Q3 2022 Doximity Inc Earnings Call

Speaker 1: We would like to specifically caution investors that our future performance will be harder to predict in the foreseeable future given the COVID-19.

We would like to specifically caution investors that our future performance will be harder to predict when the receivable future given the COVID-19 pandemic.

Speaker 1: Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, February 8, 2022. Of note, it is Doximity's policy to neither reiterate nor adjust the financial guidance provided on today's call unless it is also done through public disclosure, such as a press release through the filing of a Form 8 tag.

Forward looking statements are based on assumptions that we believe to be reasonable as of todays date February 2022.

Note that as Dr. <unk> policy to neither reiterate nor adjust the financial guidance provided on today's call unless it is also done through a public disclosure such as a press release I think the filing of a form 8-K.

Today, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results a historical reconciliation to comparable GAAP metrics can be found in today's earnings release. Finally during the call. We may offer incremental metrics to provide greater insights into the dynamics of our business. These details maybe onetime in nature, we may or may not provide updates on that.

Speaker 1: Today we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A historical reconciliation to comparable GAAP metrics can be found in today's...

Speaker 1: Finally, during the call, we may offer incremental metrics to provide greater insights into the dynamics of our...

Speaker 1: These details may be one time in nature, we may or may not provide updates on those metrics in the future. Okay, I would now like to turn the call over to our CEO and co-founder, Jeff Tangy. Okay?

These metrics in the future.

Okay, I would now like to turn the call over to our CEO and co founder Justin Yep.

Speaker 1: Thanks, Barry, and thanks everyone for joining our third quarter fiscal 2022 earnings call. We have four main updates today, our financial results, an acquisition, a team transition, and our network growth. It's a lot to cover, so I'll jump right in. First, our financial results. We had $97.9 million in revenue for the third quarter fiscal 2022, an increase of 67% over the same quarter last year, and 13% above the midpoint of our guidance.

Thanks, Barry and thanks, everyone for joining our third quarter fiscal 2022 earnings call with <unk>.

Four main updates today, our financial results and acquisition, a key transition and our network growth. It's a lot to cover so I'll jump right in.

First our financial results, we had $97 9 million in revenue for the third quarter of fiscal 2022, an increase of 67% over the same quarter last year and 13% above the midpoint of our guidance as a result, we are raising our annual guidance by 4% to a midpoint of 300.

Speaker 1: As a result, we are raising our annual guidance by 4% to a midpoint of $339.4 million for our fiscal 2022 ending March 31st, which translates to 64% growth year on year. With a net revenue retention rate of 171%, our growth was once again led by our existing clients, which include all of the top 20 hospitals and all of the top 20 pharmaceutical companies.

$39 4 million for fiscal 2022, ending March 31.

Which translates to 64% growth year on year with a net revenue retention rate of 171%. Our growth was once again led by our existing clients, which include all of the top 20 hospitals and all of the top 20 pharmaceutical companies. Our interactive platform allows them to connect efficiently with the right physicians about new.

Speaker 1: Our interactive platform allows them to connect efficiently with the right positions about new treatments, clinical trials, and patient referrals.

Treatments clinical trials and patient referrals, we then measure our clients' ROI using third party claims and prescription data and that proof of value has allowed us to expand nicely as they begin their shift to digital we also posted record profits this quarter, our adjusted EBITDA margin was 48% or 40 <unk>.

Speaker 1: within measure our clients ROI using third party claims in prescription data. And that proof of value has allowed us to expand nicely as they begin their shift to digital.

Speaker 1: We also posted record profits this quarter. Our adjusted evid-dom margin was 48% or $47 million, which was 45% above the midpoint of our guidance.

$7 million, which was 45% above the midpoint of our guidance our vertical sales model continues to provide us with strong leverage in the attractive ROI, we deliver for our clients remains a incredibly powerful retention and upsell tool all in all we're pleased with our Q3 financial results.

Speaker 1: Our vertical sales model continues to provide us with strong leverage. And the attractive ROI we deliver for our clients remains an incredibly powerful retention and upsell tool. All in all, we're pleased with our Q3 financial results.

Okay now to turn to today's announcement that we're acquiring Amazon dot com, a leading physician on call scheduling site for $53 $5 million in cash plus up to $29 million in earn outs and equity compensation over the next four years, we expect it to close April one we're excited to partner with.

Speaker 1: Okay, time out of turn to today's announcement that we're acquiring Amion.com, a leading physician on-call scheduling site for $53.5 million in cash, plus up to $29 million in current outs and equity compensation over the next four years. We expect it to close April 1st.

Speaker 1: We're excited to partner with Stuart Karen, who founded Amaion 24 years ago to help his physician, White Jodie, answer the frequent question, Amaion, and run the Ever Changing On-Calls schedules of her pediatric program. Years before Salesforce.com or others, Stuart pioneered an enterprise cloud model with a single web deployment and affordable subscription pricing. Thank you.

Karen who founded my own 24 years ago to help us position with Jody answered. The frequent question am I on and run the ever changing on call schedules of her pediatrics program years before Salesforce dot com or others Stuart pioneered in enterprise cloud model with a single web deployment and affordable subscription pricing.

It was a hit and with a steady stream of new features like the ACG <unk> regulated work hour reports or easy shifts swaps <unk> grew to manage schedules for nearly 200000 U S. Physicians at thousands of hospitals, including 18 of the top 20, while primarily a product acquisition for US <unk> is also a high <unk>.

Speaker 1: And with a steady stream of new features like the ACG and the regulated work hour reports or easy shift swaps.

Speaker 1: Am I agree to manage schedules for nearly 200,000 US physicians at thousands of hospitals, including 18 of the top 20? While primarily a product acquisition for us, Am I on is also a high margin subscription business.

Arjun subscription business in the calendar year 2021, we estimate Amazon did roughly $5 million in revenue and over $3 $5 million and adjusted EBITDA.

Speaker 1: And the calendar year 2021 we estimate Amian did roughly $5 million in revenue and over $3.5 million in a Jeff DeBudah.

We work closely with Stewart at Amazon for over a decade now as an API in development partner among the 50 plus partner companies, who actively use our logging with Doximity AP eyes.

Speaker 1: We work closely with Stuart and Amion for over a decade now as an API and development partner. Among the 50-plus partner companies who actively use our login with Doximity APIs, Amion is among the most popular. Many day-to-day physician workflows center around whose uncalled.

<unk> is among the most popular many day to day physician workflows center around Who's Oncall strategically Amazon as a key piece to our physician cloud by integrating scheduling alongside our secure messaging Cvs referrals and telehealth tools Doximity as mission is to build software.

Speaker 1: Strategically, Amion adds a key piece to our physician cloud by integrating scheduling alongside our secure messaging, CVs, referrals, and telehealth tools. Doximity's mission is to build software to make physicians more productive so that they can provide the best care for their patients.

To make physicians more productive so that they can provide the best care for their patients.

Speaker 1: We're thrilled to add another critical day-to-day physician workload tool, and we're excited to explore the optionality we'll unlock across all of our major businesses. Okay.

Thrilled to add another critical day to day physician workflow tool and we're excited to explore the optionality will unlock across all of our major businesses.

Okay next up 18 transition.

Speaker 1: After a distinguished 33 year career, our Chief Commercial Officer Joe Klein is retiring. I'm eternally grateful for Jim's friendship and leadership as our CCO here in the last four years.

After a distinguished 33 year career, our Chief commercial Officer, Joe Klein is retiring.

Early grateful for his friendship and leadership as our CTO here in the last four years, starting tomorrow, Joe will move into a full time advisor role until his retirement. This fall Joe has built a deep bench and is going out strong that is leaving us after delivering a record breaking quarter and year to back up that last point, we're providing early.

Speaker 1: starting tomorrow, Joe will move into a full time advisor role until his retirement this fall. Joe is built a deep bench and is going out straw that is leaving us after delivering a record breaking quarter and year. To back up that last point, we're providing early revenue guidance for our fiscal year 2023, which starts in April .

Revenue guidance for our fiscal year 2023, which starts in April in short, we expect our fiscal 2023 revenue to grow 33% year on year to approximately $450 million that is 6% above the current factset consensus of $425 million.

Speaker 1: In short, we expect our fiscal 2023 revenue to grow 33% year on year to approximately $450 million.

Speaker 1: that is 6% above the current fax that consensus of $425 million. Our guidance does not yet.

Our guidance does not yet include Amazon and.

Speaker 1: and we'll provide more detailed guidance on our next quarterly call.

And we will provide more detailed guidance on our next quarterly call with.

Speaker 1: With Joe's retirement, Paul Jorgensen has been appointed our chief revenue officer. Formerly a senior vice president, Paul had let our fastest growing businesses to pass five years, including the recent launch of our telehealth business.

<unk> chose retirement, Paul Jorgensen has been appointed our Chief revenue Officer, formerly a senior Vice President Paul has led our fastest growing businesses the past five years, including the recent launch of our telehealth business.

Speaker 1: Paul is an industry veteran whose career includes four years running enterprise sales at one medical and nine years growing our largest pharmaceutical clients at my previous company, Epochody.

<unk> is an industry veteran whose career includes four years running enterprise sales side, one medical and nine years growing our largest pharmaceutical clients at my previous company <unk>.

Speaker 1: The team and I look forward to working with Paul and his new role and wish Joe the very best in his retirement.

And I look forward to working with Paul and his new role and wish Joe the very best in his retirement.

Speaker 1: Okay, to close, here's an update on our network growth. Q3 was a record quarter for a network across a number of dimensions here a few. First, our eSignature and FACS products saw record usage in Q3 as more doctors brought their at-home digital workflows back to the office by preferring to sign paperwork on their phones.

Okay to close here's an update on our network growth Q3 was a record quarter for our network across a number of dimensions here are a few first our E signature and facts products saw a record usage in Q3 as more doctors brought their at home digital workflows back to the office by preferring to sign paperwork.

On their phones.

Speaker 1: Second, our continuing medical education or CME credits claimed also hit record highs, up 25% quarter on quarter to hundreds of thousands of credit hours, as in-person lectures increasingly get replaced by our anytime anywhere, newsfeed articles, which are algorithmically personalized to each doctor's clinical practice.

Second our continuing medical education or CME credits claimed also hit record highs up 25% quarter on quarter to hundreds of thousands of credit hours as in person lectures increasingly get replaced by our anytime anywhere newsfeed articles, which our algorithm to create personalized to each doctors.

Clinical practice.

Speaker 1: third, our job postings grew four times year on year as the great resignation hits medicine and as physicians weigh their post pandemic job options.

Third our job postings grew four times year on year as the great resignation hits medicine, and as physicians away their post pandemic job options.

Speaker 1: And last, we expanded our paid telehealth platform by an additional 23,000 physicians last quarter. Continued growth of our active telehealth user footprint brings us to a new all-time high, with over 350,000 unique providers completing telehealth visits with us in the last quarter.

And last we expanded our paid telehealth platform by an additional 23000 physicians last quarter.

Continued growth of our active telehealth user footprint brings us to a new all time high with over 350000 unique.

Providers, completing telehealth visits with us.

In the last quarter.

Speaker 1: of note, nearly all, 99% of our hospital clients renew their telehealth agreements with us this year. So we're pleased that hundreds of hospitals are making us part of their long-term telehealth plan.

Of note nearly all 99% of our hospital clients renew their telehealth agreements with us. This year. So we're pleased that hundreds of hospitals are making us part of their long term telehealth plans.

Speaker 1: We're also proud to be named the best in class by the much-watched class healthcare IT rankings, which are based on classes' phone interviews with thousands of hospital clients. In the telehealth video conferencing category for 2022, we earned the best in class top overall score of 92 out of 100, beating out Microsoft Teams, Zoom, and a bunch of others for our ease of use, account teams, and EHR integration.

We're also proud to be named the best in class by the much watched class health care IP rankings, which are based on classes phone interviews with thousands of hospital clients in the Telehealth video conferencing category for 2022, we earned the best in class top overall score of 92 out of 100.

Beating out Microsoft teams zoom, and a bunch of others or our ease of use account teams and EHR integrations.

Speaker 1: In some, our network fly will grew last quarter as our physician cloud features like e-cigatures, CME and telehealth became the preferred GoFour tool set for more physicians. Alongside our EHR partners, we're excited to streamline and digitize the many paper-based workflows that physicians face today.

In sum our network flywheel grew last quarter as our physician cloud features like E signatures CME and telehealth became the preferred go forward toolset for more physicians.

Alongside our EHR partners, we're excited to streamline and digitize the many paper based workflows that physicians face today.

Okay I'd like to end by thanking the entire Doximity team, who worked incredibly hard to deliver a spectacular quarter and with that I'll hand, it over to our CFO and our pricing to discuss our financials and revised guidance.

Speaker 1: Okay, I'd like to end by thanking the entire Doximity team who were incredibly hard to deliver a spectacular quarter. And with that, I'll hand it over to our CFO and Abrithon to discuss our financials and revised guidance. Anna? Thanks, Jeff, and thanks to everyone on the...

Thanks, Jeff and thanks to everyone on the call today.

Speaker 2: We're very excited by our third quarter results, as well as the announcing of our M-Lion.

We're very excited by our third quarter results as well as the announcement of our <unk>.

Acquisition and the momentum in our business is incredibly strong as we look ahead to fiscal 2023.

Speaker 2: And the momentum in our business is incredibly strong as we look ahead to fiscal 2023. First, I'll start with a few. I'll start with a few.

First I'll start with a few highlights from this past quarter.

Third quarter revenue grew 67% year over year, $97 9 million significantly exceeding the high end of our guidance range.

Speaker 2: The recorder revenue grew 67% year-over-year to 97.9 million. It's significantly exceeding the high end of our guidance.

Speaker 2: This app performance was due to both continued execution across all of our

Is that performance was due to both.

<unk> across all of our business lines and strong growth amongst our marketing solutions customers.

Speaker 2: and strong up throw growth, amongst our market economic violations customers.

Speaker 2: As a reminder, our pharmaceutical and health system customers typically engage in an annual upfront buying cycle at calendar year end where they purchase the majority of their next year's subscription.

As a reminder, our pharmaceutical and health system customers typically engage in an annual upfront buying cycle at calendar year end, where they purchased the majority of their next year subscriptions.

Speaker 2: Then throughout the course of the year, these customers used their remaining budget to purchase upsells, an additional audience members, modules, or brands for their program.

Then throughout the course of the year with customers meet their remaining budgets to purchase upsells and add additional audience members module or brands for their programs.

Speaker 2: With marketing strategies evolving and budget shifting to digital in real time, we saw many of our clients doubling down with us throughout the year, which is represented in our strong third quarter.

With marketing strategy is evolving and budget shifting to digital and real time.

Any of our clients doubling down with us throughout the year, which is represented in our strong third quarter performance.

Speaker 2: We believe that stuff out in demand is an incredibly positive sign that not only are dollars continuing to move digital, but proximity is capturing a larger portion of this incremental budget as a result of the strong ROI delivered by our platform. Additionally, the scale of the shift is exemplified by the fact that our largest customers, many of whom are the most important the longest.

We believe this step up in demand is an incredibly positive sign that not only are continuing to move digital but that somebody is capturing a larger portion of the incremental budget as a result of the strong ROI delivered by our platform. Additionally, the scale of the shift as exemplified by the fact that our largest customers many of whom are part.

The long term.

One is growing at that.

Speaker 2: Our top five customers grew 90% in Q3 on a 12 month.

Our top five customers grew 90% in Q3 on a trailing 12 month basis and we believe this is particularly significant because these customers are some of the most notable top tier pharmaceutical manufacturers.

Speaker 2: And we believe that this is particularly significant because these customers are some of the most notable pop tier pharmaceutical companies.

Speaker 2: We are very encouraged by the growing vote of confidence and digital from these industry bellwethers and believe this is a strong indication of the direction health care market.

We are very encouraged by the growing vote of confidence.

Industry Bellwethers and believe this is a strong indication of the direction healthcare marketing is going.

Speaker 2: In addition to these top five customers, our overall existing customer base continues to lead our growth. The net revenue retention rate of 171% in Q3.

In addition to the top five customers our overall existing customer base continues to lead our growth with our net revenue retention rate of 171% in Q3.

Speaker 2: As a reminder, given our net revenue retention rate is a trailer 12 month metric, it should be looked at in the context of our subscription-based trailer 12 month revenue growth rate. The trail-in-tool of the month's revenue growth rate.

As a reminder, given our net revenue retention rate is a trailing 12 month metric should be looked at in the context of our subscription base trailing 12 month revenue growth rate.

79% this past quarter.

I'd also like to provide an update on the number of customers.

Speaker 2: I'd also like to provide an update on the number of customers sending six figures or more on our

Six figures or more on our platform.

Speaker 2: The end of the quarter was 250 a customer contributing at least $100,000 in description based revenue on a trailer told me.

We ended the quarter with 258 customers contributing at least $100000 subscription based revenue on a trailing 12 month basis.

Speaker 2: A 50% increase from the 172 customers we had in this cohort a year ago. Let's go over to customer.

A 50% increase from the 172 customers we have in this cohort a year ago.

It's got a lot of customers accounted for 89% of our total revenue.

Speaker 2: Translator profitability, non-gap growth margin in the third quarter was 91%, compared to 87% in the prior year period.

Turning to profitability non-GAAP gross margin in the third quarter with 91% compared to 87% in the prior year period.

Speaker 2: This result was driven by a revenue outperformance and continued efficiency as we scale.

This result was driven by our revenue outperformance and continued efficiency and scale.

Speaker 2: Adjust the EBITDA for the third quarter was $47 million, and adjust the EBITDA margin was 48%. Compared to 21.5 million, and a 37% margin in the third quarter last year.

Adjusted EBITDA for the third quarter was $47 million and adjusted EBITDA margin was 48% compared to $21 5 million and a 37% margin in the third quarter last year.

Speaker 2: Our adjusted EBITDAx c to the high end of our guidance range also due to our top lineup performance. Turning your balance sheet in cash low, we ended the third quarter with 765.6 million of cash equivalence and marketable secures.

Our adjusted EBITDA exceeded the high end of our guidance range also due to our top line outperformance turning to our balance sheet and cash flow. We ended the third quarter was $765 6 million of cash cash equivalents and marketable securities.

Speaker 2: Generated pre-touch flow for the third quarter of 25.6 million compared to 22.9 million in the third quarter last year.

We generated free cash flow for the third quarter of $25 6 million compared to $22 9 million in the third quarter last year.

Moving onto our outlook for the fourth fiscal quarter of 2022, we expect revenue in the range of $89 million to $90 million, representing 34% growth at the midpoint and we expect adjusted EBITDA in the range of $34 million to $35 million, representing a 39% adjusted EBITDA margin.

Speaker 2: Moving on to our outlook for the fourth fiscal quarter of 2022, we expect revenue in the range of 89 to 90 million, representing 34% growth at...

Speaker 2: and we expect the justice EBITDA in the range of 34 to 35 million, representing a 39% of justice EBITDA.

Speaker 2: So the Census in the year 2022, we now expect revenue in the range of 338.9 to 339.9 billion. Let's resume six.

For the full fiscal year 2022, we now expect revenue in the range of $338 nine to $339 9 million, representing 64% growth at the midpoint.

We now expect adjusted EBITDA in the range of $144 nine to $145 9 million, representing a 43% adjusted EBITDA margin.

Speaker 2: We now expect adjusted EBITDA on the range of 144.9, so 145.9 million. So, representing a 40 super.

Speaker 2: The results are what's going to outlook as our clients continue to write size their sales forces and refocus their go-to-market strategy. The reallocation to digital is happening in real time.

With regards to our fourth quarter outlook as our clients continue to right size their sales forces and refocused our go to market strategy.

Reallocation to digital is happening in real time.

Speaker 2: In the back half of calendar year 2021, we worked closely with our customers to deploy these additional dollars to programs they were already running on proximity. Wish convert.

Back half of calendar year, 2021, who works closely with our customers to deploy additional dollars to programs. They were already running on doximity, which converted to additional revenue quickly.

Speaker 2: As we finish these programs, our customers have layered these upsell dollars into their calendar jail at which customers spent with us.

As we finish these programs our customers have layered.

And to their calendar you scale at which customers spent with us.

Part of their annual buying cycle.

Speaker 2: Prior to Q3, we had never had a brand signed a $5 million subscription contract with us in a given quarter. In Q3, we had full brands spend more than $5 million in the program.

Q3, we had never had a brands signing 5 million subscription contract with them in a given quarter.

In Q3, we had four brands.

Spend more than $5 million.

Program expansion.

Given the strong momentum in our business.

We already have into next year revenue.

So 2023.

Speaker 2: revenue growth in fiscal 2023 to be about 33%, to approximately 450 million, which is ahead of expectations after...

Revenue growth in fiscal 2023 to be about 33% to approximately $450 million, which is ahead of expectations. After two straight years of very high top line growth.

Speaker 2: We also expect to continue to officially scale our bottom line, leading to adjusted the DEPIC-DUM margins of 40% or greater in fiscal 2020.

We also expect to continue to efficiently scale, our bottom line, leading to adjusted EBITDA margins of 40% or greater in fiscal 2023.

Speaker 2: We are looking forward to providing you with an update on our progress in May. And with that, I will turn it over to them.

We're looking forward to providing you with an update on our progress.

And with that I will turn it over to the operator for questions.

Speaker 3: Thank you, Anna. We will now open the line for questions. We have 30 minutes for question and answer.

Thank you Anna we will now open the line for questions, we have certain minutes for a question and answer.

Speaker 3: Our first question comes from the line of Stephanie Davis with SVB Living. Now your line is open.

Our first question comes from the line of Stephanie Davis with SVP Leerink.

Your line is open.

Speaker 4: Thank you and congrats guys on the ball up quarters. That was, that was loud.

Thank you and congrats guys on a quarter that was that was wow.

Speaker 4: So, given the long term partnership with Amion, and I do have the thought that I really love that origin story. I'd love to hear more about the entities for the deal and what sort of optionality you'll see from ownership of the asset, first and just the historical partnerships that you've had.

Given our long term partnership with Amazon.

You have to call that I really love that origin story.

I'd love to hear more about the impetus for the deal and what sort of Optionality youll see some ownership of the asset and check the historical partnership that you've had.

Speaker 1: hey Stephanie, great to hear from you. Great question as usual Jeff here. And I like blowout, that's a good phrase. Yeah, we've been working with AM Island for slightly more than a decade now. And Stuart's just a great guy in the 10 person team he runs. I've really just done a spectacular job building a more efficient tool for physicians to know who's on call.

Hey, Stephanie great to hear from me a great question as usual Jeff here.

And I like blowout that said Thats a good phrase.

Yes, we've been we're going to Amazon for slightly more than a decade now and Stuart just.

Right Guy in the 10% TV runs that really just done a spectacular job building a more efficient tool for physicians to know who is on call.

Speaker 1: um... they've always been an api partner barz which means it to the doctors option whether not they want to log in with the activity to add their photo and their cv and profile to the schedule so that other doctors know a little bit about them

Always been an API partner of ours, which means it to the doctors option, whether or not they want to log in with doximity to add their photo and their CV in profile to the schedule. So that other doctors know a little bit about them.

Speaker 1: And so it's a pretty small percent of his users, it's 200,000 doctor schedules that have actually logged in with it. So as an own asset, I think we're going to have a real opportunity here to grow the engagement and the workflows and the integrations that we can do.

So it's a pretty small percent of.

Of his users at 200000 Doctor schedules that are actually logging with it. So it is an owned asset I think we're going to have a real opportunity here to grow the engagement and the workflows and the integrations that we can do.

Speaker 1: You know, physicians today, you have no idea how much time they spend. Just calling the hospital receptionist to get someone pay, to call me back, to do all these things. And we can route that now instantly through our Doximony Diler product, which again, we just shared, we had 350,000 doctors using Doximony Diler actively last quarter. So we're excited to bring those two together and collaboration suite. So you know who's on call? And we think there's

Physicians today have no idea how much time, they spend just calling the hospital receptionist to get someone pays to call me back to do all these things and we can route that now instantly through our Doximity dialer product.

Which again, we just shared we had 350000 doctors using doximity dialogue actively last quarter. So we're excited to bring those two together.

Collaboration suite. So you know who is on call it.

We think there's just a lot of upside here.

This physician cloud the set of workloads that doctors need to do there outside.

Speaker 1: this physician cloud. The set of workflows that doctors need to do that are outside their EHR if they treat their patients.

<unk>.

They treat their patients.

Helpful and then taking a step back and looking at the macro environment.

Speaker 4: helpful and then taking a step back and looking at one of the macros environment. I was hoping to hear a little bit more about the the intact arm-cron and maybe how pharma is thinking about their sales spend or how hospitals are thinking about their hiring just in the context of another wave.

Was hoping to hear a little more about dealing with the impact of Amazon, maybe how pharma it. Thank you.

Their sales stand or how hospitals I think about that hiring just in the context of <unk>.

Other ways.

Sure, Yes, I think so.

Speaker 2: Sure, yeah, thanks, Steph. So I think the short answer is we think Omicron had very little direct impact on the mental spend. And I do want to be Chris looks like more like her.

So the short answer is we think omicron had very little direct impact on <unk>.

I'll spend and I don't want to be Crystal clear.

Speaker 2: upsell dollars that will contribute into our performance this quarter. We're launched prior to December when the Army Crown wave really hit. So I think what we're really seeing is certainly is the case that the longer the pandemic has gone on and the longer reps have not been able to see doctors, the program will allow you of running these digital programs.

So dollars that were contributing to our outperformance this quarter were launched prior to December when the Army Corp. Currently it really hits. So I think what really we're seeing is it certainly is the case that the longer the pandemic has gone on and the longer reps have not been able to see doctors.

When you of running these digital programs.

Speaker 2: So we think it's that value that's the main reason we're seeing that sustained demand from our customers and not invariants. I mean, invariants will come in and grow, go, but this value is really long. Yeah, I don't say that. Ah, I think we're very, it's going to be. That.

So we think it's got value. That's the main reason, we're seeing this sustained demand from our customers and not new variants and we're there as well.

Go but this value is really low and I don't say that.

Okay.

Sure.

Yeah.

Speaker 2: New variants might come and go. This is the last. So yes, I'm not going to do it for a former customer. As far as our health system customers are hiring customers, the answer is similarly very little change in the business due to Army Cron directly. So we've been seeing unprecedented demands in hospitals for both temporary and permanent physician hiring for a while now. And our unique data advantage has really allowed us to increasingly fill that need.

New various might come and go.

The last so yes, that's the way to go to for our pharma customers as far as our health system customers are hiring customers.

Answer is similarly, very little change in the business due to omicron directly so we've been seeing unprecedented demand from hospitals for both temporary and permanent physician hiring for a while now and arguably data advantage has really allowed us to increasingly fill that need.

That's in our 10-Q Tomorrow is our carrier business really has been accelerating for the past several quarters and.

Speaker 2: that's an R10Q tomorrow is our curive business really has been accelerating from past several quarters and

Speaker 2: into three, which is something that we're super proud of, and we're really optimistic about the future here. So just to reiterate, I believe.

In Q3, which is something that we're super proud of and we're really optimistic about the future here. So just to reiterate.

Omicron really had any impact on us.

Okay, well, thank you for all the answers.

Speaker 4: Well, thank you for all the answers. And keep on asking.

Keep on Mexican.

Thanks, Stephanie.

Speaker 3: Thank you. Our next question comes from the line of Ryan Estanios with Blair. Sir, your line is open.

Thank you. Our next question comes from the line of Ryan Daniels William Blair. Sir Your line is open.

Speaker 5: Great, thank you for taking the question. Jeff, one for you in regards to the strong momentum you're seeing with large.

Great. Thank you for taking the question just one for you in regards to the strong momentum youre seeing with large.

Client partnerships I'm curious if you can walk through the conversations youre, having there with those entities I assume its turning more to a strategic or enterprise level conversation with those pharma companies given both you are investing in digital versus.

Speaker 5: client partnerships. I'm curious if you can walk through the conversations you're having there with those entities. I assume it's turning more to a strategic or enterprise level conversation with those pharma companies given both your are investing in digital versus direct sales force. But I'd love to hear any color on that.

Just direct salesforce, but I'd love to hear any color on that.

Yes, Ryan.

So I think.

Speaker 1: Our clients are working through some pretty major shifts in their go-to market. I mean, they really are talking at their board level.

Our clients are working through some pretty major shifts in their go to market I mean, they really are talking at their board level.

Speaker 1: about what is the new commercial model for pharmaceuticals in the United States. And, you know, they're right-izing their sales forces, which has gotten a certain amount of income, press and coverage. But they're changing a lot of other ways. And I think we are becoming their leading digital partner as they think about the digitization of that and we're very proud to be that. So yes, we are engaging at higher levels than we ever have. I am developing up.

Totals about what is the new commercial model for pharmaceuticals in the United States.

And the right sizing their sales forces, which has gotten a certain amount of income press and coverage with the changing a lot of other ways.

We are becoming the leading digital partner as they think about the digitization of that and we're very proud to be that so yes, we are.

Engaging at higher levels than we ever have in us.

Speaker 1: actually seeing 71% growth among our existing clients and at Anishir 90% growth among our top five clients who are already a major eight figure client.

Obviously, seeing 71% growth among our existing clients and as Anna shared 90% growth among our top five clients who are already major eight figure clients I think it's really proof of this S curve adoption of digital and we are just at the inflection point of that S curve.

Speaker 1: I think it's really proof of this S-curve adoption of digital. And we are just at the inflection point of that S-curve. We see, again, sustained demand as we move ahead here. I think...

We see again sustained demand as we move ahead here.

Yes, if you look back in the industry back in the mid Ninety's. There were about I don't know 40000, 50000 U S. Pharmaceutical sales reps, we have 81000 today veeva estimates that 10% of those.

Speaker 1: you know if you look back in the industry back in the mid-90s there were about i don't know forty thousand fifty thousand u.s. pharmaceutical sales reps

Speaker 1: We have 81,000 today. Viva estimates that 10% of those may be furloughed in the next couple of years.

May be furloughed in the next couple of years.

Speaker 1: you know it's not hard to see just a real seismic shift here uh... as as dollars move toward

It's not hard to see just a real seismic shift here.

As dollars moved towards a higher ROI digital strategies that have been tested really forced upon the industry in the last couple of years.

Speaker 1: higher ROI, digital strategies that have been tested really forced upon the industry in the last couple of years.

Okay very helpful color and then one for you you mentioned the.

Speaker 5: Okay, very helpful comment. Anna, one for you, you mentioned the

Speaker 5: and marketing requirements towards the end of the year. But I'm curious as we sit today relative to your initial 2023 guidance, what level or percentage of revenue do you already have a high degree of visibility on? Again, as we sit here today, thank you.

And marketing requirements towards the end of the year, but I'm curious as we sit today relative to your initial 2023 guidance what level of percentage of revenue do you already have a high degree of visibility on again as we sit here today. Thank you.

Speaker 2: Yeah, sure. So as we sit here today on February 8th, we have about just under 50% of our Fiscal 2023 revenue already booked. So that's our subscription-based revenue that's already under contract. And we estimate that by the end of the fiscal year, so by March 31st, we'll have over 60% of Fiscal 2023 revenue are under contract. And I assume that's in line with.

Yes, sure. So as we sit here today on February eight we have about just under 50% of our fiscal 2023 revenue already booked so thats our subscription based revenue that's already under contract and we estimate that by the end of the fiscal year. So by March 31, we will have over 60% of fiscal 2023 revenue already under contract.

And I assume thats in line with most years, how you look.

Look at your revenue visibility Thats correct, great. Thank you so much great quarter guys. Thanks again.

Speaker 3: Look at your revenue visibility. That's correct. Great. Thank you so much. Great quarter, guys. Thanks again. Thank you. The next question comes from the line of Scott Berg with Needham and Company. You're a Lightning Soul.

The next question comes from the line of Scott Berg with Needham <unk> Company. Your line is open.

Okay.

Speaker 1: Hi everyone, congrats on the great quarter. I wanted to follow up on the acquisition kind of stringing thoughts there a little bit with that. And I mean here is, how should we think about the, I guess the R&D or product getters with that? Do you ultimately kind of develop and blend that into the existing vaccine-based platform or does it end up being, you know, continuing to be a standalone solution going forward?

Hi, everyone. Congrats on a great quarter I wanted to.

Follow up on the acquisition kind of strange thoughts here, a little bit with that.

Amy and here is how should we think about the.

Yes, the R&D or product efforts with that do you ultimately kind of developing blend that into the existing <unk> platform or does it end up being continuing to be a standalone solution going forward.

Speaker 5: Hi Scott, this is Nate, great question. So, M.I. was at its core, primarily a product acquisition.

Hi, Scott. This is Nate great question. So NII was at its core primarily a product acquisition.

Speaker 6: There are day-to-day workflow technology that are used by a substantial position population with strong engagement.

Day to day workflow technology, they're used by a substantial physician population with strong engagement.

Speaker 6: and as a broad footprint across hospitals. And so all of those characteristics mesh really well with the sweet and the plow.

The subscription business and as a broad footprint across hospitals and so all of those characteristics.

Mesh really well with.

The suite in the cloud.

Speaker 6: and we'll make integration using. Now they have been an API partner, as Jeff mentioned, for a decade.

Okay and will make integration.

Easy how they have been an API.

Jeff mentioned for a decade.

Program connects companies like Am I on.

Speaker 6: program, connect companies like AMI on into the to systems that the does the extreme type of muscle is will be occupied by the ships.

The doximity ecosystem.

And thus.

Speaker 6: You know, thus far that has been centered primarily around an individual physician log, as Jeff mentioned. So with a greater integration, that's deeper across the product, we see multiple different touch points with physicians for improving their experience. And...

Thus far that has been centered primarily around.

Individual physician market.

Jeff mentioned and so with a greater integration, it's deeper across the product, we see multiple different touch points with physicians, who are improving their experience and one of the things that gives us the most amount of confidence about this is that Amazon is a trusted multi decade brand.

Speaker 6: One of the things that gives us the most amount of confidence about this is that Am I on this a trusted multi-decade brand?

Speaker 6: It's a mission-oriented company. It focuses on making physician slides easier. You combine that with docsimities, scale across users, enterprises, modern technology functionalities. We see this acquisition as something that will create a unique value for doctors and healthcare system ecosystem alike and will really mesh well with our own.

Mission oriented company that focuses on making physicians lives easier when you combine that with doximity scale across users enterprises modern technology functionality as we see this acquisition.

It's something that will create.

Create unique value for doctors and health care system ecosystem alike, and will really mesh well with our own.

Got it helpful. And then from a follow up question changing Chief commercial officer can always be.

Speaker 1: God is helpful. And then from a follow up question, changing chief commercial officer can always be both an opportunity and a challenge. How should we think about, you know, Paul stepping into this role? Is this just kind of extending, you know, maybe the structure that was already there, or are there any, maybe...

Both an opportunity and the challenge how should we think about.

Paul stepping into this role is this just kind of extending.

The structure that was already there or are there any maybe.

Difficult changes that we could see come out of this change.

Speaker 7: that can change is that we could see can come out of this change going forward.

Yes. This is Jeff.

I'll answer that.

Speaker 1: I wanted to add to that. Now it's just an extension. I think you've, Paul, again, has been here five years. It's been a key partner of Joe's as we've grown all this. And again, Joe isn't going to help us through this transition.

An extension I think Youll, Paul again has been here.

Five years, it's been a key partner of Joe's as we've grown all of this and again Joe isn't going.

Through this transition.

Speaker 1: I will say that the joke I share is that Joe's retiring at age 59. So that means everyone who's working here, that's set the new bar. We also work until we're 59, okay everybody?

I will say the joke I shares that Jos retiring at age 59, so that means everyone who is working here that's set the new bar. We also work until were 59, hey, everybody.

But the good news is Paul has led to some of our fastest growing businesses and teams and again has strong support within the order.

Speaker 1: but the good news is Paul has led some of our fastest growing businesses and teams and again has strong support with the New York

Organization, which has a deep bench.

Speaker 7: You got it. Thanks for taking my questions. 59th degree.

Got it thanks for taking my questions 50 nines is great.

You are targeting.

Speaker 1: target.

Yeah.

Thank you and the next question comes from the line of Brian Peterson with Raymond James.

Speaker 3: Thank you and the next question comes from the line of Brian Peterson with Raymond Dream.

Your line is open.

Speaker 1: I'll have to go my congrats on the strong results. Jeff, I have one for you to follow up for Anna. But when you're talking about your top five customers growing 90% on some eight figure spend levels, those are pretty big numbers. So Jeff, I'm curious why now is it time for those significant expansions? And if you're talking about the penetration in terms of those top five, any wealth and some more you are today with us.

I'll Echo my congrats on the strong result, Jeff I had one for you and a follow up for Anna.

But when Youre talking about your top five customers growing 9% on some eight figure spend levels with some pretty big numbers. So Jeff I'm curious why now is at the time for those significant expansions and if youre talking about the penetration in terms of those top five in rough sense on where you are today with those customers.

Speaker 1: Yeah, no, great question. Short answer is we still were less than 5% of their healthcare professional budgets in the US. And you're right, there's some big numbers. And I can tell you, you know, these top five clients of ours, they are among the, this is the best proof that we're in the early, that again, we can grow 90.

Yes, no great question short answer is we still were less than 5% of their health care professional budgets in the U S and.

Youre right in the system Big numbers and I can tell you. These top five clients of ours. They are among the way. This is the best proof that we're in the early.

Again, we can grow 90% among these.

Speaker 1: clients who are already spending the most with us. And again, they see the ROI and they keep leaning in. And again, we've got the results to keep going a long ways with that.

Clients, who are already spending the most with us and again <unk> and they keep leaning in and again, we've got the results.

Keep going a long way for that.

Understood.

Speaker 1: Understood and I was one of the clarify on the NRR. I know that he met 71%. We had the revenue growth at 60% Maybe explaining the difference between

Wanted to clarify on the <unk> I know that came in at 71% we had the revenue break at 67.

And then maybe explaining the difference between the two now.

Members in the quarter, Thanks, guys, yes.

Speaker 2: Yes, sure. So when we think about our net revenue retention rate at 107.

Yes, sure. So when we think about our net revenue retention rate at 170.

Speaker 2: in the context of our trailing 12 month revenue growth rate, which was 79%, because our net revenue retention rate is a trailing 12 month metric. So that's how you should be thinking about it. So don't look at it on a quarterly basis, but look at it on a trailing 12 month basis in context of that 79%.

In the context of our trailing 12 month revenue growth rate, which was 79% because our net revenue retention rate is a trailing 12 month metric.

So that's how you should be thinking about it so don't look at it on a quarterly basis, but look at it on a trailing 12 month basis in context of that 79%.

Got it thanks.

Thank you. The next question comes from the line of Vikram <unk>.

Speaker 3: Thank you, the next question comes from the line of Vikram Kesar Vavotla with the Air's Line is open.

Butler with Baird. Your line is open.

Speaker 6: Yeah, thank you for taking the questions. I wanted to ask a couple about the EBITDA margin guidance. If you look at the third quarter, it looks like you posted just the EBITDA margin about 48%. And the fourth quarter guidance that the midpoint implies about 38.5%. I'm curious if you can just walk us through some of the drivers there behind the sequential margin contraction and maybe why some of the outperformance in the third quarter maybe is not translating to the fourth quarter.

Yes. Thank you for taking my questions I wanted to ask a couple about the EBITDA margin guidance. If you look at the third quarter. It looks like you posted an adjusted EBITDA margin about 48% in the fourth quarter guidance at the midpoint implies about 38, 5% I'm curious if you can just walk us through some of the drivers there behind the sequential margin contraction and maybe.

Some of the outperformance in the third quarter, maybe it's not translating into the fourth quarter and then as a follow up that looks like your initial fiscal 'twenty three EBITDA margin guidance is above 40% I think in the past you've talked about over 40% being the right kind of long term margin framework for the business and so I'm curious just given some of the recent outperformance what are your current.

Speaker 6: And then as a follow up that looks like your initial fiscal 23 EBITDA margin guidance is above 40%. I think in the past you talked about over 40% being the right kind of long-term margin framework for the business. And so I'm curious just given some of the recent out performance, what are your current expectations in terms of the right long-term margin profile for the company and maybe what some of the remaining room for operating leverage might be in the model? Thanks.

<unk> in terms of the right long term margin profile for the company and maybe what some of the remaining room for operating leverage might be in the model.

Speaker 2: Sure, I'll take that one. So it's probably helpful for me to start by further frame of what we're seeing between Q3 and Q4. So that EBITDA acceleration is the simple we do to what's happening on the top line. We're continuing to invest at the same pace that we've been investing. So it doesn't do to any changes in our ROPEX. It's really helpful for me to frame what we're seeing from a revenue perspective. So what we saw in the back.

Sure I'll take that one so it's probably helpful for me to start by kind of further friendly what we are seeing between Q3 and Q4, so that EBITDA deceleration is simply due to what's happening on the top line, we're continuing to invest at the same pace that we've been investing so it isn't due to any changes in our opex. It's really helpful for me to kind of frame what we're seeing.

From a revenue perspective, so what was that about.

Digital quickly our clients were really trying to ask to add those dollars onto their already running programs at a much greater scale than we've seen before.

Speaker 2: digital quickly. Our clients are really trying to us to add those dollars onto their already running programs at a much greater scale than we've seen.

Speaker 2: And we really believe that's definitely a strong indication of the value they're receiving from our platform. So as it's to increase their reach in Q3.

And we really believe that that's definitely a strong indication of the value. They are receiving from our platform. So as to increase their reach in Q3.

And as a result, we saw quick revenue conversion from these upsell dollars, which led to a lot of our revenue upside.

Speaker 2: And as a result, we saw quick revenue conversion from these upsell dollars, which led to a lot of our revenue upside.

And that EBITDA side that you just mentioned.

Speaker 2: But what the SID was really allowed us to provide even further value to our customers and it helped translate into a strong angle-bind cycle where we were working with our clients to really smoothly fold those growing budget dollars into their new programs that were currently in the process of launching and will run over calendar year 2022. And that's going to convert to revenue at a more even pace.

The third was this really allowed us to provide even further value to our customers and it helped translate into a strong annual buying cycle, where we're working with our clients to really smoothly fold those growing budget dollars into their new program that we're currently in the process of launching and will run over calendar year, 2022, and thats going to convert to revenue at a more even pace. So.

Speaker 2: So that's really kind of the key factor behind what we're seeing from the top line guide, and that's really moving down to the bottom line. As far as our next year's guide on the EBITDA margins at 40% plus, I mean, as we've said before, we end to be a rule of 60 companies through a combination of growth and profitability. And we're really proud by the fact that we're already at that level and we're well above that level today. And we really want to focus on continuing to make prudent investments.

That's really kind of the key factor behind what we're seeing from the top line guide and Thats really moving down to the bottom line as far as our next year's guide.

The EBITDA margins at 40% plus I mean, as we've said before we ended the rule of 60 company through a combination of growth and profitability and we're really proud by the fact that we're already at that level and we're well above that level today, and we really want to focus on continuing to make prudent investments focus on continuing to grow our R&D team to support the future growth of our customers and Youre going.

Speaker 2: Focus on continuing to grow our R&D teams to support the future growth of our customers. And you're gonna see us doing that in the next couple. And you're gonna see us doing that in the next couple.

See us doing that in the next couple of years.

Speaker 3: Thank you the next question comes from the line of Blaine Sun Pandelo with Jeffries, your line is open.

Thank you. The next question comes from the line of Glen Santangelo with Jefferies. Your line is open.

Speaker 1: I really, I get even the thanks for taking my questions. I just wanted to, Jeff, I just want to follow up on some of the comments you made with respect to the tools on the Physician Cloud and the record utilization that you saw this quarter. We get a bunch of questions about engagement trends and I'm kind of curious as to maybe what you're seeing engagement wise on the platform as the pandemic seems to be hopefully coming to a close year and how that engagement may be influencing your ROI. And then secondly, I didn't want to ask about the competitive landscape. I mean, obviously there's a big opportunity for growth and digital marketing, but there's a lot of companies obviously chasing those dollars. And as you know, last week, you know, the Apple iOS privacy changed clearly impacted some of the social.

Hey, good evening and thanks for taking my question I just wanted to jump I just wanted to follow up on some of the comments you made with respect to the tools on the physician cloud and.

And the record utilization that you saw this quarter, we got a bunch of questions about engagement trends.

Im curious as to maybe what you are seeing engagement wise on the platform as the pandemic seems to be hopefully coming to a close here and how that engagement may be influencing your ROI and then secondly, I did want to ask about the competitive landscape I mean, obviously, there's a big opportunity.

For growth in digital marketing, but there's a lot of companies, obviously chasing those dollars and as you know last week, the Apple iOS privacy change clearly impacted some of the social.

So media platforms.

Speaker 1: media platforms that I don't think the syntax you know your company but maybe that

Don't think this impacts your company, but maybe that.

So that could ultimately be a benefit to you for example, as maybe some customers come back to a vertical sales model like yours, and so I was just wanted to get your.

Speaker 1: That could ultimately be a benefit to you, for example, as maybe some customers come back to a vertical sales model like yours. And so I'm just wanted to get your quick updated thoughts on the competitive landscape. Thanks.

Quick update or thoughts on the competitive landscape. Thanks.

Speaker 5: I think I'm not great question. Yeah, well first with regard to apples privacy changes iOS 14 and other things I'll just reiterate what we said I think a quarter or two ago which is

Thanks, Glen Great question, Yes, well first with regard to Apple's privacy changes I was 14 and other things ill just reiterate what we said I think a quarter or two ago, which is.

Speaker 8: you know, precisely 0% of our revenue is or ever was based on cookie technologies. We've always run a very hard line. It comes different protecting our physician's privacy. And so we've always been more, I think, in sort of the Apple camp on this than perhaps others. But it is nice that we can keep it all within our ecosystem. And so that it's been powerful for us.

Precisely zero percent of our revenue is or ever was based on Cookie technologies. We've always run a very hard line when it comes to protecting our physicians privacy and so we've always been more I think in sort of the Apple camp on this than perhaps others, but.

But it is nice that we can keep that all within our ecosystem and and so it's been powerful for us.

Speaker 8: uh... with regard to uh... you know engagement more broadly i could say that you know we continue to do really well and again i think we're seeing these long-term transfer to play out if the decisions are able to digitize their lives a bit more we had a twenty five percent quarter and quarter increase

With regard to <unk>.

Engagement more broadly I can just say that we continue to do really well.

And again I think we're seeing these long term trends start to play out as physicians are able to digitize their lives a bit more we had a 25% quarter on quarter increase in our continuing medical education credits CME credits with doctors need to earn each year. They used to go to the hospital auditoriums to do that and they will listen to a lecture that maybe wasn't about.

Speaker 8: and are continuing medical education credits, CME credits, the doctors need to earn each year. And you know, they used to go to the hospital auditorium to do that, and they would listen to a lecture that maybe wasn't about their particular procedural practice. And now instead, you know, we got, we give out hundreds of thousands of credit hours last quarter to doctors that they can get any time anywhere on their phones in a way that's algorithmically personalized to each doctor's clinical practice.

Their particular procedural practice and now instead, we got when we give out hundreds of thousands of credit hours last quarter two to doctors that they can get anytime anywhere on their phones in a way thats algorithmically personalized to each doctors clinical practice. So I think that's really exciting and I think thats. The beginning of really a a light shifts sort of trend towards a more.

Speaker 8: so i think i'm truly exciting and i think that the beginning of really a a life shift sort of trend towards a more hybrid life uh... for a lot of positions in this country

<unk> life.

For a lot of physicians in this country.

Speaker 8: Obviously our telehealth is another sign of that. Again, 350,000 providers just in the quarter using us to do a telehealth visit. I mean, that is...

Obviously, our telehealth is another side of that again 350000 providers just in the quarter using us to do a telehealth visit I mean that is.

Speaker 8: That's a big number. And again, this is before Omicron or other things hit. So we're continuing to see, maybe it's not eight times a day, maybe it's only once a day or Wednesday afternoons, but it doesn't matter from our business model point of view, we would become the go-to way to digitize some of this hybrid work life.

That's a big number and again this is before omnicom or other things hit.

We're continuing to see maybe.

Maybe it's not eight times a day, maybe it's only once a day.

Wednesday afternoons, but it doesn't matter from our business model point of view.

We have become the go to way to digitize some of this hybrid work life.

Okay. Thank you thanks.

Thanks for that.

Thank you. The next question comes from the line of featured closely with Canaccord Genuity. Your line is open.

Speaker 3: Thank you the next question comes from the line of featured clothes with catacorgenuity. Your line is open.

Yes. Thanks, Congratulations first of all on a great quarter.

Speaker 1: Yeah, thanks. Congratulations, first of all, on a great quarter. Jeff, I was wondering if you could talk about how you balance the shift to digital.

Jeff I was wondering if you could talk about how you balance the shifts to digital.

Speaker 5: marketing and physicians get an overwhelmed by the amount of information that's coming at them. Maybe how you're differentiated versus other.

Marketing in physicians get overwhelmed by the amount of information that's coming at them, maybe how youre differentiated versus other.

Speaker 5: digital marketing that's coming to them. And I've seen a couple articles I think over the last month or so just talking about how saturated maybe they are. If you could talk a little bit about that, that would be helpful.

Digital marketing, that's coming to them and I've seen a couple of articles I think over the last month or so just talking about how saturated maybe they are.

If you could talk a little bit about that that would be helpful.

Yes, Thanks, Richard Great question.

Speaker 8: yeah thanks for the great question you know i've been a number of of research uh... surveys that have been done yet in the past quarter to because you know farmy is trying to figure out the right move towards uh... digitization and frankly all the service that have come out that have been independent research of all the favorable for us because typically talking about our doctors are getting a little tired of

There's been a number of research surveys that have been done in the past quarter or two because you know pharma is trying to figure out the right move towards Digitization and frankly all of the surveys that have come out that have been independent research have all been favorable for us because typically they are talking about how doctors are getting a little tired of.

Speaker 8: getting too many emails in their inbox, which is not something that we're known for. We're known as the place where I can log in, see the things that are in my newsfeed, that my colleagues are filtering for me, commenting on, important in my specialty. You know, there's a lot of things that, again, physicians rely on their peers to help sort of triage.

Getting too many E mails in their inbox, which is not something that we're known for we're known as the place where I can log in and see the things that are in my news feed that my colleagues are filtering for me commenting on important in my specialty.

There's a lot of things that again physicians rely on their peers to help sort of triage for them.

Speaker 8: uh... and it is information overload we've all lived through it and i think again we're in a unique position to be more like the way medicine used to be which is what doctors getting better you know in the real life lounge which doesn't happen anymore uh... but filtering the news of the day uh... for each other in that way

And it is information overload, we've all lived through it and I think again, we're in a unique position to be more like the way medicine used to be which is with doctors getting together in the real life lounge, which doesn't happen anymore, but filtering the news of the day for each other in that way.

Speaker 8: So I do think the collegial aspect of what we do is probably our defining characteristic. And I think we've applied some terrific leading edge technology to make that.

Do you think the collegial aspect of what we do is probably our defining characteristic and I think we've applied some terrific.

Leading edge technology to make that.

Speaker 8: professional and relevant and something that isn't just another email hitting the doctor.

Professional and relevant and something that isn't just another E mail hitting a doctor.

Speaker 5: Okay, and it's a follow up on the hiring staffing. Obviously, you turn on the news and you hear about healthcare workforce, people walking away.

Okay.

As a follow up.

Hiring staffing obviously, you turn on the news and you hear about.

Health care workforce people walking away.

Speaker 5: But it seems to be more primarily highlighting the nurse front. Can you talk a little bit about, you know, obviously you cited Belltrix here in terms of the growth on that side of the business. But can you talk a little bit more about the position marketplace and how that's changed maybe over the last six months?

It seems to be more primarily highlighting the nurse front can you talk a little bit about.

Obviously, you cited metrics here in terms of the growth on that side of the business, but can you talk a little bit more about the physician marketplace and how that's changed maybe over the last six months.

So youre right I mean, there's a lot of talk about burnout and the effect. This pandemic has had on our nurses and also on physicians, we actually put out a piece in conjunction with some academic researchers showing that there was a permanent 1% bump basically 1% of U S. Doctors retired during this pandemic and really haven't come back.

Speaker 8: so you're right i mean there's a lot of talk about uh... burn out and uh... the effect is pandemic has had on on nurses and also on positions we actually put out a piece uh... in conjunction with some academic research or showing that there was a permit one percent bump basically one percent of u.s. doctors retired during this pandemic

Speaker 8: and really having come back. So it's about 1% dead weight loss to a situation where we already had a physician shortage.

So it's about a 1% deadweight loss to a situation, where we already had a physician shortage and again, we think that that makes our.

Speaker 8: And again, we think that that makes our products more attractive these days.

Our products more attractive these days are somewhere in their top three priorities is going to be.

Speaker 8: somewhere in their top three priorities is going to be

Keeping retaining staff worrying about burn out and again I think we can help out with that by helping them reduce the scutwork the paperwork.

Speaker 8: keeping retaining staff worrying about burnout. And again, I think we can help out with that by helping them reduce the scut work, the paperwork. And we're pleased that we showed 93% growth in our recruiting business, our talent business year on year. That'll be out in our 10, Q in a few days here, I guess. But you'll see that business will still a small percentage of our overall business, a single-vigit percentage, is growing nicely and we're proud to help doctors

We're pleased that we showed 93% growth in our recruiting business our talent business year on year and that will be out in our 10-Q in a few days here I guess.

But youll see that that business, while still a small percentage of our overall business a single digit percentage is growing nicely and we're proud to help doctors.

Speaker 8: view it with less paperwork and find the right kind of

Do it with less paperwork and find the right kind of.

Speaker 8: Flex positions that I think may work for them but better longer term. All right, big.

Flex positions that I think may work for them better longer term.

Alright, thanks, congratulations thanks Richard.

Thanks.

The next question comes from the line of Ricky Goldwasser with Morgan Stanley . Your line is open.

Speaker 3: The next question comes from the line of Ricky Goldwater with Morgan Sandling. Your line is open.

Speaker 6: Oh yes, thank you. This is Craig. I just wanted to come back to the guidance for fiscal 23. You know, looking at a 33% growth on top of 64% expected this year. Can you just touch on perhaps just some of the acceleration you're seeing in the move to digital and then any context for you think about, you know, differences between Excel and CRUSL into fiscal 23?

Oh, yes. Thank you this is Craig.

Wanted to come back to the guidance for fiscal 'twenty three we're looking at a 33% growth on top of 64% expected. This year can you just touch on perhaps just some of the acceleration you're seeing in the move to digital and then any context. When you think about differences between upsell and cross sell into fiscal 'twenty three.

Sure. Thanks, Craig.

Speaker 2: Sure, thanks Craig. So yeah, I'll say, as we've said before, we believe the shifted digital will likely play out over the next decade, and we won't necessarily see that same acceleration and growth next year that we've seen the past two years. And I think we've been pretty clear about that. Now, farmers in the process of adopting really hybrid marketing model, or they're going to be focused a lot more on a mix of digital and face-to-face. And this is certainly going to take time, and it's not going to happen overnight. And I'd say we're more focused on today, it's really building a business that can provide years of sustainable growth with high-march.

I'll say.

As we've said before we believe the shift to digital will likely play out over the next decade, and we won't necessarily see that same acceleration in growth next year that we've seen in the past two years and I think we've been pretty clear about that farmers in the process of adopting really hybrid marketing model, where they're going to focus a lot more on a mix of digital and face to face and this is certainly going to take time and it's not.

Going to happen overnight and I'd say, we're more focused on today is really building a business that can provide years of sustainable growth with high margins and we certainly believe that next year's preliminary guidance is representative of this continued strength in our business as far as the dynamics around the cross sells and Upsells on we're very focused on continuing.

Speaker 2: And we'd certainly believe that next year's preliminary guidance is representative of this continued strength that are a business.

Speaker 2: As far as the dynamics around the across-cells and up-cells, we're very focused on continuing to expand by our core motions. So we're focused on continuing to add more brands and more service lines and we're focused on continuing to up-cell additional modules. And I think you'll see a lot more of that as well from us next year.

To expand our core motion. So we're focused on continuing to add more brands and more service lines and we're focused on continuing to up sell additional modules and I think youll see a lot more of that as well from us next year.

Great and then.

Speaker 8: Sorry, Jeff here is a very, very big picture. I think we put out the IDC report saying that, you know, overall health care was only 23% digital spend.

Alright, Jeff here very very big picture I think we put out the IDC report, saying that.

Overall healthcare was only 23% digital spend and overall fortune 500, it's more like 70% spend.

Speaker 8: and you know, overall fortune 500 is more like 70% spend.

Speaker 8: We're guessing what 2021 will come in at. I think the data will come out on that in a month or two, and so we'll be interested to see it. But our hunch is maybe it went from 23% to 30% or so.

We're guessing what 2021 will come in at I think the data will come out on that.

Month, or two and so we'll be interested to see it but our hunters, maybe it went from 23% to 30% or so.

Speaker 8: And again, we still think that this whole industry has a long way to go to catch up.

And again, we still think that this whole industry has a long way to go to catch up.

Speaker 8: on digital marketing just to even catch up to the, you know, the Fortune 100.

On digital marketing just to even catch up to the fortune 100.

Speaker 6: I'd appreciate the extra context there. And then just follow up on the field of the MIA on acquisition, just how you're thinking about just the run where you have, which is the wrong one for the core business, but just other things that you can add, whether it's from a token perspective, and then things enhance a platform on a longer term basis.

Got it I appreciate the extra context, there and then just a follow up on the heels of the MAA on acquisition, just how youre thinking about.

You have which is the walmarts of the core business, but just other things that you can add whether it's tuck in perspective, and then thanks to enhance the platform on a longer term basis.

Sure so.

Speaker 9: This is Nate. You know, it's healthcare continues to digitize.

This is Nate.

Health care continues to digitize, we believe that the healthy level of cash that we still have on the balance sheet puts us in a real position of strength.

Speaker 9: We believe that the healthy level of cash that we still have on the balance sheet puts us in a real position of strength. I, despite the acquisition and need to reiterate, we are a software company.

Despite the acquisition and I need to reiterate we are a software company and our DNA. We've been a company that excels at building is not dependent on buying and we will continue to act. Accordingly, they are building new tools that both physicians first and so healthy level of cash allows us to build and we believe that we have a lot of headroom to grow organically.

Speaker 9: We have been a company that excel the building is not dependent on buying and will continue to act accordingly. They are building new tools that put physicians first. So a healthy level of cash allows us to build. And we believe that we have a lot of headroom to grow organic.

Speaker 9: No, it does also help us be an opportunity to stick around synergistic acquisitions or partnerships, things that would put us in a position to accelerate our product for ODMAF with other software technologies that have a mission of putting physicians first. Am I on is a great example of that.

I would also help us via opportunistic around synergistic acquisitions or partnerships things that would put us in a position to accelerate our product road map with other software technologies that have a mission of putting traditions versus Amazon is a great example of that.

Got it thanks, Mike.

Speaker 3: Thank you. The next question comes from the line of Jessica Tathon with Piper Sandler. Your line is open.

Thank you. The next question comes from the line of Jessica <unk> with Piper Sandler Your line is open.

Speaker 10: Hi, thanks for taking the question and congrats on a great quarter. I think they were interested to just know, I think US News and World's report voting opened about a week ago and we know it's consolidating on the DECC and D-platform for the first time this year. So just interested to know if that consolidated voting activities having any impact on new seed or just generally on app engagement. Thanks.

Hi, Thank you for taking my question and congrats on a good and a great corner.

I think you are interested to just know I think you asked me anything world's report voting open about a week ago and we.

Now it is consolidating on the docks on any platform for the first time. This year. So just interested to know.

That consolidated loading activity is having any impact on <unk> or just generally on the app engagement.

Thanks.

Thanks, Jessica Jeff here I like the good to great we'll take good to great.

Speaker 8: thanks just a good job here i like the good to great will take good to great uh... uh... sure it's a lot of no uh... i can wonder down the hall here at some of our our newsfeed team uh... so i probably should do that uh... but yes we are the only place that you can vote on the best hospitals in the country and it is a much-watched uh... rankings and typically we do see you know added behavior as doctors come in and you know

Sure.

The short answer is I don't know I can wander down the hall here and have some of our newsfeed team. So I probably should do that.

But yes, we are the only place that you can vote on the best hospitals in the country and that is a much watched rankings and typically we do see.

Added behavior as doctors come in in that.

Tell us who the best cardiology hospitals and systems around the country.

Speaker 8: tell us who the best cardiology hospitals and systems are in the country.

Yes.

Speaker 10: Got it. And then just a quick follow up. So with within Amion, is there currently a patient self-scheduling capability? And is there any opportunity to maybe leverage their enterprise scheduling in order to enable patients self-scheduling, either during or subsequent to a doxamity telehealth visit? Thank you.

Got it and then just a quick follow up so.

<unk> is there currently a patient self scheduling capability and is there any opportunity to maybe leverage.

There.

Enterprise scheduling in order to enable patient deadline, either during or subsequent to adopt in a telehealth visit thank you.

Speaker 8: yeah great question now there's no patient scheduling on it it really designed for a position on call scheduling so every hospital uh... needs to have a cardiologist on call at at all times and you've got that for you're really almost twenty different specialties

Yes, Great question no. There is no patient scheduling on it it's really designed for a physician on call scheduling. So every hospital.

Needs to have a cardiologist on call at all times and these data it.

It really almost 20 different specialties and so it's really for the physician to physician quick console to the Handoffs that happened in healthcare. So the nice thing for US is that really is again, it's a daily use case for physicians to have to get a quick console or call someone on call.

Speaker 8: And so it's really for the physician to physician quick consults and handoffs that happen in healthcare. So the nice thing for us is that really is again, it's a daily use case for physicians.

Speaker 8: to have to get a quick console or call someone on call. But no, we don't do any patient registration or sketching there. We do, however, through our US New Partnership, have the ability for patients to schedule visits through the US news site. When they're looking up the best hospital for their disorder, and they can go look at the doctors in that hospital, you actually can book appointments directly. I don't know the latest numbers on that, but we...

No we don't do any patient.

The registration or scheduling there we do however through our U S. New partnership have the.

The ability for patients to scheduled visits through the U S. New site. When they are looking up the best hospital for their disorder and they can go look at the doctors in that house, we actually can book appointments directly I don't know the latest numbers on that but we we have a a growth opportunity I would say in that patient scheduling business, but it is independent of <unk>.

Speaker 8: We have a growth opportunity, I would say, in that patient scheduling business, but it's independent of MI on. Next time, we live in the Ph.D.

Got it thanks again.

Speaker 3: Thank you and this concludes our question and answer session. I will now turn the call back to Mr. Jeff Taney for any closing comments. Sir, please go ahead.

Thank you and this concludes our question and answer session I will now turn the call back to Mr. Jeff <unk> for any closing comments Sir. Please go ahead.

I just want to thank everyone again for joining this quarter's call and thank the entire Doximity team for just an incredible quarter and great results. Thanks, everyone.

Speaker 8: I just want to thank everyone again for joining this quarter's call and thank the entire Doximite team for just an incredible quarter and great results. Thanks everyone.

Speaker 3: This concludes today's conference call. Thank you for participating. You may now disconnect.

This concludes today's conference call. Thank you for participating you may now disconnect.

Okay.

Speaker 11: scribe be

Okay.

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