Q1 2025 Doximity Inc Earnings Call

Thank you operator, Hello, and welcome to Doximity as fiscal 2025 first quarter earnings call with me on the call today are Jeff <unk> co founder and CEO of Doximity, Dr. Nate gross co founder and CSO and Ana Bryson CFO are.

Perry Gold: Thank you, operator. Hello, and welcome to Doximity's fiscal 2025 first quarter earnings call. With me on the call today are Jeff Tangney, 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 8K, along with a copy of our prepared remarks, all available on our website at investors.doximity.org. As a reminder, today's call is being recorded, and a replay will be available on our website.

Speaker Change: The complete disclosure of our results can be found in our press release issued earlier today 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 as a reminder, today's call is being recorded and a replay will be available on our website as part of our comments.

Perry 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 and uncertainties. Actual results may differ materially, and we disclaim any obligation to update any forward-looking statements or outlines. Please refer to the risk factors in our annual report on Form 10-K, any subsequent Form 10-Qs, and our other reports and filings with the SEC that may be filed from time to time, including our upcoming filing on Form 10-Q.

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.

Speaker Change: Actual results may differ materially and we disclaim any obligation to update any forward looking statements or outlook. Please refer to the risk factors in our annual report on Form 10-K, and any subsequent form 10, Qs and our other reports and filings with the SEC that may be filed from time to time, including our upcoming filing on Form 10-Q.

Speaker Change: No.

Perry Gold: Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, August 8th, 2024. 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 a public disclosure such as a press release or through the filing form 8K. Today, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results.

Speaker Change: Our forward looking statements are based on assumptions that we believe to be reasonable as of todays date August eight 2024.

Speaker Change: Of note it is doximity as 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 form 8-K.

Speaker Change: 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.

Speaker Change: Finally during the call we may offer incremental metrics to provide greater insights into the dynamics of our business. These details may be onetime in nature, and we may or may not provide updates on those metrics in the future.

Perry Gold: A historical reconciliation to comparable gap metrics can be found in today's earnings release. Finally, during the call, we may offer incremental metrics to provide greater insights into the dynamics of our business. These details 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-founder, Jeff Tangney.

Speaker Change: I'd now like to turn the call over to our CEO and co founder Jeff Tiny Jeff.

Jeff Tiny: Thanks, Barry. Thank you everyone for joining our first quarter earnings call. We have three updates today, our financials network growth and product highlights first.

Jeffrey Tangney: Thanks, Perry, and thank you, everyone, for joining our first quarter earnings call. We have three updates today: our financials, network growth, and product highlights. First, our top line.

Jeffrey Tangney: We delivered $127 million in revenue for the first quarter of fiscal 2025, which represents 17% year-on-year growth and a 5% beat from the high end of our guidance range. Of note, our top 20 clients once again grew the fastest for us, up 21% on a trailing 12-month basis. These clients are the largest, most sophisticated pharmaceutical manufacturers who employ entire teams of analysts to measure their marketing effectiveness. We believe our continued growth with them is proof of our value to the broader marketplace. Our bottom line was also strong in Q1, with an adjusted EBITDA margin of 52%, or $66 million, which was 18% above the high end of our guide.

Jeff Tiny: First our top line, we delivered $127 million of revenue for the first quarter of our fiscal 2025, which represents 17% year on year growth and a 5% beat from the high end of our guidance range.

Speaker Change: Of note our top 20 clients. Once again grew the fastest for us up 21% on a trailing 12 month basis. These clients are the largest most sophisticated pharmaceutical manufacturers, who employ entire teams of analysts to measure their marketing effectiveness. We believe our continued growth with them as proof of our value to the broader marketplace.

Speaker Change: Our bottom line was also strong in Q1 with an adjusted EBITDA margin of 52% or $66 million.

Speaker Change: Which was 18% above the high end of our guidance our adjusted EBITDA grew 42% year on year as we continue to run a disciplined and efficient business.

Jeffrey Tangney: Our adjusted EBITDA grew 42% year-on-year as we continue to run a disciplined and efficient business. In short, we had a better-than-expected Q1, led by our new products and new client portal. Our CFO, Anna, will provide more detail on this in a minute. Okay, turning now to our network growth and engagement. We had another record quarter in Q1.

Speaker Change: In short we had a better than expected Q1 led by our new products and new client portal, our CFO Ana will provide more detail on this in a minute.

Ana: Okay, turning now to our network growth and engagement, we had another record quarter in Q1, our unique active users on a quarterly monthly weekly and daily basis were all up double digit percentages year over year.

Jeffrey Tangney: Our unique active users on a quarterly, monthly, weekly, and daily basis were all up double-digit percentages year over year. And once again, our daily active users grew the most, a sign that we've become the go-to app for hybrid mobile medical work. In Q1, a record 590,000 unique active prescribers used our generative AI, telehealth, messaging, and scheduling workflow tools to provide better care for their patients. Our news feed also set new records.

Ana: Once again, our daily active users grew the most assign that we become the go to App for hybrid mobile medical work.

Ana: In Q1, a record 590000 unique active prescribers used our generative AI telehealth messaging and scheduling workflow tools to provide better care for their patients.

Ana: Our newsfeed also set new records last quarter article reads among prescribers reached an all time high.

Jeffrey Tangney: Last quarter, article reads among prescribers reached an all-time high. We're proud to be both the newsfeed of medicine and the mobile medical office app. The practice of medicine is increasingly mobile, and we're honored to power it. Okay, now for updates on our new AI and Client Portal product. As a reminder, we're not AI tourists.

Ana: We're proud to be bolt Z newsfeed of medicine, and the mobile medical office App. The practice of medicine is increasingly mobile and we're honored to power it.

Ana: Okay now for updates on our new AI and client portal products. As a reminder, we're not AI tourists for nearly a decade now we've employed machine learning and AI to power our newsfeed personalizing articles for each of our more than 2 million members based on their practice publications and reading histories. This personalized approach.

Jeffrey Tangney: For nearly a decade now, we've employed machine learning and AI to power our newsfeed, personalizing articles for each of our more than 2 million members based on their practice, publications, and reading histories. This personalized approach ensures that physicians receive the most relevant information, helping them stay current with the latest medical advances. We were also one of the earliest adopters of generative AI, launching our own Doximity GPT product just three months after ChatGPT's debut.

Ana: Roche ensures that physicians received the most relevant information helping them stay current with the latest medical advancements. We're also one of the earliest adopters of generative AI launching our own Doximity GPT product just three months after chat Gpt's debut Doximity GPT provides a HIPAA compliant writing assistant for doctors.

Jeffrey Tangney: Doximity GPT provides a HIPAA-compliant writing assistant for doctors. To date, over a million and a half letter requests or prompts have been completed on Doximity GPT, demonstrating the significant demand doctors have to cut the scut or streamline administrative writing tasks. Last month, we made the front page of the New York Times in an article titled, In Constant Battle with Insurers, Doctors Reach for a Cudgel, AI. Now, if you ask me, we're more of a Jedi lightsaber than a cudgel, but I won't quibble.

Speaker Change: To date over 1 million and a half letter requested prompts had been completed on Doximity GPT demonstrating the significant demand doctors have to cut the Scott or streamline administrative writing tasks.

Speaker Change: Last month, we made the front page of the New York Times in an article titled in constant Battle with insurers doctors reach for our casual AI now if you ask me where more of a Jedi lightsaber than a cuddle, but I won't quibble. We're just proud to help busy physicians get better care for their patients.

Jeffrey Tangney: We're just proud to help busy physicians get better care for their patients. In the article, Dr. Aslan Tariq highlighted how Doximity GPT has halved his time spent on insurer appeal letters while increasing his appeal approval rate from 10% to 90%. The American Medical Association estimates that doctors spend 12 hours each week on prior authorization paperwork, so cutting that time in half is a substantial improvement.

Speaker Change: In the article Dr. Osler to wreak highlighted how doximity GPT has halved as time spent on insurer appeal letters, while increasing his appeal approval rate from 10% to 90%.

Speaker Change: The American Medical Association estimates the Doctor spend 12 hours each week on prior authorization paperwork, so cutting that time and half is a substantial improvement Dr. Treat went on to say that doximity GPT as quote finally, a tool I can use to fight back end quote.

Jeffrey Tangney: Dr. Tariq went on to say that Doximity GPT is, quote, finally a tool I can use to fight back. End quote. As always, we're proud to put physicians first and help them level the technology playing field with insurers. Our commitment to leveraging AI for the benefit of healthcare providers and patients remains unwavering, and we look forward to continuing to innovate in this space. Okay, moving on now to our new client portal.

Speaker Change: As always we're proud to put physicians first and help them level the technology, playing field with insurers our commitment to leveraging AI for the benefit of health care providers and patients remains unwavering and we look forward to continuing to innovate in this space.

Speaker Change: Okay moving on now to our new client portal. Our portal is now available to 30% of our clients and their feedback. So far has been uniformly positive in particular they appreciate three key features.

Jeffrey Tangney: Our portal is now available to 30% of our clients, and their feedback so far has been uniformly positive. In particular, they appreciate three key features: one, daily updates; two, seamless sales data; and three, actionable recommendations. First, clients value our daily in-flight updates on their programs, which allow them to see their best-performing content and optimize accordingly. The transparency, consistency, and fidelity of our daily online reports stand in stark contrast to others, who often redact and cherry-pick the data they provide in their quarterly emailed reports.

Speaker Change: One daily updates to seamless sales data and three actionable recommendations.

Speaker Change: First clients value our daily in flight updates on their programs, which allow them to see their best performing content and optimize accordingly, the transparency consistency and fidelity of our daily online reports stands in Stark contrast to others, who often redact and cherry pick the data they provide in their quarter.

Speaker Change: E mailed reports.

Jeffrey Tangney: Second, our seamless inclusion of prescription sales data allows clients to measure ROI not just annually or quarterly but by individual headline or video message. This offers new real-time insight into what content resonates best. For instance, does their new clinical trial or copay coupons resonate most with doctors and patients? Third, the portal provides recommendations for easy add-on programs, suggesting new audiences and content orchestration to optimize ROI. This easy access includes pricing and simplifies the entire upsell process.

Speaker Change: Second our seamless inclusion of prescription sales data allows clients to measure ROI, not just annually or quarterly but by individual headline or video message. This offers new real time insight into what content resonates best for instance, does their new clinical trial or co pay coupons resonate most.

Speaker Change: With doctors and patients.

Speaker Change: Third the portal provides recommendations for easy add on programs, suggesting new audiences and content orchestration to optimize ROI. This easy access includes pricing and simplifies the entire upsell process.

Jeffrey Tangney: We are encouraged by our clients' reactions and ourselves to date, and we remain on track with our longer-term portal plan. Our first phase, reporting in insights, is nearly complete. Our second phase, recommendations and pricing, is now available to clients and soon for our agency part. Our third and final phase, content creation, is currently in beta, with a full rollout expected by the end of this year. Clients love our portal's technology and transparency, and consequently, they're giving us a seat at their strategy table like never before.

Speaker Change: We are encouraged by our clients' reactions in up sales to date and we remain on track with our longer term portal plan. Our first phase reporting and insights is nearly complete our second phase recommendations and pricing is now available to clients and soon for our agency partners, our third and final phase content creation is key.

Speaker Change: Currently in beta with a full rollout expected by the end of this year.

Speaker Change: Clients Love, our portals tech and transparency and consequently, they are giving us a seat at their strategy table like never before.

Speaker Change: Okay I'd like to end by thanking my Doximity teammates, who continue to embrace our lean team principals and find more and more efficient ways to serve our positions in clients with record engagement and a robust pipeline of new products I couldnt be more excited about what we're building together.

Jeffrey Tangney: Okay, I'd like to end by thanking my Dr. Timothy teammates who continue to embrace our lean team principles and find more and more efficient ways to serve our positions in clients with record engagement and a robust pipeline of new products. I couldn't be more excited about what we're building to get. And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and guidance. Anna?

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

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

Anna Bryson: Thanks, Jeff, and thanks to everyone on the call today. First quarter revenue grew to $126.7 million, up 17% year-over-year and exceeding the high end of our guidance range. Similar to prior quarters, our existing customers continue to lead our group. We finished the quarter with a net revenue retention rate of 114% on a trailing 12-month basis. For our top 20 customers, net revenue retention was higher at 121%. So our biggest, most sophisticated customers remain our fastest growing.

Brian: Quarter revenue grew to $126 7 million up 17% year over year and exceeding the high end of our guidance range.

Speaker Change: Similar to prior quarters, our existing customers continue to lead our growth.

Brian: Finished the quarter with a 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 121%. So our biggest most sophisticated customers remain our fastest growing.

Speaker Change: We ended the quarter with 102 customers contributing at least $500000 each and subscription based revenue on a trailing 12 month basis.

Anna Bryson: We ended the quarter with 102 customers contributing at least $500,000 each in subscription-based revenue on a trailing 12-month basis. This is a roughly 16% increase from the 88 customers we had in this cohort a year ago, and these customers accounted for 82% of our total revenue. Turning to profitability, non-gap gross margin in the first quarter was 92%, versus 90% in the prior year period.

Speaker Change: This is a roughly 16% increase from the 88 customers. We had in this cohort a year ago and these customers accounted for 82% of our total revenue.

Speaker Change: Turning to profitability non-GAAP gross margin in the first quarter was 92% versus 90% in the prior year period.

Anna Bryson: Adjusted EBITDA for the first quarter was $65.9 million, and the adjusted EBITDA margin was 52% compared to $46.6 million and a 43% margin in the prior year period. We are proud to continue to run a very profitable business with strong margin expansion. Now turning to our balance sheet, cash flow, and an update on our share repurchase group. We generated free cash flow in the first quarter of $39.5 million, compared to $55.6 million in the prior year period, a decrease of 29% year-over-year, driven primarily by the timing of tax payments compared to last year.

Speaker Change: Adjusted EBITDA for the first quarter was $65 9 million and adjusted EBITDA margin was 52%.

Speaker Change: Compared to $46 6 million and a 43% margin in the prior year period.

Speaker Change: We are proud to continue to run a very profitable business with strong margin expansion.

Anna Bryson: We ended the quarter with $750 million of cash, cash equivalents, and marketable security. During the first quarter, we repurchased $48.2 million worth of shares at an average price of $26.03. We believe repurchasing our shares is a valuable use of the incremental cash we generate above what's needed to reinvest in the business. These share repurchase efforts have decreased our fully diluted shares outstanding by 6% since Q1 of last year. As of June 30th, we had $492 million remaining in our existing repurchase program. Now, moving on to Ralph.

Speaker Change: 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 first quarter of $39 5 million compared to $55 6 million in the prior year period, a decrease of 29% year over year, driven primarily by the timing of tax payments compared to last year.

Speaker Change: We ended the quarter with $750 million of cash cash equivalents and marketable securities.

Speaker Change: During the first quarter, we repurchased $48 $2 million worth of shares at an average price of $26 three.

Speaker Change: We believe repurchasing our shares is a valuable use of the incremental cash we generate above what's needed to reinvest in the business.

Speaker Change: These share repurchase efforts have decreased our fully diluted shares outstanding by 6% since Q1 of last year.

Speaker Change: As of June 30, we had $492 million remaining in our existing repurchase program.

Speaker Change: Now moving onto our outlook.

Anna Bryson: For the second fiscal quarter of 2025, we expect revenue in the range of $126.5 to $127.5 million, representing 12% growth at the midpoint. And we expect adjusted EBITDA in the range of 62.5 to 63.5 million, representing a 50 percent adjusted EBITDA mark. With a full fiscal year, we now expect revenue in the range of 514 to 523 million, representing 9% growth at the midpoint. And we now expect Adjusted EBITDA in the range of $248.5 to $257.5 million, representing a 49% Adjusted EBITDA mark.

Speaker Change: The second fiscal quarter of 2025, we expect revenue in the range of $126 five to $127 5 million, representing 12% growth at the midpoint.

Speaker Change: And we expect adjusted EBITDA in the range of 65 to $63 5 million, representing a 50% adjusted EBITDA margin.

Speaker Change: For the full fiscal year, we now expect revenue in the range of 514 to 523 million.

Speaker Change: Presenting 9% growth at the midpoint.

Speaker Change: And we now expect adjusted EBITDA in the range of $248 five to $257 5 million, representing a 49% adjusted EBITDA margin.

Speaker Change: Our increased outlook is due to all business is performing better than expected this past quarter.

Anna Bryson: Our increased outlook is due to all businesses performing better than expected this past quarter. Specific to our pharma customers, we saw a strong start to the upsell season, which we believe is due to a couple of factors. First, we've never had a more focused and attractive product portfolio, and our new products continue to resonate with clients. In Q1, sales for our new point-of-care and formulary products were each up more than 70% year-over-year.

Speaker Change: Specific to our pharma customers, we saw a strong start to the upsell season, which we believe is due to a couple of factors.

Speaker Change: First we have never had a more focused and attractive product portfolio and our new products continue to resonate with clients in Q1 sales for our new point of care and formulary products were each up more than 70% year over year.

Anna Bryson: Second, the client portal is providing deeper insights into program performance and driving favorable purchasing positions. With greater visibility, our clients can evaluate their programs in real time and allocate additional spend to maximize their ROI. As we continue to build out our purchasing and content creation capabilities, we believe our portal will unlock further budget over time. We are proud of our Q1 performance and encouraged by the start toward you. We also recognize that this remains an uncertain map.

Speaker Change: Second the client portal is providing deeper insights into program performance and driving favorable purchasing decisions with greater visibility our clients can evaluate their programs in real time and allocate additional spend to maximize their ROI.

Speaker Change: We continue to build out our purchasing and content creation capabilities. We believe our portal will unlock further budget over time.

Speaker Change: We are proud of our Q1 performance and encouraged by the start to a year.

Mr: Also recognize Mr remains an uncertain macro environment.

Anna Bryson: Because of that, we will continue to take a measured approach to the revenue we have yet to book, which is reflected in our outlook for the back half of fiscal 2020. Most importantly, we are focused on delivering industry-leading products and investing in our long term. With record engagement across our platform and our new client portal now providing deeper insights to our customers, we're even more confident in our competitive position and our ability to gain market share. Thank you. And everyone, if you would like to ask a question, please press star one on your telephone keypad.

Speaker Change: Because of that we will continue to take a measured approach to the revenue we have yet to book, which is reflected in our outlook for the back half of fiscal 2025.

Speaker Change: Most importantly, we are focused on delivering industry, leading products and investing in our long term growth.

Speaker Change: With record engagement across our platform and our new client portal now providing deeper insights to our customers, we're even more confident in our competitive position and our ability to gain market share.

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

Speaker Change: Thank you everyone. If you would like to ask a question. Please press star one on your telephone keypad.

Operator: Thank you. And everyone, if you would like to ask a question, please press star one on your telephone keypad. We do ask that you limit yourself to one question and one follow-up. Our first question comes from Brian Peterson, Raymond James. Thanks for taking the question and congratulations on the quarter. So, given what you've seen so far this year with the strong upsell activity, what would you say...

Speaker Change: Ask that you limit yourself to one question and one follow up our first question comes from Brian Peterson Raymond James.

Brian Peterson: Thanks for taking my question and congrats on the quarter. So.

Speaker Change: Given what you've seen so far this year with the strong upsell activity is there any updated stats on how youre thinking about pharma budget growth for the full year.

Anna Bryson: Hey, Brian, thanks for the question. So we still believe that overall budget growth for our pharma customers is that roughly 5 to 7% that we've cited before, so we don't necessarily think we've seen a change in budget. But we do think that, as I mentioned in my prepared remarks, because of our strong product portfolio and the additional insights that are being driven by our client portal, our customers are now more comfortable deploying their dollars with Doximity earlier in the upsell cycle. So we believe that's a very strong indication of the value they're receiving from our platform. And I think that speaks to our ability to gain share in our strong competitive position.

Speaker Change: Hey, Brian Thanks for the question. So we still believe that overall budget growth biopharma customers is that roughly 5% to 7% that we decided before so we don't necessarily think we've seen a change in budget, but.

Brian Peterson: But we do think that as I mentioned in my prepared remarks, because of our strong product portfolio and the additional insights that are being driven by our client portal. Our customers are now more comfortable deploying their dollars doximity earlier on in the up cycle. So we believe that's a very strong indication of the value they receive from our platform.

Speaker Change: I think that speaks to our ability to gain share in a strong competitive position.

Speaker Change: Good to hear and maybe one for Jeff just we continue to hear about record engagement on the platform and daily average users any.

Speaker Change: Any help review diving, a little bit deeper on what's driving that I know that's come up a lot with investors. So I believe what the double click on what's driving that thanks guys.

Jeff Tiny: Thanks, Brian, Yes, double digit percent growth as we said across.

Jeffrey Tangney: Thanks, Brian. Yeah, double-digit percent growth, as we said, across monthly, weekly, quarterly, and daily active use. And daily active use grew the most, and that's what I'm most excited about. I think we really are becoming the doctor's mobile medical workflow tool, doing their scheduling, doing their telehealth visits, and so forth. We are seeing more doctors doing work from home days, and we'll have more on this when we come out with our telehealth report in a month or two, but we are seeing the practice of medicine here post-COVID get into a rhythm where doctors are doing a decent chunk of their work mobile, and that So, yeah, excited about the continued growth, and again, it's been a solid couple years now post-COVID where we've continued to hit record highs.

Speaker Change: <unk> weekly quarterly and daily active users and daily active users grew the most.

Speaker Change: And that's what I'm most excited about I think we really are becoming the doctor's mobile medical workflow tool.

Speaker Change: Doing the scheduling doing there.

Speaker Change: Hello health visits and so forth, we are seeing more doctors doing work from home days and we'll have more on this when we come out with our telephone report.

Speaker Change: A month or two but we.

Speaker Change: We are seeing with the practice of medicine here post COVID-19 get into a rhythm where doctors are doing a decent chunk of their work Mobily and thats, where were serving them and I think getting really strong usage growth. So we are excited about the continued growth and again, it's been a solid couple of years now post COVID-19.

Speaker Change: Where we've continued to hit record highs.

Speaker Change: We'll take the next question from Scott Berg Needham <unk> company.

Operator: We'll take the next question from Scott Berg of Needham & Company.

Speaker Change: Hi, everyone really nice quarter, thanks for taking my questions I guess.

Operator: Hi, everyone. Really nice quarter. Thanks for taking my questions. I guess I have two.

Jeffrey Tangney: Jeffrey, I wanted to ask about the portal. I know Anna talked about initial trends there that have been really, really positive and strong, maybe above your expectations. But how do we think about some of those trends? Are more customers using it, getting more comfortable with how to use it, maybe making their purchases?

Speaker Change: <unk>.

Speaker Change: Jeff and I wanted to ask about the portal.

Speaker Change: And I talked about initial trends there that have been really really positive and strong and maybe above your expectations, but how do we think about some of those trends is it more more customers are using it getting more comfortable in how to use that maybe making their buying decision quicker.

Speaker Change: Are you seeing I guess volumes of up sell B, maybe just larger than what you expected any any color there would be helpful.

Speaker Change: Yeah.

Jeffrey Tangney: Hey Scott, thanks for the question. Yeah, I think we're really excited by where we are in the phase of development of the portal. So right now, a lot of our brands are using it to get more real-time insights, so they're able to log in and see how their programs are performing in real time, which allows them to make their upsell decisions in a more informed manner. So one thing I'll call out is that our brands with access to our portal actually grew quite a bit faster than our overall pharma business in Q1.

Speaker Change: Hey, Scott. Thanks for the question, Yes, I think we're really excited by where we are in the phase of development of the portal. So right now a lot of our brands are using it to get more real time insights, so theyre able to log in and see how their programs are performing in real time, which allows them to make their upsell decisions in a more.

Speaker Change: Informed manner. So one thing I'll call out is that our brands with access to our portal actually grew quite a bit faster than our overall pharma business in Q1, so that cohort and brands. We're certainly responsible for part of the upside. So right now we're still in that insight for reporting phase and I think over time, we're really excited by what the portal could mean longer term.

Jeffrey Tangney: So that cohort of brands was certainly responsible for part of the upside. So right now, we're still in that insights and reporting phase, and I think over time, we're really excited by what the portal could need in the longer term as we get to content creation and actual purchasing capability.

Speaker Change: As we get the content creation and actual purchasing capabilities.

Speaker Change: Got it helpful and then.

Operator: got found it helpful. And then there was one question I've had that's popped up.

Speaker Change: One question I've had is popped up a couple of times lately is really around kind of the variability.

Operator: a couple of times lately is really around kind of the variability of the company's growth rates. If you look over the last, you know, five or six quarters now, there's been some wide

Speaker Change: The company's growth rates, if you look over the last five or six quarters now theres been some wide swings around revenue growth.

Operator: and wide swings around revenue growth.

Jeffrey Tangney: Is this kind of a quote-unquote pattern, kind of a lack of pattern, that we should, you know, kind of continue to expect, or will there be some seasonality trends in this kind of newer growth environment that you've been experiencing over the last year that, you know, might show some, you know, relative consistency between, you know, period to period?

Speaker Change: Is this kind of the quote unquote pattern kind of a lack of pattern that we should kind of continue to expect or will there be some seasonality trends and this kind of newer growth environment <unk> experienced over the last year that.

Speaker Change: Might show some relative consistency between period to period.

Speaker Change: Yes.

Speaker Change: Yes got it great question and you know as I said before the way our customers purchase and launch their programs.

Operator: Yeah, Scott, it's a great question. And, you know, as we've said before, the way our customers purchase and launch their programs has, and, you know, likely will continue to evolve over time. So that's where we're seeing these quarterly variations in revenue. You know, it depends on the timing of upsells, what products they're buying, are they newer products or the existing products, and how many new brands we have. So there is going to be some variation in revenue.

Speaker Change: And likely will continue to evolve over time. So that's why we're seeing this quarterly variations in revenue, yes. It depends on the timing of upsell what products they are buying or the newer products or the existing products. How many new brands. We have so there is going to be some variation revenue and thats why we try to focus on.

Operator: And that's why we try to focus on our annual performance as opposed to our quarterly performance, which is consistent with how our customers think about deploying their dollars. And so that's where we always focus when we consider the health of our business. We think about it annually. Now, we take the next question.

Speaker Change: Our annual performance as opposed to a quarter over quarter performance, which is consistent with how our customers think about deploying their dollars and so that's why we always focus when we consider the health of our business, we think about it annually.

Speaker Change: We'll take the next question from Stephanie Davis Barclay.

Operator: We'll take the next question from Stephanie Davis, from Barclays. Just one moment, Stephanie. Stephanie, please go ahead. Don't worry.

Stephanie: And just one Stephanie.

Speaker Change: Stephanie Please go ahead.

Stephanie: Definitely.

Anna Bryson: Um, I wanted to dig in a little bit deeper on the comment that you're seeing faster growth when you're as large as clients because this is the first quarter of that trend. Is this a function of maybe macro-thalline earlier for the largest client? Or is this going to be a broader trend where you see a bifurcation in your customer base? And maybe it encourages a portion of the base to the self-service platform and the higher touch hours; more can be the higher.

Speaker Change: I wanted to dig in a little bit on what.

Speaker Change: Comment that you're seeing faster growth at your largest client because this isn't the first quarter of that trend.

Speaker Change: Is this a function of maybe macro falling earlier to the largest client or is it going to be a broader trend where you see a bifurcation in your customer base and maybe encourage as a portion of the base of the self service platform and the higher touch hours margin beyond the high end.

Speaker Change: Sure. Stephanie this is Jeff I'll take that yes, we're really proud of them.

Jeffrey Tangney: Officer Stephanie, this is how I'll take it. Yeah, we're really proud that, you know, among our top 20 clients, we've had consistent 20 plus percent year on year growth, and we're really proud because those are the clients who actually know and measure us fast, right? They're the ones who have the teams of consultants looking at our return on investments, and they know how to optimize a program best. I think the portal is taking some of the things that those clients do with us and really making them available to a broader swath of clients, even though we can't afford to have 50 consultants working on the program and the optimization.

Speaker Change: Among our top 20 clients we've had consistent.

Jeff Tiny: Plus percent year on year growth and we're really proud because those are the clients, who actually know and measure assessed right. They are the ones who have the teams of consultants looking at our return on investment and they know how to optimize their programs best I think the portal is taking some of the things that those clients do with us and really making it available to a broader.

Speaker Change: Swath of clients, even the folks who can afford to have.

Speaker Change: 50 consultants working on the program and the optimization.

Speaker Change: And I'll tell you I'm, particularly excited this last quarter and our ability to start looking at ROI on a headline basis for our clients and these insights we are little things like one client learned that if you say the drug is most powerful that sounds great, but actually it doesn't perform as well as saying its the most efficacious because when you.

Speaker Change: Say something is powerful the doctors they tend to think of it as maybe adjunct or second line therapy. After you tried the first line therapy and the ability to see the difference in in sales in ROI and to see that seamlessly through our portal was the kind of thing that was really only available to again really talk.

Speaker Change: Tier brands in pharma companies previously and now with our portal I think will be available to a lot more so on that front. We're pleased to also announce here that we are.

Speaker Change: Digging deeper on our prescription sales data and we're going to be making an investment this year going from having monthly data available for our clients to optimize to having weekly data.

Speaker Change: We think we will.

Speaker Change: Make it easier for clients to log in each week and look at how they're doing against the ROI of their programs and see this on a more ongoing basis last quick note here.

Jeffrey Tangney: Last quick note here. R.O.I. know is something that gets battered around a lot by a lot of players in this industry, the reality is that most folks only look at it once a year and sometimes those reports when they're only delivered once a year can be cherry picked and put into a less than credible light when you look at how they've been cherry picked and put together, I think our portal has really brought a new standard here, well we are providing daily data to our clients in a way that we can't just cherry pick the results that are looking at it on an ongoing basis, and at one of our clients request we did go through an audit with the Alliance for Audited Media, this past quarter in which we have passed with line colors to go through and, again, provide greater credibility, greater plus around the data they're getting from us because they're getting in thermal website and not from any mail and they're getting it on an ongoing basis. And maybe...

Roy: Roy in though is something that gets batted around a lot by a lot of players in this industry.

Speaker Change: The reality is that most of them when we look at it once a year and sometimes those reports when they're only delivered once a year can be cherry picked.

Speaker Change: And put into.

Speaker Change: Or less incredible light when you look at how they've been Cherry picked and put together I think our portal has really brought a new standard here, where we are providing daily data to our clients in a way that we can't just cherry pick the results, they're looking at it on an ongoing basis.

Speaker Change: And that one of our clients request, we did go through a an audit with the <unk>.

Speaker Change: Alliance for audited media this past quarter, which we passed with flying colors to go through and again provide greater credibility greater trust around the data, they're getting from us because they're getting it from a website and not from an email and theyre getting it on an ongoing basis.

Speaker Change: And maybe on that kind of point of Adam will kind of go into the corridor and you mentioned that you are also getting some learnings from the portal.

Operator: And maybe on that kind of point of adding new things into the portal, Anna, you mentioned that you are also getting some learning from the portal and changing some of your reporting or adding new metrics that clients are asking for via inbound. Is there any update on that and kind of what we've seen Doximity's solutions grow from the portal?

Adam: Changing some of your reporting or adding new metrics that clients are asking for is there any update on that.

Adam: What we've seen docks and the solutions that grow from from part of learning.

Speaker Change: His staff, sorry could you repeat it it cut out a little bit.

Operator: Hey, Steph, sorry, could you repeat it? It cut out a little bit. No worries. I was like, sorry about that today.

Speaker Change: Right.

Speaker Change: Alright, sorry about that.

Speaker Change: Hum.

Operator: Um, remember how you mentioned that you were getting some learnings from the portal, like you found that there were a lot of inbound calls from clients asking for different data points or, you know, different ways they could optimize their ad spend? Could you give us an update on that? And just tell us what's gotten better, and what you've done to refine your approach on the portal?

Speaker Change: You mentioned that you are getting some learnings from the portal like we found that there were a lot of inbound client asking for a different data point, there and different ways. They can optimize their AD spend could you give us an update on that and just tell us like what's gotten better or what you've done to refine your approach on the quarter.

Speaker Change: Yes, Jeff This is Jeff I'll take that I have been working a lot on the portal and clients and going back and forth.

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

Speaker Change: The truth is there is a ton of added insight again, then we could have I mean, we look at.

Jeffrey Tangney: I've been working a lot on the portal and with clients and going back and forth. You know, the truth is, there's a ton of added insight again that we can have. I mean, we look at when doctors are watching a video, where are they dropping off in the video? Literally, second by second as they go through the video.

Speaker Change: When doctors are watching a video where are they dropping off in the video literally second by second as they go through the video and that was a kind of an insight that our clients are never able to have before and now can really understand which points are resonating best.

Jeffrey Tangney: That was the kind of insight that our clients were never able to have before and now can really understand which points are responding best with doctors, where they're most interested, where they aren't. We've also leveraged AI to go through and look at what we call the words that click, the words that really do resonate with doctors. And some doctors we've found to have better personalized headlines because they prefer that you use explicit medical jargon versus talking about the guidelines versus talking about, you know, what patients are reading.

Speaker Change: With document where theyre, most interested where they arent. We've also leveraged AI to go through and look at what we call the words that click.

Speaker Change: That really do resonate with doctors and some doctors we've found to have better personalized headlines because they prefer that you use the explicit medical jargon versus talking about the guidelines versus talking about.

Speaker Change: What patients are reading, so again, we've been able to I think really personalize the experience here and working hand in hand, with our clients. So I would say that the feedback loops here just become very tight and its exciting again to bring I think some of this.

Jeffrey Tangney: So, you know, again, we've been able to, I think, really personalize the experience here by working hand-in-hand with our clients. So, I would say that the feedback loops here have just become very tight. And it's exciting, again, to bring some of this more consumer split testing technology to the healthcare professional space.

Speaker Change: More consumers split testing technology.

Speaker Change: To the health care professional space.

Speaker Change: We will take the next question from Jared Hot William Blair.

Operator: We will take the next question from Jared Haase, William Blair.

Jared Haase: Hi, Good evening. This is Jared haase on for Ryan Daniels. Thanks for taking my questions. Maybe just one on the guidance and I. Appreciate your comments around sort of taking a measured approach to your revenue that's not yet booked can you just unpack that a little bit more in terms of.

Operator: Good evening. This is Jared Haase. I'm on behalf of Ryan Daniels.

Speaker Change: As you sit today, what's under contract or what you have line of sight into relative to the full year and then also maybe if you could quantify at all how the upsell season has gone relative to what your expectations were in the prior outlook.

Speaker Change: Yes, Thanks for that question Jared I'll I'll start on the visibility piece. So as a reminder, we are definitely seeing a trend towards better visibility in our business as our customers are doing more upfront buying so we entered this fiscal year with a higher percentage of revenue under contract than we've ever had at over 70% as if our may earnings call.

Anna Bryson: Thanks for taking our questions. Maybe just one on the guidance, and I appreciate your comments around sort of taking a measured approach to revenue that's not yet booked. Can you just unpack that a little bit more in terms of, you know, as you said today, what's under contract or what you have line of sight into relative to the full year? And then also, maybe if you could quantify at all how the upsell season has gone relative to what your expectations were in the prior outlook?

Anna Bryson: Yeah, thanks for the question, Jared. I'll start on the visibility piece. So, you know, as a reminder, we have definitely seen a trend towards better visibility in our business as our customers are doing more upfront buying. So we entered this fiscal year with a higher percentage of revenue under contract than we've ever had, at over 70% as of our May earnings call. Now, we're not going to give an update on the specific number every quarter, but what I will say is our visibility trend is continuing in a positive direction.

Speaker Change: No we're not going to give an update on the specific number every quarter, but what I will say is our visibility trend is continuing in a positive direction. So that means that as we sit here today, we have a higher percentage of the remainder of the year booked and then we've been at this point last year and then as far as the second piece of your question around upsell.

Anna Bryson: So that means that as we sit here today, we have a higher percentage of the remainder of the year booked than we did at this point last year. And then, as far as kind of the second piece of your question around upsell, yeah, we're definitely really encouraged to have had the strongest start to our pharma upsell season in the past three years. So we certainly outperformed our expectations. You can see that in the beat that we had in Q1 and the fact that for Q2, we're guiding to a higher growth rate at 12% growth versus the 11% growth that we saw last Q2.

Speaker Change: Yeah, we're definitely really encouraged to have had the strongest start to our pharma upsell season in the past three years. So we certainly outperformed our expectations you can see that in the beat that we had in Q1 and the fact that for Q2, we're guiding to a higher growth rate at 12% growth versus the 11% growth that we saw last Q2. So we definitely are.

Anna Bryson: So we're definitely excited about the momentum that we're seeing in our business. But back to those prepared remarks, there is still a lot of runway left in the year. And we, once again, don't want to get ahead of our skis here. We recognize there's still continued macro uncertainty. So we are going to be continuing to take that prudent approach to the dollars we don't have yet booked as it pertains to guidance.

Speaker Change: Cited about the momentum that we're seeing our business, but kind of back to those prepared remarks. There is still a lot of runway left in the year and we once again don't want to get ahead of our skincare. We recognize there is still continued macro uncertainty. So we are going to be continuing to take that prudent approach to the dollars. We don't have yet booked as it pertains to guidance.

Speaker Change: Okay. That's great appreciate that and then also great to hear just kind of the broad base.

Anna Bryson: Okay, that's great. Appreciate that. And then also great to hear just kind of the broad base upside that's driving the outperformance here. I think there were a couple of examples, Anna, that you shared on the pharma side. So I doubled-click on the health system expectations. Are you seeing any incremental improvement relative to what you shared last quarter in terms of your polio guidance?

Speaker Change: Upside that's driving the outperformance here I think there were a couple of examples Ana that you shared on the pharma side. So I wanted to double click on that health system expectations are you seeing any incremental improvement relative to what you shared last quarter in terms of your full year guidance.

Ana: Yes sure.

Anna Bryson: Yeah, sure. You know, like I said, we did see outperformance across all of our businesses. I would say health systems. We've seen a marginal improvement over the last 90 days. The majority of our outperformance did come within our pharma business, but we are seeing more stability in the health system space. So we're definitely excited. I'm going to go back to that McKinsey report that we cited last quarter that forecasted improving profits there amongst our health system customers. So we do think that we will continue to see some improvement there over time.

Speaker Change: Like I said that we did see outperformance across all of our businesses I would say health systems, we've seen a marginal improvement over the last 90 days and the majority of our outperformance income within our pharma business, but we are seeing more stability in the health system space. So we're definitely excited and kind of go back to that Mckinsey report that we cited last quarter.

Speaker Change: <unk>.

Speaker Change: Forecasting improving profits there amongst your health system customers. So we do think that we will continue to see some improvement there over time.

Ana: From Canaccord Genuity Richard close.

Operator: From Canaccord Genuity, Richard Close has the next question.

Speaker Change: Question.

Operator: Hi, this is John Binion on behalf of Richard Close. Thanks for the question and congrats on the quarter. So obviously, very strong, strong margin performance here. I just wanted to ask how sustainable is this and how much of this is driven to the portal? Just any insight there would be helpful.

Speaker Change: Hi, This is John <unk> on for Richard close Thanks for the question and congrats on the quarter.

Speaker Change: So obviously strong strong margin performance here I just wanted to.

John: Ask Ed how sustainable is this and how much of this is driven to the portal just any insight there would be would be helpful. Thanks.

Speaker Change: Sure Yeah happy to take that one so in addition to the revenue flow through and we do definitely continue to drive operational efficiencies in our business. We are leaning into AI internally to enhance our productivity and that's definitely helped us to gain some further leverage as we look at Q1, specifically there is also kind of a timing.

Speaker Change: Component here of hiring that we do expect to pick up slightly in Q2 was evident in our expense guidance going forward as we focus on continuing to invest in the business and build out the commercial R&D team continuing to make incremental sales hires Jeff mentioned earlier bind more data so going from buying monthly prescription claims data combine.

Jeff Tiny: Weekly prescription claims data.

Speaker Change: We are certainly investing in the business, but we feel really good about the fact that we're guiding to 49% EBITDA margins this year.

Speaker Change: Great. Thanks.

Speaker Change: One follow up I guess looking out with them on the right when you.

Speaker Change: Using the portal to go more down market do you have any plans or any differences of what the what the go to market would be growing Brian going for those smaller brands.

Speaker Change: Yes, John this is Jeff.

Jeff Tiny: So we haven't done much of that yet again to date, we've rolled it out to existing clients and again the feedback has been uniformly positive.

Speaker Change: Yes, Youre, absolutely right I think down the road certainly will make it easier for folks to come onboard again, we've had high minimums as a company.

Jeff Tiny: Come and purchase with us and we think it will make it easier for folks to come in and try us out the real key unlock there for US will come later this year when we let people start creating their own content right now the only way to create content and activity is to call one of us and talk to one of our team members.

Jeff Tiny: And the portal is in beta on that today as we said in our prepared remarks, and we're really excited about where that can go later this year.

Speaker Change: There's a lot of exciting stuff going on with AI and this whole space specifically and.

Speaker Change: And you can just put in the <unk> of your products website, and we can probably create a pretty decent 22nd video using some of the imagery of copy from that website.

Speaker Change: The ability to again create engaging content.

Jeff Tiny: Summarizing things and do that in a self serve fashion is not something the portal does yet, but something we're excited about it doing later this year.

Speaker Change: Well take the next question from Alan with Bank of America.

Anna Bryson: Thanks.

Speaker Change: Good afternoon, and thanks for taking the questions.

Anna Bryson: Sure, yeah, happy to take that one. So, you know, in addition to the revenue flow through, we do definitely continue to drive operational efficiencies in our business. We are leaning into AI internally to enhance our productivity, and that's definitely helped us to gain some further leverage. If we look at Q1 specifically, you know, there is also kind of a timing component here of hiring that we do expect to pick up slightly in Q2.

Anna Bryson: So it's evident in our expense guidance going forward as we focus on continuing to invest in the business and build out the commercial R&D team, and continue to make incremental sales hires. You know, as Jeff mentioned earlier, buying more data, so going from buying monthly prescription claims data to buying weekly prescription claims data. So we are certainly investing in the business, but, you know, we feel really good about the fact that we're guiding to 49% EBITDA margins this year.

Speaker Change: You mentioned that subscriptions are I guess, just doing the math subscriptions are growing call. It 8% to 10 percentage points above the 5% to 7% market growth is there any way that you can rank order the major drivers of your outsized growth versus the market I guess, the big buckets that I am thinking out of our new.

Speaker Change: <unk> your normal share gains maybe contributions from client portal in the most recent quarter and price just trying to understand what are the drivers here that are that are driving the outsized growth and have they changed over the past several quarters.

Speaker Change: Hey, Alan this is Nate I can start talking through that so when we think about our growth drivers at the front end, we have new modules, which sometimes tap into new budgets, we have both.

Jeffrey Tangney: Great, thanks. One follow-up question, I guess like looking out for no one, like when you use the portal to go more down market, do you have any plans or any differences of what the go-to market would be going for those smaller brands?

Alan: Both cross selling within our manufacturer partners and health system partners, but also expanding to new brands.

Speaker Change: And then we have audience members both on the engagement side as well as how our partners look to reach expanded audiences, which could be everything from.

Speaker Change: Hi.

Speaker Change: Therapies that are reaching larger groups due to their therapeutic impact to lookalike audiences that are more intelligent too.

Speaker Change: Surround sound to reinforce and helped education at each part of our journey I think one thing I'll call out is that the growth lever that we always put the last on the list and still is last on the list is pricing that's something that we do steadily but is $4, though on that list by design because we see it.

Speaker Change: Our long term growth driver opportunity and we.

Speaker Change: We believe in keeping these trusted partnerships with our clients today now the portal will afford us the technology and the models to get more sophisticated around pricing and increasingly gives us an advantage, particularly with the highest demand users and at different times of the year as we link that to real ROI.

Speaker Change: However.

Speaker Change: We're pleased that it hasnt been a necessity in our growth and that our products and our engagement and our relationships with our partners have been the leaders that drive our growth today.

Jeffrey Tangney: Yeah, this is Jeff. So we haven't done much of that yet. Again, to date, we've rolled it out to existing clients, and again, the feedback has been uniformly positive. But yeah, you're absolutely right.

Nate: Great. Thanks Nate.

Nate: We'll take the next question from Elizabeth Anderson Evercore ISI.

Speaker Change: Hi, guys. Thanks, so much for the question and congrats on a nice quarter.

Jeffrey Tangney: I think down the road, certainly will make it easier for folks to come on board. Again, we've had high minimums as a company for folks to come and purchase with us. And we think it'll make it easier for folks to come in and try us out. The real key unlock for us will come later this year when we let people start creating their own content. Right now, the only way to create content on Doximity is to call one of us and talk to one of our team members.

Jeffrey Tangney: And the portal is in beta on that today, as we send in prepared remarks. And we're really excited about where that can go later this year. There's a lot of exciting stuff going on with AI in this whole space. Specifically, you can just put in the URL of your product's website, and we could probably create a pretty decent 20-second video using some of the imagery and copy from that website. So the ability to, again, create engaging content, summarize things, and do that in a self-serve fashion is not something the portal does yet, but something we're excited about it doing later this year.

Elizabeth Anderson: Maybe piggybacking off of some of the earlier questions, where you're talking about sort of the new product contribution ramp how do we think about that versus the outperformance or that sort of the cadence. We should expect on the gross margins going forward, because obviously with that contribution in the current quarter or the quarter. You. Just reported you had some nice gross margin expansion.

Operator: We'll take the next question from Allen Lutz, Bank of America.

Operator: Good afternoon, and thanks for taking the questions. You mentioned that subscriptions, or I guess just doing the math, subscriptions are growing, call it eight to 10 percentage points above the five to 7% market growth. Is there any way that you can rank order the major drivers of your outsized growth versus the market? I guess the big buckets that I'm thinking of are new products, your normal share gains, maybe contributions from client portal in the most recent quarter, and price. Just trying to understand what are the drivers here that are driving the outsized growth and have they changed over the past several quarters? Thanks.

Speaker Change: We typically think of those things are sort of.

Nate Gross: Hey Allen, this is Nate.

Nate Gross: I can start talking through that. So when we think about our growth drivers, at the front end, we have new modules, which sometimes tap into new budgets. We have both cross-selling within our manufacturer partners and health system partners, but also expanding to new brands. And then we have audience members, both on the engagement side, as well as how our partners look to reach expanded audiences, which could be everything from therapies that are reaching larger groups due to their therapeutic impacts, to look-alike audiences that are more intelligent, to surround sound, to reinforce and help education at each part of the journey.

Nate Gross: I think one thing I'll call out is that the growth lever that we always put last on the list and still is last on the list, pricing. That's something that we do steadily but is fourth or so on that list by design because we see it as a long-term growth driver opportunity and we believe in keeping these trusted partnerships with our clients today. Now the portal will afford us the technology and the models to get more sophisticated around pricing and increasingly give us an advantage, particularly with the highest-demand users and at different times of the year, as we link that to real ROI. However, we're pleased that it hasn't been a necessity in our growth and that our products and our engagement, and our relationships with our partners have been the levers that drive our growth today.

Speaker Change: New products is reducing those margins at least in the short term.

Speaker Change: Yes, Thanks, Elizabeth the Great thing about our new products is they are very high incremental margin products and some of the enhancements that we've made have actually made it easier for these new products to launch using existing video content. So that in itself is helping with leverage there. So.

Operator: We'll take the next question from Elizabeth Anderson of Evercore ISI.

Speaker Change: That actually allows people products to work well not only during the upfront, but also during the up sell so they definitely help to contribute to some of our margin expansion, but I will note that Q.

Operator: Hi guys, thanks so much for the question and congrats on a nice quarter. Maybe piggybacking off of some of the earlier questions where you're talking about sort of the new product contribution ramp, how do we think about that versus the outperformance or the sort of the cadence we should expect on gross margins going forward? Because obviously, with that contribution in the current quarter or the quarter you just reported, you had some nice gross margin expansion. How do you typically think of those things as sort of, you know, new products as reducing those margins, at least in the short term?

Speaker Change: Q1 was certainly a strong revenue outperformance quarter as well and as we kind of look ahead. There is a natural ramp to the year typically that we see with hiring and some of the new investments that we're going to continue to make.

Speaker Change: I wouldn't expect that margin that we saw in Q1 to continue and you can see that in our guidance.

Speaker Change: But these new products are definitely potential for margin expansion as they continue to grow over time.

Speaker Change: Got it and then as a follow up in terms of the content creation I would say that that's a very interesting advanced magnitude of the offerings you have there.

Speaker Change: But how do we think about that versus some of the MLR reviews that clients require afraid that the content or the audience expansion recommendations or any comments there you could get.

Speaker Change: Helpful. Thank you.

Speaker Change: Okay.

Anna Bryson: Thanks.

Jeff Tiny: Yes. This is Jeff was but thats a great question actually I think having the portal be the place where they can more easily output their content into the MLR process will actually make that more streamlined than all of the E Mail Ping pong that we do with them. Today. So we're excited that I think it'll be an MLR accelerant for us to be able to have.

Speaker Change: More portal based approach to this but I think and as other comment I want to repeat that as we really have I think worked out some of the Kinks of these new products in the last year, specifically with regard to being able to.

Anna Bryson: Yeah, thanks, Elizabeth. You know, the great thing about our new products is that they are very high-incremental margin products. And some of the enhancements that we've made have actually made it easier for these new products to launch using existing video content, so that in itself is helping with leverage there. So that actually allows these new products to work well, not only during the upfront but also during the upsell. So they definitely help to contribute to some of our margin expansion.

Speaker Change: Use the same video content, that's been approved for one product for another product and that has allowed the margins to be very high.

Speaker Change: Has required us, making some technical changes on our side, but I think we've harmonized our formats in a way that our clients have really appreciated.

Speaker Change: Also gone through and gotten the pioneers battle scars of getting the first MLR reviews on some of these products now have enough for the top 20, who reviewed at that it gets easier and easier with each subsequent review.

Speaker Change: Again for our new products.

Speaker Change: And your next question comes from Jessica Fung Piper Sandler.

Jessica Fung: Hi, guys. Thanks for taking my question and congrats on the really nice quarter.

Anna Bryson: But I will note that, you know, Q1 was certainly a strong revenue outperformance quarter as well. And as we kind of look ahead, there is a natural ramp-up to the year, typically, that we see with hiring and some of the new investments that we're going to continue to make. So I wouldn't expect that margin that was in Q1 to continue, and you could see that in our guidance. But these new products definitely have potential for margin expansion as they continue to grow over time.

Jessica Fung: I wanted to ask two things.

Jessica Fung: First off are your top 20 customers using the portal today and I apologize if I missed that and then just can you walk us through that the spending patterns. There. It was impressive to hear that they're growing twice as fast. So just is it causing their programs to run faster or accelerate our customer's paying higher prices or are they just deploying like multiple <unk>.

Speaker Change: Programs and currently have what's driving the did to express thanks.

Jeff Tiny: I think Jeff Yes. This is Jeff yes.

Jeffrey Tangney: Got it. And maybe to follow up, in terms of that content creation, obviously that's a very interesting advancement in sort of the offerings you have there. But how do we think about that versus some of the MLR reviews that clients require for either the content or the audience expansion recommendations? Any comments there you could give would be helpful. Thank you.

Speaker Change: Yes, we have rolled out the portal to most of our.

Jessica Fung: Top clients.

Speaker Change: But to be clear there are some top clients, who won't use the portal.

Operator: Yeah, this is Jeff, Elizabeth. That's a great question. Actually, I think having the portal be the place where they can more easily output their content into the MLR process will actually make that more streamlined than all of the email ping-pong that we do with them today. So we're excited that I think it'll be an MLR accelerant for us to be able to have a more portal-based approach to this. But I think Anna's other comment, which I want to repeat, and that is that we really have, I think, worked out some of the kinks of these new products in the last year, specifically with regard to being able to use the same video content that's been approved for one product on another product.

Speaker Change: There's going to be 10% to 20%, we expect to we will continue to prefer to.

Operator: And that has allowed the margins to be very high. It has required us to make some technical changes on our side, but I think we've harmonized our formats in a way that our clients have really appreciated. And we've also gone through and gotten the Pioneer's Battle Scars, getting the first MLR reviews on some of these products, and now have enough of the top 20 who've reviewed them that it gets easier and easier with each subsequent review, again, for our new product.

Speaker Change: Have a meeting to give us a call to work with us directly but then in R&D will be using the portal again to make our internal processes I think more.

Operator: And your next question comes from Jessica Tassan, Piper Standler.

Speaker Change: More efficient.

Speaker Change: Hasn't had an impact on that 21% growth in top 20 clients in terms of pricing.

Speaker Change: So to be clear, we haven't really been pricing.

Operator: Hi guys, thanks for taking the question and congrats on a really nice quarter. So I just wanted to ask two things. First off, are your top 20 customers using the portal today? And I apologize if I missed that.

Speaker Change: The programs that are already live and end market with our top 20 clients using this portal yet those are programs that were sold probably several quarters ago.

Jeffrey Tangney: And then just can you walk us through the spending patterns there? It was impressive to hear that they're growing twice as fast. So just, is it causing their programs to run faster or accelerate? Are customers paying higher prices? Or are they just deploying multiple programs concurrently? What's driving the bid to X growth? Thanks.

Speaker Change: But I do think it will make that whole process more streamlined and again make it easier to go and add.

Speaker Change: Digital audiences test different message types and to see ROI again on a more molecular level, which we think overtimes.

Speaker Change: Our ability to continue to gain share because the more we can treat this like performance marketing, where I'm seeing my my ROI each week, the more that they will come to spend with us.

Speaker Change: Got it thank you.

Jeffrey Tangney: Thanks, Jeff. Yeah, this is Jeff.

Jeffrey Tangney: Yeah, we have rolled out the portal to most of our top clients. But to be clear, there are some top clients who won't use the portal. We expect there to be 10 to 20% who will continue to prefer to have meetings or give us a call to work with us directly.

Jeffrey Tangney: But then, on our end, we'll be using the portal again to make our internal processes, I think, more efficient. It hasn't had an impact on that, you know, 21% growth in the top 20 clients in terms of pricing. So to be clear, we haven't really been pricing the programs that are already live and in market with our top 20 clients using this portal yet. Those are programs that were sold probably several quarters ago.

Speaker Change: And we'll go to our next question from Michael Cherny Leerink partners.

Jeffrey Tangney: But I do think it'll make that whole process more streamlined and again make it easier to go and add additional audiences, test different message types, and to see your ROI again on a more molecular level, which we think, over time, enhances our ability to continue to gain share. Because the more we can treat this like performance marketing, where I'm seeing my ROI each day, the more that they'll come to spend with us.

Michael Cherny: Afternoon, Thanks for taking the question.

Michael Cherny: I just have one quick one I think.

Speaker Change: Just trying to understand I know.

Michael Cherny: No.

Operator: Got it. Thank you. And we'll go to our next question from Michael Cherny, Lee Rink Partners.

Speaker Change: And especially you have talked about how youre seeing different buying pattern seeing customers buy differently. If I look at your guidance for <unk> versus the <unk> outperformance. It does seem like it's a little bit less of a seasonal step up.

Operator: Afternoon. Thank you for taking the question. I just have one quick one, I think.

Speaker Change: The first what you'd normally expect can you maybe just dive a little bit into the formulation of the <unk> guidance was there anything that you would consider quasi pull forward in <unk> or is this just.

Speaker Change: Better understanding and a different pattern for how you expect to see the engagement.

Michael Cherny: You've talked about in the past.

Speaker Change: Yes, thanks for the question Mike.

Anna Bryson: Just trying to understand, Anna, especially you've talked about how you're seeing different buying patterns, seeing customers buy differently. If I look at your guidance for 2Q versus the 1QF performance, it does seem like it's a little bit less of a seasonal step up than you normally expect. Can you maybe just dive a little bit into the formulation of the 2Q guidance? Was there anything that you'd consider quasi-pull forward in 1Q, or is this just a better understanding and a different pattern for how you expect to see the engagement that you've talked about in the past?

Speaker Change: I mentioned earlier when when Scott asked the way our customers purchased a launched their program has and likely will continue to evolve. So we do see some variations in the shape of the year as far as what we're seeing between Q1 Q2, we definitely had a lot of larger programs starting in the spring and we also saw more upsells. This Q1.

Anna Bryson: Yeah, thanks for the question, Mike. Yeah, as I mentioned earlier when Scott asked, the way our customers purchase and launch their programs has, and likely will continue to evolve. So we do see some variations in the shape of the year. As far as what we're seeing between Q1 and Q2, we definitely had a lot of larger programs starting in the spring. And we also saw more upsells in this Q1 than we did last year.

Anna Bryson: So that contributed to that really strong 17% year-over-year revenue growth. I'll say that while the quarter-over-quarter step-up between Q1 and Q2 isn't quite as high as last year, one of the things I would want to point to is that the growth rate for Q2 was acceleration over last year. So last year's Q2, we only saw about 11% growth. And right now, we're guiding to 12% growth, which we think is, once again, just an indication of the momentum in our business right now.

Speaker Change: Didn't last year, so that contributed to that really strong 17% year over year revenue growth I will say that while the quarter over quarter step up between Q1, and Q2 isn't quite as high as last year. One of the things I would want to point to is that the growth rate for Q2 is acceleration over last year. So last year Q2, we only saw that 11%.

Speaker Change: Growth and right now, we're guiding to 12% growth.

Speaker Change: We think once again, it's an indication of the momentum in our business right now.

Speaker Change: That's helpful. Thanks, and nice job.

Operator: That's helpful. Thanks. Craig Hettenbach from Morgan Stanley has the next question. Yes, thank you. Just circling back to the comments on the macro, when looking at guidance is nearly.

Speaker Change: Craig <unk> from Morgan Stanley has the next question.

Operator: Craig Hettenbach from Morgan Stanley has the next question. Thank you.

Craig: Yes. Thank you just circling back to the comments on the macro when looking at guidance is nearly 15% year over year growth expected in the first half of the year implied guide is 5% in the second half. So can you just talk about how much you think that reflects conservatism in the approach or anything else you're hearing from customers who are year over.

Craig Hettenbach: Year dynamic thing comps to consider first half the second half.

Speaker Change: Yeah. Thanks for the question Craig and <unk>.

Anna Bryson: Yeah, thanks for the question, Craig. And I'll piggyback a little bit on the answer I was giving with Mike.

Speaker Change: Piggyback, a little bit on the answers, giving Mike.

Anna Bryson: You know, we definitely see some quarterly variations in our revenue. And so we really try to focus on our annual revenue growth, which we're guiding at nine percent. And as we've said before, we believe our pharma business will certainly grow faster than that. As we think about the rest of the year, we are absolutely excited by where we sit today and what we're seeing from an upsell perspective. But it is just too soon for us to kind of push that through the rest of the year as we do have continued macro uncertainty.

Speaker Change: We definitely see some quarterly variations in our revenue until we really try to focus on our annual revenue growth, which we're guiding to at 9% and as we've said before we believe our pharma business will certainly grow faster than that.

Anna Bryson: We think about the rest of the year, we are absolutely excited by where we sit today and what we're seeing from an upsell perspective, but it is just too soon for us to kind of push that through the rest of the year. As we do have continued macro uncertainty and then the other thing I would point to is as it pertains to our Q4 revenue growth.

Anna Bryson: And then the other thing I'll point out, as regards our Q4 revenue growth, we're certainly excited by the potential for another strong annual buying cycle. But it is too soon for us to know what the mix of new brands might look like or if new products continue to ramp the way they've been ramping. It is possible we could see higher growth there, and we definitely want to make sure that we're baking in plenty of time for those to launch.

Anna Bryson: We're certainly excited by the potential for another strong annual buying cycle, but it is too soon for us to know what the mix of new grants might look like.

Anna Bryson: New products continue to ramp the way they've been ramping it is possible, we could see higher growth there and we definitely want to make sure that we're making in plenty of time for those to watch.

Speaker Change: Got it thank you.

Speaker Change: And the next question comes from <unk> Securities.

Operator: And the next question comes from Jailendra Singh of Truth Security.

Operator: Security.

Operator: This is jenny on for Linda.

Operator: And this is Jenny Ahn for Jailendra. Just a question on the self-portal. Can you remind us whether the self-serve portal is a complimentary product or will you or your pharma companies be paying for this? And so on that, how are you thinking about the growth versus cost savings opportunities for Doximity?

Speaker Change: Just a question on yourself portal can you remind us whether the seltzer quarter wasn't a complementary product or what have you.

Operator: Pharma companies are paying for this and so on that how are you thinking about the growth versus cost savings opportunities for toxicity.

Operator: This is Jeff. Thanks, Kenny Yes. It is a complementary product certain features of it are only available to large clients. So yes.

Jeffrey Tangney: This is Jeff. Thanks, Jenny.

Speaker Change: There is.

Speaker Change: And incentives to be a larger client to get access to more of the insights and more of the the data, but it's not something that we're going to charge an explicit <unk>, we're not in a software licensing business model or mode.

Jeffrey Tangney: Yes, it is a complementary product, but certain features of it are only available to large clients. So, you know, there is an incentive to be a larger client to get access to more of the insights and more of the data. But it's not something that we are going to charge an explicit fee for. We're not in a software licensing business model or mode, so there are no incremental fees there. And it is more efficient for us, obviously, to have clients uploading their content and looking at their reports as opposed to having to write them an email with all that information.

Speaker Change: They are.

Jeffrey Tangney: No incremental fees, there and it is more efficient for us obviously to have clients uploading their content and looking at their reports as opposed to having to write them an email with all of that information.

Speaker Change: Got it.

Operator: Got it. And then just during your last annual buying season, you saw a higher mix of products and new brands that require more time to launch. So with an expected launch in Q1, how much of that contributed to a strong Q1 versus more upfront buying from pharma that, as you said, allocated less dollars to mid-year prices? And thanks for taking my question.

Speaker Change: And then just turning to our last season, you saw a higher mix of products and new brands that require more time to launch with an expected launch in Q1, how much of that contributed to our strong Q1 versus more upfront buying from problem with it as you said allocate less dollars to media purchases.

Operator: Thanks for taking my question.

Anna Bryson: Yeah, thanks for the question. That certainly was a part of the outperformance that we saw in Q1. These larger programs starting in spring definitely contributed to the strong growth that we were seeing there, but I would also note that it was our best upsell season so far in the last three years. So while I would say the larger contributor to the upside is the program starting in spring, these upsells were certainly ahead of our expectations, and we're really encouraged that we have seen that reaccelerating growth there so far.

Speaker Change: Yes. Thanks for the question that certainly was a part of the outperformance that we saw in Q1.

Anna Bryson: We get program starting in spring Im definitely contributed to the strong growth that we're seeing there, but I would also note that it was our best upsell season, so far over the last three years, so while I would say that the larger contributor to the upside as the program starting in spring and these upsells.

Anna Bryson: Certainly ahead of our expectations and we're really encouraged that we have seen that reaccelerate in growth there so far.

Speaker Change: Next up we'll take a question from Stan Bernstein Wells Fargo Securities.

Operator: Next up, we'll take a question from Stan Berenshteyn of Wells Fargo Securities.

Jeffrey Tangney: Regarding the portal, the portal is pushing campaign creation somewhat away from you and onto the client. I'm curious, who on the client side is using the portal? What kind of training is needed to use the portal? And will you need to build out a support group if the portal usage expands in order for you to ensure that client engagement with the portal remains active?

Stan Berenshteyn: Hi, Thanks for taking my questions.

Jeffrey Tangney: Regarding the portal. So the portal is pushing campaign creation somewhat away from you and onto the client I'm curious who on the client side is using the portal what kind of training is needed to use the portal and we'll need to build out a support group if the portal usage expands in order for you to ensure that our client engagement with the portal.

Speaker Change: Remains active.

Jeffrey Tangney: Stan, yeah, this is Jeff. I'll answer that. No, it's a very good question. The short answer is that today they're not doing content creation on the floor. We're still doing it, so it's still done in-house, but it's still more seamless for them to be able to log in at 10 p.m. at night and see, you know, their daily reports and how they're doing than having, again, to email us and have us email them back. It saves a lot of time.

Jeffrey Tangney: Yeah. This is Jeff I'll answer that.

Jeffrey Tangney: So very good.

Speaker Change: Good question.

Jeffrey Tangney: Short answer is that today, they are not doing content creation, a quarter will still doing it. So it's still done in house, but it's still more seamless for them to be able to log in at 10 P. M at night and see their daily reports on how theyre doing that having to again to E mail us and have us E mail them back.

Jeffrey Tangney: Saves a lot of time on an ongoing basis as we mentioned in the prepared remarks, we do see ourselves working with agencies here as well, which actually I think is a big part of the larger go to market motion so to be clear today.

Jeffrey Tangney: So on an ongoing basis, as we mentioned in the prepared remarks, we do see ourselves working with agencies here as well, which actually I think is a big part of the larger go-to-market movement. So to be clear, today, you know, we really don't work with agencies that much, and I think it's a real opportunity for us, I think, to work with them more. We're doing a little bit of a mini-roadshow with some agencies later this quarter and are excited that they've been excited to work with us more because they've seen these types of portals be great for their business as well.

Jeffrey Tangney: We really don't work with agencies that much and I think it's a real opportunity for us I think to work with them more so we're doing a little bit many roadshow with some agencies later this quarter and excited that they've been excited to work with us more because they've seen these types of portals be great for their business as well. So we're excited to align.

Jeffrey Tangney: So we're excited to align with agencies more and work with this. I think clients, at the end of the day, if you're on a big brand, if you're on a billion-dollar brand, you know, you're going to be looking at your return on investment, but you're probably not going to be, you know, in the day-to-day of changing the headlines and split tests. That'll be done at a lower level, either by your team or your agency. But again, that will require some training on our end, and I think it'll be really high-leverage work for us to open up our ecosystem a little bit and not do everything ourselves.

Jeffrey Tangney: With agencies more and work with this I think clients at the end of the day, if youre on a big brand if youre on a $1 billion brand you're going to be looking at your return on investment, but you're probably not going to be in.

Jeffrey Tangney: In the day to day of.

Jeffrey Tangney: Changing.

Jeffrey Tangney: The headlines and split tests that will be done at a lower level either by your team or your agency.

Jeffrey Tangney: But again that will require some training on our end and I think it'll be really high leverage work for us.

Jeffrey Tangney: Two.

Jeffrey Tangney: To open up our ecosystem, a little bit and not do everything ourselves.

Speaker Change: Thanks, and I have a quick follow up on medical recruitment in and can you just comment on the performance in the quarter from the segment.

Anna Bryson: Thanks. Maybe a quick follow-up on medical recruitment. Anna, can you just comment on the performance of the segment in the quarter?

Anna Bryson: Yes. Thanks for the question Stan we did see a strong quarter over quarter growth there in our carrier business. So that's the one part of our business that is broken out in our 10-Q as other revenue of one of the things we're focusing on there is leaning more into AI for recruiting and thats already kind of proven to be beneficial so I'd.

Anna Bryson: Yeah, thanks for the question, Stan. We did see strong quarter over quarter growth in our curative business. So that's the one part of our business that is broken out in our 10Q as other revenue. One of the things we've been focusing on there is leaning more into AI for recruiting, and that's already kind of proven to be beneficial. So I'd say we're excited about where that could go longer term. But you know, there are still macro considerations amongst our health system clients.

Anna Bryson: They were excited about where that could go longer term, but there is still the macro considerations amongst our health system clients there.

Speaker Change: I'm going to take the next question is from Jenny Shen <unk>.

Operator: And we'll take the next question from Jenny Shen, CEO of BTIG.

Danny: Hi, This is Danny on for Dave Larsen Congrats on the quarter I just wanted to ask more about pharma digital advertising budget, we've seen some reports.

Operator: Hi, this is Jenny. I'm on behalf of Dave Larsen.

Jeffrey Tangney: Congratulations on the quarter. I just wanted to ask more about pharma digital advertising budgets. We've seen some reports, and we've talked to some brand managers at some large pharma companies who say that they expect to cut digital ad spend by as much as 10 to 20% in the year. I'm wondering if you're seeing that at all in your conversations. It sounds like you're not. Some of the brand managers told us that they're actually looking to move some dollars away from digital ads over to traditional sales reps because they think they can get more value out of in-person face-to-face meetings. Are you seeing any of that trend and just any discussions with your pharma customers? Thanks.

Speaker Change: You've talked some brand managers at large pharma company, who said that they expect to cut.

Speaker Change: AD spend by as much as 10% to 20% in the year.

Jeffrey Tangney: Im wondering if youre seeing that at all in your conversations it sounds like you are not.

Jeffrey Tangney: Some of them brand managers told us that they are actually looking to move some dollars away from digital ads over attack traditional sales reps because they think they can get more value out of in person face to face meetings are you seeing any of that trend and just any discussions with your pharma customers.

Jeffrey Tangney: Hi, Jamie this is Jeff I'll take that.

Jeffrey Tangney: Hi Jenny. This is Jeff.

Jeff: Keep in mind, we target to work with about 877 different pharma brands in the U S Center millions of dollars in sales of our 440.

Jeffrey Tangney: I'll take that. So, keep in mind, we are targeting to work with about 877 different pharma brands in the U.S. that are millions of dollars in sales. There are 440 pharma brands that are over $100 million in U.S. sales. Those are what we call our mega-brand clients. And within those 440, there are some brands that are in the launch phase, some that are in a more mature phase, and some that are nearing the end of patent life.

Jeffrey Tangney: Pharma brands are over $100 million in U S. Sales. So those are what we call our mega brand clients and.

Jeffrey Tangney: Within those 440, there are some brands that are in the launch phase and some that are in a more mature phase and some that are nearing the end of patent life and so doing a channel check with any two of them or five of them are even 20 of them.

Jeffrey Tangney: And so, doing a channel check with any two of them or five of them or even 20 of them, there's a lot of selection bias, I think, in who you might hear from because some brands are nearing the end of life where they are, you know, moving more towards a less clinical argument and more of a personalized sale based on price and so on and so on. I would just say that, in general, across the entire industry, we see a continued shift to digital.

Jeffrey Tangney: There is a lot of selection bias I think and who you might hear from because some brands are nearing their end of life, where they are.

Jeffrey Tangney: Moving more towards a less clinical argument in more of a personalized sale based on price and so on and so on I would just say that in general across the entire industry. We see a continued shift to digital.

Jeffrey Tangney: Certainly not at the pace that it was during COVID, but it still is the most efficient, highest ROI, most effective way to market products. And the number of physicians that see reps has never been lower. So, the number of what they call no-see doctors continues to grow. But it did go through, I think, a bit of a blip in 2022 where, you know, some doctors started seeing reps live again after, you know, two years off during COVID or three years off.

Speaker Change: Certainly not at the pace that it was during COVID-19, but it still is the most efficient ISR away ROI, most effective way to me.

Jeffrey Tangney: Market products and the number of physicians that see reps.

Jeffrey Tangney: <unk> never been lower so the number of what they call no see doctors continues to grow and to go through I think a bit of a blip in 2022, where some doctors started seeing reps alive again after two years off during COVID-19 or three years off but again now thats turned back in I think doctors are protective of their time, they need to see more patients.

Jeffrey Tangney: But again, now that it's turned back, and I think doctors are protective of their time. They need to see more patients. They don't have time to see reps like they used to. So, the general thesis, the shift to digital, we think will continue. Again, if you talk to a handful of brand managers, you may hear a different story, but you have to keep in mind that these are all products at different stages in their life cycles. You know, five does not represent a good enough sample of 440 megabrands.

Jeffrey Tangney: They don't have time to see reps like they used to so the general thesis is shift to digital we think will continue again.

Jeffrey Tangney: If you talked to a handful of brand managers you may hear a different story, but you have to keep in mind that these are all products at different stages in their life cycles.

Jeffrey Tangney: Five does not represent.

Jeffrey Tangney: A good enough sample of 440 Mega brands.

Speaker Change: Got it thanks, and if I can ask a quick question about competition, just who else you're seeing in this space and those discussions with customers.

Jeffrey Tangney: Got it, thanks. And if I could ask a quick question about competition, just who else are you seeing in the space in those discussions with customers? I'm guessing that a lot of pharma companies use multiple platforms, so you can all coexist together. Any thoughts on competition?

Jeffrey Tangney: I'm guessing that a lot of pharma companies. These multiple platforms. So you can all coexisted together just any thoughts on competition.

Speaker Change: Yes, we are gaining share again against our competition, we don't talk about our competition specifically.

Jeffrey Tangney: Yeah, we're gaining share again against our competition. But we don't talk about our competition specifically. So I don't know, we're not going to comment on any particular names on this call. But, you know, suffice to say, we feel proud of our position. I don't think anyone else is going at double digit percentages in terms of daily active users or has the sort of footprint that we do. But again, we're not going to name specific competitors.

Jeffrey Tangney: So I don't know were not going to comment on any particular names here on this call but suffice.

Jeffrey Tangney: Suffice it to say, we feel proud of our position I don't think anyone else is growing at double digit percentages in terms of the daily active users or have some sort of footprint that we do.

Jeffrey Tangney: But again, we're not going to name specific competitors.

Jeff <unk>: And everyone at the firm that does conclude the question and answer session I would like to hand things back to Mr. Jeff <unk> CEO for any additional or closing remarks.

Jeffrey Tangney: And everyone, at this time, that does conclude the question and answer session. I would like to hand things back to Mr. Jeff Tangney, CEO, for any additional or closing remarks.

Jeff Tangney: I just want to thank everyone for joining our call. We appreciate the time and the questions and look forward to continuing to deliver for you all as shareholders over the coming years. Thank you.

Jeffrey Tangney: We just want to thank everyone for joining the call. We appreciate the time and the questions and look forward to continuing to deliver for you all as shareholders over the coming years.

Operator: And once again, everyone, that does conclude today's conference. Thank you for your participation. You may now disconnect.

Speaker Change: And once again, everyone that does conclude today's conference. Thank you for your participation you may now disconnect.

Operator: Okay.

Operator: Yeah.

Operator: Yeah.

Operator: Yeah.

Operator: [noise].

Jeffrey Tangney: And I'll tell you, I'm particularly excited this last quarter, our ability to start looking at ROI on a headline basis for our clients and these insights, we little things like one client learns that if you say, the drug is most powerful, that sounds great, but actually doesn't perform as well as saying it's the most efficacious, because when you say something's powerful, the doctors, they tend to think, if it is maybe as young, or second line therapy, after you tried the first line therapy, and the ability to see the difference in sales in ROI, and to see that seamlessly through our portal, what was the kind of thing that was really only available to, again, really top tier brands and farm accompanies previously, and now with our portal, I think will be available to a lot more. So on that point, we're pleased to also announce here that we are... Digging deeper on our prescription sales data, we're going to be making an investment this year going from having monthly data available for our clients to optimize to having weekly data, which we think will make it easier for clients to log in each week and look at how they're doing, again, the ROI of their programs and see this on a more ongoing basis.