Physician social network Doximity plans IPO at $4B valuation

Doximity
Through a reserved share program, Doximity will set aside up to 15% of its shares for member physicians at the institutional investor rate. (Doximity)

Doximity, a social network for doctors, plans to raise nearly $536 million through an initial public offering.

At the midpoint of the proposed range, Doximity would command a fully diluted market value of $4.5 billion.

Doximity plans to sell 23.3 million shares priced between $20 and $23 per share, according to a filing with the U.S. Securities and Exchange Commission last week. The offering consists of about 19 million shares of Class A common stock offered by Doximity and roughly 4.3 million shares of Class A common stock sold by existing investors.

Through a reserved share program, Doximity will set aside up to 15% of its shares for member physicians at the institutional investor rate.

It plans to list its shares on the New York Stock Exchange under the symbol "DOCS."

Morgan Stanley, Goldman Sachs and JPMorgan are the lead underwriters for the offering.

The San Francisco-based company was founded in 2010 and operates like a LinkedIn for doctors. It 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.

RELATED: Doximity launches telehealth app for providers

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.

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.

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.