Doximity, Inc.

Thank you for standing by. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to Doximity's fiscal 2024 fourth quarter 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'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. Once again, star one. And if you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Perry Gold, Vice President, Investor Relations. Perry, please go ahead.

Thank you, Operator. Hello and welcome to Doximity's Fiscal 2024 Fourth 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, CFO. A complete disclosure of our results can be found in our press release issued earlier today, as well as in our related Form 8-K. along with a copy of our prepared remarks, all 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 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-K. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, May 16, 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 of a Form 8K. Today, we will discuss certain non-GAT metrics that we believe aid in the understanding of our financial results. A historical reconciliation to comparable GAT 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 fourth quarter earnings call. We have three updates today, our financials, network growth, and client summits. First, our top line. We delivered $118 million in revenue for the fourth quarter of our fiscal 2024, beating the high end of our guidance range. For our full fiscal year, ended March 31st, we had $475 million in revenue and grew 13% year on year. Of note, our top 20 clients once again grew the fastest at 22% in fiscal 2024. These clients include most of the top 20 pharmaceutical companies who know and measure us best. Our bottom line was strong in Q4, with an adjusted EBITDA margin of 48% or $56 million, which was 10% above the high end of our guidance. Our free cash flow was a bit higher still at For the full fiscal year, our adjusted EBITDA grew 25% from $184 million to $230 million year on year. Our adjusted EBITDA margin was 48% for the year, up from 44% the prior year. To reinvest this growing cash flow, our board has authorized a new $500 million share buyback program. At the same time, we'll continue to grow our internal R&D investments in AI and commercialization. Okay, turning now to our network growth and engagement. In fiscal 2024, we added over 400,000 registered healthcare professionals to our platform. That's our second biggest growth year ever, rivaled only by our COVID surge in 2021. This recent growth shows how at more and more hospitals nationwide, we're becoming the standard tool for calling patients, checking calendars, and looking up colleagues. We've also extended our reach among nurse practitioners, NPs, and physician assistants, PAs. We're proud that now over 60% of the roughly 550,000 NPs and PAs in the U.S. have joined our network. This is in addition to the 80 plus percent of U.S. physicians on our platform. Our engagement also hit a new high watermark in Q4. Our unique active users on a quarterly, monthly, weekly, and daily basis were all up double digit percentages year over year. Notably, our daily users grew the most, underscoring how much our personalized newsfeed and EHR integrated workflow tools continue to gain share and daily use among healthcare providers. Our newsfeed continues to be our most used feature. Last quarter, over 900,000 unique prescribers scrolled our feed to keep up on the latest developments in their fields. Our workflow tools also saw record engagement in Q4 with over 580,000 unique active prescribers. But don't take our word for it. Just take a look at our reviews. Our app has over 165,000 reviews on the Apple App Store and is one of the highest rated medical apps at 4.8 stars. Okay, turning now to our recent physician and pharma client summits. In March, we hosted our 12th annual Physician Tech Summit in San Francisco. It was great to roll up our sleeves for two days and test new software alongside 150 of our nation's top digital doctors. AI took center stage as Doximity GPT, our popular HIPAA-compliant medical writing assistant, won the top marks of the weekend. We are all in on AI applications for doctors, and we'll continue to lean into our R&D investment here. To that end, today we're delighted to announce a new integration with Perplexity, the AI answer engine that can respond to questions with the latest publicly available sources and citations. With this integration, physicians on Doximity can ask about a recent guideline change and see the latest answer along with a quick link to the Medical Society website where the full guideline is posted. Unlike other popular AI models, this gives doctors the latest up-to-the-minute information and its sources. Our physicians tell us that this ability to easily double-check their sources is a key requirement and making clinical decisions. Last week, we hosted our annual Pharma Client Summit in New York. Over 30 marketing leaders from the largest pharmaceutical companies in the world joined us to discuss the latest trends in digital marketing and to take a closer look at our new client portal. Our clients have always appreciated our white glove service and industry-leading ROI. Now they're also excited about the AI optimizations and time savings our tech can bring them. As one of our clients put it, They want Doximity's data and AI to tell them how to run their programs, not the other way around. Last quarter, we completed a whopping 124 ROI studies in our client portal, leveraging our seamless IQVIA sales data integration. That's roughly three times as many as we did all last year. Our median ROI continues to be greater than 11 to 1, but the months of back and forth data gathering now takes just a few clicks. A portal is now available to about 20% of our pharma brand clients, up from 10% last quarter. We continue to make steady progress in this multi-quarter evolution, following the well-tested ad platform design and playbook of other tech companies.