Summary
Doximity closed fiscal 2022 with fourth-quarter revenue up 40% to $93.7 million. Full fiscal year revenue rose 66% to $343.5 million. The top line growth came with GAAP profitability. Net income rose 71% to $36.7 million in the quarter and rose 208.3% to $154.8 million for the fiscal year. Diluted EPS for the fiscal year was $0.70, up 204.3%. Gross profit rose 39.5% to $81.9 million in the quarter and rose 72.9% to $303.8 million for the fiscal year. Operating income rose 22.2% to $27.9 million in the quarter and rose 113.0% to $113.5 million for the fiscal year. The quarter's gross margin was 87.4%, down 0.6 percentage points, and operating margin was 29.8%, down 4.4 percentage points. For the full fiscal year, gross margin was 88.4%, up 3.5 percentage points, and operating margin was 33.0%, up 7.3 percentage points.
Operating highlights point to a platform still adding scale. Doximity says it serves over 2 million U.S. healthcare professionals, including over 80% of U.S. physicians and over 50% of physician assistants and nurse practitioners. The quarter included the acquisition of Amion, which added scheduling to the product suite, along with record use of fax, e-signature, and telehealth tools. Customer metrics show a concentrated but expanding base. The number of customers with at least $100,000 of trailing 12-month subscription revenue was 265, and that cohort accounted for approximately 88% of fiscal 2022 revenue. Net revenue retention rate was 157%. The company also reported adjusted EBITDA of $39.4 million in the quarter, up 47%, with a 42% margin. Full-year adjusted EBITDA was $150.3 million, up 132%, with a 44% margin. Non-GAAP net income was $44.9 million in the quarter, a 48% margin, and $180.6 million for the fiscal year, a 53% margin. Those are non-GAAP measures, so they sit alongside the GAAP results rather than replacing them.
Cash generation remained a bright spot. Operating cash flow rose 25.1% to $47.0 million in the quarter and rose 52.5% to $126.6 million for the fiscal year. Free cash flow, a non-GAAP measure, was $44.9 million in the quarter and $120.9 million for the fiscal year. Capital expenditures rose 621.1% to $1.1 million in the quarter. Deferred revenue rose 1.8% to $85.0 million, a slower pace than the top line growth. The 10-K states that existing cash and cash equivalents and marketable securities should support working capital and capital expenditure requirements for at least the next 12 months. The gap between billings-linked deferred revenue and reported growth is worth monitoring.
Management set guidance for the fiscal first quarter ending June 30, 2022: a top line of $88.6 million to $89.6 million, and adjusted EBITDA of $28.6 million to $29.6 million. For the full fiscal year ending March 31, 2023, management guided to a top line of $454.0 million to $458.0 million, and adjusted EBITDA of $192.0 million to $196.0 million. The board authorized a new stock repurchase program of up to $70 million of Class A common stock, starting in the first quarter of fiscal 2023 and expected to run over the next 12 months. The repurchase timing and scope depend on business and market conditions and other investment opportunities. That capital return plan arrives while the company is profitable and cash generative.
Risks stay tied to the company's dependence on its member network and customer base. The 10-K and press release list risks including the COVID-19 pandemic, the ability to retain existing members or add new members to the platform, the ability to attract new customers or retain existing customers, breaches in security measures or unauthorized access to members data, and the ability to maintain or manage growth. Doximity also notes it operates in a very competitive and rapidly changing environment, and it prioritizes members' interests, which can affect customer relationships. Concentration is real: customers with at least $100,000 of trailing 12-month subscription revenue accounted for approximately 88% of fiscal 2022 revenue. Operating income grew 22.2% in the quarter, slower than the 40% revenue growth, and the quarter's operating margin fell 4.4 percentage points. The buyback adds execution risk tied to market conditions. These factors matter for a business whose story rests on sustaining high net revenue retention and adding large customers.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2022 | Q3 FY2022 | QoQ | Q4 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $93.7M | $97.9M | -4.3% | — | — |
| Gross profit | $81.9M | $86.8M | -5.6% | — | — |
| Gross margin | 87.4% | 88.7% | -1.2 pp | — | — |
| Research & development | $17.4M | $16.2M | +7.4% | — | — |
| Sales & marketing | $25.9M | $25.7M | +0.8% | — | — |
| General & administrative | $10.6M | $9.1M | +17.2% | — | — |
| Total operating expenses | $54.0M | $51.0M | +5.8% | — | — |
| Operating income (loss) | $27.9M | $35.8M | -22.0% | — | — |
| Operating margin | 29.8% | 36.6% | -6.8 pp | — | — |
| Net income (loss) | $36.7M | $55.6M | -34.0% | — | — |
| Net margin | 39.2% | 56.9% | -17.6 pp | — | — |
| Diluted EPS | $0.19 | $0.26 | -$0.07 | — | — |
Risks
Revenue is relatively concentrated within a small number of key customers and agencies; while no customer accounted for 10% or more of total revenue in fiscal 2022, one customer did in fiscal 2021, and the loss or renegotiation of a largest customer could slow revenue growth or cause revenue to decline.
Doximity does not typically enter long-term contracts with pharmaceutical manufacturer customers, who represent a significant portion of revenue, and customers can terminate or move marketing activity to a new agency; failure to attract new customers or renew on favorable terms could materially harm results.
Doximity expects increasing competition for members and marketing, hiring, and telehealth budgets from large technology companies such as LinkedIn, Facebook, Google, and Twitter, as well as WebMD Medscape, Teladoc Health, American Well, and Zoom Video Communications.
Doximity is a HIPAA Business Associate and faces evolving state privacy laws including the CCPA and CPRA, which becomes fully operative on January 1, 2023; actual or perceived noncompliance could lead to significant fines, liability, and reputational harm.
The filing states cyber-attack risk may be elevated due to increased attacks on U.S. businesses during the COVID-19 outbreak and the conflict in Ukraine, and remote work increases risk of security breaches and data loss.
Doximity's operations and customer relationships are subject to healthcare laws including fee-splitting, corporate practice of medicine, anti-kickback, and false claims rules; noncompliance could lead to civil or criminal penalties, cease and desist orders, or contract terminations.
Doximity grew revenue 66% for the fiscal year ended March 31, 2022 and headcount from 713 at March 31, 2021 to 887 at March 31, 2022, but management states it expects its revenue growth rate to decline and warns that rapid expansion strains management, systems, and internal controls.
The telehealth market is described as immature and volatile, and COVID-19-driven demand may decline; if states do not maintain reimbursement parity after the pandemic, usage of Doximity's network could be lowered.
The pandemic shifted Marketing Solutions budgets from in-person to online, and if customers reallocate budgets back to in-person marketing, growth could decline; Hiring Solutions have been negatively impacted as doctors change jobs and travel less for temporary positions.
Doximity depends on senior management and key personnel, faces intense competition for talent especially in the San Francisco Bay Area, and may need to offer highly competitive compensation packages; failure to hire, integrate, and retain employees could impair growth.
Doximity's apps are distributed through third-party platforms including the Apple App Store and Google Play, whose terms can change unilaterally; if access is limited or platforms alter algorithms or fees, the business could be harmed.
Doximity completed the AMiON acquisition on April 1, 2022 and acquired Curative Talent in fiscal 2021; integration challenges, unanticipated costs, diversion of management attention, and potential impairment of acquired goodwill could harm results.
MD&A reports net income margin of 45% and adjusted EBITDA margin of 44% for fiscal 2022, but risk factors state margins may decrease as Telehealth Solutions grow as a portion of the business and price competition and costs increase.
SaaS KPIs
All quarters →Adjusted EBITDA Margin
Free Cash Flow
Adjusted EBITDA
Net Revenue Retention
Non-GAAP Net Income Margin
Non-GAAP Net Income
Summary, forecast, risks and KPIs are extracted from Doximity, Inc.'s SEC filings for Q4 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 1, 2026.