DOCS Doximity Inc

Fiscal year 2024 total revenues of $475.4 million, up 13% year-over-year Fiscal year 2024 net income growth of 31% and adjusted EBITDA growth of 25% year-over-year

Q4 total revenues of $118.1 million, up 6% year-over-year Q4 net income growth of 32% and adjusted EBITDA growth of 15% year-over-year

Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2024 fourth quarter and fiscal year ended March 31, 2024.

“We were pleased to beat on our top and bottom lines, as we delivered another quarter of strong profits and record engagement,” said Jeff Tangney, co-founder and CEO of Doximity. “We’re proud to bring AI and automation to clinical workflows, with over 580,000 unique providers using our workflow tools last quarter.”

Fiscal 2024 Fourth Quarter Financial Highlights

All comparisons, unless otherwise noted, are to the three months ended March 31, 2023.

• Revenue: Revenue of $118.1 million, versus $111.0 million, an increase of 6% year-over-year. Subscription revenue of $112.7 million, versus $103.2 million, an increase of 9% year-over-year.
• Net income and non-GAAP net income: Net income of $40.6 million, versus $30.7 million, representing a margin of 34.4%, versus 27.6%. Non-GAAP net income of $51.0 million, versus $42.1 million, representing a margin of 43.2%, versus 38.0%.
• Adjusted EBITDA: Adjusted EBITDA of $56.4 million, versus $48.9 million, an increase of 15% year-over-year, representing adjusted EBITDA margins of 47.8%, versus 44.1%.
• Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.20, versus $0.14, while non-GAAP diluted net income per share was $0.25, versus $0.20.
• Operating cash flow and free cash flow: Operating cash flow of $63.9 million, versus $46.6 million, an increase of 37% year-over-year, and free cash flow of $62.3 million, versus $45.6 million, an increase of 37% year-over-year.

Fiscal Year 2024 Financial Highlights

All comparisons, unless otherwise noted, are to the fiscal year ended March 31, 2023.

• Revenue: Revenue of $475.4 million, versus $419.1 million, an increase of 13% year-over-year. Subscription revenue of $450.1 million, versus $389.7 million, an increase of 15% year-over-year.
• Net income and non-GAAP net income: Net income of $147.6 million, versus $112.8 million, representing a margin of 31.0%, versus 26.9%. Non-GAAP net income of $195.6 million, versus $154.9 million, representing a margin of 41.2%, versus 37.0%.
• Adjusted EBITDA: Adjusted EBITDA of $230.5 million, versus $184.0 million, an increase of 25% year-over-year, representing adjusted EBITDA margins of 48.5%, versus 43.9%.
• Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.72, versus $0.53, while non-GAAP diluted net income per share was $0.95, versus $0.73.
• Operating cash flow and free cash flow: Operating cash flow of $184.1 million, versus $179.6 million, an increase of 3% year-over-year, and free cash flow of $178.3 million, versus $173.4 million, an increase of 3% year-over-year.

Financial Outlook

Doximity is providing guidance for its fiscal first quarter ending June 30, 2024 as follows:

• Revenue between $119.5 million and $120.5 million.
• Adjusted EBITDA between $55 million and $56 million.

Doximity is providing guidance for its fiscal year ending March 31, 2025 as follows:

• Revenue between $506 million and $518 million.
• Adjusted EBITDA between $238 million and $250 million.

Stock Repurchase Program

On May 1, 2024 the Company’s board of directors authorized a program to repurchase up to $500 million of the Company’s Class A common stock. The repurchase program has no expiration date and is subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. Immediately upon the repurchase of any shares of Class A common stock, such shares shall be retired by the Company and shall automatically return to the status of authorized but unissued shares of Class A common stock. All prior repurchase programs were completed as of April 2024.

Conference Call Information

Doximity posted prepared remarks on its investor relations website at https://investors.doximity.com. 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 more than 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, streamline documentation and administrative paperwork, and conduct virtual patient visits. Doximity's mission is to help doctors be more productive so they can provide better care for their patients.

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 uncertainty in the current economic environment and macroeconomic uncertainty; (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 Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2023. Additional information will be provided in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024. 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.

DOXIMITY, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

March 31, 2024

 

March 31, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

96,785

 

 

$

158,027

 

Marketable securities

 

666,115

 

 

 

682,972

 

Accounts receivable, net

 

101,332

 

 

 

107,047

 

Prepaid expenses and other current assets

 

48,709

 

 

 

27,407

 

Total current assets

 

912,941

 

 

 

975,453

 

Property and equipment, net

 

12,318

 

 

 

11,279

 

Deferred income tax assets

 

45,068

 

 

 

34,907

 

Operating lease right-of-use assets

 

12,332

 

 

 

13,819

 

Intangible assets, net

 

27,317

 

 

 

31,836

 

Goodwill

 

67,940

 

 

 

67,940

 

Other assets

 

1,458

 

 

 

1,654

 

Total assets

$

1,079,374

 

 

$

1,136,888

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,253

 

 

$

1,272

 

Accrued expenses and other current liabilities

 

43,703

 

 

 

31,245

 

Deferred revenue, current

 

99,145

 

 

 

105,238

 

Operating lease liabilities, current

 

2,149

 

 

 

1,752

 

Total current liabilities

 

147,250

 

 

 

139,507

 

Deferred revenue, non-current

 

211

 

 

 

198

 

Operating lease liabilities, non-current

 

12,397

 

 

 

13,885

 

Contingent earn-out consideration liability, non-current

 

10,895

 

 

 

15,942

 

Other liabilities, non-current

 

7,224

 

 

 

1,240

 

Total liabilities

 

177,977

 

 

 

170,772

 

Stockholders' Equity

 

 

 

Preferred stock

 

—

 

 

 

—

 

Common stock

 

187

 

 

 

194

 

Additional paid-in capital

 

823,885

 

 

 

762,150

 

Accumulated other comprehensive loss

 

(2,664

)

 

 

(14,083

)

Retained earnings

 

79,989

 

 

 

217,855

 

Total stockholders' equity

 

901,397

 

 

 

966,116

 

Total liabilities and stockholders’ equity

$

1,079,374

 

 

$

1,136,888

 

DOXIMITY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended March 31,

 

Fiscal Year Ended March 31,

 

2024

 

2023

 

2024

 

2023

Revenue

$

118,057

 

$

110,966

 

$

475,422

 

$

419,052

Cost of revenue(1)

 

12,567

 

 

13,677

 

 

50,669

 

 

53,490

Gross profit

 

105,490

 

 

97,289

 

 

424,753

 

 

365,562

Operating expenses(1):

 

 

 

 

 

 

 

Research and development

 

20,148

 

 

21,541

 

 

81,983

 

 

80,186

Sales and marketing

 

33,517

 

 

33,148

 

 

133,129

 

 

123,523

General and administrative

 

9,973

 

 

9,759

 

 

37,827

 

 

36,745

Restructuring

 

—

 

 

—

 

 

7,936

 

 

—

Total operating expenses

 

63,638

 

 

64,448

 

 

260,875

 

 

240,454

Income from operations

 

41,852

 

 

32,841

 

 

163,878

 

 

125,108

Other income, net

 

6,101

 

 

3,875

 

 

21,324

 

 

8,048

Income before income taxes

 

47,953

 

 

36,716

 

 

185,202

 

 

133,156

Provision for income taxes

 

7,335

 

 

6,048

 

 

37,620

 

 

20,338

Net income

$

40,618

 

$

30,668

 

$

147,582

 

$

112,818

Net income per share attributable to Class A and Class B common stockholders:

 

 

 

 

 

 

 

Basic

$

0.22

 

$

0.16

 

$

0.78

 

$

0.58

Diluted

$

0.20

 

$

0.14

 

$

0.72

 

$

0.53

Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:

 

 

 

 

 

 

 

Basic

 

186,756

 

 

193,829

 

 

190,172

 

 

193,176

Diluted

 

201,110

 

 

212,742

 

 

205,734

 

 

213,425

 

(1) Costs and expenses include stock-based compensation expense as follows (in thousands):

 

 

Three Months Ended March 31,

 

Fiscal Year Ended March 31,

 

2024

 

2023

 

2024

 

2023

Cost of revenue

$

2,274

 

$

2,425

 

$

9,479

 

$

9,634

Research and development

 

3,104

 

 

3,167

 

 

11,978

 

 

12,583

Sales and marketing

 

4,105

 

 

5,027

 

 

16,857

 

 

16,939

General and administrative

 

2,374

 

 

2,372

 

 

9,116

 

 

8,678

Restructuring

 

—

 

 

—

 

 

3,646

 

 

—

Total stock-based compensation expense

$

11,857

 

$

12,991

 

$

51,076

 

$

47,834

DOXIMITY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

Three Months Ended March 31,

 

Fiscal Year Ended March 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

$

40,618

 

 

$

30,668

 

 

$

147,582

 

 

$

112,818

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

2,548

 

 

 

2,708

 

 

 

10,265

 

 

 

10,283

 

Deferred income taxes

 

(8,593

)

 

 

3,834

 

 

 

(8,593

)

 

 

13,226

 

Stock-based compensation, net of amounts capitalized

 

11,857

 

 

 

12,991

 

 

 

51,076

 

 

 

47,834

 

Non-cash lease expense

 

475

 

 

 

537

 

 

 

2,074

 

 

 

2,027

 

Amortization of premium (accretion of discount) on marketable securities, net

 

(1,761

)

 

 

(29

)

 

 

(5,238

)

 

 

3,115

 

Net loss on sale of marketable securities

 

—

 

 

 

—

 

 

 

402

 

 

 

1,093

 

Amortization of deferred contract costs

 

2,593

 

 

 

2,428

 

 

 

8,871

 

 

 

8,785

 

Change in fair value of contingent earn-out consideration liability

 

183

 

 

 

405

 

 

 

951

 

 

 

728

 

Other

 

773

 

 

 

252

 

 

 

1,230

 

 

 

726

 

Changes in operating assets and liabilities, net of effect of acquisition:

 

 

 

 

 

 

 

Accounts receivable

 

(4,516

)

 

 

(32,433

)

 

 

3,993

 

 

 

(26,242

)

Prepaid expenses and other assets

 

(16,502

)

 

 

(5,372

)

 

 

(20,483

)

 

 

(3,448

)

Deferred contract costs

 

(1,683

)

 

 

(2,053

)

 

 

(8,608

)

 

 

(8,462

)

Accounts payable, accrued expenses and other liabilities

 

5,966

 

 

 

(2,918

)

 

 

8,332

 

 

 

(195

)

Deferred revenue

 

32,496

 

 

 

35,625

 

 

 

(6,080

)

 

 

17,527

 

Operating lease liabilities

 

(510

)

 

 

(4

)

 

 

(1,678

)

 

 

(213

)

Net cash provided by operating activities

 

63,944

 

 

 

46,639

 

 

 

184,096

 

 

 

179,602

 

Cash flows from investing activities

 

 

 

 

 

 

 

Cash paid for acquisition

 

—

 

 

 

—

 

 

 

—

 

 

 

(53,500

)

Purchases of property and equipment

 

—

 

 

 

(21

)

 

 

(147

)

 

 

(1,701

)

Internal-use software development costs

 

(1,634

)

 

 

(1,005

)

 

 

(5,654

)

 

 

(4,483

)

Purchases of marketable securities

 

(191,529

)

 

 

(60,303

)

 

 

(472,867

)

 

 

(190,560

)

Maturities of marketable securities

 

116,993

 

 

 

48,125

 

 

 

435,179

 

 

 

83,139

 

Sales of marketable securities

 

—

 

 

 

—

 

 

 

74,675

 

 

 

107,182

 

Net cash provided by (used in) investing activities

 

(76,170

)

 

 

(13,204

)

 

 

31,186

 

 

 

(59,923

)

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from issuance of common stock upon exercise of stock options and common stock warrants

 

3,134

 

 

 

2,471

 

 

 

12,892

 

 

 

9,926

 

Proceeds from issuance of common stock in connection with the employee stock purchase plan

 

1,952

 

 

 

2,418

 

 

 

3,446

 

 

 

4,759

 

Taxes paid related to net share settlement of equity awards

 

(1,424

)

 

 

(1,469

)

 

 

(6,756

)

 

 

(3,822

)

Repurchase of common stock

 

(17,740

)

 

 

(15,282

)

 

 

(280,716

)

 

 

(85,324

)

Payment of contingent consideration related to a business combination

 

—

 

 

 

—

 

 

 

(5,390

)

 

 

—

 

Net cash used in financing activities

 

(14,078

)

 

 

(11,862

)

 

 

(276,524

)

 

 

(74,461

)

Net increase (decrease) in cash and cash equivalents

 

(26,304

)

 

 

21,573

 

 

 

(61,242

)

 

 

45,218

 

Cash and cash equivalents, beginning of period

 

123,089

 

 

 

136,454

 

 

 

158,027

 

 

 

112,809

 

Cash and cash equivalents, end of period

$

96,785

 

 

$

158,027

 

 

$

96,785

 

 

$

158,027

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

Cash paid for taxes, net of refunds

$

12,911

 

 

$

2,727

 

 

$

51,274

 

 

$

5,231

 

Non-GAAP Financial Measures

To supplement our 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, restructuring expense, change in fair value of contingent earn-out consideration liability, and acquisition and other related expenses 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, restructuring 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 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 Metrics

• Net revenue retention rate: Net revenue retention rate is calculated 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. For the purposes of this calculation, subscription revenue excludes subscriptions for individuals and small practices and other non-recurring items. 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. Our net revenue retention rate is directly tied to our revenue growth rate and thus fluctuates as that growth rate fluctuates.
• Customers with trailing 12-month subscription revenue greater than $100,000 and $500,000: The number of customers with TTM subscription revenue greater than $100,000 and $500,000 is a key indicator of the scale of our business, and is calculated by counting the number of customers that contributed more than $100,000 and $500,000 in subscription revenue in the TTM period. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments.

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 March 31,

 

Fiscal Year Ended March 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

(in thousands, except percentages)

Net income

$

40,618

 

 

$

30,668

 

 

$

147,582

 

 

$

112,818

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Acquisition and other related expenses

 

—

 

 

 

—

 

 

 

—

 

 

 

30

 

Stock-based compensation

 

11,857

 

 

 

12,991

 

 

 

47,430

 

 

 

47,834

 

Depreciation and amortization

 

2,548

 

 

 

2,708

 

 

 

10,265

 

 

 

10,283

 

Provision for income taxes

 

7,335

 

 

 

6,048

 

 

 

37,620

 

 

 

20,338

 

Restructuring expense

 

—

 

 

 

—

 

 

 

7,936

 

 

 

—

 

Change in fair value of contingent earn-out consideration liability

 

183

 

 

 

405

 

 

 

951

 

 

 

728

 

Other income, net

 

(6,101

)

 

 

(3,875

)

 

 

(21,324

)

 

 

(8,048

)

Adjusted EBITDA

$

56,440

 

 

$

48,945

 

 

$

230,460

 

 

$

183,983

 

 

 

 

 

 

 

 

 

Revenue

$

118,057

 

 

$

110,966

 

 

$

475,422

 

 

$

419,052

 

Net income margin

 

34.4

%

 

 

27.6

%

 

 

31.0

%

 

 

26.9

%

Adjusted EBITDA margin

 

47.8

%

 

 

44.1

%

 

 

48.5

%

 

 

43.9

%

 

Three Months Ended March 31,

 

Fiscal Year Ended March 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

(in thousands)

Net cash provided by operating activities

$

63,944

 

 

$

46,639

 

 

$

184,096

 

 

$

179,602

 

Purchases of property and equipment

 

—

 

 

 

(21

)

 

 

(147

)

 

 

(1,701

)

Internal-use software development costs

 

(1,634

)

 

 

(1,005

)

 

 

(5,654

)

 

 

(4,483

)

Free cash flow

$

62,310

 

 

$

45,613

 

 

$

178,295

 

 

$

173,418

 

Other cash flow components:

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

$

(76,170

)

 

$

(13,204

)

 

$

31,186

 

 

$

(59,923

)

Net cash used in financing activities

$

(14,078

)

 

$

(11,862

)

 

$

(276,524

)

 

$

(74,461

)

 

Three Months Ended March 31,

 

Fiscal Year Ended March 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

(in thousands, except per share data and percentages)

GAAP cost of revenue

$

12,567

 

 

$

13,677

 

 

$

50,669

 

 

$

53,490

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

(2,274

)

 

 

(2,425

)

 

 

(9,479

)

 

 

(9,634

)

Amortization of acquired intangibles

 

—

 

 

 

(137

)

 

 

(274

)

 

 

(548

)

Non-GAAP cost of revenue

$

10,293

 

 

$

11,115

 

 

$

40,916

 

 

$

43,308

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

105,490

 

 

$

97,289

 

 

$

424,753

 

 

$

365,562

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

2,274

 

 

 

2,425

 

 

 

9,479

 

 

 

9,634

 

Amortization of acquired intangibles

 

—

 

 

 

137

 

 

 

274

 

 

 

548

 

Non-GAAP gross profit

$

107,764

 

 

$

99,851

 

 

$

434,506

 

 

$

375,744

 

 

 

 

 

 

 

 

 

GAAP gross margin

 

89.4

%

 

 

87.7

%

 

 

89.3

%

 

 

87.2

%

Non-GAAP gross margin

 

91.3

%

 

 

90.0

%

 

 

91.4

%

 

 

89.7

%

 

 

 

 

 

 

 

 

GAAP research and development expense

$

20,148

 

 

$

21,541

 

 

$

81,983

 

 

$

80,186

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

(3,104

)

 

 

(3,167

)

 

 

(11,978

)

 

 

(12,583

)

Non-GAAP research and development expense

$

17,044

 

 

$

18,374

 

 

$

70,005

 

 

$

67,603

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expense

$

33,517

 

 

$

33,148

 

 

$

133,129

 

 

$

123,523

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

(4,105

)

 

 

(5,027

)

 

 

(16,857

)

 

 

(16,939

)

Amortization of acquired intangibles

 

(1,061

)

 

 

(979

)

 

 

(4,244

)

 

 

(4,164

)

Change in fair value of contingent earn-out consideration liability

 

(183

)

 

 

(405

)

 

 

(951

)

 

 

(728

)

Non-GAAP sales and marketing expense

$

28,168

 

 

$

26,737

 

 

$

111,077

 

 

$

101,692

 

 

 

 

 

 

 

 

 

GAAP general and administrative expense

$

9,973

 

 

$

9,759

 

 

$

37,827

 

 

$

36,745

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Acquisition and other related expenses

 

—

 

 

 

—

 

 

 

—

 

 

 

(30

)

Stock-based compensation

 

(2,374

)

 

 

(2,372

)

 

 

(9,116

)

 

 

(8,678

)

Non-GAAP general and administrative expense

$

7,599

 

 

$

7,387

 

 

$

28,711

 

 

$

28,037

 

 

 

 

 

 

 

 

 

GAAP operating expense

$

63,638

 

 

$

64,448

 

 

$

260,875

 

 

$

240,454

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Acquisition and other related expenses

 

—

 

 

 

—

 

 

 

—

 

 

 

(30

)

Stock-based compensation

 

(9,583

)

 

 

(10,566

)

 

 

(37,951

)

 

 

(38,200

)

Amortization of acquired intangibles

 

(1,061

)

 

 

(979

)

 

 

(4,244

)

 

 

(4,164

)

Change in fair value of contingent earn-out consideration liability

 

(183

)

 

 

(405

)

 

 

(951

)

 

 

(728

)

Restructuring

 

—

 

 

 

—

 

 

 

(7,936

)

 

 

—

 

Non-GAAP operating expense

$

52,811

 

 

$

52,498

 

 

$

209,793

 

 

$

197,332

 

 

 

 

 

 

 

 

 

GAAP operating income

$

41,852

 

 

$

32,841

 

 

$

163,878

 

 

$

125,108

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Acquisition and other related expenses

 

—

 

 

 

—

 

 

 

—

 

 

 

30

 

Stock-based compensation

 

11,857

 

 

 

12,991

 

 

 

47,430

 

 

 

47,834

 

Amortization of acquired intangibles

 

1,061

 

 

 

1,116

 

 

 

4,518

 

 

 

4,712

 

Change in fair value of contingent earn-out consideration liability

 

183

 

 

 

405

 

 

 

951

 

 

 

728

 

Restructuring

 

—

 

 

 

—

 

 

 

7,936

 

 

 

—

 

Non-GAAP operating income

$

54,953

 

 

$

47,353

 

 

$

224,713

 

 

$

178,412

 

 

 

 

 

 

 

 

 

GAAP net income

$

40,618

 

 

$

30,668

 

 

$

147,582

 

 

$

112,818

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Acquisition and other related expenses

 

—

 

 

 

—

 

 

 

—

 

 

 

30

 

Stock-based compensation

 

11,857

 

 

 

12,991

 

 

 

47,430

 

 

 

47,834

 

Amortization of acquired intangibles

 

1,061

 

 

 

1,116

 

 

 

4,518

 

 

 

4,712

 

Change in fair value of contingent earn-out consideration liability

 

183

 

 

 

405

 

 

 

951

 

 

 

728

 

Restructuring

 

—

 

 

 

—

 

 

 

7,936

 

 

 

—

 

Income tax effect of non-GAAP adjustments (1)

 

(2,751

)

 

 

(3,048

)

 

 

(12,775

)

 

 

(11,194

)

Non-GAAP net income

$

50,968

 

 

$

42,132

 

 

$

195,642

 

 

$

154,928

 

Non-GAAP net income margin

 

43.2

%

 

 

38.0

%

 

 

41.2

%

 

 

37.0

%

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:

 

 

 

 

 

 

 

Basic

 

186,756

 

 

 

193,829

 

 

 

190,172

 

 

 

193,176

 

Diluted

 

201,110

 

 

 

212,742

 

 

 

205,734

 

 

 

213,425

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share attributable to Class A and Class B stockholders:

 

 

 

 

 

 

 

Basic

$

0.27

 

 

$

0.22

 

 

$

1.03

 

 

$

0.80

 

Diluted

$

0.25

 

 

$

0.20

 

 

$

0.95

 

 

$

0.73

 

(1)

For the three months and fiscal years ended March 31, 2024 and 2023, management used an estimated annual effective non-GAAP tax rate of 21.0%.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240516910294/en/

Investor Relations Contact: Perry Gold ir@doximity.com

Media Contact: Amanda Cox pr@doximity.com