Doximity, Inc.

Good day and thank you for standing by. Welcome to the Doximity 3rd Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. To ask a question during that session, you will need to press star 1 on your telephone keypad. And if you require any further assistance, please press star 0. I would now like to hand the conference over to your first speaker today, Mr. Perry Gold, Head of Investor Relations. Sir, please go ahead.

Thank you, Operator. Hello and welcome to Doximity's Fiscal 2022 Third Quarter Earnings Call. With me on the call today are Jeff Tange, 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 the 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 make 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, our last quarterly report on Form 10-Q, and our other reports and filings at the FCC that may be filed from time to time, including our upcoming filing of 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, February 8th, 2022. Of note, it is Doximity's policy to neither reiterate nor adjust the financial guidance provided on today's call unless it is also done through a public disclosure such as a press release or through the filing of a Form 8-K. Today, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A historical reconciliation to comparable GAAP metrics can be found in today's earnings release. Finally, during the call, we may offer incremental metrics to provide greater insights into the dynamics of our business. These details may be one time in nature, and we may or may not provide updates on those metrics in the future. Okay, I would now like to turn the call over to our CEO and co-founder, Jeff Tange.

Thanks, Barry, and thanks, everyone, for joining our third quarter fiscal 2022 earnings call. We have four main updates today, our financial results, an acquisition, a team transition, and our network growth. It's a lot to cover, so I'll jump right in. First, our financial results. We had 97.9 million in revenue for the third quarter of fiscal 2022, an increase of 67% over the same quarter last year and 13% above the midpoint of our guidance. As a result, we are raising our annual guidance by 4% to a midpoint of $339.4 million for our fiscal 2022 ending March 31st, which translates to 64% growth year on year. With a net revenue retention rate of 171%, Our growth was once again led by our existing clients, which include all of the top 20 hospitals and all of the top 20 pharmaceutical companies. Our interactive platform allows them to connect efficiently with the right physicians about new treatments, clinical trials, and patient referrals. We then measure our clients' ROI using third-party claims and prescription data, and that proof of value has allowed us to expand nicely as they begin their shift to digital. We also posted record profits this quarter, Our adjusted EBITDA margin was 48%, or $47 million, which was 45% above the midpoint of our guidance. Our vertical sales model continues to provide us with strong leverage, and the attractive ROI we deliver for our clients remains an incredibly powerful retention and upsell tool. All in all, we're pleased with our Q3 financial results. Okay, time now to turn to today's announcement that we're acquiring Amion.com, a leading physician on-call scheduling site for $53.5 million in cash, plus up to $29 million in earnouts and equity compensation over the next four years. We expect it to close April 1st. We're excited to partner with Stuart Caron, who founded Amion 24 years ago to help his physician wife, Jo, answer the frequent question, am I on? And run the ever-changing on-call schedules of her pediatrics program. Years before Salesforce.com or others, Stewart pioneered an enterprise cloud model with a single web deployment and affordable subscription pricing. It was a hit. And with a steady stream of new features like the ACGME regulated work hour reports or easy shift swaps, Amion grew to manage schedules for nearly 200,000 U.S. physicians at thousands of hospitals, including 18 of the top 20. While primarily a product acquisition for us, Amion is also a high-margin subscription business. In the calendar year 2021, we estimate Amion did roughly $5 million in revenue and over $3.5 million in adjusted EBITDA. We've worked closely with Stuart and Amion for over a decade now as an API and development partner. Among the 50 plus partner companies who actively use our login with Doximity APIs, Amion is among the most popular. Many day-to-day physician workflows center around who's on call. Strategically, Amion adds a key piece to our physician cloud by integrating scheduling alongside our secure messaging, CVs, referrals, and telehealth tools. Doximity's mission is to build software to make physicians more productive so that they can provide the best care for their patients. We're thrilled to add another critical day-to-day physician workflow tool, and we're excited to explore the optionality it will unlock across all of our major businesses. Okay, next up, a team transition. After a distinguished 33-year career, our chief commercial officer, Joe Klein, is retiring. I'm eternally grateful for Joe's friendship and leadership as our CCO here the last four years. Starting tomorrow, Joe will move into a full-time advisor role until his retirement this fall. Joe has built a deep bench and is going out strong. That is, leaving us after delivering a record-breaking quarter and year. To back up that last point, we're providing early revenue guidance for our fiscal year 2023, which starts in April. In short, we expect our fiscal 2023 revenue to grow 33% year on year to approximately $450 million. That is 6% above the current fact set consensus of $425 million. Our guidance does not yet include Am I On? And we'll provide more detailed guidance on our next quarterly call. With Joe's retirement, Paul Jorgensen has been appointed our Chief Revenue Officer. Formerly a senior vice president, Paul has led our fastest growing businesses the past five years, including the recent launch of our telehealth business. Paul is an industry veteran whose career includes four years running enterprise sales at One Medical and nine years growing our largest pharmaceutical clients at my previous company, Hippocrates. The team and I look forward to working with Paul in his new role and wish Joe the very best in his retirement. Okay. To close, here's an update on our network growth. Q3 was a record quarter for our network across a number of dimensions. Here are a few. First, our e-signature and fax products saw record usage in Q3 as more doctors brought their at-home digital workflows back to the office by preferring to sign paperwork on their phones. Second, Our continuing medical education, or CME credits, claimed also hit record highs, up 25% quarter-on-quarter to hundreds of thousands of credit hours, as in-person lectures increasingly get replaced by our anytime-anywhere newsfeed articles, which are algorithmically personalized to each doctor's clinical practice. Third, our job postings grew four times year on year as the great resignation hits medicine and as physicians weigh their post-pandemic job options. And last, we expanded our paid telehealth platform by an additional 23,000 physicians last quarter. Continued growth of our active telehealth user footprint brings us to a new all-time high with over 350,000 unique providers completing telehealth visits with us in the last quarter. Of note, nearly all 99% of our hospital clients renewed their telehealth agreements with us this year. So we're pleased that hundreds of hospitals are making us part of their long term telehealth plans. We're also proud to be named the best in class by the much watched class healthcare IT rankings, which are based on classes, phone interviews with thousands of hospital clients. In the telehealth video conferencing category for 2022, we earned the best-in-class top overall score of 92 out of 100, beating out Microsoft Teams, Zoom, and a bunch of others for our ease of use, account teams, and EHR integrations. In sum, our network flywheel grew last quarter as our physician cloud features like e-signatures, CME, and telehealth became the preferred go-forward tool set for more physicians. Alongside our EHR partners, we're excited to streamline and digitize the many paper-based workflows that physicians face today. Okay, I'd like to end by thanking the entire Doximity team who worked incredibly hard to deliver a spectacular quarter. And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and revised guidance. Anna?