers ~20% CAGR How We Ge
Slide 41: Key Inputs on Path to $1B+
DOCS Investor Day — June 6, 2023 KEY INPUTS ON PATH TO $1B+ Business Line Contribution Number of 8 Figure Customers ~80% ~15% ~5% ~20% CAGR +2-3 Avg per Year
Slide 42: Long-Term Operating Model Update
DOCS Investor Day — June 6, 2023 LONG-TERM OPERATING MODEL UPDATE 1. Fiscal Year ended March 31. 85-90% Non-GAAP Gross Margin1 45%+ Adj. EBITDA Margin1 Rule of 65 or Greater, Long Term2 1. See appendix for the definition and a reconciliation of this measure to its nearest GAAP equivalent. 2. We calc
Slide 43: New Repurchase Authorization
DOCS Investor Day — June 6, 2023 NEW REPURCHASE AUTHORIZATION 1. Fiscal Year ended March 31. Timing: 2 Years $200 Million
Slide 44: Appendix: Non-GAAP Financial Measures
DOCS Investor Day — June 6, 2023 APPENDIX: NON-GAAP FINANCIAL MEASURES 1. Fiscal Year ended March 31. 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
Slide 45: GAAP to Non-GAAP Reconciliations: Gross Profit & Margin
DOCS Investor Day — June 6, 2023 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,
Slide 46: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA & Margin
DOCS Investor Day — June 6, 2023 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 Depreciation and amortizat
Slide 47: GAAP to Non-GAAP Reconciliations: Free Cash Flow
DOCS Investor Day — June 6, 2023 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) Inte