Summary
Doximity reported fiscal 2022 first quarter revenue of $72.7 million, up 100% year over year. Gross profit was $64.7 million, up 127% year over year. Operating income was $24.9 million, up year over year. Net income was $26.3 million, up year over year. Diluted EPS was $0.09, up year over year. Gross margin was 89.0%, and operating margin was 34.2%, both up year over year. On a non-GAAP basis, adjusted EBITDA was $31.2 million, up 696% year over year, with an adjusted EBITDA margin of 43% versus 11%. Non-GAAP net income was $30.6 million versus $2.5 million, representing a 42% margin. The company called it a strong first quarter as a public company, with triple digit revenue growth and record profit margins. Management said the shift to digital among clients continues and that the network is well-built for specialized information flows in medical marketing.
The quarter included strong cash generation. Operating cash flow was $33.2 million, up year over year. Capital expenditures were $0.04 million, up year over year. Free cash flow was $32.4 million. Deferred revenue, current portion, was $82.6 million. The company completed its IPO in June 2021 and raised $548.5 million in net proceeds. The IPO included 22,505,750 shares of Class A common stock at $26.00 per share, including 3,495,000 shares issued upon the exercise of the underwriters' option. Doximity ended the quarter with 224 customers that generated at least $100,000 in trailing 12-month subscription revenue. Net revenue retention was 167% for the trailing 12 months, compared with 133% a year earlier. The revenue increase came from adding new subscription customers and expanding existing customers by adding new brands, growing existing brands, and upselling additional modules. The average number of modules per Marketing Solutions customer rose 20%, and the average number of brands per customer rose 21%. The company believes existing cash and cash equivalents and marketable securities will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months.
Operational highlights show broad physician reach. Doximity's network includes more than 80% of U.S. physicians across all specialties and practice areas. Its members include more than 80% of physicians across all 50 states and every medical specialty. The paid telehealth offering now serves over 30% of all U.S. physicians. The company expanded its enterprise telehealth platform to 24,000 more physicians during the quarter. E-signature and fax products saw record usage. The company also entered an 8-year lease for office space in Irving, Texas, with total undiscounted lease payments of $17.9 million, commencing on or around June 1, 2022. The company's mission is to help every physician be more productive and provide better care for their patients.
Guidance points to continued growth. For the fiscal second quarter ending September 30, 2021, revenue is expected between $73.0 million and $74.0 million, and adjusted EBITDA is expected between $26.4 million and $27.4 million. For the full fiscal year ending March 31, 2022, revenue is expected between $296.5 million and $299.5 million, and adjusted EBITDA is expected between $106.0 million and $109.0 million. The second quarter guidance is for the next quarter, and the fiscal year guidance is for the full fiscal year. The company noted that up to 3.9 million shares could be sold on August 13 to 17, 2021 by eligible employees pursuant to lockup agreements signed in connection with the IPO.
Risks remain. The COVID-19 pandemic could still affect the business, the industry, customers' industries, general economic conditions, and government responses, restrictions, and actions related to the pandemic. Other risks include the ability to retain existing members or add new members, maintain or grow member engagement, attract new customers or retain existing customers, the prioritization of members' interests, security breaches or unauthorized access to member data, and the ability to maintain or manage growth. The company operates in a competitive and rapidly changing environment. Operating expenses grew across research and development, sales and marketing, and general and administrative, but the company still delivered strong margins.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2022 | Q4 FY2021 | QoQ | Q1 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $72.7M | — | — | — | — |
| Gross profit | $64.7M | — | — | — | — |
| Gross margin | 89.0% | — | — | — | — |
| Research & development | $13.2M | — | — | — | — |
| Sales & marketing | $19.4M | — | — | — | — |
| General & administrative | $7.2M | — | — | — | — |
| Total operating expenses | $39.8M | — | — | — | — |
| Operating income (loss) | $24.9M | — | — | — | — |
| Operating margin | 34.2% | — | — | — | — |
| Net income (loss) | $26.3M | — | — | — | — |
| Net margin | 36.2% | — | — | — | — |
| Diluted EPS | $0.09 | — | — | — | — |
Risks
One customer accounted for 11% of total revenue in the three months ended June 30, 2021, compared with 10% in the three months ended June 30, 2020. The sudden loss or renegotiation of a largest customer could slow revenue growth or cause revenue to decline.
Doximity does not typically enter into long-term contracts with pharmaceutical manufacturer customers, who represent a significant portion of revenue, and customers can generally terminate their relationships. Renewal renegotiations could reduce fees or scope and negatively impact revenue and growth.
The company expects increasing competition across Marketing, Hiring, and Telehealth Solutions. Competitors include large technology companies such as LinkedIn, Facebook, Google, and Twitter for members, WebMD Medscape for marketing budgets, and Teladoc Health, American Well, and Zoom Video Communications for telehealth.
As a HIPAA Business Associate that handles sensitive health information, Doximity may face civil and criminal penalties for noncompliance. Evolving laws such as CCPA, CPRA, and GDPR, plus state fee-splitting and healthcare regulations, could increase compliance costs or restrict customer arrangements.
The platform stores and transmits sensitive health and personal information, and remote work arrangements may increase security breach risk. A Security Breach could result in regulatory investigations, litigation, indemnity obligations, negative publicity, and financial loss.
COVID-19 shifted many Marketing Solutions customer budgets toward online channels such as Doximity. If customers reallocate significant budgets back to in-person marketing, growth could decline, and Hiring Solutions were negatively impacted as doctors changed jobs and traveled less for temporary positions.
Financial performance depends on adding, retaining, and engaging medical professionals. If members do not perceive the platform as useful, reliable, and trustworthy, the company may be less attractive to pharmaceutical and health system customers, harming revenue.
The telehealth market is relatively new, unproven, and volatile. Increased COVID-19 demand may decline, and if states do not maintain reimbursement parity after the pandemic, usage of the network could be lowered.
Full-time equivalent headcount grew from 713 employees as of March 31, 2021 to 749 as of June 30, 2021, including Curative Talent employees, increasing strain on management, systems, and internal controls. Management also expects revenue growth rate to decline.
Competition for qualified employees is intense, especially in the San Francisco Bay Area. The loss of senior management, including the Chief Executive Officer or Chief Commercial Officer, or the inability to hire and retain mid-level managers, could impair execution of the business plan.
The Curative Talent acquisition and any future acquisitions may divert management attention, increase legal and accounting compliance costs, adversely impact margins, or result in impairment charges to goodwill and intangible assets if expected returns are not realized.
Revenue and net income have experienced seasonality based on the timing of marketing campaign subscription launches and budgetary timing of additional module purchases. This may cause fluctuations in operating results and make forecasting more difficult.
SaaS KPIs
All quarters →Adjusted EBITDA Margin
Free Cash Flow
Adjusted EBITDA
Non-GAAP Net Income Margin
Summary, forecast, risks and KPIs are extracted from Doximity, Inc.'s SEC filings for Q1 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.