Professional medical network Doximity plans to join a growing list of healthcare startups to go public.
The company filed its plans for an initial public offering with the Securities and Exchange Commission on Friday and is looking to raise up to $100 million in its IPO. Doximity filed confidentially on March 5, 2021.
It plans to list under the symbol DOCS, but has yet to select an exchange. No pricing terms were disclosed in the filing.
The San Francisco, CA-based company was founded in 2010 and provides a digital platform for U.S. medical professionals, including telehealth and scheduling tools. The company has over 1.8 million medical professional members as of March 31, 2021, which comprises more than 80% of physicians across all 50 states and every medical specialty.
Doximity is an online platform for physicians that allows them to collaborate with colleagues, securely coordinate patient care, conduct virtual patients visits, read the latest medical news and research, and manage their careers. Last year, the company expanded into telemedicine with the launch of Doximity Dialer Video, a telehealth app that enables doctors to video call their patients on any smartphone.
The company has raised $82 million in venture capital funding, according to Crunchbase.
The company's customers are primarily healthcare organizations, in particular pharmaceutical manufacturers, health systems, and medical recruiting firms, who purchase subscriptions for its marketing, hiring and telehealth solutions. In fiscal 2021, Doximity had over 600 subscription customers, according to the S-1 filing.
Members of the platform can search and connect with colleagues and specialists, which allows them to better coordinate patient care and streamline referrals, according to the company.
Doximity delivered more than 63 million telehealth visits in fiscal 2021, as reported in the SEC filing. The company also reported rapid adoption of its commercial telehealth solutions, with subscription agreements signed with over 150 health systems as of March 31, 2021.
More than 300,000 unique active providers, including doctors, physician assistants, nurse practitioners, and medical students used Doximity's telehealth tools in the quarter ended March 31, 2021, the company said.
Doximity brought in revenue of $116 million in 2019 and revenue grew 78% to reach $207 million in 2020. The company is profitable, bringing in $30 million and $50 million in net income in 2019 and 2020, respectively.
For the years ended March 31, 2020 and 2021, Doximity generated adjusted EBITDA of $27 million and $65 million. The company booked $207 million in sales for the 12 months ended March 31, 2021, according to the S-1 filing.
"We believe our market opportunity is substantial and growing. We estimate our current total addressable market to be approximately $18.5 billion across our platform solutions today. This comprises a $7.3 billion opportunity in U.S. pharmaceutical marketing to medical professionals, a $6.9 billion opportunity in U.S. health system marketing and staffing, and a $4.3 billion opportunity in U.S. software telehealth," company executives said in the filing.
As more companies look to offer technology tools to providers, Doximity will face increasing competition.
Among the challenges the company faces, its revenue is relatively concentrated within a small number of key customers, and the loss of one or more of such key customers could slow the growth rate of our revenue or cause our revenue to decline, the company said in the filing.
Morgan Stanley, Goldman Sachs, J.P. Morgan, Piper Sandler, William Blair, Canaccord Genuity, Needham & Co., Raymond James, and SVB Leerink are the joint bookrunners on the deal.