Doximity, Inc.

Good day and thank you for standing by. Welcome to the Doximity Fiscal First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After this week's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your first speaker today, Doximity Head of Investor Relations, Mr. Perry Gold.

Please go ahead. Thank you, operator. Hello and welcome to Doximity's Fiscal 2022 First Quarter Earnings Call. With me on the call today are Jeff Tanguy, co-founder and CEO of Doximity, Dr. Nate Gross, co-founder and CSO, and Anna Bryson, our 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, all of which are available on our website at investors.doximity.com. As a reminder, today's call is being recorded, and a replay will be available on our website. As part of our comments today, we will be making forward-looking statements. These statements are based on management's current views, expectations, and assumptions, and are subject to various risks and uncertainties. Actual results may differ materially, and we disclaim any obligation to update any forward-looking statements or outlook. Please refer to the risk factors in our S-1, which will be updated from time to time by our other reports and filings of the SEC, including our upcoming filing on Form 10-Q. We would like to specifically caution investors that our future performance will be harder to predict in the foreseeable future given the COVID-19 pandemic. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, August 10th, 2021. Of note, it is Doximity's policy to neither reiterate nor adjust the financial guidance provided in today's call unless it is also done through a public disclosure, such as a press release or through the filing of a Form 8-K. Today, we will discuss certain non-GET metrics that we believe believe in the understanding of our financial results. Historical reconciliation to comparable GET metrics will be found in today's earnings release. Finally, during the call, we may offer incremental metrics to provide greater insight into the dynamics of our business. 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.

Thanks, Perry, and thank you, everyone, for joining our first earnings call as a public company. We'll begin with a few highlights. First, our top lines. I'm pleased to report that we delivered $72.7 million in revenue for the first quarter of our fiscal 2022, an increase of 100% over the same quarter last year. This growth was fueled by our existing clients as our net revenue retention rate grew to 167% over the trailing 12 months. Medical marketing requires highly specialized information flows, and our clients are learning that our network is well built for that purpose. Okay, second, our bottom line was equally strong this quarter, with an adjusted EBITDA margin of 43%. Our reference selling model and third-party ROI studies continue to allow us to both scale and price efficiently. Third, our network continues to grow. As frontline physicians grapple with high caseloads and outbreaks, we're proud that our productivity tools have been able to help. Our e-signature and fax products saw record usage this quarter, and we expanded our enterprise telehealth platform to an additional 24,000 U.S. physicians. We now serve over 30% of all U.S. physicians with our paid telehealth offering. Okay, those are the highlights, but since this is our first earnings call, I do want to take a minute, step back, and provide some broader context on our business and market opportunity, and then I'll end with a couple product spotlights from the quarter. For the past decade, it's been our mission at Doximity to help physicians be more productive, to provide the best care for their patients. Today, over 80% of all U.S. physicians use our platform. Our investor relations site has a short five-minute video demo from my co-founder here, Dr. Nate Gross. If you'd like to see firsthand how we help doctors video call their patients, cite in paperwork remotely, and keep up with medical news. Our interactive platform allows Topps hospitals and pharmaceutical companies, the best brands in medicine, to connect efficiently with the right physicians about new treatments, clinical trials, and patient referrals. We then measure our clients' return on investment, or ROI, using third-party claims and prescription data. In 2020, U.S. healthcare spent just 28% of its advertising dollars on digital channels per IDC. That's less than half of the 63% share other U.S. industries spent on digital over the same period per remarketer. So we believe healthcare is still under-indexed on digital and in the early innings of a much-needed, decade-long technological shift. Hospital and pharmaceutical marketers are our largest clients, comprising over 80% of our revenue. They generally organize their marketing teams by brand or service line, each with its own budget and decision maker. Landing the first brand at a blue-chip client is usually the hardest for us, but then our land-and-expand sales motion takes hold in two ways. First, we use our ROI results to cross-sell the other dozen or so brands within the same client, for example, from vascular surgery to neurosurgery or from drug A to drug B. With a median ROI of 10 to 1 for pharmaceutical clients and 13 to 1 for hospitals, as noted in our S1, we've had good success signing additional brands. In Q1, we grew our number of brands per existing client by 21% over the prior year. Second, we upsell existing client brands and service lines by expanding their audiences and interactive modules. For example, we can add an appointment booking module for hospital referrals or the ability to request samples from a local pharmaceutical rep. In Q1, we grew our modules per existing client by 20% over the prior year. So our cross-sell versus up-sell growth was roughly equal. We're a founder-led, mission-driven team, and this isn't our first rodeo. Sherry, my co-founder, Joe, our commercial head, and I all took our last medical lap from my dorm room to IPO in 2011. The average tenure of my direct reports is seven years at the company. We believe experience matters in the complex world of health tech, and we've each done our 10,000 hours in it many times over. So it's our life's work to build better technology for medicine, to care for those who care for us. Okay, that's our overview. I'd like to turn now to our product spotlight. Last quarter, we deployed over 5,000 new features and fixes to our site. As a product-led company, I'd like to spotlight a couple for you now, Doximity Dialer and Residency Navigator. Doximity Dialer is our cloud-based telehealth platform. We launched the product in response to the pandemic and have been selling it since last summer. As highlighted at the top of the call, We expanded our paid telehealth platform by 24,000 physician licenses last quarter and now serve over 30% of all U.S. physicians with it. In terms of active users, we're proud we grew year on year to over 300,000 unique physicians, nurse practitioners, and physician assistants who completed virtual visits with us in the quarter. We're a favorite among physicians for our ease of use and a leader in the influential class IT ratings for our ability to integrate easily and reduce patient no-shows. While our footprint of unique telehealth providers grew, our number of virtual visits per provider declined year on year due to the sharp spike in free usage we saw last year at the start of the pandemic before we added paywalls to our app. Interestingly, we have seen an uptick in daily visits per provider since July 4th, likely due to the Delta variant. But as a reminder, we charge for telehealth on a per-user basis, like Zoom, not on a per-visit basis. We also shipped dozens of telehealth features this quarter. Here's a sampling. First, we partnered with UpToDate, the leader in evidence-based clinical decision support, to make it easy for providers to send their patient educational materials and seamlessly look up clinical questions during a virtual visit. Second, we added one-tap interpreter access to make it easy for physicians to add an interpreter or a family member if needed. Third, we added wall charts that doctors can show and annotate as they do in an in-person visit. We've licensed a library of anatomical images, but many doctors are adding and sharing their own images, too. And last, we created a physician name card or badge that appears at the bottom of a patient's screen, which includes the doctor's institutional logo, title, and credentials. It looks a bit like what a television news anchor might have. And a survey of 1,000 patients found it improved physician quality ratings and helped patients remember the physician's name, their follow-ups when needed. As these new features demonstrate, we believe telehealth will develop its own set of unique clinical and privacy features. We'll continue to lean into R&D in this area as we build what we hope will be an industry-leading solution. Okay, now let's shift the spotlight to our Residency Navigator product. In short, we help graduating medical school students decide which residency programs to apply to. It's a difficult choice as there are over 4,500 different residency programs in the U.S., each with its own unique strengths. It's a major life decision as well, as it's a three- to five-year commitment to working 80 hours per week. So building on the work we already do with U.S. News & World Report each year to rank our country's best hospitals, in 2014, we began gathering physician alumni reviews on residencies. Topics ranged from research mentors to case volumes to work-life balance. In sum, over 100,000 unique physicians have rated their residency on our site. In addition to alumni reviews, prospective applicants can filter programs by case volumes, step scores, or maps of alumni. Applicants can also peruse attending CVs to compare themselves for the interviews. After listening to the 40% of physicians who marry other healthcare professionals for the AMA, we added a couples match feature in Q1. It allows physician couples to each set their own specialty and clinical criteria and find paired residency matches within 10 to 50 miles of each other. It's seen a lot of use. We've also added the ability to filter by cost of living, school quality, and other family-friendly attributes as more graduates broaden their searches outside the major metros. We're proud to help over 90% of new doctors find their first job and to use our proprietary data sets and insights to help them begin their careers on Doximity. Okay, I'd like to end by thanking my 749 Doximity teammates who've worked so incredibly hard this past year. I believe there's no better work than building something meaningful with people you like. And with this team, I get to do that every day. So thank you. And with that, I'll hand the call over to Anna Bryson to discuss our financial performance and our guidance. Anna?