Doximity shares double after IPO. Here’s how he plans to keep the momentum going.
The share of medical social networking site Doximity nearly doubled on its first day of trading on Thursday, valuing the company at $ 9.4 billion. Priced at $ 26 a share, the company’s shares were trading above $ 53 at the end of the day.
Doximity, which calls itself “LinkedIn for Doctors,” has grown at a rapid pace until this time. Despite having 1.8 million members, the company derives most of its money from companies seeking to recruit doctors or from pharmaceutical companies seeking to promote their treatments.
Its revenue grew double digits to $ 206.9 million in its most recent fiscal year, up 78% year-on-year. Its net profit of $ 50.2 million also rose 69%. But the company has remained mostly silent, having not raised any venture capital funds since 2014.
While Doximity boasts that 80% of physicians are its users, how will it keep pace with the growth? In an interview with MedCity News, co-founder and chief strategy officer Dr Nate Gross shared some of Doximity’s plans for the future:
Doximity’s plans for telehealth:
Before the pandemic, Doximity had a popular feature that allowed doctors to call patients from their cell phones. Last year, it added the ability for doctors to make secure video calls with a link texted to patients.
During the last quarter, 300,000 clinicians made video visits to the platform. Doximity also recruited paid subscribers for the feature, including more than 150 healthcare systems in March.
“This is something that we think shows that there is a real need for this type of product,” Gross said.
Doximity has provided additional features for its telehealth visits, including the ability to add an interpreter, as well as educational tools, such as extracting an image of an anatomical heart to help explain a condition to a patient. .
“We see a lot of opportunity and room for growth here,” he said.
How Doximity plans to grow its user base:
Since Doximity already has a large number of doctors among its current users, growth becomes more difficult. Gross pointed out that most medical students who graduate are members of Doximity, and there is an opportunity for the social network to expand to other medical professions, such as nurse practitioners and medical assistants.
In its prospectus, the company also mentioned opportunities to work with physiotherapists, dentists, psychologists and other specialists.
Why the company has reserved shares for doctors:
As part of its IPO, Doximity made an unusual move: it reserved around 15% of its shares for its user doctors.
So far, many of them seemed to have taken advantage of the offer. More than 10,000 doctors took part in the offer, Gross said.
“Our hope is to become the most physician-owned healthcare technology company,” he added.
About the competition:
In its prospectus, Doximity lists other social networks, such as LinkedIn and Facebook, as competitors. Gross said the company differentiates itself with its telehealth tools and verification process to ensure doctors have the credentials and license they claim.
“When you think of mainstream platforms, it’s not something that they have the capacity to do,” he said.
In many cases, what Doximity replaces are analog tools, such as calling a hospital operator to contact a doctor, or billboards and brochures for advertisers.
“A lot of what we compete with is this historic analog world that medicine has been in for the past two decades,” he said.