Doximity, a health tech company that claims to have more than 80% of doctors on its network, brought in $79 million in revenue in the second quarter, a 76% jump from the same period a year ago.
The company's second-quarter 2020 revenue came to $45 million.
Doximity also brought in $36.1 million in net income in its fiscal 2022 second quarter, which ended Sept. 30, versus $10 million during the same quarter a year ago, representing a 45% margin, the company reported in its fiscal 2022 second-quarter earnings results.
Non-GAAP net income for the quarter came to $42 million, versus $11 million, representing a 52% margin.
The company, which added telehealth capabilities in 2020 during the pandemic, added 50,000 doctors to its virtual care platform during the quarter.
"Telehealth is a very competitive space; it’s a land grab," Jeff Tangney, co-founder and CEO at Doximity, said during the company's second-quarter earnings call. "We're focused on growing our market share, growing the footprint of our telehealth platform."
The company's active telehealth users reached a record high of 330,000 unique physicians, physician assistants and medical students, he said.
However, Tangney acknowledged that telehealth visits represent a "small, single-digit percentage" of the company's current overall revenue.
Doximity operates like a LinkedIn for doctors 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.
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.
Doximity Chief Financial Officer Anna Bryson said the company is focused on its largest opportunities with its health system and pharmaceutical company clients.
"There is considerable white space for our offerings. We're just scratching the surface of our market potential. We look at the largest opportunities among the top brands of our pharma customers, and we've estimated that we have less than 5% penetration into their U.S. medical professional marketing budgets. We are uniquely advantaged to gain market share as budgets shift to digital over time," she said.
The company benefits from a strong tailwind as the healthcare industry shifts to digital, Tangney said.
As a result of the COVID-19 pandemic, an increasing number of physicians are closing their doors to in-person meetings with pharma sales reps, or what's called in the industry a "no-see" doctor.
"We believe digital will become the primary channel for industry dialogue," he said. "We're in the early innings of a decade-long secular shift to digital. Physicians have fundamentally changed the ways they interact with the industry and we’re leading the way with digitizing these workflows."
The company's existing clients generated a record 173% net revenue retention rate, for the trailing 12 months, he said
This month, Doximity inked a partnership with Press Ganey to integrate its patient experience surveys with Doximity’s tech stack, allowing patients to give feedback about their virtual visit immediately after hanging up voice or video calls.
Tangney said the tie-up with Press Ganey, which works with more than 41,000 healthcare facilities, could potentially help Doximity move more health systems over to its telehealth platform.
"We’re bringing the tech side; they are bringing the relationships [with health systems]," he said.
The company, which was founded in 2010, has been steadily growing and pegs its current market value at nearly $14 billion.
Last year, during the pandemic, the company added telehealth capabilities, called Doximity Dialer Video, to its platform as a telehealth app that enables doctors to video call their patients on any smartphone. The telehealth solution doesn't require patients or doctors to download any extra apps or sign up for the software, the company said.
The company went public in June and had a blockbuster debut on the stock market. The company sold 23.3 million shares for $26, above its initial share price between $20 and $23 per share, and raised nearly $606 million in its initial public offering. Shares opened more than 58% above their offer price on the first day of trading.
Doximity's stock is up 44% and closed at $76.51 on Tuesday.
The San Francisco-based company said it had a net income of 17 cents per share during the second quarter. Earnings, adjusted for one-time gains and costs, came to 19 cents per share, versus 2 cents a year ago.
The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 10 cents per share.
The medical social networking site's quarterly revenue also topped Street forecasts. Five analysts surveyed by Zacks expected $73.6 million.
The company's adjusted EBITDA during the quarter came to $33 million versus $13 million, an increase of 160% year over year, representing adjusted EBITDA margins of 41%, versus 28%.
Doximity reported operating cash flow of $19 million versus $13 million and free cash flow of $18 million versus $11 million during the same period a year ago.
For the third quarter, the company is projecting revenue between $86 million and $87 million.
Doximity raised its annual guidance by 10% to a midpoint of $327.1 million for fiscal 2022, representing 58% growth year on year. The company is projecting adjusted EBITDA for the full year between $128 million and $130 million.