Doximity sells marketing and recruitment subscriptions to pharmaceutical companies and healthcare systems
A few years ago it seemed like everyone and their mom were trying to start a new social media company, many of which were geared towards niche audiences. There was Bolt that was marketed for teenagers; Disaboom, which was intended for people with disabilities; Gogoyoko, a network for musicians; and MyVetwork, which was specially designed for veterans. None of them lasted that long.
In the end, the winners were companies like Facebook, Twitter, and LinkedIn that serve a general audience, with those smaller subsets and specific groups in them.
The exception to this rule is Doximity, which is essentially LinkedIn for doctors; The company enables doctors to connect with each other while providing productivity tools like digital fax and electronic signature that enable doctors to send and receive HIPAA-compliant faxes while members electronically sign, edit, date, add attachments, and customize The fax cover sheet.
“Our mission is to help every doctor be more productive and better care for their patients. We put doctors first, using technology for doctors, rather than the other way around. This guiding principle has made it possible for Doximity to become an indispensable and trustworthy professional platform for physicians, “writes the company in its S-1 filing with the SEC.
“Our cloud-based platform provides our members with tools specifically designed for medical professionals to enable them to collaborate with their colleagues, safely coordinate patient care, conduct virtual patient visits, stay up to date on the latest medical news and research, and their careers manage.”
The company has over 1.8 million medical members on its platform, which makes up more than 80 percent of the doctors in the United States, but it doesn’t make any money from it: Membership in Doximity is free for doctors.
The company’s paying customers are healthcare organizations, including pharmaceutical manufacturers, healthcare systems, and medical recruitment firms. You buy subscriptions to Doximitys Marketing Solutions, Hiring Solutions and Telehealth Solutions.
Doximity marketing solutions enable its customers to present their brands to medical professionals on the platform.
Customers pay for a subscription to certain modules that are delivered monthly to a constant number of Doximity members. The prices for the company’s marketing solutions are based on the number and composition of the target members as well as the specific modules purchased.
Pharmaceutical manufacturers buy branded campaigns; this means that Doximity arranges marketing campaigns with individual brands within their drug portfolio. Health systems campaigns on a serviceline-by-serviceline basis, which means specific clinical specialties such as cardiology, oncology, and neurology.
“Because healthcare companies have invested relatively little in digital technology, we work closely with our customers in the pharmaceutical and healthcare industries to educate them about how to best use our platform. We focus heavily on the experience of each Doximity member and ensure that this marketed content is relevant and useful to each member’s practice and patient population, ”wrote Doximity.
Marketing solutions are by far Doximity’s largest source of revenue, accounting for more than 80% of sales in fiscal 2021.
With Doximity’s hiring solutions, healthcare systems and medical recruiting firms pay for subscriptions that allow them to search for and connect with healthcare professionals on the platform. The Company leverages AI and machine learning to enable its clients to run targeted recruitment campaigns across a range of medical specialties and subdivisions.
“Our recruitment solutions enable our clients to identify, connect with, and hire active and passive potential healthcare professionals in our network who would otherwise be overlooked through traditional recruitment channels. With both a self-service recruiting platform and a full-service offering, we offer our Hiring Solutions customers a variety of options to meet their staffing needs, ”wrote Doximity.
Hiring Solutions customers purchase subscriptions that are priced based on the number of messages they want to send and the job openings they want to post.
In addition, Doximity also offers a medical recruiting service called Curative, which started after the acquisition of THMED in June 2016. Curative customers pay on a commission basis, and this is the only revenue Doximity generates that does not come from a subscription.
Doximity launched the beta version of its telemedicine solution in April 2020 before fully rolling it out in May.
It consists of two direct offers for members: Dialer Free, which is available to Doximity members free of charge; and Dialer Pro, a premium subscription version of Dialer used by individual Doximity members and small health organizations. Dialer Pro is $ 19.99 per month per license and billed annually. One license covers a single healthcare provider.
The company also has a commercial telehealth solution used by healthcare systems and hospitals called Dialer Enterprise; It is sold as a subscription, the price depends on the size of the healthcare system.
“Dialer Enterprise enables unrestricted access to dialers for all users across the enterprise of a healthcare system and unlocks the same premium features as Dialer Pro, with an additional service layer for the company that includes a dedicated customer success manager, premium user support and monthly usage reporting” wrote Doximity.
“Health system customers also have the option to brand the user and patient experience and leverage their own safety and HIPAA requirements to create consistent logs of use. Our healthcare system team can also integrate dialers into our customers’ electronic patient record systems so that their users can access dialers directly from their existing clinical workflows. “
Doximity has signed subscription contracts with over 150 healthcare systems by the end of March 2021; The company delivered over 63 million telemedicine visits in fiscal 2021. Over 90% of US hospitals have dialer users in their facilities, and over 25% of US doctors are covered by a Dialer Enterprise contract.
Doximacy in numbers
Revenue for the year ended March 31, 2021 was $ 206.9 million, up 78 percent from the previous year. New customer subscription revenue this year was $ 13.3 million, while revenue from existing customers increased $ 62.1 million, or 53%.
The company’s customers currently include all of the top 20 pharmaceutical manufacturers as well as all of the top 20 hospitals and health systems in the US News & World Report Best Hospitals Honor Roll among our customers.
Doximity went public in late June and raised $ 606 million; The company now has a market cap of $ 8.5 billion. Prior to going public, the company had raised $ 81.8 million from investors including Threshold, InterWest Partners, Morgenthaler Ventures, T. Rowe Price, Emergence and Morgan Stanley.