8-K
Doximity, Inc. (DOCS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________________________________________________________________________________
FORM 8-K
_________________________________________________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2022
_________________________________________________________________________________________________________________
Doximity, Inc.
(Exact Name of Registrant as Specified in Its Charter)
_________________________________________________________________________________________________________________
| Delaware | 001-40508 | 27-2485512 |
|---|---|---|
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| 500 3rd St.<br><br>Suite 510<br><br>San Francisco, CA 94107<br><br>(Address of principal executive offices, including zip code) | ||
| (650) 549-4330<br><br>(Registrant's telephone number, including area code) |
_______________________________________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Class A common stock, $0.001 par value per share | DOCS | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 – Results of Operations and Financial Condition
On August 4, 2022, Doximity, Inc. (“Doximity”) issued a press release announcing its financial results for its fiscal quarter ended June 30, 2022. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
The information provided in this Item 2.02 of this Current Report on Form 8-K, and the Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 5.02 – Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
(b) Director Resignation
On August 2, 2022, Gilbert Kliman, M.D. informed the board of directors (the "Board") of Doximity of his intention to step down from his role as a director on the Board, including his membership of the nominating and governance committee and the compensation committees of the Board, effective immediately. Dr. Kliman’s departure from the Board is not the result of any disagreement with the Doximity or the Board on any matters relating to Doximity’s operations, policies or practices.
(d) Director Appointment
On August 2, 2022, the Board appointed Phoebe L. Yang Watkin to serve as a Class III director of the Board, filling the vacancy created by the departure of Dr. Kliman from the Board, effective immediately, until the annual meeting of the Doximity’s stockholders to be held in calendar 2024 (the "2024 Annual Meeting"), or until her successor is duly elected and qualified. In addition, Ms. Yang will serve on the nominating and governance committee and the compensation committees of the Board. There is no arrangement or understanding between Ms. Yang and any other persons pursuant to which she was elected as a director. Further, Ms. Yang does not have any family relationships with any director or executive officer of Doximity. Furthermore, there are no related party transactions between Ms. Yang and Doximity that would be required to be reported under Item 404(a) of Regulation S-K. As a non-employee director, Ms. Yang will participate in Doximity’s standard director compensation arrangements pursuant to its non-employee director compensation policy. Under the terms of those compensation arrangements, Ms. Yang will receive, among other things, annual compensation of $30,000 for her services on the Board, an annual compensation of $6,000 for her services on the compensation committee, an annual compensation of $4,000 for her services on the nominating and governance committee and an initial grant of restricted stock units with a value of $350,000, based on the closing price of Doximity’s common stock over the trailing 30-day period ending on the day immediately prior to the effective date of the grants, that vest in equal annual installments over three years, subject to continuous service. The Company has also entered into its standard form of Indemnification Agreement with Ms. Yang in connection with her appointment to the Board.
Item 7.01 – Regulation FD Disclosure
A copy of a press release issued on August 4, 2022 announcing the appointment of Ms. Yang to the Board is furnished herewith as Exhibit 99.2 and is incorporated herein by reference. The information in this Item 7.01 of this Current Report on Form 8-K and the accompanying Exhibit 99.2 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing.
Item 9.01 – Financial Statements and Exhibits
(d) Exhibits
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release entitled “Doximity AnnouncesFiscal2023 First QuarterFinancial Results” datedAugustdoximity-2022630xex991.htm4, 2022 |
| 99.2 | Press Release entitled “Doximity Appoints Phoebe Yang to Its Board of Directors” dated August 4, 2022 |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 4, 2022
| DOXIMITY, INC. | |
|---|---|
| By: | /s/ Anna Bryson |
| Anna Bryson<br><br>Chief Financial Officer |
Document
Exhibit 99.1
Doximity Announces Fiscal 2023 First Quarter Financial Results
Q1 total revenues of $90.6 million, up 25% year-over-year
Q1 operating cash flow of $44.8 million, up 35% year-over-year
Q1 free cash flow of $42.6 million, up 32% year-over-year
SAN FRANCISCO, Calif., August 4, 2022 -- Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results for the fiscal 2023 first quarter ended June 30, 2022.
“We’re pleased that a record number of physicians, NPs, and PAs used our Doximity Dialer over 200,000 times per workday last quarter to reach and provide more convenient care for their patients,” said Jeff Tangney, co-founder and CEO at Doximity. “We believe this shows that the ‘new normal’ has set in with our users as they adopt a more mobile, hybrid schedule.”
Doximity Appoints Phoebe Yang to its Board of Directors and Launches ESG Site: More information can be found in our press releases at https://investors.doximity.com.
Fiscal 2023 First Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended June 30, 2021.
•Revenue: Revenue of $90.6 million, versus $72.7 million, an increase of 25% year-over-year.
•Net income and non-GAAP net income: Net income of $22.4 million, versus $26.3 million, representing a margin of 25%, versus 36%. Non-GAAP net income of $30.8 million, versus $30.6 million, representing a margin of 34%, versus 42%.
•Adjusted EBITDA: Adjusted EBITDA of $33.5 million, versus $31.2 million, an increase of 8% year-over-year, representing adjusted EBITDA margins of 37%, versus 43%.
•Net income per share and non-GAAP net income per share: Diluted net income per share was $0.10, versus $0.09, while non-GAAP diluted net income per share was $0.14, versus $0.11.
•Operating cash flow and free cash flow: Operating cash flow of $44.8 million, versus $33.2 million, and free cash flow of $42.6 million, versus $32.4 million.
Financial Outlook
Doximity is providing guidance for its fiscal second quarter ending September 30, 2022 as follows:
•Revenue between $99.5 million and $100.5 million.
•Adjusted EBITDA between $40.0 million and $41.0 million.
Doximity is revising its guidance for its fiscal year ending March 31, 2023 as follows:
•Revenue between $424.0 million and $432.0 million.
•Adjusted EBITDA between $178.0 million and $186.0 million.
Conference Call Information
Doximity will host a webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these financial results. To listen to a live audio webcast, please visit the Company’s Investor Relations page at https://investors.doximity.com. The archived webcast will be available on the Company’s Investor Relations page shortly after the call.
About Doximity
Founded in 2010, Doximity is the leading digital platform for U.S medical professionals. The company’s network members include over 80% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, and conduct virtual patient visits. Doximity’s mission is to help doctors be more productive so they can provide better care for their patients. For more information, please visit www.doximity.com.
Forward-Looking Statements
Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors including (i) the timing and scope of anticipated stock repurchases; (ii) the impact of the COVID-19 pandemic (including the impact to our industry or on our customers’ industries, impact on general economic conditions, and government responses, restrictions, and actions related to the pandemic); (iii) our ability to retain existing members or add new members to our platform and maintain or grow their engagement with our platform; (iv) our ability to attract new customers or retain existing customers; (v) the impact of our prioritization of our members’ interests; (vi) breaches in our security measures or unauthorized access to members’ data; (vii) our ability to maintain or manage our growth, and other risks and factors that are beyond our control including, without limitation, those set forth in the section entitled “Risk Factors” in the Annual Report on Form 10-K that was filed with the SEC on May 27, 2022. Additional information will be provided in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements. The forward-looking statements made in this press release relate only to management’s beliefs and assumptions as of this date. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact:
Perry Gold
ir@doximity.com
Media Contact:
Amanda Cox
pr@doximity.com
DOXIMITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| June 30, 2022 | March 31, 2022 | |||
|---|---|---|---|---|
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 110,092 | $ | 112,809 |
| Marketable securities | 666,162 | 685,304 | ||
| Accounts receivable, net | 76,021 | 81,073 | ||
| Prepaid expenses and other current assets | 18,258 | 19,439 | ||
| Deferred contract costs, current | 3,610 | 5,512 | ||
| Total current assets | 874,143 | 904,137 | ||
| Property and equipment, net | 11,381 | 8,488 | ||
| Deferred income tax assets | 49,348 | 48,558 | ||
| Operating lease right-of-use assets | 11,563 | 1,087 | ||
| Intangible assets, net | 35,430 | 7,909 | ||
| Goodwill | 67,940 | 18,915 | ||
| Other assets | 1,126 | 2,263 | ||
| Total assets | $ | 1,050,931 | $ | 991,357 |
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 916 | $ | 463 |
| Accrued expenses and other current liabilities | 25,253 | 25,270 | ||
| Deferred revenue, current | 93,907 | 84,907 | ||
| Operating lease liabilities, current | 677 | 642 | ||
| Total current liabilities | 120,753 | 111,282 | ||
| Deferred revenue, non-current | 203 | 78 | ||
| Operating lease liabilities, non-current | 11,092 | 447 | ||
| Contingent earn-out consideration liability, non-current | 15,668 | — | ||
| Other liabilities, non-current | 1,049 | 956 | ||
| Total liabilities | 148,765 | 112,763 | ||
| Stockholders' Equity | ||||
| Preferred stock | — | — | ||
| Common stock | 193 | 192 | ||
| Additional paid-in capital | 715,282 | 702,589 | ||
| Accumulated other comprehensive loss | (17,925) | (15,294) | ||
| Retained earnings | 204,616 | 191,107 | ||
| Total stockholders' equity | 902,166 | 878,594 | ||
| Total liabilities and stockholders’ equity | $ | 1,050,931 | $ | 991,357 |
DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Three Months Ended June 30, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Revenue | $ | 90,639 | $ | 72,669 |
| Cost of revenue(1) | 13,077 | 7,986 | ||
| Gross profit | 77,562 | 64,683 | ||
| Operating expenses(1): | ||||
| Research and development | 19,022 | 13,241 | ||
| Sales and marketing | 28,134 | 19,371 | ||
| General and administrative | 8,724 | 7,196 | ||
| Total operating expenses | 55,880 | 39,808 | ||
| Income from operations | 21,682 | 24,875 | ||
| Other income, net | 804 | 45 | ||
| Income before income taxes | 22,486 | 24,920 | ||
| Provision for (benefit from) income taxes | 103 | (1,402) | ||
| Net income | $ | 22,383 | $ | 26,322 |
| Undistributed earnings attributable to participating securities | — | (15,581) | ||
| Net income attributable to Class A and Class B common stockholders, basic and diluted | $ | 22,383 | $ | 10,741 |
| Net income per share attributable to Class A and Class B common stockholders: | ||||
| Basic | $ | 0.12 | $ | 0.12 |
| Diluted | $ | 0.10 | $ | 0.09 |
| Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | ||||
| Basic | 192,947 | 87,599 | ||
| Diluted | 214,954 | 114,920 |
(1) Costs and expenses include share-based compensation expenses as follows:
| Three Months Ended June 30, | |||||
|---|---|---|---|---|---|
| 2022 | 2021 | ||||
| Cost of revenue | $ | 2,122 | $ | 268 | |
| Research and development | 2,552 | 970 | |||
| Sales and marketing | 3,074 | 1,028 | |||
| General and administrative | 1,758 | 2,861 | |||
| Total stock-based compensation expense | $ | 9,506 | $ | 5,127 |
DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Three Months Ended June 30, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Cash flows from operating activities | ||||
| Net income | $ | 22,383 | $ | 26,322 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 2,370 | 1,153 | ||
| Deferred income taxes | 105 | — | ||
| Stock-based compensation, net of amounts capitalized | 9,506 | 5,127 | ||
| Non-cash lease expense | 401 | 283 | ||
| Amortization of premium on marketable securities, net | 1,455 | 297 | ||
| Loss on sale of marketable securities | 37 | — | ||
| Amortization of deferred contract costs | 2,767 | 3,204 | ||
| Other | (30) | (93) | ||
| Changes in operating assets and liabilities, net of effect of acquisition: | ||||
| Accounts receivable | 5,533 | 4,421 | ||
| Prepaid expenses and other assets | 1,246 | (2,858) | ||
| Deferred contract costs | (866) | (1,492) | ||
| Accounts payable, accrued expenses and other liabilities | (6,109) | (2,257) | ||
| Deferred revenue | 6,152 | (461) | ||
| Operating lease liabilities | (198) | (471) | ||
| Net cash provided by operating activities | 44,752 | 33,175 | ||
| Cash flows from investing activities | ||||
| Cash paid for acquisition | (53,500) | — | ||
| Purchases of property and equipment | (710) | (41) | ||
| Internal-use software development costs | (1,415) | (771) | ||
| Purchases of marketable securities | (8,870) | (67,375) | ||
| Maturities of marketable securities | 8,271 | 10,764 | ||
| Sales of marketable securities | 14,724 | — | ||
| Net cash used in investing activities | (41,500) | (57,423) | ||
| Cash flows from financing activities | ||||
| Proceeds from issuance of common stock upon initial public offering after deducting underwriting discounts and commissions | — | 553,905 | ||
| Proceeds from issuance of common stock upon exercise of stock options and common stock warrants | 3,014 | 2,737 | ||
| Taxes paid related to net share settlement of equity awards | (109) | — | ||
| Repurchase of common stock | (8,874) | (2,698) | ||
| Payments of deferred offering costs | — | (1,768) | ||
| Net cash provided by (used in) financing activities | (5,969) | 552,176 | ||
| Net increase (decrease) in cash and cash equivalents | (2,717) | 527,928 | ||
| Cash and cash equivalents, beginning of period | 112,809 | 66,393 | ||
| Cash and cash equivalents, end of period | $ | 110,092 | $ | 594,321 |
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses the following non-GAAP measures of financial performance:
•Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income margin, and non-GAAP basic and diluted net income per common share: We exclude the effect of stock-based compensation expense, amortization of acquired intangible assets, change in fair value of contingent earn-out consideration liability, and expenses associated with acquisitions from non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating income. Non-GAAP net income and non-GAAP net income margin are further adjusted for estimated income tax on such adjustments. We calculate income taxes on the adjustments by applying an estimated annual effective tax rate to the adjustments. Non-GAAP basic and diluted net income per common share is non-GAAP net income attributable to common stockholders divided by the weighted average number of shares. For both basic and diluted non-GAAP net income per share, the weighted average shares we use in computing non-GAAP net income per share is equal to our GAAP weighted average shares. Non-GAAP gross margin represents non-GAAP gross profit as a percentage of revenue and non-GAAP net income margin represents non-GAAP net income as a percentage of revenue.
•Adjusted EBITDA and adjusted EBITDA margin: We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, change in fair value of contingent earn-out consideration liability, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.
•Free cash flow: We calculate free cash flow as cash flow from operating activities less purchases of property and equipment and internal-use software development costs.
We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.
Key Business Metrics1
•Net revenue retention rate: We calculate net revenue retention rate by taking the trailing 12-month (“TTM”) subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period. Our net revenue retention rate compares our subscription revenue from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction, and churn.
•Customers with trailing 12-month subscription revenue greater than $100,000: We calculate the number of customers with TTM product revenue greater than $100,000 by counting the number of customers that contributed more than $100,000 in subscription revenue in the TTM period. The number of customers with TTM subscription-based revenue of at least $100,000 is a key indicator of the scale of our business. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.
1 The metrics exclude the impact of the AMiON acquisition, which closed on April 1, 2022, including customers of and subscription revenue generated from the AMiON on-call scheduling and messaging application and was immaterial to the periods presented.
Reconciliation of GAAP to Non-GAAP Financial Measures
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:
| Three Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| (unaudited) | ||||||
| (in thousands, except percentages) | ||||||
| Net income | $ | 22,383 | $ | 26,322 | ||
| Adjusted to exclude the following: | ||||||
| Acquisition and other related expenses | 30 | — | ||||
| Stock-based compensation | 9,506 | 5,127 | ||||
| Depreciation and amortization | 2,370 | 1,153 | ||||
| Provision for (benefit from) income taxes | 103 | (1,402) | ||||
| Change in fair value of contingent earn-out consideration liability | (54) | — | ||||
| Other income, net | (804) | (45) | ||||
| Adjusted EBITDA | $ | 33,534 | $ | 31,155 | ||
| Revenue | $ | 90,639 | $ | 72,669 | ||
| Net income margin | 25 | % | 36 | % | ||
| Adjusted EBITDA margin | 37 | % | 43 | % | ||
| Three Months Ended June 30, | ||||||
| --- | --- | --- | --- | --- | ||
| 2022 | 2021 | |||||
| (unaudited) | ||||||
| (in thousands) | ||||||
| Net cash provided by operating activities | $ | 44,752 | $ | 33,175 | ||
| Purchases of property and equipment | (710) | (41) | ||||
| Internal-use software development costs | (1,415) | (771) | ||||
| Free cash flow | $ | 42,627 | $ | 32,363 | ||
| Other cash flow components: | ||||||
| Net cash used in investing activities | $ | (41,500) | $ | (57,423) | ||
| Net cash provided by (used in) financing activities | $ | (5,969) | $ | 552,176 | ||
| Three Months Ended June 30, | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 2022 | 2021 | |||||
| (unaudited) | ||||||
| (in thousands, except percentages) | ||||||
| GAAP cost of revenue | $ | 13,077 | $ | 7,986 | ||
| Adjusted to exclude the following: | ||||||
| Stock-based compensation | (2,122) | (268) | ||||
| Amortization of acquired intangibles | (137) | — | ||||
| Non-GAAP cost of revenue | $ | 10,818 | $ | 7,718 | ||
| GAAP gross profit | $ | 77,562 | $ | 64,683 | ||
| Adjusted to exclude the following: | ||||||
| Stock-based compensation | 2,122 | 268 | ||||
| Amortization of acquired intangibles | 137 | — | ||||
| Non-GAAP gross profit | $ | 79,821 | $ | 64,951 | ||
| GAAP gross margin | 86 | % | 89 | % | ||
| Non-GAAP gross margin | 88 | % | 89 | % | ||
| GAAP research and development expense | $ | 19,022 | $ | 13,241 | ||
| Adjusted to exclude the following: | ||||||
| Stock-based compensation | (2,552) | (970) | ||||
| Non-GAAP research and development expense | $ | 16,470 | $ | 12,271 | ||
| GAAP sales and marketing expense | $ | 28,134 | $ | 19,371 | ||
| Adjusted to exclude the following: | ||||||
| Stock-based compensation | (3,074) | (1,028) | ||||
| Amortization of acquired intangibles | (1,063) | (265) | ||||
| Change in fair value of contingent earn-out consideration liability | 54 | — | ||||
| Non-GAAP sales and marketing expense | $ | 24,051 | $ | 18,078 | ||
| GAAP general and administrative expense | $ | 8,724 | $ | 7,196 | ||
| Adjusted to exclude the following: | ||||||
| Acquisition and other related expenses | (30) | — | ||||
| Stock-based compensation | (1,758) | (2,861) | ||||
| Non-GAAP general and administrative expense | $ | 6,936 | $ | 4,335 | ||
| GAAP operating expense | $ | 55,880 | $ | 39,808 | ||
| Adjusted to exclude the following: | ||||||
| Acquisition and other related expenses | (30) | — | ||||
| Stock-based compensation | (7,384) | (4,859) | ||||
| Amortization of acquired intangibles | (1,063) | (265) | ||||
| Change in fair value of contingent earn-out consideration liability | 54 | — | ||||
| Non-GAAP operating expense | $ | 47,457 | $ | 34,684 | ||
| GAAP operating income | $ | 21,682 | $ | 24,875 | ||
| Adjusted to exclude the following: | ||||||
| Acquisition and other related expenses | 30 | — | ||||
| Stock-based compensation | 9,506 | 5,127 | ||||
| Amortization of acquired intangibles | 1,200 | 265 | ||||
| Change in fair value of contingent earn-out consideration liability | (54) | — | ||||
| Non-GAAP operating income | $ | 32,364 | $ | 30,267 | ||
| Three Months Ended June 30, | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 2022 | 2021 | |||||
| (unaudited) | ||||||
| (in thousands, except per share data and percentages) | ||||||
| GAAP net income | $ | 22,383 | $ | 26,322 | ||
| Adjusted to exclude the following: | ||||||
| Acquisition and other related expenses | 30 | — | ||||
| Stock-based compensation | 9,506 | 5,127 | ||||
| Amortization of acquired intangibles | 1,200 | 265 | ||||
| Change in fair value of contingent earn-out consideration liability | (54) | — | ||||
| Income tax effect of non-GAAP adjustments (1) | (2,243) | (1,132) | ||||
| Non-GAAP net income | $ | 30,822 | $ | 30,582 | ||
| Non-GAAP net income margin | 34 | % | 42 | % | ||
| GAAP undistributed earnings attributable to participating securities | $ | — | $ | (15,581) | ||
| Impact on undistributed earnings attributable to participating securities due to non-GAAP adjustments | — | (1,947) | ||||
| Non-GAAP undistributed earnings attributable to participating securities | $ | — | $ | (17,528) | ||
| Non-GAAP net income | $ | 30,822 | $ | 30,582 | ||
| Non-GAAP undistributed earnings attributable to participating securities | — | (17,528) | ||||
| Non-GAAP net income attributable to Class A and Class B stockholders, basic and diluted | $ | 30,822 | $ | 13,054 | ||
| Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | ||||||
| Basic | 192,947 | 87,599 | ||||
| Diluted | 214,954 | 114,920 | ||||
| Non-GAAP net income per share attributable to Class A and Class B stockholders: | ||||||
| Basic | $ | 0.16 | $ | 0.15 | ||
| Diluted | $ | 0.14 | $ | 0.11 |
(1) For the three months ended June 30, 2022 and 2021, management used an estimated annual effective non-GAAP tax rate of 21.0%.
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Document
Exhibit 99.2
Doximity Appoints Phoebe Yang to Its Board of Directors
Experienced Director and Executive Brings Health System and Cloud Expertise
SAN FRANCISCO, August 4, 2022 – Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced the appointment of Phoebe L. Yang to its Board of Directors. Ms. Yang has been General Manager at Amazon Web Services, Healthcare, and a member of the board of directors for CommonSpirit Health, one of the largest U.S. health systems. Ms. Yang is a long-time member of the Council on Foreign Relations, and has served as an appointee in two Presidential Administrations. In 2021, she was named one of Modern Healthcare’s Top 100 Most Influential People in Healthcare and one of Fierce Healthcare’s Top 10 Women of Influence.
“We’re delighted to welcome Phoebe to our Board,” said Jeff Tangney, co-founder and CEO of Doximity. “Phoebe is a rare ‘two-sport’ leader, well-versed in both healthcare and technology. Her industry insight and go-to-market expertise will be invaluable as we continue to grow and serve all 20 of the top 20 health systems. We’re delighted to work with Phoebe to put technology to work for doctors.”
As a Board member, Ms. Yang will provide strategic guidance to Doximity as it continues to innovate its clinical productivity tools and build the “physician cloud” for U.S. health systems. In addition to her work at AWS, Healthcare, Ms. Yang has served in C-suite or executive leadership roles at four publicly traded companies. She has also served on the board of directors for Providence St. Joseph Health, as Chief Strategy Officer and Chief Architect for Population Health at Ascension, and as Lead Expert on Health IT and Broadband Task Forces for the White House.
“I’m excited to join Doximity’s Board of Directors during a time of significant growth and opportunity,” said Yang. “Doximity’s ‘physicians first’ philosophy helps make doctors more productive so they can improve patient experiences and outcomes – there is no more important mission in healthcare today. I look forward to working with Jeff Tangney, one of the most impressive CEOs in digital health, his exceptional leadership team, and Doximity’s impressive Board in leveraging technology to enable and support clinicians and their patients.”
About Doximity
Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company’s network members include over 80% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, and conduct virtual patient visits. Doximity’s mission is to help doctors be more productive so they can provide better care for their patients. For more information visit Doximity.com.