Q4 2024 Doximity Inc Earnings Call

Greg: Thank you for standing by. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to Doximity's fiscal 2024 fourth quarter conference call. All lines have been placed on mute to prevent any background noise.

Thank you for standing by my name is Greg and I will be your conference operator today at this time I would like to welcome everyone to Doximity as fiscal 'twenty 'twenty four fourth quarter earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session if you'd like.

Greg: After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. Once again, star one. And if you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Perry Gold, Vice President, Investor Relations. Perry, please go ahead.

To ask a question during this time simply press star followed by the number one on your telephone keypad. Once again star one and if you would like to withdraw your question Press Star one again, thank you.

I would now like to turn the call over to Perry Gold Vice President Investor Relations Perry. Please go ahead.

Perry Scott Gold: Thank you, operator. Hello, and welcome to Doximity's fiscal 2024 fourth quarter earnings call. With me on the call today are Jeff, co-founder and CEO of Doximity; Dr. Nate Gross, co-founder and CSO; and Anna Bryson, CFO. A complete disclosure of our results can be found in our press release issued earlier today as well as in our related Form 8, along with a copy of our prepared all available on our website at investors.doximity.com. As a reminder, today's call is being recorded, and a replay will be available.

Perry Scott Gold: Thank you operator, Hello, and welcome to Doximity as fiscal 2020 for fourth quarter earnings call with me on the call today are Jeff Teng co founder and CEO of Doximity, Dr. Nate gross co founder and CSO and O'brien CFO, a complete disclosure of our results can be found in our press release issued earlier today.

Perry Scott Gold: As well as in our related form 8-K, along with a copy of our prepared remarks, all available on our website at investors Doximity Dot com.

Perry Scott Gold: 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.

Perry Scott Gold: 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. Actual results may differ materially, and we disclaim any obligation to update any forward-looking statements or, Please refer to the risk factors in our annual report on Form 10, any subsequent Form 10, and our other reports and filings with the SEC that may be filed from, including our upcoming filing on Form 10-K. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, May 16, 2024.

Perry Scott Gold: Forward looking statements or outlook. Please refer to the risk factors in our annual report on Form 10-K, any subsequent form 10, Qs and other reports and filings with the SEC may be filed from time to time, including our upcoming filing on Form 10-K.

Perry Scott Gold: Our forward looking statements are based on assumptions that we believe to be reasonable as of todays date May 16, 2024 of note. It is 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 or through the filing of a form 8-K.

Perry Scott Gold: 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 or through the filing of a form. Today, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A historical reconciliation to comparable gap metrics can be found in today's earnings. Finally, during the call, we may offer incremental metrics to provide greater insights into the dynamics of our business. These details may be one-time in nature, and we may or may not provide updates on those metrics in the future. I would now like to turn the call over to our CEO and co Jeff.

Perry Scott Gold: 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 insight into the dynamics of our business.

Perry Scott Gold: Details may be onetime in nature, and we may or may not provide updates on those metrics in the future.

Speaker Change: I would now like to turn the call over to our CEO and co founder Jeff Tony Jeff.

Jeffrey A. Tangney: Thanks, Barry. And thank you everyone for joining our fourth quarter earnings call. We've got three updates today: our financials, network growth, and client summit. First, our top line.

Jeff: Thanks, Perry and thank you everyone for joining our fourth quarter earnings call. We have three updates today, our financials network growth and client Summit's first our top line, we delivered $118 million in revenue for the fourth quarter of our fiscal 2024, beating the high end of our guidance.

Jeffrey A. Tangney: We delivered $118 million in revenue for the fourth quarter of our fiscal 2024, beating the high end of our guidance. For our full fiscal year ended March 31st, we had $475 million in revenue and grew 13% year on year. Of note, our top 20 clients once again grew the fastest at 22% in fiscal 2024. These clients include most of the top 20 pharmaceutical companies who know and measure asbestos.

Speaker Change: Rich.

Rich: For our full fiscal year ended March 31, we had $475 million in revenue and grew 13% year on year.

Rich: Of note our top 20 clients once again grew the fastest at 22% in fiscal 2024.

These clients include most of the top 20 pharmaceutical companies, who know and measure us best.

Jeffrey A. Tangney: Our bottom line was strong in Q4 with an adjusted EBITDA margin of 48% or $56 million, which was 10% above the high end of our goal. Our free cash flow was a bit higher still at $62 million, which was $37 billion year-on-year growth. For the full fiscal year, our adjusted EBITDA grew 25% from $184 million to $230 million year-on-year. Our adjusted EBITDA margin was 48% for the year, up from 44% the prior year. To reinvest this growing cash flow, our board has authorized a new $500 million share buyback.

Rich: Our bottom line was strong in Q4 with an adjusted EBITDA margin of 48% or $56 million.

Rich: Which was 10% above the high end of our guidance.

Rich: Our free cash flow was a bit higher still at $62 million.

Rich: Which was 37% year on year growth.

Rich: For the full fiscal year, our adjusted EBITDA grew 25%.

$184 million to $230 million year on year.

Rich: Our adjusted EBITDA margin was 48% for the year up from 44% the prior year.

Rich: To reinvest this growing cash flow our board has authorized a new $500 million share buyback program at.

Jeffrey A. Tangney: At the same time, we'll continue to grow our internal R&D investments in AI and commercialization. Okay, turning now to our network growth. In fiscal 2024, we added over 400,000 registered health care professionals to our platform. That was our second biggest growth year ever, rivaled only by our COVID surge in 2021.

Rich: At the same time, we will continue to grow our internal R&D investments in AI and commercialization.

Speaker Change: Okay, turning now to our network growth and engagement.

Speaker Change: In fiscal 2024, we added over 400000 registered health care professionals to our platform. That's our second biggest growth year ever rivaled only by our Covid surge in 2021.

Jeffrey A. Tangney: This recent growth shows how at more and more hospitals nationwide, we're becoming the standard tool for calling patients, checking calendars, and looking up calls. We've also extended our reach among nurse practitioners, MPs, and physician assistants, PAs. We're proud that now over 60% of the roughly 550,000 MPs and PAs in the US have joined our network.

This recent growth shows how it more and more hospitals nationwide, we're becoming the standard tool for calling patients checking calendars and looking at colleagues.

Speaker Change: We've also extended our reach among nurse practitioners and peas and physician assistance.

Speaker Change: We're proud that now over 60% of the roughly 550000 <unk> in the U S have joined our network.

Jeffrey A. Tangney: This is in addition to the 80 plus percent of U.S. physicians on our platform. Our engagement also hit a new high watermark in Q4. Our unique active users on a quarterly, monthly, weekly, and daily basis were all up double digit percentages, year-over-year. Notably, our daily users grew the most, underscoring how much our personalized newsfeed and EHR integrated workflow tools continue to gain share and daily use among healthcare providers. Our news feed continues to be our most used feed.

Speaker Change: This is in addition to the 80 plus percent of U S physicians on our platform.

Speaker Change: Our engagement also hit a new high watermark in Q4, our unique active users on a quarterly monthly weekly and daily basis were all up double digit percentages year over year.

Speaker Change: Notably our daily users grew the most underscoring how much our personalized news feed and EHR integrated workflow tools continue to gain share in daily use among health care providers.

Speaker Change: Our news feed continues to be our most used feature last quarter over 900000 unique prescribers stalled our feet to keep up on the latest developments in their fields.

Jeffrey A. Tangney: Last quarter, over 900,000 unique prescribers scrolled through our feed to keep up on the latest developments in their field. Our workflow tools also saw record engagement in Q4, with over 580,000 unique active prescribers. But don't take our word for it.

Speaker Change: Our workflow tools also saw record engagement in Q4 with over 580000 unique active prescribers.

Jeffrey A. Tangney: Just take a look at our review. Our app has over 165,000 reviews on the Apple App Store and is one of the highest rated medical apps with 4.8 stars. Okay, turning now to our recent physician and pharma client. In March, we hosted our 12th Annual Physician Tech Summit. It was great to roll up our sleeves for two days and test new software alongside 150 of our nation's top digital. AI took center stage as Doximity GPT, our popular HIPAA compliant medical writing platform, won the top marks of the. We are all in on AI applications for doctors, and we'll continue to lean into our R&D.

Speaker Change: But don't take our word for it just take a look at our reviews. Our App has over 165000 reviews on the Apple App store and is one of the highest rated medical apps at four eight stars.

Speaker Change: Okay, turning now to our recent physician and pharma client summits in March we hosted our <unk> annual physician Tech summit in San Francisco. It was great to rollover sleeves for two days and test new software alongside a 150 of our nation's top digital doctors.

Speaker Change: AI took center stage as Doximity GPT are popular HIPAA compliant medical writing assistant one the top marks of the weekend. We are all in on AI applications for doctors and we'll continue to lean into our R&D investment here.

Jeffrey A. Tangney: To that end, today, we're delighted to announce a new integration with Perplexity, the AI answer engine that can respond to questions with the latest publicly available sources and citations. With this integration, physicians on Doximity can ask about a recent guideline and see the latest answer along with a quick link to the Medical Society website where the full guideline is posted.

Speaker Change: To that end today, we are delighted to announce a new integration with perplexity. The AI answer engine that can respond to questions with the latest publicly available sources and citations.

Speaker Change: With this integration physicians on Doximity can ask about our recent guideline change and see the latest answer along with a quick link to the medical Society website, where the full guideline is posted.

Jeffrey A. Tangney: Unlike other popular AI models, this gives doctors the latest, up-to-the-minute information, and it's easy for them to double check their sources. Last week, we hosted our annual pharma client summit in New York. Over 30 marketing leaders from the largest pharmaceutical companies in the world joined us to discuss the latest trends in digital marketing and to take a closer look at our new client portal. Our clients have always appreciated our white glove service and industry-leading ROI.

Speaker Change: Unlike other popular AI models. This gives doctors the latest up to the minute information and its sources are physicians tell us that this ability to easily double check their sources is a key requirement and making clinical decisions.

Speaker Change: Last week, we hosted our annual pharma client summit in New York over 30 marketing leaders from the largest pharmaceutical companies in the world joined us to discuss the latest trends in digital marketing and to take a closer look at our new client portal.

Speaker Change: Lions have always appreciated our white glove service and industry, leading ROI now they're also excited about the AI optimizations and time savings are tech can bring them.

Jeffrey A. Tangney: Now they're also excited about the AI optimizations and time. As one of our clients put it, they want Doximity's data and AI to tell them how to run their business, not the other way around. Last quarter, we completed a whopping 124 ROI studies in our client, Leveraging our seamless IQ via sales data. That's roughly three times as many as we did all last year.

Speaker Change: As one of our clients put it they want doximity as data and AI to tell them how to run their programs not the other way around.

Speaker Change: Last quarter, we completed a whopping 124, ROI studies in our client portal leveraging our seamless IQ via sales data integration that is roughly three times as many as we did all test year.

Jeffrey A. Tangney: Our median ROI continues to be greater than 11 to one, but the months of back and forth data gathering now takes just a few clicks. A portal is now available to about 20% of our pharma brand clients, up from 10% last. We continue to make steady progress in this multi-quarter evolution following the well-tested ad platform design and playbook of other tech. There are three basic functions of our client portal: reporting, purchasing, and content.

Speaker Change: Our median ROI continues to be greater than 11 to one but the months of back and forth data gathering now it takes just a few clicks.

Speaker Change: Our portal is now available to about 20% of our pharma brand clients up from 10% last quarter, we continue to make steady progress in this multi quarter evolution. Following the well tested AD platform design and playbook of other tech companies.

Speaker Change: There are three basic functions to our client portal reporting purchasing and content creation. The first part reporting and insights we rolled out last quarter. This quarter, we've introduced purchasing and pricing capabilities. The third phase content creation and optimization will begin later this year.

Jeffrey A. Tangney: The first part, reporting and insights, we rolled out last year. This quarter, we introduced purchasing and pricing capabilities. The third phase, content creation and optimization, will begin later this year. It's been nearly six months since we began beta testing our portal with clients. We appreciate the advice from many industry experts. Stay upmarket and do it right.

Speaker Change: It's been nearly six months since we began beta testing our portal with clients. We appreciate the advice from many industry experts to stay upmarket and do it right.

Jeffrey A. Tangney: So far, our existing clients love our tech and transparency. They're giving us a seat at their strategy table like never before. And over time, we're excited to unlock and serve a much broader swath of customers with a more automated. Okay, I'd like to end by thanking my team, continuing to work incredibly hard, and care for those who care for us. With record engagement among healthcare professionals, the long-term value of what we're building together has never been greater. I'm proud to be on this journey. And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and guidance. Anna?

Speaker Change: So far our existing clients love, our tech and transparency theyre, giving us a seat at the strategy table like never before and over time, we're excited to unlock and serve a much broader swath of customers with a more automated platform.

Speaker Change: Okay I'd like to end by thanking my Doximity teammates, who continue to work incredibly hard.

Speaker Change: Care for those who care for us with.

With record engagement among health care professionals, the long term value of what we're building together has never been greater I'm proud to be on this journey with you.

Speaker Change: And with that I'll hand, it over to our CFO and Brian to discuss our financials and guidance.

Anna Bryson: Thanks, Jeff. And thanks to everyone on the team. Fourth quarter revenue grew to 118.1, up 6% year-over-year and exceeding the high end of our guidance. Full year revenue grew to $475.4 million, up 13% year-over-year. Similar to prior quarters, our existing customers continue to lead. We finished the quarter with a net revenue retention rate of 114% on a trailing 12-month. For our top 20 customers, net So our biggest, most sophisticated customers remain our fastest growing. We ended the quarter with 296 customers contributing at least $100,000.

Speaker Change: Yeah.

Speaker Change: Thanks, Jeff and thanks to everyone on the call today fourth quarter revenue grew to $118 1 million up 6% year over year and exceeding the high end of our guidance range.

Speaker Change: Your revenue grew to $475 4 million up 13% year over year.

Speaker Change: Similar to prior quarters, our existing customers continue to lead our growth. We finished the quarter with our net revenue retention rate of 114% on a trailing 12 month basis.

Speaker Change: For our top 20 customers net revenue retention was higher at 122%. So our biggest most sophisticated customers remain our fastest growing.

Speaker Change: We ended the quarter with 296 customers contributing at least $100000 each and subscription based revenue on a trailing 12 month basis.

Anna Bryson: Description-based revenue on a trailing 12% This is a roughly 1% increase from the 294, that we have in this cohort, and these customers accounted for 90% of our total. Moving forward, we will be increasing the revenue threshold for our customer count. We believe a metric that better represents the health of our business at this scale is the number of customers contributing at least $500,000 each in subscription-based revenue on a trailing twelve. We ended the quarter with $98,500,000 plus.

Speaker Change: This is a roughly 1% increase from the 294 customers that we have in this cohort a year ago and these customers accounted for 90% of our total revenue.

Speaker Change: Moving forward, we will be increasing the revenue threshold for our customer count metric, we believe a metric that better represents the health of our business. At this scale is the number of customers contributing at least $500000. Each that's subscription based revenue on a trailing 12 month basis we.

Speaker Change: We ended the quarter with 98 $500000 plus customers. This is a 23% increase from the 80 customers that we had in this cohort a year ago and these customers accounted for 81% of our total revenue.

Anna Bryson: This is a 23% increase from the 80 customers that we had in this cohort a year ago, and these customers accounted for 81% of our total. Turning to our profitability, non-GAAP gross margin in the fourth quarter was 91%, versus 90% in the prior year. For the full fiscal year, non-GAAP gross margin was also versus 90% in fiscal 2023. Adjusted EBITDA for the fourth quarter was $56.4 million, and the adjusted EBITDA margin was $48.3 million, compared to $48.9 million, a 44% margin in the prior year.

Speaker Change: Turning to profitability non-GAAP gross margin in the fourth quarter was 91% versus 90% in the prior year period for.

Speaker Change: For the full fiscal year non-GAAP gross margin was also 91% versus 90% in fiscal 2023.

Adjusted EBITDA for the fourth quarter was $56 4 million and adjusted EBITDA margin was 48% compared to $48 9 million and a 44% margin in the prior year period.

Anna Bryson: For the full fiscal year, Adjusted EBITDA was $230.5 million, and Adjusted EBITDA Margin was $48.5 million, compared to $184 million and a 44% margin in fiscal 2020. We are proud to continue to run a very profitable business with 25% year over year growth in our bottom line. Now turning to our balance sheet, cash flow, and an update on our share report. We generated free cash flow in the fourth quarter of $62.3 million, compared to $45.6 million in the prior year period, an increase of 37% year-over-year.

Speaker Change: For the full fiscal year, adjusted EBITDA was $235 million and adjusted EBITDA margin was 48% compared to $184 million and a 44% margin in fiscal 2020.

Speaker Change: We are proud to continue to run a very profitable business with 25% year over year growth in our bottom line.

Now turning to our balance sheet cash flow and an update on our share repurchase program.

Speaker Change: We generated free cash flow in the fourth quarter of $62 3 million compared to $45 6 million in the prior year period, an increase of 37% year over year.

Anna Bryson: For the full year, we generated free cash flow of $178.3, compared to $173.4 million in fiscal 2020, an increase of 3% year over year. As a reminder, we have utilized our NOLs and are now paying cash taxes at a rate of roughly $20,000. We ended the year with $763 million of cash, cash equivalents, and marketable securities. During the fourth quarter, we repurchased $21.7 million.

Speaker Change: For the full year, we generated free cash flow of $178 3 million compared to $173 4 million in fiscal 2023, an increase of 3% year over year.

Speaker Change: As a reminder, we have utilized our Nols and are now paying cash taxes at a rate of roughly 25%.

Speaker Change: We ended the year with $763 million of cash cash equivalents and marketable securities.

Speaker Change: During the fourth quarter, we repurchased $21 $7 million worth of shares.

Anna Bryson: For the full fiscal year, we repurchased $284 million worth of shares at an average price of $23. These share repurchase efforts have decreased our fully diluted shares outstanding by five and a half percent since Q4. We completed all remaining authorized share buybacks in April, and today are announcing a new $500 million share repurchase program that will be open. We believe repurchasing our shares is a valuable use of the incremental cash we generate above what's needed to reinvest.

Speaker Change: For the full fiscal year, we repurchased $284 million worth of shares at an average price of $23 and 19 sets. These.

Speaker Change: These share repurchase effort have decreased our fully diluted shares outstanding by five 5% since Q4 of last year.

Speaker Change: We completed all remaining authorized share buybacks in April and today, we're announcing a new $500 million share repurchase program that will be open ended we believe repurchasing our shares is a valuable use of the incremental cash we generate above what's needed to reinvest in the business.

Anna Bryson: Now moving on to our forecast. For the first fiscal quarter of 2025, we expect revenue in the range of $119.5 to $120.5, representing 11% growth, and we expect adjusted EBITDA in the range of 55 to representing a 46% adjusted EBITDA. For the full fiscal year, we expect revenue in the range of $506 to $580, representing 8% growth, and we expect adjusted EBITDA in the range of 238 to 250, representing In fiscal 2025, we expect stock-based compensation to increase from roughly 10% of revenue to roughly 12 to 13% of revenue, as we continue to invest in and grow our business. That said, we expect the dilution impact to be low at less than 1% of shares prior to any. Now I'll provide more color on our. Our annual guidance assumes growth of at least 10% amongst our farmers. Flattish growth amongst our health.

Speaker Change: Now moving onto our outlook for the first fiscal quarter of 2025, we expect revenue in the range of $119 $5 million to $125 million, representing 11% growth at the midpoint and.

Speaker Change: And we expect adjusted EBITDA in the range of $55 million to $56 million, representing a 46% adjusted EBITDA margin.

Speaker Change: For the full fiscal year, we expect revenue in the range of $506 million to $518 million, representing 8% growth at the midpoint and we expect adjusted EBITDA in the range of $238 million to $250 million, representing a 48% adjusted EBITDA margin.

Speaker Change: Finally, one housekeeping item in fiscal 2025, we expect stock based compensation to increase from roughly 10% of revenue to roughly 12% 13% of revenue as we continue to invest in and grow our team that said, we expect the dilution impact to be low at less than 1% of shares outstanding prior to any buybacks.

Speaker Change: Now I'll provide more color on our outlook.

Speaker Change: Our annual guidance assumes growth of at least 10% amongst our pharma customers and flattish growth amongst our health system customers are.

Anna Bryson: Our pharma business, which represents over three-quarters of our revenue, continues to outperform the roughly five to seven percent growth rate of the overall HCP digital market. We believe this outperformance is due to our record engagement, industry-leading ROI, and continued innovation. Speaking of innovation, we are excited by the long-term potential to unlock even more growth for our farmers with our new client. However, given this will be our first upsell season with it, we are assuming no material revenue impact in our fiscal 2025.

Speaker Change: Our pharma business, which represents over three quarters of our revenue continues to outperform the roughly 5% to 7% growth rate of the overall HCP digital market.

Speaker Change: We believe this outperformance is due to our record engagement industry, leading ROI and continued innovation.

Speaker Change: Speaking of innovation, we are excited by the long term potential to unlock even more growth for our afirma business with our new client portal. However, given this will be our first upsell season with it we are assuming no material revenue impact in our fiscal 2025 guidance.

Anna Bryson: With regard to our health system, renewal rates remain strong, but we are seeing less expansion, and hospitals today are focused on a post-COVID return to profit, which we believe is more of a near-term headwind caused by the pandemic, inflation, and labor. We are, however, encouraged by a recent McKinsey study, which estimates that health systems profits will rebound and grow by an 11% CAGR over the next four years after less than 5% growth.

Speaker Change: With regard to our health system customers renewal rates remained strong, but we are seeing less expansion in new business.

Speaker Change: Hospitals today are focused on a post COVID-19 returned to profitability, which we believe is more of a near term headwind caused by the pandemic inflation and labor shortages.

Speaker Change: We are however, encouraged by a recent Mckinsey study, which estimates that health systems profits will rebound and grow by an 11% CAGR over the next four years after less than 5% growth this past year.

Anna Bryson: As far as visibility into our fiscal 2025 guidance is concerned, we continue to see a trend toward more upfront buying. This has led to us beginning each year with a higher percentage of revenue under contract or booked than the prior. As of today, we have over 70% of our subscription based revenue guidance for fiscal 2025 under. This compares to over 65% at this point last year and over 60% at this point two years ago. To date, we have focused our commercial efforts on the universe of pharma brands with over 100 million customers in the U.S. Strategy aligned with the white There are roughly 470 brands with less than $100 million in the U.S., and today they represent only about 8% of our total farm.

Speaker Change: As far as visibility into our fiscal 2025 guidance, we continue to see a trend toward more upfront buying on doximity.

Speaker Change: This is led to us beginning each year with a higher percentage of revenue under contract or booked than the prior year.

Speaker Change: As of today, we have over 70% of our subscription based revenue guidance for fiscal 2025 under contract. This compares to over 65% at this point last year and over 60% at this 0.2 years ago.

Speaker Change: To date, we have focus our commercial efforts on the University of pharma brands with over $100 million in U S sales strategy aligned with the white glove nature of our business model.

Speaker Change: Looking ahead, we're excited by the opportunity our portable brand to further expand our offerings to the long tail of pharma brands.

Speaker Change: There are roughly 470 brands with less than $100 million in U S sales and today they represent only about 8% of our total pharma revenue. We think this could be substantially higher than the long term.

The portal also brings an ability to expand our reach to other small and medium sized businesses in health care, such as medical devices diagnostics and digital health.

Speaker Change: We look forward to partnering with more brands and companies as we continue our evolution towards being both high Tech and high touch.

Anna Bryson: We think this could be substantially higher in the, The portal also brings an ability to expand our reach to other small and medium-sized businesses in healthcare, such as medical devices, diagnostics, and digital health. We look forward to partnering with more brands and companies as we continue our evolution towards being both high tech and, With that, I will turn it over to the operator. And at this time, I would like to remind everyone that in order to ask a question, press star one on your telephone keypad. Once again, star number one.

Speaker Change: With that I will turn it over to the operator for questions.

Operator: And in the interest of time, we ask that you please limit yourself to one question and one follow-up. Thank you, and we'll pause just a moment to compile the Q&A roster. And it looks like our first question comes from the line of Brian Peterson with Raymond James. Brian, please go ahead.

Speaker Change: Thank you and at this time I would like to remind everyone in order to ask a question press star one on your telephone keypad once again star one.

Speaker Change: In the interest of time, we ask that you. Please limit yourself to one question and one follow up thank you in advance and well pause for just a moment to compile the Q&A roster.

Speaker Change: Yeah.

Speaker Change: And it looks like our first question comes from the line of Brian Peterson with Raymond James Brian. Please go ahead.

Brian Christopher Peterson: Thanks, guys, and congrats on a strong quarter. So I wanted to ask about the cohorts, I agree with you that the 500k is probably a better metric as it covers 81% of the revenue. But if we look at the call it 200 or so customers that are paying more than 100k but less than 500k, how much of them, or how many of them do you think would be a good fit to that good fit to spend over 500k eventually in any color on that? Sure.

Brian Christopher Peterson: Thanks, guys and congrats on the strong quarter. So I wanted to ask on the cohorts I agree with you that the 500 K, it's probably a better metric because it covers 81% of the revenue, but if we look at the call. It 200, or so customers that are paying more than 100, K, but less than 500 K how much of the how many then do you think would be a good fit.

Brian Christopher Peterson: Good fit to spend over 500, K eventually any color on that.

Unknown Executive: Thanks for the question, Brian. And yeah, I think, too, the point you just made. Listen, we're in a phase of growth today that's mostly led by scaling our larger existing customers. I think one of the trends that we've seen over time is that that cohort of customers, the cohort of customers that are spending more than $500,000 with us, continues to represent a growing percentage of our overall business. So today, it's at about 81%. And if we look back last year and the year prior, it was only about 76%.

Brian Christopher Peterson: Sure. Thanks for the question, Brian and yes, I think the point you just made listen we're interfacing based on growth today, that's mostly led by scaling our larger existing customers I think.

Speaker Change: One of the trends that we've seen over time is that that cohort of customers. The cohort of customers are spending more than $500000 without continues to represent a growing percentage of our overall business. So today, it's at about 81% and if we look back last year and the year. Prior it was only about 76%. So a big part of our growth has been doing.

Unknown Executive: So a big part of our growth has been doing exactly what you just referenced and getting those customers from that, say, $100,000 to $500,000 threshold up to the $500,000 plus threshold. We've done a ton of analysis on this. We believe that there is a long tail of pharma companies and health systems that we could help continue to graduate into that bucket. But without giving any kind of further specifics around the exact number, I think that there is plenty of room for us to grow in this $500,000 plus cohort. It's good to hear from you.

Speaker Change: Exactly what you just referenced and getting those customers from that 100 to 500, K threshold up to the 500 plus threshold.

Speaker Change: Not a ton of analysis on this we believe that there are a long tail of pharma companies and health systems that we can help continue to graduate into that bucket, but without giving kind of further specifics around.

Speaker Change: <unk> number I think that there is plenty of room for us to grow in this 500 plus cohort.

Anna Bryson: And Anna, just on the guidance, in terms of seasonality, looking at the June quarter, it's got to be up a few percent sequentially. Any delta on what's driving that versus what we saw in June, maybe the past few years? Thanks.

Good to hear and Anna just just on the guidance in terms of seasonality looking at the June quarter. It's got it you're up a few percent sequentially any bolt on what's driving that versus what we saw in June maybe the past few years. Thanks guys.

Anna Bryson: Yeah, sure, Brian. As I mentioned last quarter, we did see a higher mix of new products and new brands during our annual buying cycle. That included a $10 million plus brand that was actually a new brand for us, and 100% growth year over year in our newer modules. So these programs had contractual launch timing that was more weighted towards spring, which did lead to a softer than typical Q4, but a nice step up into Q1 as those programs are now live, and it's contributing to the strong 11% growth guide that we're seeing in Q1. Thanks.

Brian Christopher Peterson: Yeah sure Brian So as I mentioned last quarter, we did see a higher mix of new products and new brands during our annual buying cycle and that included a $10 million plus brand that was actually a new brand for us and 100% growth year over year and our newer modules. So these programs had contractual launch timing that was more weighted towards spring, which.

Brian Christopher Peterson: It leads to a softer than typical Q4, but a nice step up into Q1 as those programs are alive and it's contributing to the strong 11% growth that we're seeing in Q1.

Speaker Change: Thanks Anna.

Speaker Change: Thank you Brian.

Operator: Thank you, Brian. And our next question comes from the line of Scott Berg with Niedermann Company. Scott, please go ahead. Hi everyone.

Speaker Change: And our next question comes from the line of Scott Berg with Needham <unk> Company Scott. Please go ahead.

Scott Randolph Berg: Hi, everyone nice quarter here, thanks for taking my questions.

Scott Randolph Berg: Thanks for taking my question. Jeff, you gave a number of adoption metrics from non-physicians on the platform in the quarter and the progress that you're making there. I guess the question there's kind of a two-part question: one, do you think you can get those usage and adoption rates over time to be similar to what you see with physician today, and then two, how do you think about your ability to monetize these additional people that are on the platform? Is that opportunity, I guess? Does it differ at all from, you know, kind of the historical viewpoint of the platform? Thanks, Scott. Yeah, this is Jeff.

Speaker Change: Jeff you had given a number of adoption metrics from non physicians on the platform in the quarter and the progress that youre, making there.

Speaker Change: I guess the question, there's kind of a two part is one do you think you can get those usage and adoption rates over time similar to what you see with with physicians.

Speaker Change: And then two how do you think about your ability to monetize. These additional these additional people that are on the platform is that opportunity I guess does it differ at all from kind of the historical viewpoint of the platform. Thank you.

Jeffrey A. Tangney: I'll reply. Yes, we're proud to be over 60% of NPs and PAs in the U.S. In terms of our ability to monetize NPs and PAs, frankly, they're substantially similar to physicians, right? They have prescribing rights in nearly every state, and in terms of our biggest clients, they're actually, in many ways, topping their target list. So we're excited to be over 60% of NPs and PAs. Historically, we haven't done as well with them, and I will tell you what it boils down to.

Scott Randolph Berg: Thanks, Scott Yeah.

This is Jeff I'll reply, yes, we'll probably over 60% of MTS and <unk> in.

Speaker Change: In the U S in terms of our ability to monetize NPS and frankly, they are substantially similar to physicians write the prescription rights in nearly every state and in terms of our biggest clients. They are actually in many ways.

Speaker Change: Their target list. So we're excited to be over 60% of and Pega historically, we havent done as well with them, but I will tell you what it boils down to they're a little less proud of their resumes right. We began being this great service to showcase your curriculum VK and all of your publications in all of your clinical trials and <unk> tend to have less of that having fewer years of.

Jeffrey A. Tangney: They're a little less proud of their resumes, right? We began as this great service to showcase your CV and all of your publications and all of your clinical trials. NPs and PAs tend to have less of that, having had fewer years of education. But they are heavy, heavy users of our Doximity Dialer telehealth service, of our calendaring service, of our messaging service. And so as our workload tools continue to gain adoption, and new hospitals roll us out; we're now in 17 of the top 20 hospitals that have our enterprise IT platforms in place, we see greater and greater adoption among them.

Speaker Change: Patients.

Speaker Change: Our heavy heavy users.

Speaker Change: Our Doximity dialer, a telehealth service of our Calendaring serviced of our messaging service and so as our workflow tools continue to gain adoption new hospitals roll US out. We're now at 17 of the top 20 hospitals that have our enterprise platforms in place.

Speaker Change: We see greater and greater adoption amongst them and this year, we're going to be focusing more on NPS and ta specifically, so we haven't announced it in the comments, but we have been putting together a what we call NP navigator to help mp's choose the right schools and training programs for them to go to this is something that's been a real hit with our physician audience, we get over.

Jeffrey A. Tangney: And this year, we're going to be focusing more on NPs and PAs specifically. So, we haven't announced it in the comments, but we have been putting together what we call NP Navigator to help NPs choose the right schools and training programs for them to go to.

Jeffrey A. Tangney: This is something that's been a real hit with our physician audience. We get over 90% of graduating physicians to come use what we call Residency Navigator. So we have over 1,000 physicians who've provided feedback on their schools and programs.

Speaker Change: 90% of graduating physicians to come use or what we call residency navigator. So we have over 1000, MPS, who provided feedback on their schools and programs and I think it would be a real service to the NPA NPA community to be able to make better choices as they decide where they're going to move to in the country to do their training.

Jeffrey A. Tangney: And I think it'll be a real service to the NP and PA community to be able to make better choices as they decide where they're going to move to in the country to do their training. So we'll continue to lean into, I think, other non-physician audiences. And frankly, we are increasingly a network for all of healthcare, all healthcare professionals, not just physicians. Very helpful.

Speaker Change: So we will continue to lean into I think other non physician audiences and frankly, we are increasingly.

Speaker Change: A network for all of health care, all healthcare professionals not just physicians.

Anna Bryson: Thank you, Jeff. And then, Anna, in your guidance, you mentioned revenue from pharma customers, contemplated in your guidance to be up 10 plus percent year over year. And your non-pharma, we'll call it more hospital-based revenues, is expected to be about flat year over year versus in 25 versus 24. I guess as you think about those revenue streams, how can I jumpstart that to maybe show a little bit more modest growth from that segment?

Speaker Change: Very helpful. Thank you, Jeff and then I know.

Speaker Change: In your guidance you had mentioned.

Speaker Change: Revenue from pharma customers.

Speaker Change: Contemplated in your guidance to be up 10, plus percent year over year in your non pharma I'll call more hospital based revenues.

Speaker Change: It is expected to be about flat year over year versus in 2020 versus 24, I guess as you think about those revenue streams, how can a key jumpstart that to maybe show a little bit more modest growth from that segment or is there some limitations in the end market across the numerous products you have there that might draw.

Speaker Change: Drive that growth rate for a while.

Anna Bryson: Or are there some limitations in the end market across the numerous products you have there that might, you know, drive that growth rate for a while? Yeah, sure, Scott. So, you know, I'll start by saying hospitals have had a tough few years. I mean, it's no secret, right, with the pandemic and inflation.

Scott Randolph Berg: Yes, sure Scott So sorry for I think hospitals upon a tough few years, let me see.

Speaker Change: Right right with the pandemic and inflation and I think we have to remember that the public health emergency only ended in May of 2023. So a hospital today really are focused on this return to profitability and we believe this is much more of a near term headwind, we have seen less new business expansion because of that but the good news is our renewal rates remain really strong.

Anna Bryson: And I think we have to remember that the public health emergency only ended in May of 2023. So hospitals today really are focused on this return to profitability. And we believe this is much more of a near-term headwind. We have seen less new business expansion because of that.

Anna Bryson: But the good news is that our renewal rates remain really strong, and our enterprise telehealth business continues to perform very well and drive strong engagement. And then, as we kind of think about that market over time, we are really encouraged by the recent trends and forecasts by McKinsey for a rebound in health system profitability. So we do believe that this is much more of a near-term headwind caused just by a post-COVID return to profitability for health systems.

Speaker Change: And our enterprise Telehealth business continues to perform very well and drive strong engagement and then as you kind of think about that market over time, we are really encouraged by the recent trends and forecast by Mckinsey for a rebound in health system profitability. So we do believe that this is much more of a near term headwind that is caused by a post COVID-19 returned to profitability.

Speaker Change: For health systems, and we believe strongly that this end market can be a good grower for us over the long term.

Speaker Change: Great. Thank you for taking my questions. Thanks, Scott.

Anna Bryson: And we believe strongly that this end market can be a good grower for us over the long term. Great, thank you for taking my questions. Thanks, Scott. And our next question comes from the line of Jared Haase with William Blair. Jared, please go ahead.

Speaker Change: And our next question comes from the line of Jared Haas with William Blair. Please go ahead.

Jared Phillip Haase: Yeah, thanks for taking the questions. This is Jared Haas on for Ryan Daniels, maybe I'll just ask a follow up to kind of put a finer point on that health system commentary, you know, be curious how you're thinking about any opportunities from a product development perspective, you know, given the sort of margin challenges that that industry is facing, thinking about solutions to actually help address those issues, right, whether it's through better revenue capture, helping those health systems, lower costs or drive operating efficiencies, anything like that, that sort of informing your, you know, product development initiatives to kind of be a solution to their problem. Thanks, Jared. This is Jeff.

Jared Phillip Haase: Yeah, Hey, thanks for taking the questions. This is Jared haase on for Ryan Daniels, maybe I'll just ask a follow up to kind of put a finer point on that health system commentary I'd be curious, how you're thinking about any opportunities from a product development perspective, given those sort of margin challenges that that industry is facing thinking about solution.

Speaker Change: It is to actually help address those issues, whether it's through better revenue capture and helping those health systems lower cost or drive operating efficiencies anything like that that sort of improve informing your.

Speaker Change: Product development initiatives to kind of be a solution to their problems.

Jeffrey A. Tangney: I'll take that. Yeah, we remain very invested long-term in serving hospitals and the hospital market. And listen, as Anna just said, we think their return to profitability will be swift. And, you know, they're great clients, loyal clients long-term for us, so we want to continue to help them.

Jeff: Thanks, Sarah this is Jeff I'll take that yes.

<unk> remained very best and long term.

Speaker Change: And hospitals in the hospital market and listen to us and as we.

Speaker Change: We think they returned to profitability will be will be swift.

Speaker Change: The.

Speaker Change: Great clients loyal clients long term for us. So we want to continue to help them I don't want to give too much away in terms of our product pipeline and roadmap. We do spend a lot of time with our hospital clients developing new new ideas, new products and suffice it to say I think we have.

Jeffrey A. Tangney: I don't want to give too much away in terms of our product pipeline and roadmap, but we do spend a lot of time with our hospital clients developing new ideas and new products. And suffice it to say, I think we have some good things cooking there.

Jeffrey A. Tangney: We just did our hospital advisory board a month ago, which brought, I think, the top hospitals from around the country together with us to brainstorm on these things. One thing I will highlight is in regards to recruiting, which remains a big challenge for hospitals keeping talent and dealing with labor shortages; we have been using GPT to help us personalize their job listings and posts for the individual end physician or nurse or MP or PA. And we're seeing that GPT does do better.

Speaker Change: I'm good. Thanks cooking there, we just did our hospital advisory Board a month ago, which brought.

Brian: Brian I think the top hospitals from around the country together with us to brainstorm on these things, but one thing I will highlight is in regards to recruiting which remains a big challenge for hospitals, keeping talent labor shortages.

Jeffrey A. Tangney: It gets better click rates than just the general posting. So wouldn't it be nice if every time you got presented with a job opportunity, it was personalized for you in a way that you could quickly flip through and adjust?

Brian: We have been using GPT to help us personalize.

Brian: Their job listings and post for the individual physician or nurse or <unk> and we're seeing that GPT does do better it gets better click rates than just the general posting so wouldn't it be nice. If every time you got presented with a job opportunity that it was personalized for you.

Brian: In a way that that you can quickly flip through and then adjust so we're excited about what we call it recruit GPT here internally.

Jeffrey A. Tangney: So we're excited about what we call recruit GPT here internally. We're really excited that the click through rates we've seen here are significantly better. And our clients, of course, are excited about this as well because they get more applications, more candidates, and more help filling a lot of those positions that they have open. Okay, yeah, that's great. Appreciate the color there.

Brian: I'm really excited that the click through rates, we've seen here do significantly better than our clients. So of course, we're excited about this as well because they get more applications more candidates and more help filling a lot of those positions that they have.

Speaker Change: Okay. Yeah, that's great I appreciate the color there and then maybe I'll ask a follow up on the pharma side and specifically the comments around your optimism of getting into the smaller Biopharma segment of the market could you just kind of walk through how you would think about sort of the commercial efforts in the SMB segment of that.

Jared Phillip Haase: And then maybe I'll ask a follow-up on the pharma side and specifically the comments around your optimism about getting into the smaller biopharma segment of the market. Could you just kind of walk through how you would think about sort of the commercial efforts in the SMB segment of that market? Do you know any differences or nuances to how you would go after that customer segment versus your traditionally larger pharma manufacturer client? Sure. Thanks, Jared.

Speaker Change: No any differences or nuances as to how you would go after that customer segment versus your traditionally larger pharma manufacturer client base.

Speaker Change: Sure. Thanks Darren.

Jeffrey A. Tangney: So, let me just start by saying I'm incredibly enthusiastic about our portal, especially having just spent time with 30 of our biggest clients last week. And, you know, just after they see all the different ways we can optimize and measure and provide them with these 124 ROI studies, you know, with just a few clicks instead of just once a year and a torturous three-month data merging process, you know, they come to us and say, "You know what? Can you just tell me what to do?"

Speaker Change: So let me just start by saying.

Speaker Change: Incredibly enthusiastic about our portal, especially having just spent time with three of our biggest clients last week.

Speaker Change: After they see all the different ways, we can optimize and measure and drive them. These 124 ROI studies with just a few clicks instead of just once a year.

Speaker Change: Torturous three months data merging process.

Speaker Change: Yes, they come to us and say you know what can you just tell me what to do because we really are in a position to.

Jeffrey A. Tangney: Because we really are in a position to help them figure out the right voice, the right channel, the right way to optimize getting word out about their new clinical studies and other things. I think that's even more true with the smaller mid-tier pharma companies because they don't have the legions of consultants and agencies and others to really help them optimize and do all that. And our portal can do a lot of that for them. Now, the thing that we're still missing and building today is the ability for them to actually upload their content, which I think will be an important piece.

Speaker Change: To help them figure out the right voice the right channel at the right way to optimize getting worked out about their new clinical studies and other things I think that's even more true with the smaller mid tier pharma companies because they don't have the legions of consultants in the agencies and others to really help them optimize and do.

Speaker Change: All of that in our portal can do a lot of that for them now the thing that we're still missing and building today is the ability for them to actually.

Speaker Change: Upload their content, which I think will be an important piece and it is something that as I said will be later this year. So I think we have.

Jeffrey A. Tangney: And it is something that, as I said, will be later this year. So I think we have, you know, a small forecast for what this will do this year. But as I look to future years, I mean, today, as Anna said in her prepared remarks, only 8% of our revenue, subscription revenue, comes from these smaller firms. And when you look at other companies, it's usually a much higher percentage.

Speaker Change: Small.

Speaker Change: Small forecast for what this will do this year, but as I look to future years, I mean today as Ana said in her prepared remarks, only 8% of our revenue subscription revenue comes from these smaller firms and when you look at other companies, it's usually a much higher percent. So we're very excited about what we can.

Jeffrey A. Tangney: So we're very excited about what we can do there, and I would say that the most excited clients we have have been the mid-tier companies, because they don't already have all the consultants and others producing these analytics for them. And now, with a click of a button, they can see it, and they can take it to their CFO. It's somewhat magical for them.

Speaker Change: Do there I would say that the most excited clients. We have have been the mid tier companies because they don't already have all the consultants and others producing these analytics for them and now with a click of a button they can see it and they could take it to their CFO.

Speaker Change: It's somewhat magical for them.

Speaker Change: And I think we've seen technology do similar things in other tech companies.

Jeffrey A. Tangney: And I think we've seen technology do similar things in other tech companies. Great. Thank you, Jared. And our next question comes from the line of Richard Close with Canaccord Genuity. Richard, please go ahead.

Speaker Change: Great. Thank you Jared and our next question comes from the line of Richard close with Canaccord Genuity. Richard Please go ahead.

Richard Collamer Close: Yes, thanks for the questions and congratulations on the report. And I was wondering, on the first quarter and the year revenue growth guidance, I know you addressed the first quarter in terms of timing of launch launches, but curious why doesn't the 11% growth carry over into the remaining quarters for the year? If you could just... you know, provide some details on what went into the, I guess, the rest of the year. Yeah, hey, Richard.

Richard Collamer Close: Yes, thanks for the questions and congratulations on the report.

Richard Collamer Close: And I was just wondering.

Richard Collamer Close: On the first quarter and the year revenue growth guidance I know you addressed the first quarter in terms of timings of launch.

Richard Collamer Close: Launches, but curious why doesn't the 11% growth carry over into the remaining quarters for the year or if you could just.

I will provide some details on what went into the <unk>.

Speaker Change: The rest of the year.

Yes.

Anna Bryson: Thanks for the question. As I said in my prepared remarks, we're entering the year with the strongest backlog we've ever had, with over 70% of our subscription-based revenue already under contract. And we're really happy, as we said before, with how the upfront went with our pharma business and the fact that we're guiding this 11% growth in Q1, where we have strong visibility in Q2. But as we think about, like, the back half of the year, it is more dependent on our upsell season and the next upfront season.

Richard Collamer Close: Yeah, Hey, Richard Thanks for the question. So as I said in my prepared remarks, we're entering the year with the strongest backlog we've ever had with over 70% of our subscription based revenue already under contract and we're really happy as I said before without the upfront with our pharma business and the fact that we're guiding to this 11% growth in Q1, where we are strong.

Anna Bryson: And as we've said before, we're just going to be more prudent as we think about guiding to the dollars we don't yet have booked, given we are still in an environment where we're facing macro uncertainty. Okay, that's helpful.

Speaker Change: Disability into.

Speaker Change: But as we think about like the back half of the year. It is more dependent on our up sell season and the next upfront season and as we've said before we're just going to be more prudent as we think about guiding to the dollars. We don't yet have booked given we are still in an environment, where we are facing macro uncertainty.

Anna Bryson: And then obviously, there's a lot of opportunity in this provider channel for you to market for pharma. But I saw a recent survey that indicated maybe some marketing dollars going by pharma into the payer channel, maybe, you know, to highlight drugs with payers and get coverage, whatnot. But I'm curious if you have seen this, any insight you can provide on any mixed changes to the payer channel, if this is an opportunity for you, maybe the breakout of the provider segment somewhat, and then also thoughts on any direct-to-consumer plans that you may have. Yeah, Richard, this is Jeff.

Speaker Change: Okay. That's helpful.

Speaker Change: And then clearly obviously, there's a lot of opportunity in this provider channel for you the market for pharma, but I saw a recent survey.

Speaker Change: The indicated maybe some marketing dollars going.

Speaker Change: By pharma into the payer channel.

Speaker Change: Maybe.

Light drugs with payers and coverage whatnot, but I'm curious if you have seen is any insight you can provide.

Speaker Change: On any mix changes.

Speaker Change: To the payer channel. If this is an opportunity for you maybe the breakout of the provider segment somewhat and then also the thoughts on any direct to consumer play.

Speaker Change: Plans you may have.

Jeffrey A. Tangney: I'll take that. So, within pharma companies, you are seeing entire budgets and teams organized around what they call market access or payer solutions because they understand that, you know, being on formulary, being a low copay, it's always mattered to this industry. It's not a new phenomenon, but it's an area where I think they're able to get better data and optimize more now. That plays perfectly into our formulary product, which we've talked about in prior earnings calls but has been a good growth area for us.

Jeff: Yes, Richard this is Jeff I'll take that.

Speaker Change: So yes within pharma companies you are seeing entire budgets and teams organized around what they call market access payer solutions, because they understand that being on formulary being a low co pay it's always matter to this industry, it's not a new phenomenon, but it's an area that where I think they are able to get better data and optimize more now that plays perfectly into our formulary.

Speaker Change: Product, which we've talked about in prior earnings calls, but it has been a good growth area for us essentially what we're able to do is personalize a message for each doctor or <unk>.

Jeffrey A. Tangney: Essentially, what we're able to do is personalize a message for each doctor or NP or PA about the payer mix that they have and tell them that, you know, drug A is covered by these three plans that 80% of your patients are on.

Speaker Change: The payer mix that they have and tell them that drug is covered with <unk>.

Speaker Change: These three plans that 80% of your patients are on and so again, we're able to do that on a per doctor purpose scriber basis, and that has had a strong ROI for our clients and we continue to see good growth. There. So we are playing in those payer market access buzz.

Jeffrey A. Tangney: And so, again, we're able to do that on a per doctor, per prescriber basis, and that has had a strong ROI for our clients, and we continue to see good growth there. So we are playing in those payer market access budgets. More broadly, right, we do reach more and more healthcare professionals, PharmDs, what are called P&T committee members. And so, yes, we are able to extend beyond just physicians now in our reach and add new audiences, I think, for our market access clients.

Speaker Change: Budgets more broadly you're right, we do reach more and more health care professionals Pharm DS called PMT Committee members and.

Speaker Change: So yes, we are able to extend beyond just physicians now and our reach and add new audiences I think for our.

Speaker Change: Our market access clients with regard to direct to consumer we don't do anything to their today and don't have any immediate plans to but.

Speaker Change: Certainly longer term longer term that could be an area where we.

Speaker Change: We play more but again today, we focus on the needs of prescribers positions and that's where I think we really stand out as really the leader in the category.

Okay.

Jeffrey A. Tangney: With regard to direct-to-consumer, we don't do anything there today and don't have any immediate plans to, but certainly, in the longer term, that could be an area where we play more. But again, today we focus on the needs of prescribers, physicians, and that's where I think we really stand out as the leader in the category. All right, thank you, Richard. And our next question comes from the line of Glen Santangelo with Jeffreys. Glen, please go ahead. Oh, yeah. Good evening.

Speaker Change: Alright, Thank you Richard and our next question comes from the line of Glenn Sand Tangelo with Jefferies. Glenn. Please go ahead.

Glen Joseph Santangelo: Just two quick ones for me, Jeff. First, I was hoping that we could unpack a little bit this market growth rate and get your assessment on sort of how the industry growth is evolving. Because if I remember correctly, I think last year, you sort of characterized the market as mid to high single-digit. This year, you know, you've all been pretty consistent in saying five to 7% growth and, sort of based on the guidance that Anna gave us, it still seems like you're taking some share in the pharma segment. And I'm not really sure how I should think about the health system segment. So any color there, and then maybe just as my quick follow up.

Speaker Change: Yeah. Good evening, just two quick ones from me, Jeff Firstly, I was hoping that we could unpack a little bit this market growth rate and get your assessment on sort of how that the industry growth is evolving because if I remember correctly I think last year, you sort of characterize the market as mid to high single. This year, you all had been pretty consistent.

Speaker Change: I would say in 5% to 7% growth in sort of based on the guidance that Andy gave it it still seems like you're taking some share in the pharma segment.

Jeffrey A. Tangney: And I was hoping, you know, just to follow up on a recent question about the 70% visibility app. Obviously, there's 30% to go, and I'm kind of curious how you think about that from a renewal versus upsell perspective, just so we can maybe assess how confident you may be in that full-year guide. Thanks very much.

Speaker Change: Really sure how I should think about the health systems segment. So any any color there and then maybe just as my quick follow up and I was hoping just to follow up on a recent question about the 70% visibility.

Obviously.

Speaker Change: Or is 30% to go and I'm kind of curious how you think about that from a renewal versus up sell.

Speaker Change: Perspective, just so we can maybe assess.

Speaker Change: How confident you may be in that full year guide thanks very much.

Jeffrey A. Tangney: I'll take your first question here first. So yes, we have said that we think the market is growing five to 7% this year. I mean, if you look, zoom way back from the motive.

Jeff: Great. Glenn This is Jeff I'll take your first question here first so yes, we have said that we think the market is growing 5% to 7% this year.

Speaker Change: If you look zoom.

Jeffrey A. Tangney: You just look at the Internet Advertising Bureau and U.S. Digital Advertising through 2022; we basically had 20 years of 20% growth. Now, there were a few years that weren't that high of growth, right? Digital marketing does go through macroeconomic cycles, but, you know, that over the past 20 years, 20% growth. If you look at our own growth pre-COVID, it really was mid-teens growth.

Speaker Change: Zoom way back from a if you just look at the Internet advertising Bureau in U S. Digital advertising through 2022, basically had 20 years of 20% growth.

Speaker Change: There were a few years that weren't that high growth rate.

Speaker Change: Digital marketing does go through macroeconomic cycles, but that over the past 20 years, 20% growth.

Speaker Change: If you look at our own growth pre COVID-19. It really wasn't mid teens growth that was the pharma shifts to digital which is still a hugely under index I mean, it's still.

Jeffrey A. Tangney: That was the pharma shift to digital, which is still hugely under-indexed. I mean, it's still, you know, less than 40% that is digital today when, again, the Fortune 500 is more like 70, 75% digital. So we think pharma still has a long way to go in this shift to digital. It sped up during COVID, and now it's been slowing down a bit as people, of course, are back to more traditional methods.

Speaker Change: Less than 40%.

Speaker Change: That is digital today.

Speaker Change: The Fortune 500 is more like 70%, 75% digital.

Speaker Change: So we think farmers still has a long way to go in this shift to digital it's fed up during COVID-19.

Speaker Change: And now it's been slowing down a bit as people of course are back to the more traditional methods.

Jeffrey A. Tangney: And after a couple years of pretty heady growth, you know, we're at this 5% to 7% growth. We do, ultimately, think it will return back to this mean, this baseline of mid-teens, but, again, we're not seeing it yet this year. So I hope that answers your market growth question. Anna.

Speaker Change: After a couple of years of pretty heady growth, where at this 5% to 7% growth. We do ultimately think it will return back to this.

Glen Joseph Santangelo: This baseline of mid teens, but again, we're not seeing it yet this year. So I hope that answers. Your your market quick question Anna Yeah, Glenn just a quick one on the follow up there about the remaining 30% that we don't yet have books. So our assumptions are that midyear upsells and new business remained fairly muted up pretty similar to what we saw last year.

Anna Bryson: Yeah, Glenn, just a quick one on the follow-up there about the remaining 30% that we don't yet have booked. So our assumptions are that mid-year upsells and new business will remain fairly muted, so pretty similar to what we saw last year. And then as far as what we're thinking about for the annual buying cycle, we're also assuming it performs pretty similarly to prior years. So if we kind of think about the breakdown of that 30%, certainly more weighted towards renewal. Okay, thank you.

Glen Joseph Santangelo: And then as far as what we're thinking about for annual buying cycle. We're also assuming it performs pretty similarly to prior years. So if we kind of think about the breakdown of that 30% certainly more weighted towards renewables.

Speaker Change: Okay. Thank you.

Elizabeth Hammell Anderson: Thanks, Glen. And our next question comes from the line of Elizabeth Anderson with Evercore ISI. Elizabeth, please go ahead.

Speaker Change: Thanks Glenn.

Speaker Change: And our next question comes from the line of Elizabeth Anderson with Evercore ISI Elizabeth. Please go ahead.

Anna Bryson: Hi guys. Thanks so much for the question. I was wondering, I apologize if I missed it, did you, how much did pharma and hospitals grow in fiscal 24? Hey, Elizabeth.

Hi, guys. Thanks, so much for the question.

Elizabeth Hammell Anderson: I apologize if I missed it did you how much it pharma and hospitals grow in in fiscal 'twenty four.

So I make sure I understand the trajectory there.

Anna Bryson: So it's not something we've actually broken out before, and it's not something that we necessarily plan on breaking out in the future. I think we wanted to give a little bit more color this next year, just given the recent dislocation and growth. So I think what I can say is last year, we didn't really see the same dislocation and growth. So that's kind of why we wanted to give more directional color for this year. Got it.

Speaker Change: Hey, Elizabeth So it's not something we've actually broken out before and it's not something that we necessarily plan on breaking out in the future I think we wanted to get a little bit more color. This next year just given the recent dislocation in growth. So I think what I can say is last year, we didn't really see the same dislocation and growth. So that's kind of why we wanted to give.

Speaker Change: More directional color for this year.

Anna Bryson: That's helpful. And could you talk a little bit about your expectations for the gross margin? Performance there in the quarter, but it would be helpful just to understand, roll out the Yeah, thanks, Elizabeth. We do continue to optimize our infrastructure costs and customer support engines. And we're certainly seeing that reflected in our 91% non-gap gross margins. I'm going to take a step back and think about our long-term forecast here. We're forecasting about 85 to 90% for our long-term non-gap gross margin, so we're happy to be above that. And I would say we don't expect to see a material change from where we are today in the near term.

Speaker Change: Got it that's helpful and could you talk a little bit about your expectations for the gross margin. Obviously you had some nice performance there in the quarter, but it would be helpful. Just to understand the puts and takes that you sort of rollout.

Speaker Change: The new offerings.

Speaker Change: Yes, Thanks, Elizabeth we do continue to optimize our infrastructure cost and customer support and Jen and we're certainly seeing that reflected in our 91% non-GAAP gross margins.

Speaker Change: Take a step back and think about our long term forecast here, we're forecasting about 85% to 90% for our long term non-GAAP gross margin. So we're happy to be above that and I would say, we don't expect to see a material change from where we are today in the near term.

Got it thank you.

Speaker Change: Thank you.

Anna Bryson: Thank you. Thank you. And our next question comes from the line of Michael Czerny with Lehring Partners. Michael, please go ahead. This is Dan Clark on behalf of Mike.

Speaker Change: And our next question comes from the line of Michael <unk>.

Michael: Tony with Leerink partners Michael Please go ahead.

Michael Czerny: To start just on the health system guidance, has the change healthcare outage come up at all in any of your conversations with health system customers? Like is that factored into the guide at all? Hey, this is Nate.

Michael: Yeah. This is Dan Clark on for Mike to.

Dan Clark: To start just on the health system guidance.

Speaker Change: Has the change health care outage come up at all in any of your conversations with health system customers like is that is that factored into the guide at all.

Speaker Change: Okay.

Nate Gross: So, no, we don't really have much exposure. I think that little to no impact on changing healthcare news. Reimbursement dynamics are not something that our engagement is particularly exposed to.

Hey. This is this is Nate so no we don't really have much exposure I think little to no impact.

Speaker Change: Change healthcare news reimbursement dynamics are not something that our engagement is particularly exposed to.

Speaker Change: Tremendous empathy for physicians trying to run their practices.

Speaker Change: We hope this is an impetus for <unk>.

Speaker Change: Improvement in industry infrastructure, I'd say, but in general our workflow products are designed to be useful as long as care is being delivered and doctors to their credit we're delivering care, even while not being reimbursed in a timely manner for it.

Nate Gross: I mean, we have tremendous empathy for physicians trying to run their practices, and I certainly hope this isn't an impetus for, "Improvement in Industry Infrastructure," I'd say. But in general, our workflow products are designed to be useful as long as care is being delivered. And doctors, to their credit, are delivering care even while not being reimbursed in a timely manner for it.

Michael Czerny: And then just a question on pricing assumptions for fiscal 25. Should we expect kind of a similar rate of increase to fiscal 24? Sure. This is Nate again.

Speaker Change: Got it. Thank you and then just a question on pricing assumptions for fiscal 'twenty five.

Speaker Change: Should we expect kind of a similar rate of increase to fiscal 'twenty four thank you.

Speaker Change: Yeah.

Nate Gross: So, on pricing, when we look at our growth drivers, we typically talk about four. We have new modules, which sometimes also, of course, tap new budget. We have cross-selling into, say, new brands or new departments. We have expansion of audience members. And then we have pricing. And I mentioned pricing fourth because it's something we do steadily every year. But it's fourth on the list by design.

Nate Gross: Sure. This is Nate again so.

Speaker Change: On pricing when we look at our growth drivers, we've typically talked about before we have new modules, which sometimes also of course have new budgets.

We have cross selling into say new brands and new Department.

Speaker Change: We have expansion of audience members.

Speaker Change: And and then we have pricing and I mentioned pricing for because it's something we do steadily every year, but it's fourth on the list by design.

Nate Gross: It's a long-term growth driver opportunity that we see. And I think the portal affords us the technology, really, and the models that can be more sophisticated here to increasingly give us an advantage with high-demand users at different times of year and find win-wins for our partners. Moreover, I think it's the discussion around marketing increasingly moves to ROI, and decisions become ROI-linked. Our ability to more rapidly deploy ROI studies through the portal also is a positive tailwind for what we can do with smart pricing. All right.

Speaker Change: Long term growth driver opportunity that we see and I think the corridor affords us the technology really and the models that can be more sophisticated here to increasingly give us an advantage with high demand users different times of year and find a win win for our partners. Moreover, I think it's the discussion around marketing increasingly moves to ROI.

Speaker Change: <unk> become ROI linked.

Speaker Change: Our ability to more rapidly deploy ROI studies through the portal also is a positive tailwind for what we can do a smart pricing.

Speaker Change: Alright, Thanks, Dan.

Dan Clark: Thanks, Dan. And our next question comes from the line of Anne Samuel with J.P. Morgan. Anne, please go ahead.

Speaker Change: And our next question comes from the line of Anne Samuel with Jpmorgan and please go ahead.

Anne Samuel: Hi, thanks for taking the question. I was hoping maybe you could talk about, you know, how you're thinking about balancing, you know, both growth and profitability, particularly with growth slowing a little bit here. Historically, you've said that you don't expect much operating margin expansion, but this year, you obviously saw some, you know, very significant leverage. Should we be thinking about, you know, this rate, you know, in the high 40s is the new normal? Or is, you know, that 45% rate, you know, that you had kind of talked about longer term still the targeted rate? Hi Anne, this is Jeff.

Speaker Change: Hi, Thanks for taking my question.

Anne Samuel: Was hoping maybe you could talk about how youre thinking about balancing both growth and profitability in a particularly with brown slowing a little bit here.

Speaker Change: Historically, you've said that you don't expect much operating margin expansion, but this year you. Obviously saw some very significant leverage should we be thinking about this right and the high Forty's is the new normal or has seen about 45% rate that you had kind of talked about longer term still the targeted rate.

Anne Samuel: Yeah.

Jeffrey A. Tangney: I'll take this, and Anna may have some comments to add. So you're right. Our guide for the year is a 48% EBITDA margin, so we are guiding above that. You know, listen, we're going to be spending more on R&D this year than ever before. We're really excited to lean into AI, especially for doctors. Our Perplexity Partnership, which we just announced, I think is going to be really key to help doctors really get medical answers faster and have the right citations that they need to know that it comes from credible sources with the verbatims there for them to go access. So we're very excited to have that, and the beta feedback on it's been excellent. Our Doximity GPT has also been a hit.

Hi, This is Jeff I'll take this and it may have some comments to add so you're right. Our guide for the year is a 48% EBITDA margins. So we are guiding above our 45.

Speaker Change: Listen, we're going to be spending more on R&D this year than ever before we're really excited to lead into AI, especially for doctors.

Anne Samuel: Our.

Anne Samuel: Perplexity partnership, we just announced I think is going to be really key to help doctors really get medical answers faster and have the right citations that they need to know that it comes from credible sources.

Anne Samuel: With the verbatim is there for them to go access. It. So we're we're very excited to have that in the beta feedback on it has been excellent productivity.

Anne Samuel: Doximity GPT has also been good.

Jeffrey A. Tangney: I tell you, we have one hospital that just purchased the product from us, and they're actually requiring all of their staff, everyone on their staff, to go and do at least one Doximity GPT query and use because they understand that it's a productivity driver and that you just need to come and try it to understand it. And so we think it's great that they're helping drive the adoption of our product out there in the marketplace.

Anne Samuel: So we had one hospital that purchased the product from us and they are actually requiring all of their SaaS everyone on their staff to go and do at least one doctor.

Anne Samuel: <unk> activity GPT query and usage because they understand that.

Anne Samuel: Productivity driver and that you just need to come and try it to understand it and so we think it's great that they are helping drive the adoption of our product.

Anne Samuel: Out there in the marketplace, we think we'll see more and more of that.

Jeffrey A. Tangney: We think we'll see more and more of that as hospitals focus on efficiency. The truth is, there's only so much you can spend as an AI application layer company. Big Tech is doing all the heavy lifting really for free for us, and that's great for us. But we think there's a lot to be done making it HIPAA compliant, making it curated for the medical sources that doctors trust, because, of course, there's a lot of the internet you should ignore when answering medical questions. So we will continue to lean into growth there. But again, the reality is that we really have to be constructive about it.

Anne Samuel: As hospitals focus on efficiency.

Anne Samuel: The truth is there's only so much you can spend as an AI application layer company Big Tech is doing all the heavy lifting really for free for us.

Anne Samuel: That's great for US, we think there's a lot to be done, making a HIPAA compliant, making it a curated for the medical sources. The Doctor's trust because of course, there's a lot of the Internet you should ignore when answering critical questions.

Jeffrey A. Tangney: We're just at a very efficient place in terms of being able to reinvest this large team. We've got the distribution. We've got the technology. So we're guiding to another 48% EBITDA margin. That's great. Thank you for the color.

Anne Samuel: So we will continue to lean into growth there, but again the reality is we really get constructive about it. We're just in a very efficient place in terms of being able to reinvest. This large team we've got the distribution we've got the technology.

Anne Samuel: So we're guiding to another 48% EBITDA margin.

Anna Bryson: And then maybe just one more, Anna, you talked about increased visibility over the past, you know, two years. I was hoping maybe you could just touch on what's been driving more of that upfront buying. Is that something that you're pushing your customers for? Or is that a new dynamic that they're coming to you with?

Speaker Change: That's great. Thank you for the color and then maybe just one more.

Speaker Change: You talked about increased visibility over the past two years.

Speaker Change: I was hoping maybe you could just touch on whats been driving more of that upfront buying is that something that you are pushing your customers for or is that a new dynamic that they are coming to U S.

Anna Bryson: Yeah, I think it really boils down to the fact that we've just become a key line item for pharma in recent years. And as we've continued to scale within our customers and continue to prove high ROI, and continue to innovate on our modules, we have our customers continuing to come back and buy at a larger scale and willing to actually spend more dollars up front with us, which is a phenomenon we're really happy about.

Speaker Change: Yeah, I think really it boils down to the fact that we've just become a key line item for pharma in recent years and as we've.

Speaker Change: To scale within our customers and continue to prove high ROI and continue to innovate on our modules, we have our customers continuing to come back and buy at larger scale and willing to actually spend more dollars upfront with that which is a phenomenon. We're really happy about so it not only gives us better visibility. It also allows us to optimize their <unk>.

Anna Bryson: So it not only gives us better visibility, but it also allows us to optimize their programs more. So it's definitely something that we're really pleased with, and I think it just goes back to the fact that we continue to have record engagement and industry-leading ROI, so our customers are willing to commit those extra dollars up front. Thanks very much.

Speaker Change: Graham Tomorrow, So it's definitely something that we're really pleased with and I think it just goes back to the fact that we continue to have record engagement in industry, leading rois for our customers are willing to commit those extra dollars upfront.

Speaker Change: Thanks very much.

Scott Anthony Schoenhaus: Thanks, Anne. Thank you. And our next question comes from the line of Stan Berenshteyn with Wells Fargo Securities. Stan, please go ahead.

Speaker Change: Thanks Ann.

Speaker Change: And our next question comes from the line of Stan Bernstein with Wells Fargo Securities Stand. Please go ahead.

Stanislav Berenshteyn: Hi, thanks for taking my questions. I think in the prior quarter, you indicated traction and bundling newer modules. Can you give us an update on the uptake of those bundled solutions? And also, what's client interest in purchasing bundles versus going and buying on a bespoke basis? Thanks.

Speaker Change: Hi, Thanks for taking my questions I think in the prior quarter you indicated traction in bundling newer modules can you give us an update on the uptake of those bundled solutions and also what's the client interest in purchasing bundles versus going and buying on a bespoke basis. Thanks.

Jeffrey A. Tangney: I'll take that. Yeah, so we are bundling our product together. Again, we see that the more different products a client uses with us, the higher their ROI. It's actually a synergistic effect.

Yes, Dan this is Jeff I'll take that yes. So we are bundling our products together again, we see that.

Speaker Change: The more different products and client uses with the <unk>.

Speaker Change: Higher their ROI, it's actually a synergistic effect.

Jeffrey A. Tangney: And this is similar to what others see with multimodal approaches to reaching folks, and our ability to actually dynamically weight that so that some doctors care more about formulary coverage because their patients can't afford large co-pays. We can bundle that message, whereas others might prefer to watch a video of a molecule and a study result, and again, that does better. So I think you'll continue to see us work with our clients to have these sort of multi-tactic approaches. They do lead to significantly better results, statistically significant better results, and so you'll see more of that from us.

Speaker Change: This is similar to what others see with multimodal approaches to reaching folks.

Speaker Change: And our ability to actually dynamically then wait that so that some doctors care more about formulary coverage because there.

Speaker Change: Patients can't afford large co pays we can bundle that message.

Speaker Change: Whereas others might prefer to watch a video of a molecule study results and again that does better so.

Speaker Change: I think youll continue to see us work with our clients to have the sort of multi tactic approaches they do lead to significantly better results statistically significant better results.

Speaker Change: So youll see more of that from us.

Jeffrey A. Tangney: Thanks, maybe as a quick follow-up, it sounds like you're moving, you know, maybe more down market into this midsize biopharma space. I mean, that channel has been, I guess, somewhat priced out of your platform; you have a premium price platform. Will the move down market require some kind of more competitive price offerings for those clients? Yes, Dan, this is Jeff again.

Matt: Thanks, Matt maybe just a quick follow up it sounds like you're moving maybe more downmarket into this mid sized biopharma space I mean that that channel has been I guess somewhat priced out of your platform you have a premium price platform will move down market requires some kind of more competitive price offerings.

Matt: Clients.

Jeffrey A. Tangney: Yeah, the short answer truth is our stated minimum for anyone who, you know, sends us an email over the transom is that it's a minimum quarter million dollars or $200,000 spent to work with us. And that's just because of the activation energy required on our end to, you know, set up a dedicated account manager and work with them on their content and upload it into our system and produce the reports and do the follow-up meetings and so on and so on.

Jeff: Yes, Dan This is Jeff again, yes. The short short answer truth is our stated minimum for anyone who sends us an email over the transom is that it's a minimum quarter million dollars or $200000 spent to work with us and thats just because of the activation energy required on our N. Two.

Jeff: Set up a dedicated account manager and work with them on their content uploaded into our system and produce the reports and do the the follow up meetings and so on and so on.

Jeffrey A. Tangney: Again, this is not something that we are putting numbers on this year's forecast around, but I do think in future years, we will automate some of those functions so that we can go and service a $100,000 client and do it efficiently in a way that, you know, leverages a lot of the tools they're probably already familiar with using from other companies. All right. Thank you. Thanks, Stan. And our next question comes from the line of Stephanie Davis with Barclays. Stephanie, please go ahead.

Jeff: Again this is not something that we are putting our numbers in this year's forecast around but I do think in future years.

Jeff: We'll automate some of those functions. So that we can go in service the $100000 client and do it efficiently in a way that leverages a lot of the tools. They are probably already familiar with using from other companies.

Alright, thank you.

Dan Clark: Thanks, Dan.

Speaker Change: And our next question comes from the line of Stephanie Davis with Barclays. Stephanie. Please go ahead.

Stephanie July Davis: Hey guys, I'm Jess McClure, and thanks for taking my question. Jeff, let's pull on that. So what learnings have you had in the role of this beta self-service? How has engagement been, and how is offering based on what was initially given versus what the feedback was? And given you've now rolled it out to an extra 10% of your client base, and I'm going to guess the initial 10% of clients were probably larger clients, what are you paying the close for, in terms of potential feedback you could be getting, since this is more so going to be a product for you? Lower End Client.

Speaker Change: Hey, guys, Congrats Macquarie and thanks for taking my question.

Speaker Change: Jeff.

Paul: Paul on that last thread.

Speaker Change: What learnings have you had to think about this data is.

Speaker Change: Self service platform, how is engagement than housing tweak the offering based on what was initially given versus what the feedback wise.

Speaker Change: And given you've now rolled it out to an extra 10% of your client base and I'm going to guess the initial 10% of clients were probably larger clients. What are you paying the closest attention to in terms of potential.

Speaker Change: Potential feedback you could be getting.

Speaker Change: This is more going to be a product for I D.

Your end clients.

Speaker Change: Yeah.

Jeffrey A. Tangney: Great question, Stephanie. It's been a lot of fun for me working on this for the rollout. You know, clients just love the transparency, the use of really good looking technology to make their jobs a little easier. I will say that the reporting is pretty good, really the first shot out of the gate.

Speaker Change: Okay, Great question Stephanie.

Speaker Change #100: It's been a last one for me working on at this poor rollout clients just love the transparency the.

Speaker Change #100: The use of <unk>.

Speaker Change #100: Really good looking technology to make their jobs a little easier.

Speaker Change #100: I will say that the reporting I think we got.

Speaker Change #100: Pretty good really the first first shot out of the gate. They were impressed by our ability to understand right time of day for their target audience understand the words that click. This is worried that they should be putting into their messages and headlines given those doctors affinity and again the ability for us to do this for their cohorts of three three.

Jeffrey A. Tangney: They were impressed by our ability to understand the right time of day for their target audience, to understand the words that click. These are words that they should be putting into their messages and headlines, given those doctors' affinity. And again, the ability for us to do this for their cohorts of 3,300 targets and to make that very personalized. Again, they love the reports and the insight it's given them.

Speaker Change #100: <unk> hundred targets and to make that very personalized again, they they loved the reports in the inside its gibbons and just those reports alone have led to a halo effect with those clients were again, even though we didn't have the ability for them to come and purchase anything on the platform. They were calling us up more and actually purchasing something more through our traditional.

Jeffrey A. Tangney: And just those reports alone have led to a halo effect with those clients, where again, even though we didn't have the ability for them to come and purchase anything on the platform, they were calling us up more and actually purchasing more through our traditional email back and forth of contracts. And so I think we've had a halo effect from our reporting already, and that's gone well. I'd say in the bigger accounts, when it comes to talking about ROI or what they prefer to now call the script list, I think it's been a real unlock for us to realize that we need to also speak with their BI and A teams, basically their analytics teams in-house or the consultant that they hire to walk them through the process and the map and to let them actually bring in the data on their own, download it so that they can audit our data.

Speaker Change #100: <unk> E.

Speaker Change #100: Mail back and forth of contracts and so.

Speaker Change #100: So I think we've had a halo effect from our reporting already and that has gone well I would say in the bigger accounts when it comes to talking about ROI or what they prefer to announce a script lift.

Speaker Change #100: It's been a real unlock for us to realize that we need to also speak with their <unk> basically their analytics teams in house or the consultants that they hire to walk them through the process in the math.

Speaker Change #100: To let them actually bring in the data on their own download it so that they can audit our data and again once that's been done by one of these large accounts.

Speaker Change #100: I think it just becomes a.

Jeffrey A. Tangney: It just becomes natural that this is the marketing science approach to looking at how we do marketing, and these are the results in the ROI. But it does take that time to go and, again, walk each client through the process, show them the numbers, and let them audit the numbers. And this is why, you know, we can't just go from 10% of our clients to 80% overnight. We need to go back and, again, many of them we have 5, 10 years' worth of history and data with.

Speaker Change #100: It becomes natural that this is the marketing science approach to looking at how we do marketing and these are the results and the ROI, but it does take that time to go and again work each clients through the process show them the numbers, let them audit the numbers and this is why we can't just go from 10% of our clients to 80% overnight we need to.

Speaker Change #100: And again many of them, we have 510 years' worth of history and data with we want to have it all there for them to go in and learn from and optimize as I look ahead, I'm really pleased with the reaction they had last week to having pricing data and in the platform.

Jeffrey A. Tangney: We want to have it all there for them to go and learn from and optimize. As I look ahead, I'm really pleased with the reaction they had last week to having pricing data in the platform. I think that that really is where they spend a lot of their days meeting with their partners, and they do think about, again, their ROI and the insights. But that takes us from just being in what they call their AOR camp, their agency of record, where they do all their creative, to also being inside their media buying camp, where they think about where they spend their money. And the reality is, today, they're very spray and pray.

Speaker Change #100: I think that that really is where they spend a lot of their days and meeting with their partners and they do you think about again their ROI and the insights where that takes us from just being in what they call their AOR camp their agency of record where they do other creative to also being inside their media buying camp, where they think about where they spend their.

Speaker Change #100: And the reality of today, they're very spray and pray, it's a pretty pretty wide dispersion when it comes to doing ECP marketing across <unk>.

Jeffrey A. Tangney: It's a pretty wide dispersion when it comes to doing HCP marketing across, you know, usually a few hundred different partners or platforms. And we think that with what we're doing, we really should be a much higher percentage of that, like other mainstay Internet companies are, and so we can continue to do that. So. Anyway, I hope that that helps answer your question, but I'm very excited to help them now with that price and enough. No, that's super helpful. When I think about it, I guess, Anna, maybe this is a good one for you.

Speaker Change #100: Usually it's a few hundred a different partners or our platforms and we think that with what we're doing we really should be a much higher percentage of that.

Speaker Change #100: Like other mainstay internet companies are and so we can continue.

Speaker Change #100: To do that so.

Speaker Change #100: Anyway, I hope that that helps answer your question, but I am very excited to help them with that prices and optimizations.

Anna Bryson: And I'll try to include you in the conversation. I look at your metrics, and you know, the NRR and the large client metrics. It looks like your top customers are really becoming a bigger part of the go forward growth algorithm. So Anna, if you were going to start baking in some of these self-service portal lists from the smaller clients, is that a function of time? Is that a function of crystalizing a purchasing motion on the portal, like what do you need to get? Sure, Steph, and thanks for the question.

Speaker Change #101: No that's super helpful. When I think about I guess, Adam maybe this is a good one for you and I'll try to ask the conversation I look at your metrics.

Speaker Change #102: The NR and the large client metrics it looks like your top customers are really becoming a bigger part of the go forward growth algorithm. So and if you are going to start baking in some of the self service portal risks from the smaller clients is that a function of time is that a function of.

Speaker Change #103: Crystallizing, a purchasing motion on the floor at all like what do you need to get there.

Anna Bryson: So, yeah, I'll just say right now we're really focused on kind of the three phases of the rollout of the portal. So right now, we're just really focused on doing it right and getting our customers acclimated with the portal. As far as what it kind of takes to get that next lift and the kind of SMB customers that we talked about, it's probably going to be a fiscal 26 and beyond type measure.

Speaker Change #104: Sure Scott.

Scott: Thanks for the question. So yeah, I'll, just say right now we're really focused on kind of the three phases of rollout for the portal. So right now we're just really focused on doing it right and getting our customers acclimated with the portal as far as what it takes to get that next left and the kind of SMB customers that we had talked about it's probably going to be at.

Scott: Fiscal 2006, and beyond type measure, but I would say that if we think about that universe of brands that I mentioned in my prepared remarks, so those brands that have less than $100 million in U S sales as just one piece of that SMB either the portal can can help us unlock further that cohort makes up only about 8% of our pharma revenue today right. So.

Anna Bryson: But I'd say that if we think about that universe of brands that I mentioned in my prepared remarks, so those brands that have less than $100 million in U.S. sales, as just one piece of that SMB pie that the portal can help us a lot further, that cohort makes up only about 8% of our revenue today, right? So if you look at other digital marketing companies with more accessible platforms, the platforms more similar to the portal, that number can be multiples higher.

Scott: If you look at other digital marketing companies with more acceptable platforms. The platform is more similar to the portal that number can be multiples higher. So we really do believe that this can lead our next evolution and growth. However, it's just going to take some time for us to get our customers onto the portal and we really want to make sure that we're doing it right.

Anna Bryson: So we really do believe that this can really lead to our next evolution and growth. However, it's just going to take some time for us to get our customers onto the portal, and we really want to make sure that we're doing it right. Awesome. Thank you so much.

Jack Dawson Wallace: Looking forward to seeing what the self-service portal does. Thanks, Stephanie. And our next question comes from the line of Jack Wallace with Guggenheim Securities. Jack.

Speaker Change #107: Awesome. Thank you so much and looking forward to seeing what the self service part of that.

Stephanie July Davis: Thanks, Stephanie.

Speaker Change #108: And our next question comes from the line of Jack Wallace with Guggenheim Securities. Jack Go ahead.

Jeffrey A. Tangney: Thanks for taking my questions. Just wanted to get further into the conversation around the self-service portal and the sharing of data back and forth and the attribution of the script list driven by your platform and thinking through this. Data Sharing Between You and Your Customers Improved. As you're able to, Unknown Speaker, Unknown Speaker, More behind the arrow improving the ROI.

Jack Dawson Wallace: Hey, Thanks for taking my questions just wanted to further the conversation around self service portal and the sharing of data back and forth in the attribution of the script lift driven by your platform.

Speaker Change #110: Thinking through this as we are.

Speaker Change #110: Portal matures and the relationships and the.

Speaker Change #110: Data sharing between you and your customers improves.

Speaker Change #110: As you are able to.

Speaker Change #110: Prove more attribution.

Jack Dawson Wallace: Should we be thinking about this as an argument for increased price? RY, increasingly believable and thinking more typically around the upsell functionality within the portal, with, you know, whether it's day or any kind of Lift, where you could say, look, this is a much higher-priced upsell where we, Unknown Speaker 0 think that this is going to be as impactful of a program as you could run based off of all of them Is that where this is going? Or is this more of?

Speaker Change #110: Ed.

Speaker Change #110: Have more wood behind the arrow and proving the ROI should we be thinking about this as a <unk>.

Speaker Change #110: Argument for increased price as the ROI is increasingly believable and thinking more specifically around the upsell functionality within the portal with.

Speaker Change #110: Whether it's the time of day or any kind of strategic lift where you can say look this is a much higher priced upsell.

Speaker Change #110: I have a high degree of confidence that this is going to be as impactful of a program.

Speaker Change #110: As you could run based off of all of our historical data is that where this is going.

Speaker Change #110: Or is this more of it kind of insulating your existing wallet share with your <unk>.

Jeffrey A. Tangney: Insulating your existing wall chair, Advertising Partner. You think of more remote building. Thanks, Jack. Jeff here.

Speaker Change #111: Our advertising partners and it's you.

Speaker Change #112: Do you think of more milk building not necessarily 10 building. Thank you.

Jeffrey A. Tangney: Great question. The short answer is yes. I think the ability to have attribution on a frequent basis as opposed to just once a year in November is a big unlock for us in really two ways. First, they will come to us more with their upsells, and we'll be able to take those smaller upsells on a more frequent basis. Again today, you know, they think of calling us when they have a million dollars to spend.

Jeff: Thanks, Jack Jeff Here, Great question short answer is yes, I think the ability to have attribution on a frequent basis as opposed to just once a year in November is a big unlock for us in really two ways first.

Jeff: They will come to us more with their upsells and we'll be able to take those smaller upsells on a more.

Jeff: One basis again today.

Jeff: Think of calling us when they have a $1 million to spend we want them to also call. It so click us when they have a $100000 to spend and that doesn't happen a lot throughout the year. So I think our our most immediate impact will be around the upsells.

Jeffrey A. Tangney: We want them to also call us or click on us when they have $100,000 to spend, and that happens a lot throughout the year. So I think our most immediate impact will be on upsells. But the longer-term impact is around pricing, and you're right. There's this element of competitive dynamics. There's this, you know, bid auction sort of approach that, again, has worked well for a number of other Internet companies, and today, I think we are not as optimized as we could be on that front.

Jeff: But the longer term impact is around pricing and you're right. There is this element of competitive dynamics. There as this bid auction sort of approach that again has worked well for a number of other internet companies and today I think we are not as optimized as we could be on that front I think our clients appreciate our ROI I think that we.

Jack Dawson Wallace: I think our clients appreciate our ROI. I think that, in the long term, we will see them working more with us at prices that still have a very high ROI for them but are also higher for us. Thank you. That's helpful.

Jeff: Long term see them.

Jeff: Working more with us at prices that.

Jeff: Still a very high ROI for them, but are also higher for us.

Anna Bryson: And then, you know, the counting question here. Referred revenue is down 6% in the quarter. Second quarter, it's been down year over year, but thinking about the guidance for the first quarter. Outreach. Clearly, there's a disconnect on the guide. Revenue Trend, and remind us. I think factors that could play.

Speaker Change #113: Got it. Thank you that's helpful and then.

Counting question here, the deferred revenue was down 6% in the quarter second quarter, it's been down year over year.

Speaker Change #114: Thinking about the guidance for the first quarter.

Speaker Change #114: Roughly 11% at the midpoint.

Theres a disconnect on.

Speaker Change #114: On the guide versus the deferred revenue trend and remind us the timing factors that could play into the disconnect to those growth rates as well as if there is any change in revenue mix.

Jack Dawson Wallace: Change in revenue. You're thinking about upfront sales, you know, soft, less than full year. Advise, that could be impacted, balance relative to the.

Speaker Change #114: Thinking about upfront sales.

Speaker Change #114: Software subscriptions versus let's say less than full year ad buys.

Speaker Change #114: That could be impacting.

Speaker Change #115: The deferred revenue.

Speaker Change #116: Relative to the next quarter's revenue guidance. Thank you.

Anna Bryson: Yeah, thanks for the question, Jack. So I'll start by saying that while changes in deferred revenue may be an informative metric for software companies that bill primarily up front, there are a couple reasons why it is not a good metric for us to assess the underlying growth of our business. So firstly, we bill our customers based on milestones, and those milestones vary from contract to contract and year to year. So I mentioned this actually in last May's earnings call, but our customers have been requesting less upfront billing and for billing to be more in line with how the program runs, which is actually much more standard in the industry. So it's a lot, but it's what our customers are used to, right? And this year, we saw that trend continue. So I'll give you just one example.

Jack: Yeah. Thanks for the question Jack So I'll start by saying that while changes in deferred revenue may be informative metric for software companies that build primarily upfront and there's a couple of reasons why it is not a good metric for us to assess the underlying growth of our business. So firstly, we bill our customers based on milestones and those milestones.

Vary from contract to contract and year to year. So I've mentioned that actually in the last Mays earnings call, but our customers have been requesting less upfront billings and for billing to be more in line with how the program runs which is actually much more standard in the industry, but it's what our customers are used to right and this year, we saw that trend continue.

Anna Bryson: In January, our largest customer moved to monthly billing. That perfectly mirrors revenue recognition for their 12-month programs, which means essentially that our largest customer will now never show up in our ending deferred revenue balance, and revenue recognition will come entirely from billing added during that same quarter. So, just given some of these changing billing dynamics year to year and the expectation that we have that the timing of billings will continue to change, we believe deferred revenue is not a good leading indicator of our business, as you're just not looking at an apples-to-apples comparison year over year.

Jack: So I'll give you just one example in January our largest customer moved to monthly billions that perfectly nears revenue recognition for their 12 month programs, which means essentially that our largest customer will now never show up in our ending deferred revenue balance and revenue recognition will come entirely from billing added during that.

Jack: Same quarter. So just given some of these changing billing dynamics year to year and the expectation that we have that the timing of billings will continue to change. We believe deferred revenue is not a good leading indicator of our business and Youre just not looking at an apples to apples comparison year over year. This is why we do try to give a better leading indicator of our.

Anna Bryson: This is why we do try to give a better leading indicator of our business by sharing the percent of subscription-based revenue that we have under contract to start the year, which is a metric that can help assess growth and what our true backlog is. The only other note I will make, just a little housekeeping item: we do appreciate that it is nuanced in the way in which we bill our customers. So we have put up a REBREC and billing FAQ on the presentation page of the investor website, so hopefully that can help answer any further questions on this and share a couple examples.

Jack: Business by sharing the percent of subscription based revenue that we have under contract you started the year, which is a metric that can help assess the growth and what is our true backlog. The only other note I will make a just a housekeeping item would you appreciate that it is nuance in the way in which we bill our customers. So we have put up a rev. Rec in billion Q on the presentation.

Jack: <unk> page of the Investor website, so hopefully that can help answer any further questions on this and share a couple of examples.

Anna Bryson: Yes, I want just a quick follow-up to that on the change in billing terms. Referring billing based off of milestones, does that color the conservatism? [inaudible] Transcripts provided by Transcription Outsourcing, LLC. Sure, Jack. So, billing actually has nothing to do with the way we sign our contracts. Billing is just invoicing. It has nothing to do with the fact that we have more under contract to start the year.

Speaker Change #118: Thank you that's helpful. Just a quick follow up to that then you change in billing terms.

Speaker Change #119: And let's say differing billing based on milestones that color.

Speaker Change #120: Conservatism or the the higher percentage of the guide that is in backlog today.

Speaker Change #121: To give you some wiggle room, there or is that really more of a function of the kind of larger you trend in purchasing patterns being more.

Speaker Change #122: Frontloaded in nature. Thank you.

Anna Bryson: When we say we have over 70% of our subscription-based revenue under contract, we mean books. We have signed those programs, so it's completely separate from billing.

Sure Jack So billings actually had nothing to do with the way we sign a contract. So billings are just invoicing and nothing to do with the fact that we have more under contract to start a year. When we say we have over 70% of our subscription based revenue under contract leaning books. So we have signed those programs. So it's completely.

Speaker Change #122: Bellies.

Anna Bryson: Okay, thank you, Jack. And ladies and gentlemen, we are getting up to the top of the hour, but we do want to get through all your questions. So moving forward, we ask, in the interest of time, that you just limit your question to one. Thank you so much.

Speaker Change #123: Okay. Thank you Jack and ladies and gentlemen, we are getting up to the top of the hour, but we do want to get through all your questions. So moving forward, we asking the interest of time that you just limit your questions to one question. Thank you so much.

Speaker Change #124: And let's see here. Our next question comes from the line of Julian dressing with through a securities Linda. Please go ahead.

Jailendra P. Singh: And let's see here. Our next question comes from the line of Jailendra Singh with Truist Securities. Jailendra, please go ahead.

Julian: Thank you and thanks for taking my questions I wanted to ask about the long term growth prospects of the business model U S video of course at 20% CAGR outlook you gave.

Jeffrey A. Tangney: Thank you, and thanks for taking my questions. I want to ask about the long-term growth prospects for the business model. You guys withdrew, of course, the 20% CAGR outlook you gave. I mean, you withdrew the guidance a few quarters ago. But clearly, this quarter, you're reporting some strong metrics around engagement and backlog. I understand the health system market remains uncertain. So my question is, what are the goalposts or industry market trends you need to see which will bridge the gap between 6% to 9% guidance for fiscal 2025 and the 20% CAGR you guys envisioned at your investor day last year?

Speaker Change #126: You would draw that guidance, a few quarters back, but clearly this quarter, you're reporting some strong metrics and on engagement in backlog I understand health system market remains uncertain. So my question is what are the goalposts of industry market trends, you need to see which will bridge the gap between 6% to 9% guidance for fiscal two five.

Speaker Change #127: <unk>, 5% and 20% CAGR do you guys envision at your Investor Day last year.

Jeffrey A. Tangney: Or ask another way, do you guys still believe this business can grow in the long-term something in the range of 20% and has your confidence increased in recent quarters? Hi, Jailendra, this is Jeff. Good to hear from you. Yeah, I think, as we discussed earlier, pre-COVID, we were mid-teens.

Speaker Change #128: Another way do you guys still believe this business is in long term can grow something they can get to 20% and has your confidence can be used in recent quarters.

Jeffrey A. Tangney: That's what we saw the market doing. This year, we're seeing again that healthcare professional digital marketing TAM being more 5% to 7%. We do think it will revert back to that pre-COVID mean over time.

Jeff: Hi, Julien this is Jeff good to hear from you, Yes, I think as we discussed earlier pre Covid. We were mid teens, that's what we saw the market doing this year, we're seeing.

Jeff: Again, the healthcare professional digital marketing Tam being more 5% to 7%. We do think it will revert back to that pre Covid mean overtime and then of course, there are adjacent markets that.

Jeff: And getting into that I think could add even more growth to that but.

Jeffrey A. Tangney: And then, of course, there are adjacent markets that we are eyeing and getting into that I think could add even more growth to that. But this year, again, we see a 5% to 7% growth market, and we're giving an 8% growth guide. All right. Thanks, Jailendra.

Jeff: This year again, we see a 5% to 7% growth market and we're giving an 8% growth.

Jessica Elizabeth Tassan: And our next question comes from the line of Jessica Tassan with Piper Sandler. Jessica, please go ahead. Hi guys, thanks so much for taking the question and congrats on the quarter end guide. I wanted to just understand a little bit more about how the budget flush or the mid-year upsell process works. Can you just help us understand? Do customers come to you with an ROI target up front? Are existing contracts with some kind of stable pricing extended through the end of the calendar year? Any color on how that process works?

Speaker Change #129: Alright, Thanks to Linda and our next question comes from the line of Jessica <unk> with Piper Sandler Jessica. Please go ahead.

Jeffrey A. Tangney: And then just any insight into who will have access to the portal and with what capabilities during this year's mid-year upsell or budget flush season? Thanks for the question. Thanks, Jessica. This is Jeff. It's funny you should mention it.

Jessica: Hi, guys. Thanks, so much for taking my question and congrats on the quarter and guide.

Jessica: Wanted to just understand a little bit more about how the budget flush or the mid year upsell process work and can you just help us understand your customers come to you with an ROI target upfront our existing contracts with kind of stable pricing extended through the end of the calendar year and any color on how that process works and then just any insight into who will.

Jessica: Have access to the portal and who will have access to the portal and with what capabilities. During this year's mid year upsell.

Speaker Change #131: I'll ever or budget flush Steven thanks for the question.

Jeffrey A. Tangney: We had clients last week on our advisory board who were saying that they would like to give us ROI targets, and then we would tell them how much it costs, which was the first time I think we've had that discussion because we've made it so easy for them inside the portal to go and refresh their spend, which is interesting. It's having them honestly behave and think a little more like performance marketers as opposed to brand marketers, where they've always traditionally been.

Jeff: Thanks, Jessica this is Jeff the funny as you mentioned it we had clients last week at our Advisory Board, who are saying that they would like to give us ROI targets and then we tell them how much it costs.

Jeff: This is the first time I think we've had that discussion because we can made it so easy for them inside the portal will go and refresh their spend which is interesting it's having them honestly behave and think a little more like performance marketers as opposed to brand marketers, which is where they have always traditionally been in terms of the mid year upsell dynamics. It really comes down to June July.

Jeffrey A. Tangney: In terms of the mid-year upsell dynamics, it really comes down to June and July. That's when a lot of these budgets are unlocked. What it boils down to is a lot of companies will do a big sales team meeting, and then they'll have a certain amount of budget left over, and that's what gets spent usually in a few days' time as they've got to get it done quickly.

Jeff: That's when a lot of these budgets unlock what it boils down to is a lot of companies will do.

Jeff: <unk> sales team meeting and then they will have a certain amount of budget leftover and that's what gets.

Jeff: What's spent usually in a few days time as nave.

Jeff: <unk> got to get it done quickly and yes, we do intend to make our portal available to as many of our clients as possible to be able to come spend with us like that.

Jeffrey A. Tangney: And yeah, we do intend to make our portal available to as many of our clients as possible to be able to come spend time with us like that. But again, even just showing them the portal and having them see how easy it is in the RN, I think has a halo effect that will help us out as they pick up the phone and call us on this. So the short answer to the question is that it is just 20% of our brands that have access to it today.

But again, even just showing them the portal and having them see how easy it is and our and I think has a halo effect.

Jeff: That will help us out as they pick up the phone and call us on this.

Jeff: So short answer the question as it is just 20% of our brands that have access to today. It does take time to walk them through it and get all their data loaded, but we're excited for future years, and what that can do for our upsell mid year cycle.

Jeffrey A. Tangney: It does take time to walk them through it and get all their data loaded, but we're excited for future years and what that can do for our upsell mid-year cycle. Thank you, Jessica. And our next question comes from the line of Scott Schoenhaus with KeyBank. Scott, please go ahead.

Speaker Change #132: Thank you Jessica.

Speaker Change #133: And our next question comes from the line of Scott shown House with Keybanc Scott. Please go ahead.

Scott Anthony Schoenhaus: Anna, I just wanted to unpack sort of what's driving the low end of the guidance range versus the high end, six to nine percent. Is it more on the healthcare end markets, is it more on the pharma side, is it more on the mid-year upsells? Can you just kind of unpack the low end versus the high end? Sure, I'll kind of break it down by saying that on the pharma side, like I said in my prepared remarks, we feel really good about the fact that the pharma business is going to grow north of 10%.

Scott: To begin the question and I just wanted to unpack sort of what's driving the low end of the guidance range versus the high end, 6% to 9% is it more on the health care end markets is more on the pharma side is it more on the mid year Upsells can you just kind of unpack the low end versus the high end. Thanks.

al: Sure Al.

Speaker Change #135: Kind of break it down by saying that on the pharma side like I said in my prepared remarks, we feel really good about the fact that the pharma business is going to grow north of 10%. So we feel really strong about how were thinking about the guidance. There I think the bigger variability we think about the range would probably be more on the health system side I think we are being appropriately conservative.

Scott Anthony Schoenhaus: So we feel really strong about how we're thinking about the guidance there. I think the bigger variability when we think about the range would probably be more on the health system side. I think we are being appropriately conservative.

Anna Bryson: And I do think there's certainly a chance that health systems could rebound later this year, especially with some of the data points that we've seen recently. However, we just aren't certain yet as far as how that end market is going to look. So I would say that's probably the bigger piece. As I said earlier, I think it was Glenn's question, but we are still assuming a pretty muted mid-year upsell cycle. So I wouldn't say that's necessarily as much of a swing factor on the downside, but it could be on the upside.

Speaker Change #135: And I do think Theres, certainly a chance that health system could rebound later this year, especially with some of the data points that we've seen recently, however, we just aren't certain yet as far as how that end market is going to look so I would say that's probably the bigger piece.

Speaker Change #135: As I said earlier I think it was glenn's question, but we are still assuming a pretty muted midyear upsell cycle. So I wouldn't say that necessarily as much the swing factor on the downside, but it could be on the upside.

Speaker Change #135: Yeah.

Scott Anthony Schoenhaus: Thank you, Scott. And our final question today comes from the line of Craig Hettenbach with Morgan Stanley. Craig, please go ahead. Great, thanks.

Speaker Change #136: Thank you Scott and our final question today comes from the line of Craig heading back with Morgan Stanley Craig. Please go ahead.

Craig Matthew Hettenbach: Jeff, you mentioned the FAMA Summit last week. Can you just touch on any customer feedback on the recent hire of Lisa Greenbaum as Chief Commercial Officer and any initiatives she's, you know, maybe looking to drive with customers? Yeah, thanks, Craig. I'm glad you asked.

Craig: Great. Thanks, Jack you mentioned the pharma summit last week can you just touch on any customer feedback on the recent hire of Lisa Greenbaum as chief commercial officer, and any initiatives, she's maybe looking to drive with customers.

Jeffrey A. Tangney: Lisa's been great. So, she's been here since January, so about five months, but it feels like five years already because she just knows our industry so well. So, she worked for five years, most recently at Google, and before that, she spent 15 years at Medscape.

Speaker Change #136: Yeah.

Jack: Yeah. Thanks, Craig I am glad you asked and this has been great. So she's been here since January so about five months, but I'll say it feels like five years already because he just knows our industry. So well. So she worked for five years, most recently, Google and before that spent 15 years at Netscape. So she not only understands our market and industry dynamics, but also knows a lot.

Jeffrey A. Tangney: So she not only understands our market and industry dynamics but also knows a lot of our clients personally and a lot of our team personally, which is terrific. She's really leading the charge in having a more tech-enabled go-to-market for us, and she's, I think, also really leaned in. She thinks we have a whole exciting new company, if you will, in our telehealth platform and our point-of-care products. So some of the new modules I know she's been really leaning into.

Jack: Our clients personally and a lot of our team personally.

Jack: Which is terrific. So he's really leading the charge and having a more tech enabled go to market for us.

Jack: And she is I think also really leaned in she thinks.

Speaker Change #138: We have a whole exciting new company, if you will in our telehealth platform and our point of care products. So some of the new modules I know she's been really leaning into so excited to have Lisa on the team and my hope is we will have her on our next quarter call to tell you a bit more in person.

Jeffrey A. Tangney: I'm so excited to have Lisa on the team, and my hope is we'll have her on our next quarterly call to tell you a bit more in person. Thank you, Craig. And thanks to all for your questions today. At this point, I would like to turn the call back over to Jeff Tangney for our closing remarks. Thank you. I'd like to thank the entire Doximity team for their hard work serving more doctors every day than ever before, and I'd like to thank everyone for joining us. Thanks so much. And, ladies and gentlemen, that does conclude today's call. Again, thank you all for joining us, and you

Speaker Change #138: Thank you Craig and thanks to all with your questions today at this point I would like to turn the call back over to Jeff <unk> for closing remarks, Jeff.

Thank you I'd like to thank the entire Doximity team for their hard work in serving more doctors everyday than ever before and I'd like to thanks.

Speaker Change #138: Everyone for joining thanks, so much.

Speaker Change #139: And ladies and gentlemen that does conclude today's call again. Thank you all for joining and you may now disconnect.

Speaker Change #139: Okay.

Speaker Change #139: Okay.

Speaker Change #139:

Speaker Change #139: Yeah.

Speaker Change #139:

Speaker Change #139:

Speaker Change #139:

Speaker Change #139: Yeah.