Delaware | 001-40508 | 27-2485512 | ||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (I.R.S. Employer Identification Number) |
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500 3rd St.
Suite 510
San Francisco, CA 94107
(Address of principal executive offices, including zip code)
| ||||||||
(650) 549-4330
(Registrant's telephone number, including area code)
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☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A common stock, $0.001 par value per share | DOCS | The New York Stock Exchange |
Exhibit Number | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
DOXIMITY, INC. | ||||||||
By: | /s/ Anna Bryson |
|||||||
Anna Bryson
Chief Financial Officer
|
September 30, 2024 | March 31, 2024 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 184,248 | $ | 96,785 | |||||||
Marketable securities | 621,310 | 666,115 | |||||||||
Accounts receivable, net | 124,793 | 101,332 | |||||||||
Prepaid expenses and other current assets | 27,361 | 48,709 | |||||||||
Total current assets | 957,712 | 912,941 | |||||||||
Property and equipment, net | 12,818 | 12,318 | |||||||||
Deferred income tax assets | 43,761 | 45,068 | |||||||||
Operating lease right-of-use assets | 9,774 | 12,332 | |||||||||
Intangible assets, net | 25,195 | 27,317 | |||||||||
Goodwill | 67,940 | 67,940 | |||||||||
Other assets | 1,316 | 1,458 | |||||||||
Total assets | $ | 1,118,516 | $ | 1,079,374 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 2,770 | $ | 2,253 | |||||||
Accrued expenses and other current liabilities | 33,540 | 43,703 | |||||||||
Deferred revenue, current | 93,751 | 99,145 | |||||||||
Operating lease liabilities, current | 2,222 | 2,149 | |||||||||
Total current liabilities | 132,283 | 147,250 | |||||||||
Deferred revenue, non-current | 148 | 211 | |||||||||
Operating lease liabilities, non-current | 11,269 | 12,397 | |||||||||
Contingent earn-out consideration liability, non-current | 5,469 | 10,895 | |||||||||
Other liabilities, non-current | 8,151 | 7,224 | |||||||||
Total liabilities | 157,320 | 177,977 | |||||||||
Stockholders' Equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 187 | 187 | |||||||||
Additional paid-in capital | 863,113 | 823,885 | |||||||||
Accumulated other comprehensive income (loss) | 2,676 | (2,664) | |||||||||
Retained earnings | 95,220 | 79,989 | |||||||||
Total stockholders’ equity |
961,196 | 901,397 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,118,516 | $ | 1,079,374 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue | $ | 136,832 | $ | 113,612 | $ | 263,508 | $ | 222,081 | |||||||||||||||
Cost of revenue(1) |
13,676 | 12,759 | 27,226 | 25,912 | |||||||||||||||||||
Gross profit | 123,156 | 100,853 | 236,282 | 196,169 | |||||||||||||||||||
Operating expenses(1): |
|||||||||||||||||||||||
Research and development | 23,240 | 19,958 | 45,814 | 41,889 | |||||||||||||||||||
Sales and marketing | 34,367 | 30,201 | 69,611 | 64,656 | |||||||||||||||||||
General and administrative | 10,103 | 8,966 | 19,358 | 18,213 | |||||||||||||||||||
Restructuring and impairment charge |
2,304 | 7,936 | 2,304 | 7,936 | |||||||||||||||||||
Total operating expenses | 70,014 | 67,061 | 137,087 | 132,694 | |||||||||||||||||||
Income from operations | 53,142 | 33,792 | 99,195 | 63,475 | |||||||||||||||||||
Other income, net | 9,029 | 5,903 | 16,145 | 10,742 | |||||||||||||||||||
Income before income taxes | 62,171 | 39,695 | 115,340 | 74,217 | |||||||||||||||||||
Provision for income taxes | 18,017 | 9,093 | 29,809 | 15,209 | |||||||||||||||||||
Net income | $ | 44,154 | $ | 30,602 | $ | 85,531 | $ | 59,008 | |||||||||||||||
Net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||||||||
Basic | $ | 0.24 | $ | 0.16 | $ | 0.46 | $ | 0.30 | |||||||||||||||
Diluted | $ | 0.22 | $ | 0.15 | $ | 0.43 | $ | 0.28 | |||||||||||||||
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||||||||
Basic | 186,252 | 193,112 | 185,933 | 193,813 | |||||||||||||||||||
Diluted | 200,407 | 209,014 | 199,818 | 210,681 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cost of revenue | $ | 2,661 | $ | 2,278 | $ | 5,555 | $ | 4,739 | |||||||||||||||
Research and development | 5,447 | 2,538 | 10,131 | 5,794 | |||||||||||||||||||
Sales and marketing | 6,808 | 2,697 | 13,394 | 8,692 | |||||||||||||||||||
General and administrative | 2,952 | 2,288 | 5,878 | 4,577 | |||||||||||||||||||
Restructuring | — | 3,646 | — | 3,646 | |||||||||||||||||||
Total stock-based compensation expense | $ | 17,868 | $ | 13,447 | $ | 34,958 | $ | 27,448 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net income | $ | 44,154 | $ | 30,602 | $ | 85,531 | $ | 59,008 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 2,613 | 2,604 | 5,175 | 5,208 | |||||||||||||||||||
Deferred income taxes | 204 | — | 204 | — | |||||||||||||||||||
Stock-based compensation, net of amounts capitalized | 17,868 | 13,447 | 34,958 | 27,448 | |||||||||||||||||||
Non-cash lease expense | 470 | 540 | 951 | 1,077 | |||||||||||||||||||
Accretion of discount on marketable securities, net | (3,008) | (1,495) | (5,368) | (1,794) | |||||||||||||||||||
Amortization of deferred contract costs | 2,033 | 2,063 | 4,759 | 4,730 | |||||||||||||||||||
Impairment of long-lived assets |
2,304 | — | 2,304 | — | |||||||||||||||||||
Other | 414 | 6 | (122) | 127 | |||||||||||||||||||
Changes in operating assets and liabilities: |
|||||||||||||||||||||||
Accounts receivable | (4,106) | (4,388) | (23,478) | 9,644 | |||||||||||||||||||
Prepaid expenses and other assets | 9,488 | (13,093) | 19,948 | (10,504) | |||||||||||||||||||
Deferred contract costs | (1,785) | (1,238) | (3,216) | (2,448) | |||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 7,396 | (8,740) | (5,546) | (8,063) | |||||||||||||||||||
Deferred revenue | (9,161) | (6,831) | (5,457) | (13,753) | |||||||||||||||||||
Operating lease liabilities | (538) | (579) | (1,054) | (582) | |||||||||||||||||||
Net cash provided by operating activities | 68,346 | 12,898 | 109,589 | 70,098 | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Purchases of property and equipment | — | (41) | — | (111) | |||||||||||||||||||
Internal-use software development costs | (1,543) | (1,238) | (3,247) | (2,732) | |||||||||||||||||||
Purchases of marketable securities | (197,395) | (144,942) | (367,808) | (180,226) | |||||||||||||||||||
Maturities of marketable securities | 215,855 | 96,119 | 417,913 | 212,768 | |||||||||||||||||||
Sales of marketable securities | 7,241 | — | 7,241 | 37,525 | |||||||||||||||||||
Net cash provided by (used in) investing activities | 24,158 | (50,102) | 54,099 | 67,224 | |||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants |
7,692 | 3,933 | 10,243 | 7,218 | |||||||||||||||||||
Proceeds from issuance of common stock in connection with the employee stock purchase plan | 1,422 | 1,494 | 1,422 | 1,494 | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (5,828) | (2,120) | (8,222) | (4,084) | |||||||||||||||||||
Repurchase of common stock | (22,984) | (164,429) | (74,198) | (186,184) | |||||||||||||||||||
Payment of contingent consideration related to a business combination | — | — | (5,470) | (5,390) | |||||||||||||||||||
Net cash used in financing activities | (19,698) | (161,122) | (76,225) | (186,946) | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 72,806 | (198,326) | 87,463 | (49,624) | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 111,442 | 306,729 | 96,785 | 158,027 | |||||||||||||||||||
Cash and cash equivalents, end of period |
$ | 184,248 | $ | 108,403 | $ | 184,248 | $ | 108,403 | |||||||||||||||
Supplemental disclosures of cash flow information | |||||||||||||||||||||||
Cash paid for taxes, net of refunds |
$ | 9,078 | $ | 29,438 | $ | 21,985 | $ | 29,438 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Net income | $ | 44,154 | $ | 30,602 | $ | 85,531 | $ | 59,008 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Stock-based compensation | 17,868 | 9,801 | 34,958 | 23,802 | |||||||||||||||||||
Depreciation and amortization | 2,613 | 2,604 | 5,175 | 5,208 | |||||||||||||||||||
Provision for income taxes | 18,017 | 9,093 | 29,809 | 15,209 | |||||||||||||||||||
Restructuring and impairment charge |
2,304 | 7,936 | 2,304 | 7,936 | |||||||||||||||||||
Change in fair value of contingent earn-out consideration liability | 221 | 47 | 423 | 316 | |||||||||||||||||||
Other income, net | (9,029) | (5,903) | (16,145) | (10,742) | |||||||||||||||||||
Adjusted EBITDA | $ | 76,148 | $ | 54,180 | $ | 142,055 | $ | 100,737 | |||||||||||||||
Revenue | $ | 136,832 | $ | 113,612 | $ | 263,508 | $ | 222,081 | |||||||||||||||
Net income margin | 32.3 | % | 26.9 | % | 32.5 | % | 26.6 | % | |||||||||||||||
Adjusted EBITDA margin | 55.7 | % | 47.7 | % | 53.9 | % | 45.4 | % |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 68,346 | $ | 12,898 | $ | 109,589 | $ | 70,098 | |||||||||||||||
Purchases of property and equipment | — | (41) | — | (111) | |||||||||||||||||||
Internal-use software development costs | (1,543) | (1,238) | (3,247) | (2,732) | |||||||||||||||||||
Free cash flow | $ | 66,803 | $ | 11,619 | $ | 106,342 | $ | 67,255 | |||||||||||||||
Other cash flow components: | |||||||||||||||||||||||
Net cash provided by (used in) investing activities | $ | 24,158 | $ | (50,102) | $ | 54,099 | $ | 67,224 | |||||||||||||||
Net cash used in financing activities | $ | (19,698) | $ | (161,122) | $ | (76,225) | $ | (186,946) |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
(in thousands, except per share data and percentages) | |||||||||||||||||||||||
GAAP cost of revenue | $ | 13,676 | $ | 12,759 | $ | 27,226 | $ | 25,912 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Stock-based compensation | (2,661) | (2,278) | (5,555) | (4,739) | |||||||||||||||||||
Amortization of acquired intangibles | — | (137) | — | (274) | |||||||||||||||||||
Non-GAAP cost of revenue | $ | 11,015 | $ | 10,344 | $ | 21,671 | $ | 20,899 | |||||||||||||||
GAAP gross profit | $ | 123,156 | $ | 100,853 | $ | 236,282 | $ | 196,169 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Stock-based compensation | 2,661 | 2,278 | 5,555 | 4,739 | |||||||||||||||||||
Amortization of acquired intangibles | — | 137 | — | 274 | |||||||||||||||||||
Non-GAAP gross profit | $ | 125,817 | $ | 103,268 | $ | 241,837 | $ | 201,182 | |||||||||||||||
GAAP gross margin | 90.0 | % | 88.8 | % | 89.7 | % | 88.3 | % | |||||||||||||||
Non-GAAP gross margin | 91.9 | % | 90.9 | % | 91.8 | % | 90.6 | % | |||||||||||||||
GAAP research and development expense | $ | 23,240 | $ | 19,958 | $ | 45,814 | $ | 41,889 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Stock-based compensation | (5,447) | (2,538) | (10,131) | (5,794) | |||||||||||||||||||
Non-GAAP research and development expense | $ | 17,793 | $ | 17,420 | $ | 35,683 | $ | 36,095 | |||||||||||||||
GAAP sales and marketing expense | $ | 34,367 | $ | 30,201 | $ | 69,611 | $ | 64,656 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Stock-based compensation | (6,808) | (2,697) | (13,394) | (8,692) | |||||||||||||||||||
Amortization of acquired intangibles | (1,061) | (1,061) | (2,122) | (2,122) | |||||||||||||||||||
Change in fair value of contingent earn-out consideration liability | (221) | (47) | (423) | (316) | |||||||||||||||||||
Non-GAAP sales and marketing expense | $ | 26,277 | $ | 26,396 | $ | 53,672 | $ | 53,526 | |||||||||||||||
GAAP general and administrative expense | $ | 10,103 | $ | 8,966 | $ | 19,358 | $ | 18,213 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Stock-based compensation | (2,952) | (2,288) | (5,878) | (4,577) | |||||||||||||||||||
Non-GAAP general and administrative expense | $ | 7,151 | $ | 6,678 | $ | 13,480 | $ | 13,636 | |||||||||||||||
GAAP operating expense | $ | 70,014 | $ | 67,061 | $ | 137,087 | $ | 132,694 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Stock-based compensation | (15,207) | (7,523) | (29,403) | (19,063) | |||||||||||||||||||
Amortization of acquired intangibles | (1,061) | (1,061) | (2,122) | (2,122) | |||||||||||||||||||
Change in fair value of contingent earn-out consideration liability | (221) | (47) | (423) | (316) | |||||||||||||||||||
Restructuring and impairment charge |
(2,304) | (7,936) | (2,304) | (7,936) | |||||||||||||||||||
Non-GAAP operating expense | $ | 51,221 | $ | 50,494 | $ | 102,835 | $ | 103,257 | |||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
(in thousands, except per share data and percentages) | |||||||||||||||||||||||
GAAP operating income | $ | 53,142 | $ | 33,792 | $ | 99,195 | $ | 63,475 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Stock-based compensation | 17,868 | 9,801 | 34,958 | 23,802 | |||||||||||||||||||
Amortization of acquired intangibles | 1,061 | 1,198 | 2,122 | 2,396 | |||||||||||||||||||
Change in fair value of contingent earn-out consideration liability | 221 | 47 | 423 | 316 | |||||||||||||||||||
Restructuring and impairment charge |
2,304 | 7,936 | 2,304 | 7,936 | |||||||||||||||||||
Non-GAAP operating income | $ | 74,596 | $ | 52,774 | $ | 139,002 | $ | 97,925 | |||||||||||||||
GAAP net income | $ | 44,154 | $ | 30,602 | $ | 85,531 | $ | 59,008 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Stock-based compensation | 17,868 | 9,801 | 34,958 | 23,802 | |||||||||||||||||||
Amortization of acquired intangibles | 1,061 | 1,198 | 2,122 | 2,396 | |||||||||||||||||||
Change in fair value of contingent earn-out consideration liability | 221 | 47 | 423 | 316 | |||||||||||||||||||
Restructuring and impairment charge |
2,304 | 7,936 | 2,304 | 7,936 | |||||||||||||||||||
Income tax effect of non-GAAP adjustments (1) |
(4,505) | (3,986) | (8,359) | (7,235) | |||||||||||||||||||
Non-GAAP net income | $ | 61,103 | $ | 45,598 | $ | 116,979 | $ | 86,223 | |||||||||||||||
Non-GAAP net income margin | 44.7 | % | 40.1 | % | 44.4 | % | 38.8 | % | |||||||||||||||
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||||||||
Basic | 186,252 | 193,112 | 185,933 | 193,813 | |||||||||||||||||||
Diluted | 200,407 | 209,014 | 199,818 | 210,681 | |||||||||||||||||||
Non-GAAP net income per share attributable to Class A and Class B stockholders: | |||||||||||||||||||||||
Basic | $ | 0.33 | $ | 0.24 | $ | 0.63 | $ | 0.44 | |||||||||||||||
Diluted | $ | 0.30 | $ | 0.22 | $ | 0.59 | $ | 0.41 | |||||||||||||||