Doximity, Inc.

Good afternoon, my name is Krista and I'll be your conference operator today. At this time, I would like to welcome everyone to the Doximity Fiscal Second Quarter 2024 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, again, press star one. Thank you. I would now like to turn the conference over to Perry Gold, Vice President of Investor Relations. Perry, you may begin your conference.

Thank you, Operator. Hello and welcome to Doximity's Fiscal 2024 Second 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, 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 annual report or 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. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, November 9th, 2023. 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. I would now like to turn the call over to our CEO and co-founder, Jeff Tangney. Jeff?

Thanks, Barry, and thank you, everyone, for joining our second quarter earnings call. We have three updates today, our financials, network highlights, and new products. First, our top line. I'm pleased to report that we delivered $114 million in revenue for the second quarter of our fiscal 2024, a 4% beat over the high end of our guidance, and 11% growth year on year. Our 20 largest clients, who know and measure us best, continue to be our fastest growing, with a net revenue retention rate of 119%. Our bottom line was also strong in Q2, with an adjusted EBITDA margin of 48%, or $54 million, which was 20% above the high end of our guidance. Looking ahead, we're raising our annual revenue guidance midpoint by $6 million, or 1%. to 11% growth year-on-year. We're also raising our EBITDA guidance midpoint by 6% to $213 million, or a 46% margin. We will remain fiscally prudent, and we are reiterating our long-term model guide of 45 plus percent EBITDA margins. However, given continued macro uncertainties, today we're withdrawing our five-year growth target. This said, we still fully expect to be a billion-dollar company, and 2028 will remain our internal stretch goal to get there. Our CFO Anna will provide more color on this in a minute. Okay, so that's our Q2 financial highlights. A 4% beat, a 1% raise, and 48% EBITDA margins. Okay, turning now to our physician network. In short, we've never been more used or more useful. Our unique active users on a quarterly, monthly, weekly, and daily basis all hit record highs last quarter, and all are up double-digit percentages year on year. Notably, it's our daily users that grew the most, underscoring the integral role we now play in day-to-day patient care. Our newsfeed did particularly well in Q2. It hit both record reach and usage. Our AI algorithms are playing an increasing role in our success as they read over a half a million articles each month to personalize news briefs for each doctor based on their subspecialties, procedures, and interests. We're also now using AI to rewrite medical journal headlines, making them more succinct and readable, leading to higher engagement. With each tap on our newsfeed, our algorithms learn and improve, and our decade-long data moat widens. We're proud to help doctors stay up to date on the research that matters most to them. Our workflow products, scheduling, AI writing tools, and telehealth also hit fresh highs in Q2. with over 550,000 unique active prescribers. And we continue to gain share here post-COVID, signing more top hospitals to our EHR integrated tools. We now count 16 of the top 22 U.S. hospitals as workflow clients, and over 44% of all U.S. physicians on our enterprise platform. Now for our product spotlights. We have two new products in Q2, DocDefender and our pharmaceutical client portal. DocDefender.com is our new free privacy service for doctors. Just as our popular DocDialer product protects doctors' cell phone numbers from off-hour callbacks, DocDefender protects their family's home address or phone numbers from being easily found online. Sadly, OSHA reports that half of US healthcare workers will experience violence in their careers. And a full 35% of physicians we surveyed had already had a patient find their home address or personal information online. DocDefender works by requesting takedowns or removals from the many people finder websites out there. Similar delete me services exist, but they're expensive. We believe doctors who increasingly serve on the front lines of society's toughest problems deserve this basic protection for free. Like many of our best products, the idea for DocDefender came out of our annual 200 Physicians Summit This year, the recent spike in physician shootings weighed heavily on the group, and so we brainstormed a technological way to help. DocDefender was the top vote getter of the weekend. Thousands of doctors have already beta tested DocDefender, and the reviews so far have been great. We're excited to roll it out to all of our physician members this quarter. Okay, now for an update on our new self-serve pharma client portal, where we made incredible progress this last quarter, and now have a strong phase one beta product out and ready for our clients. As we did with our hospital client portal, we began by rolling out to a dozen or so pharma test clients. So far, the feedback has been very positive. Clients like the ability to monitor their programs in real time, to see their IQVIA ROI reports integrated seamlessly, and leverage our AI brainstorm bot to write better headlines. Our plan is to open up this client portal to all of our pharma clients early next year. Then by next summer's upsell season, we'll layer in the ability to relaunch, add targets, and expand existing programs directly from the site. We expect this client portal will not replace, but instead strengthen our white glove service for our top clients. It'll allow our service teams to spend less time emailing about reports and more time on our newer point of care, peer-to-peer, and rep enablement products. It'll also make it easier for us to reach and serve the longer tail, smaller clients. By virtue of our unique reach and usage, we believe we're well-positioned to become Pharma's premier digital HCP partner. And we're proud to now offer client service that's both high-touch and high-tech. In closing, our Q2 saw record physician engagement, better-than-expected sales and profit, and continued innovation with a new privacy product and our client portal. We believe healthcare is still in the early innings of its shift to digital. And with the advent of generative AI, we think tech will transform healthcare more this decade than ever before. We're honored to continue to put physicians first and to be the leading digital platform for doctors. I've personally never been more bullish about our long-term opportunity. And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and guidance. Anna?