Q1 2022 Doximity Inc Earnings Call
Committee fiscal first quarter, 2020.2 earnings conference call.
At this time all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session to ask a question. During the session you will need to press star 1 on your telephone please.
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And now like to turn the conference over to your first speaker today.
Doximity head of Investor Relations Mr. Perry Gold. Please go ahead.
Thank you operator, Hello, and welcome to the Doctor needs for fiscal 2022 first quarter earnings call with me on the call today are Jeff Carney co founder and CEO Doximity, Dr. Nate gross co founder and CSO and antibodies and our CFO.
Fleet disclosure of our results can be found in our press release issued earlier today as well as and our related form 8-K, all of which are available on our website at investors day Doximity Dot com.
As a reminder, today's call is being recorded and a replay will be available on our website as part of our comments today, we will be making forward looking statements. These statements are based on management's current views expectations and assumptions and are subject to various risks and uncertainties.
Actual results may differ materially and we disclaim any obligation to update any forward looking statements for outlook. Please refer to the risk factors and our S..1 which will be updated from time to time by our other reports and filings with the SEC, including our upcoming filing on form 10-Q, we.
We would like to specifically caution investors that our future performance will be harder to predict for the foreseeable future given the COVID-19 pandemic are forward looking statements are based on assumptions that we believe to be reasonable as of todays date August 10.2021.
Of note. It is doximity as policy from you and iterate and or adjust the financial guidance provided on today's call unless it is also done through a public disclosure such as a press release and who the finally from a form 8-K.
Today, we will discuss certain non-GAAP metrics that we believe would be understanding of our financial results.
A historical reconciliation to comparable GAAP metrics and be found in today's earnings release finally during the call.
For incremental metrics to provide greater insights into the dynamics of our business. These details maybe onetime in nature, and we may or may not provide updates on those metrics and the future.
I would now like to turn the call over to our CEO and cofounder debt payment.
Thanks, Perry and thank you everyone for joining our first earnings call and as a public company. We will begin with a few highlights first our top line I'm pleased to report that we delivered $72.7 million and revenue for the first quarter of our fiscal 2022 and increase of 100% over the same quarter last year.
This growth was fueled by our existing clients and our net revenue retention rate grew to 167% over the trailing 12 months medic.
Medical marketing requires highly specialized information flows and our clients are alerting that our network is well built for that purpose.
Okay and second our bottom line was equally strong this quarter with and adjusted EBITDA margin of 43% our reference selling model and third party ROI studies continue to allow us to both scale and price efficiently.
Third our network continues to grow and.
Frontline physicians grapple with high case loads and outbreaks, we're proud that our productivity tools have been able to help our E signature and facts products a record usage this quarter and we expanded our enterprise telehealth platform to an additional 24000 U S. Physicians, we now serve over 30% all use.
Physicians with our paid telehealth offering.
Okay.
Other highlights but since this is our first earnings call I do want to take a minute step back and provide some broader context on our business and market opportunity and then I'll end with a couple of products spotlights from the quarter.
For the past decade, it's been our mission and Doximity to help physicians to be more productive to provide the best care for their patients today over 80% of all U S physicians use our platform.
Our Investor Relations site has a short 5 minute video demo for my co founder and CEO, Dr. Nate growth, if you'd like to see firsthand, how we help doctors video call their patients side and paperwork remotely and keep up with medical news.
Our interactive platform allows tops hospitals and pharmaceutical companies the best brands and medicine connect efficiently with the right physicians about new treatments clinical trials and patient referrals. We then measure our clients' return on investment or ROI, using third party claims and prescription data.
In 2020 U S health care spent just 28% of its advertising dollars on digital channels per IDC.
Less than half of the 63% share other U S industry spent on digital over the same period Kirby marketer. So we believe health care is still under indexed on digital and and the early innings of a much needed decade long technological shift.
Hospital, and pharmaceutical marketers are our largest clients comprising over 80% of our revenue. They generally organized and marketing teams by brand or service line each with its own budget and decision maker landing the first brand and a blue chip client is usually the hardest for us, but then our land and expand sales motion and takes hold in 2 ways.
First we use our ROI results to cross sell the other doesn't and are still brands within the same client for example from vascular surgery neurosurgery or from drug to drug B.
With a median ROI of 10 to 1 for pharmaceutical clients and 13 to 1 for hospitals as noted in our S..1 we've had good success selling additional brands.
And Q1, we grew our number of brands per existing clients by 21% over the prior year.
Second we up sell existing client brands and service lines by expanding their audiences and interactive modules. For example, we can add and appointment booking module for hospital referrals or the ability to request samples from a local pharmaceutical rep.
And Q1, we grew our modules per existing client by 20% over the prior year. So our cross sell versus upsell growth was roughly equal.
We are a founder led mission driven team and.
And this isn't our first rodeo share even my cofounder, Joe a commercial head and I all took our last medical out from my dorm room to IPO and 2011 and.
The average tenure of my direct reports for 7 years at the company.
We believe experience matters and the complex world of Health Tech and we've each done our 10000 hours and it many times over.
It's our life's work to build better technology for medicine to care for those who care for us.
Okay, and Thats, our overview I'd like to turn now to our product spotlight last quarter. We deployed over 5000, new features and fixes to our site. That's a product led company I'd like to spotlight a couple for you know doximity dialer and residency navigator.
Doximity Dialers are cloud based <unk> platform, we launched the product and response to the pandemic and have been selling it since last summer as highlighted at the top of the call. We expanded our paid telehealth platform by 24000 and physician licenses last quarter and now for over 30% of all U S physicians with it.
In terms of active users. We're proud we grew year on year to over 300000 unique physicians nurse practitioners and physician assistants, who completed virtual visits with us in the quarter.
Our favorite among physicians for ease of use and a leader and the influential class I T ratings for our ability to integrate easily and reduce patient no shows.
While our footprint of unique telehealth providers grew our number of virtual visits per provider declined year on year due to the sharp spike and free usage, we saw last year at the start of the pandemic before we added paywall to our App Interestingly, we haven't seen an uptick and daily visits per provider since July 4th likely due to the delta.
But as a reminder, we charged for telehealth on a per user basis like zoom and not on a per visit basis.
We also shipped dozens of telehealth features this quarter here's a sampling first we partnered with up to date, the leader and evidence based clinical decision support to make it easy for providers to send their patient educational materials and seamlessly look up clinical questions during a virtual visit.
Second we added 1 tap interpreter access to make it easy for physicians to add an interpreter or family member if needed.
Third we added wall charts that doctors can show and annotate as they do and and in person visit we've licensed a library of anatomical images, but many doctors are adding and sharing their own images too.
And last we create a physician named Carter badge that appears at the bottom of a patient screen, which includes the doctor's institutional logo title and credentials it looks a bit like what a television news anchor might have and a survey of 1000 patients founded improved physician quality ratings and help patients remember the physician's name they follow.
And when needed.
As these new features demonstrates we believe telehealth will develop its own set of unique clinical and privacy features will continue to lean into R&D and this area as we build what we hope will be and industry leading solution.
Okay, now, let's shift the spotlight to a residency navigator product.
In short, we help graduating medical school students decided which residency programs to apply to it's a difficult choices that are over 4500 different residency programs and the U S. Each with its own unique strengths.
As a major life decisions as well as its a 3 to 5 year commitment to working 80 hours per week.
So building on the work, we already do with U S News and will report each year to rank our country's best hospitals. In 2014, we began gathering physician alumni reviews on residencies topics ranged from research ventures to case volumes to work life balance and some over 100000 unique physicians have rated their resident and see on our site.
In addition to alumni reviews prospective applicants can filter programs by case volumes step scores or maps of alumni.
Applicants can also peru's attending Cvs and prepare themselves for the interviews and.
After listening to the 40% of physicians, who Mary other health care professionals for the HMA.
We added a couple of match feature in Q1, it allows physicians couples to each set their own specialty and clinical criteria and 5 per residency matches within 10% to 50 miles of each other it has seen a lot of use and we've also added the ability to filter by cost of living school quality and other family friendly attributes and.
And more graduates broaden their searches outside the major metros.
We're proud to help over 90% of new doctors find their first job and to use our proprietary datasets and insights to help them begin their careers and doximity.
Okay, I'd like to and by thanking My 749, Doximity teammates who've worked so incredibly hard this past year.
I believe there's no better work and building something meaningful with people you like and with this team I get to do that every day. So thank you.
And that I'll hand, the call over to enterprises and to discuss our financial performance and our guidance.
Thanks, Jeff and thanks to everyone on the call today.
And we begin our journey as a public company. We are excited by our strong first quarter performance and our unique combination of high growth robust profitability and strong free cash flow is well reflected in our first quarter results.
First quarter revenue was $72.7 million up 100% year over year. This growth was entirely organic and largely driven by the continued successful execution of our land and expand strategy, specifically approximately 80% of our growth came from existing customers.
Our leading physician network native and interactive suite of modules and attractive ROI has enabled us to become the foundational digital partner for our customers. This is well reflected by our first quarter net revenue retention rate of 167%. This metric is defined in our earnings release and reflects subscription base trailing 12 month revenue growth.
Within existing customers net of churn.
As a reminder, our net revenue retention rate is directly correlated to our revenue growth rate and that fluctuates with it.
Our first quarter results were also driven by the growth and the number of customers spending 6 figures or more on our platform. We ended the quarter with 220 for customers contributing and at least $100000 and subscription based revenue on a trailing 12 month basis, and 58% increase from the 142 customers we have and this cohort.
For a year ago.
This increase was fairly evenly split between existing customers that we up sold and customers who were needed for our platform.
So we're encouraged by both our continued growth within the top pharmaceutical manufacturers and health systems as well as the growing breadth of company's marketing on our platform Doximity as value proposition is clearly resonating with an increasingly broad audience of mid tier and long tail pharmaceutical manufacturers and health systems, and we are even seeing more traction and.
And markets like medical devices and diagnostics.
Turning to our profitability, we are focused on there'll be and a meaningful business of scale with not only sustainable growth, but also attractive margins and as we continue down the income statement. Please note that unless otherwise stated all references to our expenses and operating results are on a non-GAAP basis and are reconciled to GAAP numbers and the earnings release.
Gross margin and the first quarter was 89% compared to 79% and the prior year period this quarter and gross margin reflected a more typical range relative to the first quarter of last year and last year's first quarter, we had experienced a significant increase and third party software and hosting costs for our newly rolled out telehealth solution, but had not yet begun earning any.
Revenue to offset those costs and the comparison point on gross margin last quarter was 88% and and the full fiscal year of 2020 was <unk> 87 per cent.
Turning to our operating expenses R&D expense and the first quarter was $12.3 million and represented approximately 17% of rounding and compared to $9.8 million and 27% of revenue a year ago.
Well, we are increasingly reaping the benefits of operating leverage as we scale R&D remains a critical investment area for us as a product led software company with over 1 third of our head count and R&D, We plan to continue to invest and accretion of new products that can both enhance our physician experience and generate new monetization avenues.
Sales and marketing expense and the first quarter was $18.1 million and represented approximately 25% of revenue compared to $12.7 million and 35% of revenue a year ago. This year over year spend increase was primarily due to standing up and new telecom sales team and continue to investigate and our other commercial solutions, even with this investor day.
Our highly efficient vertical sales model has allowed us to achieve significant leverage year over year.
Additionally from a member marketing perspective, we spent less than 1% of our revenue advertising our platform in the first quarter. This is due to the strong network effects that are organically driven our member growth to over 80% of all U S physicians and we do not anticipate this to change and the feature.
G&A expense and the first quarter was $4.3 million and represented approximately 6% of total revenue compared to $2.7 million and 7% of revenue a year ago.
Our 61% growth and G&A. It was driven primarily by costs associated with expanding our team and functionalities to effectively operating as a public company and.
Adjusted EBITDA for the first quarter was $31.2 million and adjusted EBITDA margin was 43 per cent compared to $3.9 million and 11% margin and the first quarter last year.
We generated free cash flow for the first quarter of $32.4 million compared to 7.6 million and the first quarter of last year.
Turning to our balance sheet, we ended the first quarter with no debt and $726.5 million of cash cash equivalents and marketable securities which included net IPO proceeds of $548.5 million.
Looking ahead as a newly public company, we wanted to provide a financial outlook that is consistent with how we manage the business internally as a result, we'll be providing revenue and adjusted EBITDA guidance for the next quarter and the full fiscal year for.
For the second fiscal quarter of 2022, we expect revenue and the range of $73 million to $74 million, representing 63% growth at the midpoint and we expect adjusted EBITDA and the range of $26.4 to $27.4 million, representing a 37% adjusted EBITDA margin.
For.
For the full fiscal year 2022, we expect revenue and the range of $296.5 to $299.5 million, representing 44% growth and then place we expect adjusted EBITDA and the range of $106 million to $109 million, representing a 36% adjusted EBITDA margin at the midpoint now.
To provide a few more comments on guidance with regards to our revenue outlook. We saw pull forward of demand over the last several quarters as our customers shifted their budget to digital channels and accelerated pace during the pandemic.
Moving forward as the pandemic eases, we expect for customers to increase their portion of digital spend and a more normalized growth rate.
Our margin outlook takes into account continued investment and R&D, some return to normalcy and sales and marketing as a result of more interest in client activities and conferences and higher G&A costs associated with being a public company that said, we still believe we will be able to drive meaningful leverage versus our 31% adjusted EBITDA margin and the full fiscal year <unk>.
And in 'twenty 1.
In conclusion, while we are not anticipating growth to remain at the same elevated levels. We saw this past quarter. We do believe we are and the early innings of a large and growing market opportunity aided by a secular shift to digital it's been our aim over the past decade to become a trusted digital partner for our customers and where they are.
Cited about the role we will continue to play in this industry transformation most.
And most importantly, we are proud to be a physician first company and we look forward to continuing to provide value for our physicians, our customers and our shareholders with that I will turn it over to the operator for questions.
We will now open the line for questions.
And just to ask a question. Please press the star followed by the number 1 on your telephone keypad again that is star and the number 1 the withdraw your question press the pound or hash key we have 30 minutes for Q&A.
Our first question comes from the line of Stephanie Davis with SBB Leerink. Your line is open.
So I'm sure I won't be zoster status, but I would like to be the first congratulations on a very strong quarter coming out of the day.
My first question is about your Tam there was a lot of comments about the market opportunity in the prepared remarks, but it also feels like they're only they're really looking at the pharma and provider business and you're talking about this market opportunity.
And to that extent have you ever and looked at other end markets.
And what other markets and if you think about lower pounds for debt.
And park or even some day needle healthier.
Thanks, Stephanie great to hear from you and thanks for the kind words, so I'll start by saying, we certainly do believe our largest opportunity remains the core markets that we address today, we're very underpenetrated into our $18.5 billion Tam and we believe health care shift to digital and provides us a significant opportunity to capture.
For more wallet share there now that said our network our network really certainly affords us a lot of optionality to expand into adjacent end markets and for example, as I mentioned in my prepared remarks, we are encouraged by the traction we're seeing amongst medical device and diagnostic companies a proof point of our progress here is that we actually signed our first 7 figure deal and this space last quarter.
And we're excited about the opportunity we have to further leverage our existing modules and in order to deepen our digital partnerships with these customers.
So if you had a size where that could be by end of year is it still like that for a lot of as a percentage or could it become more meaningful and Mike.
A crowd.
Yeah, but ended the year, which there'll be a single digit percentage of our revenue, but that said we.
We absolutely see opportunity here and we look to continue to deepen those digital relationships over time, but I don't want to oversell the opportunity once again.
Our core markets remain our largest opportunity.
Okay stay conservative I like it and a quick follow up on the model, obviously theres been a lot of push for it became public and with the reopening their delta variant and I'm still at home.
What are you assuming and just in terms and get Covid impact for the guidance and just seeing and I'm, calling from here as opposed to him this week credit.
Also return to virtual conferences, and maybe more digital spend as a result.
Yeah. So firstly with regards to the Delta variant, it's very difficult for anybody to predict what will happen over the next 6 to 12 months now with regards to our current guidance as expected we've seen some returns and person marketing activities since vaccines and rolled out and we believe that going forward just as we're seeing and many.
Other aspects of society, a return to normal for health care marketing is really and adoption of hybrid and with a mix of digital and face to face and then also all and we believe that our customers have seen tremendous value utilizing digital strategies. This past year and industry and hybrid model that I. Just mentioned, we think our customers will continue putting more emphasis on digital but not.
Shift will occur at a more normalized pace, which is what is reflected in our 44% topline guidance for the year.
And then very helpful and congrats again.
Thank you.
Your next question comes from the line of Ryan Daniels with William Blair. Your line is open.
And Mike Congratulations on a very strong start to life as a public company and thank you for taking the questions. So my first question is just in regards to the record use of the platform both for workflow solutions and the number of providers are seeing with your pay dollar offering does that give you more monetization opportunities.
Because of the more active engagement with the provider base and you're seeing today.
Hey, Ryan this is Jeff good to hear from you and Stephanie and good to hear from you as well I'm also not at HIMSS. This week. So I guess, that's the sign of our new World Yeah.
Yeah, Ryan Youre right, we did see record usage this past quarter with our E signature and our <unk> products and also our unique active telehealth providers was up year over year. So we really do think that active telehealth providers as a good proxy for the most active doctors across our whole platform and for those who see the most patients who are.
And especially as it typically represent the highest percentage of prescribers and refers to that.
And the ones that our customers are most interested and reaching so we do think that provides and overall lift across the rest of our business.
Okay, and given that that's the case and given that Youre now up to 30% of all doctors on the platform is that informing or changing your product development or monetization efforts on a go forward basis. If you think about kind of the R&D spend and where youre going to dedicate that because of how active that user bases and kind of a novel product that.
For unique that you might be able to add incremental solutions to drive more value to your pharma clients in particular.
Well I'll, let Dr. Nate here speak to any of the kind of M&A and longer term initiatives here, but I will say that our growth ex the paid telehealth platform and our leadership and the Klas rankings, we were leaning and heavy in terms of our research and development and there are a lot of adjacencies and as you might well imagine.
And we build out that total platform.
A lot of that way, we think we're able to build organically some of it. We're also looking at inorganic leases that Nate.
And I think it was.
I'll take that 1.
We see tremendous organic growth potential within our existing business lines. Both in terms of current white space and and favorable market trends such as the shift to digital and as you might imagine there are numerous and massive market adjacencies that we would have a competitive edge and answering thanks to our network effect and deep relationship with doctors and health care.
Ecosystem at large.
For example, post telehealth referrals, so assisting the referral flow after and outpatient visit is why hospitals and spent countless millions and buying back brick and mortar clinics and our platform has unique advantages and ensuring patients are referred to the right specialty care after a visit.
Great. That's very helpful color, Thank you and I'll hop back in the queue. Thanks.
Your next question comes from the line of Scott Berg with Needham Your line is open.
Hi, everyone echoing my congrats on a great quarter and thanks for taking my questions.
And I guess a couple here I think.
And you called out some I guess.
And that caution or conservatism on on demand trends going forward and I think we can all appreciate that.
We supposed to script for your hiring solutions a little debt are you seeing maybe an uptick or an increase of demand or usage on that product as we start reopening at least at some trajectory because and maybe physicians are more apt to make a change in this environment and what they were a year ago.
Yeah, Hi, Scott Great question, So as things reopen we are certainly see and increased demand for hiring solutions, particularly benefiting and the part time physician staffing space from the backlog of elective surgeries and starting to resume once vaccines are rolled out and we are absolutely excited by the momentum that we're seeing here now.
And the growth we saw amongst our hiring solutions customers, we're still at a lower rate and our overall business growth of a 100%. So it was not a meaningful reason behind our growth for this quarter, but going forward and we're certainly excited about the momentum we're seeing there.
Great helpful. And then I guess from a follow up question.
You all mentioned record EBIT growth and the quarter obviously.
And for record EBIT margin I should say, a 42%, which a crazy good how should we think about growth going forward and I think 1 of the questions I get most from investors is hey, the growth rates, obviously really strong the margins or probably even more impressive about the growth rate other ways that you can maybe invest either faster or heavier to sustain and most.
And now the growth that youre seeing and thank you.
Yes, so a couple of things here Scott. So firstly, absolutely we remain focused on continuing to invest and our platform to provide the best value for our physicians and our customers and our guidance reflects that you did see some compression to our EBITDA margins in the back half of the year really due to the fact that we are going to continue investing there and more specifically.
Our margin outlook takes into account a more normalized revenue growth rate and continued investment and R&D and assumption of some return to in person and client activities and conferences for sales and marketing and the same way, we're assuming our clients will adopt a hybrid sales and marketing model. So are we and then Theres also naturally higher costs associated and G&A with would be and a public company. So.
We are absolutely continuing to invest there and we'll certainly continue to invest in and top line growth.
Excellent and congrats on the corner.
Yeah.
Next question comes from the line of Brian Peterson with Raymond James Your line is open.
Thanks, and I'll Echo my congratulations.
Anything that you could talk about the rule of 40, but you guys are chugging and dynamic here I think rule of $1.40, and so just maybe 1 question for me and it's kind of a follow up for Scotts question, but if we had to think about the gating factors on growth and Jeff and I don't want to take this but.
And what would those be in and what do you see as kind of a 2 and kind of key levers for growth as we think about the next 3 to 5 years.
Hey, Brian Jeff here I'll take that 1 and I do like the rule of $1.40 line I might Oh, my credit that 1 from you.
The the short answer is that.
No there arent that many.
Huge constraints on our growth again, and we think we're in the early innings of a very very large addressable market.
And again physicians on a day to day basis decide and 14% of our GDP as a country right and being able to help connect that educate that provide a highly specialized information that they need to do their jobs well each day, we think is.
A very large.
Undertaking that all said the health care industry, and we moved so fast and so as we had pointed out and are.
Top of the call comments, and only 28% of healthcare advertising was digital and 2020 and.
And you know that that shift, it's moving a little slower than other industries, which have been 63 per cent digitally and 2020.
And then of course, we have our own challenges and hiring great engineers and growing our product set and skills, but I'd say the biggest rate limiter is just how quickly health care moves to digital.
Great. Thanks, Ed.
Your next question comes from the line of Jackson Ader from Jpmorgan. Your line is open.
Great and thanks for taking my questions guys.
And I'll just follow up on that shift to digital.
Great.
<unk> that 2020, and and the Delta there and it's kind of a 1 time thing, but if we think about the shift from digital and a normal environment, what what percentage of the pie do you expect debt will typically shift to digital each year.
I'm, sorry, I was on mute there.
Thanks, Jackson, Great question prior to Covid hitting.
And I D C and D market or other should put our reported seeing a few point shift each year.
And from farmers.
Normal shift it would seem to me.
5 points a year.
I think this past year, we saw it grow a lot more than that as it as it should given.
<unk>.
And we're completely shut down for the year.
Our forecast here as we look out and we do expect a return to that normalized shift of of 5.7 points, a year and moving to digital and healthcare.
Okay, Alright, great and then I was worried for a second year of net you werent.
And you're expecting any shifts given the Thailand.
And the and a quick question for you.
Net revenue retention that accelerated over the I think what people thought was the possibly unsustainable 1 right at the end of last quarter or so.
And what what should we be thinking about for the remainder of the year on that metric.
Thanks, Jackson and I will remember to unseat here. So net revenue retention going forward and you have mentioned net revenue retention is a direct function of our revenue growth. So while we are not guiding for this metric, we do think that looking back and kind of pre pandemic levels and looking at our fiscal 2019 and fiscal 2020, we're.
We had net revenue retention and the range of 130% plus it's probably more representative of what our go forward will look like post pandemic, which is still a very robust net revenue retention rate and we're incredibly happy with that.
Okay, great. Thank you.
Your next question comes from the line of Ricky Goldwasser from Morgan Stanley. Your line is open.
Yeah. Thank you hi, good afternoon.
And if you go back to your comment around sort of pull forward of demand. It seems that the guidance sort of implies second half growth.
And it around for 'twenty.
20 plus percent.
And we think about sort of 2022, and so as a base for 'twenty 3 and I know.
And let's say, it's early and you just guided for 2022, but how should we think about sort of the peak net.
Debt 22, as a base here right is that sort of the growth rate data and we should be soft going into 2020 for me.
And if you can just talk a little bit about that.
Debt based on and and growth from there.
Yes of course, Ricky great to hear from you. So well, we certainly don't know what the dynamic will necessarily be and the future. We do believe that the rate at which budgets will shift to digital channels will be closer to what were seeing pre pandemic, if not slightly more pronounced given the significant value that we believe our customers from realized utilizing this day.
Channel at this time last year. So once again I would point back to and what we're seeing pre pandemic and our and our 2019.2020 growth.
So around a line that kind of 525% upsell.
Is that how much net revenue against that.
From a net revenue retention rate was 130% plus for those 2 years okay great.
That's helpful and then.
And just 1 follow up question.
When we think about the number of cuts.
Customers with more than 100000 and revenue attainment with you are way ahead on your goal for 2022 can you just share with US what was total revenues from these customers for the overall mix.
Oh, sorry, I was on mute they represented 88% of our total trailing 12 month revenue.
Okay, great. Thank you very much.
Your next question comes from the line of Sean Wieland from Piper Sandler Your line is open.
Hi, Thanks, very much and we can leave it off mute I don't mind, a little background noise.
And what can you tell us about them and tell them.
Telehealth segment about the economics of this business, if we can put any numbers around it.
And part 2 of the question is how are you thinking about going out for the enterprise market for more of our enterprise level strategy Tele medicine.
Hey, Sean Jeff here, and maybe I should just stay on mute.
Yeah, so the <unk> market and overall, it's still a very small percentage of our revenue and went from a 2% maybe 3% or so this past quarter.
We're doing very well and the enterprise side effect most of that revenue is from the enterprise side. So as we had.
Stated out on the road show, we have over 150 different health systems, who have worked with us and that's really where most of our traction thats been so we're deep into doing the EHR integrations and other work to work with these these larger health systems and we're also very popular among small practices and we've done well there, but actually the bigger numbers are from the enterprise.
Hi.
What is roughly the mix between enterprise and individual subscriptions.
Subscriptions.
I don't know that off the top of my head, but I'd, just say that the vast majority is enterprise.
Got it alright, thank you very much.
Mhm.
Your next question comes from the line of Mike Mann with Goldman Sachs. Your line is open.
Hey, good afternoon, and thank you very much for the question and I just have 2 first I just wanted to ask about Optionality would you be able to share any progress that youre, making and yes.
And any new business.
Development initiatives, whether thats investing more aggressively and beyond physicians or targeting and advertisers.
On the core base of pharma manufacturers and health systems.
And Mike.
Sure. So we have been making on the user side strong.
Growth within nurse practitioners and M. P. As we have over half of nurse practitioners and plays on the site and.
We believe that will lead to some meaningful opportunities to continue to build out a bit.
Is that really matter for them and the future.
And already alluded to we've had some success from the med device and diagnostic space this past quarter.
But what I really wanted to make sure I emphasize is that with all of our business development. We are a product led and software company.
Trying to build a meaningful business at scale that we will use both our partnerships and our healthy level of cash on the balance sheet to be able to move quickly and with confidence into building new products and I think our our telehealth and <unk>.
And that we had and to that industry and a great example of that and does that.
Landscape evolves.
And I think the size of our platform as well as that cash on the balance sheet might allow us to extend our speed and confidence to potentially extend BD.
Beyond and to make and synergistic acquisitions, but those are more likely to be for talent where for product less so for revenue.
As I alluded to before we see tremendous organic growth potential and our existing business line.
Great. Thank you very much.
And second would you be able to talk about any expected seasonality as it relates to the timing of marketing campaigns for the rest of the year or maybe in the quarter that may be worth calling out if theres anything for thank you.
Yeah. Thanks, Mike So theres not any expected revenue seasonality what we're experiencing is very quick program launches on our platform actually which has contributed to a quicker revenue conversion for us.
This is a result of both our customers adopting these more robust and focused digital strategies as well as our investment and our customer success team as they've become really increasingly efficient and helping our customers quickly develop and launch their programs and so there isn't any expected seasonality going forward.
Great. Thank you very much.
And there are no further question over the phone line at this time I would now like to turn the call back to Mr. Jeff Tangy Sir.
Well. Thank you I want to thank everyone for joining us today, we look forward to talking to you all next quarter.
So much.
This concludes today's conference call. Thank you for participating you may now disconnect.
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