After U.S. markets closed yesterday, leading digital medical platform company Doximity Inc. (DOCS:NYSE), which serves healthcare professionals and over 80% of U.S. physicians across all specialties and practice areas, announced financial results for its third quarter of 2022 ended December 31, 2021.
Doximity's Co-Founder and CEO Jeff Tangney commented, "We had a strong Q3 led by our existing clients as our net revenue retention rate hit 171%...Our telehealth platform grew to 350,000 active providers, and we agreed to acquire Amion which powers nearly 200,000 physician schedules."
"It's our life's work to build the physician cloud – a digital platform to help physicians save time, so they can provide better care for patients," stated Tangney.
The firm reported that revenue in Q3/22 increased by 67% to $97.9 million, compared to $58.7 million in Q3/21.
The company stated that for Q3/22 it posted GAAP net income of $55.6 million, versus $17.2 million in Q3/21, and in the same period on a non-GAAP basis earned net income of $63.6 million, compared to $19.5 million in Q3/21.
Doximity reported that in Q3/22, adjusted EBITDA increased by 119% to $47.0 million, compared to $21.5 million in Q3/21.
The firm advised that in Q3/22, it recorded GAAP diluted net income of $0.26 per share, versus $0.05 per diluted share in Q3/21 and non-GAAP diluted net income of $0.29 per share, versus $0.07 per diluted share in Q3/21.
The company provided some forward guidance and advised that for Q4/22 it estimates revenue will be in the range of $89-90 million. The firm added that is expects adjusted EBITDA in Q4/22 will come in between $34-35 million.
Doximity noted that it has updated its outlook for FY/22 and now estimates total revenue of $338.9-339.9 million for FYE March 31, 2022. The company stated that it presently expects adjusted EBITDA of $144.9-145.9 million in FY/22.
Looking ahead further, Doximity advised that for FY/23 ending March 31, 2023, excluding the results of its recently announced acquisition of Amion, it expects revenue growth of approximately 33% to about $450 million. The company added that excluding the data from the Amion purchase, it expects to deliver an adjusted EBITDA margin of 40% or higher during FY/23.
In a separate news release late yesterday afternoon, the company announced that "it has acquired Amion, a leading on-call physician scheduling site that manages nearly 200,000 physician schedules at thousands of hospitals, including 18 of the top 20."
CEO Tangney stated, "We're excited to partner with founder Stuart Karon and the Amion team to expand our physician cloud platform…Scheduling enhances our collaboration suite and will grow engagement across all our businesses."
Amion's founder and CEO Stuart Karon remarked, "For 24 years, Amion fostered a micro-company model to maximize operational efficiency…We're excited to add Doximity's growth gene to our DNA. Formalizing our decade-long partnership will bring great new tools to many more physicians."
The company did not disclose any details regarding the transaction except that it is expected to close on April 1, 2022.
The report indicated that Amion is based in the Boston, Mass. area and is "a leading web and mobile on-call scheduling and messaging application for hospitals and physicians." Amion's scheduling programs help medical practices create balanced schedules which are accessible on Amion.com where staff can view, coordinate and manage work shifts and personal calendars. Using the mobile app. staff can submit specific requests and swap shifts while insuring adequate coverage.
Doximity is headquartered in San Francisco, Calif. and claimed that "it is the leading digital platform for U.S. medical professionals." The company advised that its network is utilized by more than 80% of U.S. physicians nationwide across all medical specialties. The firm stated that it has designed its technology to put physicians first giving them the mobile and clinical workflow tools to better serve their patients. The company's cloud-based platform allows doctors to collaborate with colleagues, conduct virtual patient visits, securely coordinate patient care and to keep up to date with the latest medical research.
Doximity began the day with a market cap of around $9.3 billion with approximately 187.5 million shares outstanding and a short interest of about 3.6%. DOCS shares opened almost 5% higher today at $52.2865 (+$2.4765, +4.97%) over yesterday's $49.81 closing price. The stock has traded today between $55.79 and $64.37 per share and is currently trading at $62.23 (+$12.42, +24.93%).
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