Doximity(US:DOCS)2021-08-12 20:36Financial Performance - For the three months ended June 30, 2021, the company recorded revenue of $72.7 million, representing a year-over-year growth rate of 100% compared to $36.4 million in the same period of 2020[149]. - The net income for the same period was $26.3 million, a significant increase from $1.5 million in the prior year, indicating strong profitability growth[149]. - The gross profit for the three months ended June 30, 2021, was $72.7 million, with a gross margin expected to remain steady in the near term despite fluctuations[174]. - Revenue for the three months ended June 30, 2021, increased by $36.3 million, or 100%, compared to the same period in 2020, driven by new subscription customers and expansion of existing customers[187]. - Gross profit for the three months ended June 30, 2021, was $64.7 million, resulting in a gross margin of 89%, up from 78% in the same period in 2020[188]. - The net income for the three months ended June 30, 2021, was $26.3 million, significantly higher than the $1.5 million reported for the same period in 2020[205][206]. Customer Metrics - The number of customers with trailing 12-month subscription revenue greater than $100,000 increased to 224, up from 142 in the previous year, accounting for approximately 88% of total revenue[155][156]. - The net revenue retention rate improved to 167% for the three months ended June 30, 2021, compared to 133% in the same period of 2020, reflecting strong customer renewals and expansions[157]. - Subscription revenue from new customers was $6.6 million, while revenue from existing customers increased by $28.4 million, with a 20% increase in the average number of modules per customer and a 21% increase in the average number of brands per customer[187]. Cash Flow and Liquidity - Free cash flow for the three months ended June 30, 2021, was $32.4 million, significantly higher than $7.6 million in the same period of 2020, indicating improved cash generation capabilities[166]. - Net cash provided by operating activities was $33.2 million for the three months ended June 30, 2021, compared to $8.8 million for the same period in 2020, representing an increase of approximately 276%[205][206]. - Cash used in investing activities was $57.4 million for the three months ended June 30, 2021, compared to $14.8 million for the same period in 2020, primarily due to purchases of marketable securities[209][210]. - Cash provided by financing activities was $552.2 million for the three months ended June 30, 2021, primarily from the issuance of common stock during the initial public offering[211][212]. - As of June 30, 2021, the company had cash and cash equivalents and marketable securities totaling $726.5 million, providing sufficient liquidity for at least the next 12 months[200]. Expenses - Research and development expenses increased by $3.2 million, or 32%, to $13.2 million for the three months ended June 30, 2021, primarily due to personnel-related costs and stock-based compensation[190]. - Sales and marketing expenses rose by $6.1 million, or 46%, to $19.4 million for the three months ended June 30, 2021, driven by increased personnel-related costs and sales commissions[192]. - General and administrative expenses increased by $4.1 million, or 132%, to $7.2 million for the three months ended June 30, 2021, largely due to headcount growth and stock-based compensation[193]. Market and Operational Insights - The company launched enterprise-level Telehealth Solutions in May 2020, which have become essential tools for healthcare providers during the COVID-19 pandemic[148]. - The company continues to invest in its cloud infrastructure and customer support to support business growth, anticipating increased expenses in absolute dollar terms[173]. - The company emphasizes a physician-first approach, providing tools that enhance productivity and patient care, which has driven membership growth to over 80% of U.S. physicians[146]. Other Financial Information - Interest income decreased by $0.1 million, or 45%, to $0.08 million for the three months ended June 30, 2021, primarily due to lower yields on investments[194]. - The provision for income taxes for the three months ended June 30, 2021, was a benefit of $1.4 million, compared to a provision of $0.5 million in the same period in 2020[199]. - The company had cash and cash equivalents of $594.3 million and marketable securities of $132.1 million as of June 30, 2021[222]. - A hypothetical 10% increase in interest rates would have resulted in a decrease of $3.1 million in the market value of cash equivalents and marketable securities as of June 30, 2021[223]. - The company entered into an 8-year lease for office space in Irving, Texas, with total undiscounted lease payments of $17.9 million[214]. - There were no material changes to the company's critical accounting policies and estimates compared to previous disclosures[217]. - The company does not believe that inflation has had a material effect on its business or financial condition[224]. - The net decrease in operating assets and liabilities was primarily driven by an increase of $3.3 million in prepaid expenses and other assets[205].