Doximity(US:DOCS)2023-05-17 02:43Financial Data and Key Metrics Changes - For the full fiscal year, the company reported revenue of $419 million, representing a 22% year-on-year growth [95] - The adjusted EBITDA for Q4 was $48.9 million, with an adjusted EBITDA margin of 44%, compared to $39.4 million and a 42% margin in the prior year [109] - The company generated free cash flow of $173.4 million for the full fiscal year, an increase of 43% year-over-year [132] Business Line Data and Key Metrics Changes - Subscription revenue, which comprises 93% of total revenue, grew by 20% in Q4, up from 18% in Q3 [127] - The company ended the year with 294 customers contributing at least $100,000 each in subscription-based revenue, a 16% increase from the previous year [128] - Curative, the only non-subscription part of the business, saw flat growth year-over-year due to tough comparisons from the previous year [26] Market Data and Key Metrics Changes - The company reported a net revenue retention rate of 124% for its top 20 customers [127] - The overall pharma ETF in the US was down only 5% for the year, indicating a relatively stable market environment [138] - The company noted that 65% of its annual subscription revenue guidance is already under contract, which is higher than typical for this time of year [119] Company Strategy and Development Direction - The company is focusing on integrating new products and enhancing its physician cloud offerings, with a strong emphasis on R&D and sales and marketing investments [18][99] - The introduction of DocsGPT, an AI medical writing tool, is expected to significantly improve workflow efficiency for physicians [122][70] - The company plans to continue its strategy of opportunistic pricing for new products as ROI studies are generated [60] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding upsell expectations due to macroeconomic uncertainties, preparing for a potentially tougher year [119][137] - The company remains optimistic about the engagement and ROI data from new products, which are expected to contribute to growth in the coming years [113] - Management highlighted the importance of maintaining margins while continuing to invest in growth opportunities [19] Other Important Information - The company repurchased $86 million of its own stock during the fiscal year, reflecting confidence in its long-term value [97] - The company is set to host its inaugural Investor Day on June 6th, where it will showcase new products and discuss long-term financial targets [104][125] - The company has received regulatory approvals for most of its new vertical video products, with launches expected in the coming quarters [134] Q&A Session Summary Question: What is the revenue contribution from new products? - Management indicated that subscription revenue growth reaccelerated to 20% in Q4, suggesting new products are contributing positively [6] Question: Can you provide an update on the hospital market? - Management reported strong engagement in the hospital market, with over 38,000 unique active providers using their telehealth tools [32] Question: What are the expectations for deferred revenue growth? - Management cautioned that while deferred revenue is up, it should not be heavily weighted as a metric due to milestone-based billing practices [23][170] Question: How is the competitive landscape evolving? - Management noted no major changes in competition, emphasizing the strength of their physician network amidst digital privacy regulations [165] Question: What are the expectations for gross margin and EBITDA? - Management expects gross margin and adjusted EBITDA margins to remain similar to the previous year, reflecting stable operational performance [66]