Doximity, Inc. (DOCS) Earnings Call Transcript & Summary

Not exactly sure if it's 8:40 yet, but we'll get started. For those of you who don't know me, I'm Cindy Motz. I'm the healthcare technology analyst here at Goldman Sachs, and we are thrilled to have Doximity here with Chief Financial Officer, Anna Bryson. So -- and thank you all for coming. We really appreciate your coming for these 4 days, and this should be a great presentation. So why don't we start, Anna? Maybe people don't know about Doximity. Just give us a little bit of a background history maybe what your mission is, just for those who may not be familiar with the company.

Sure. And thank you for having me. It's a lovely location. So very happy to be here. Yes. So Doximity, it's really our mission to help physicians be more productive in order to provide better care for their patients. So that's, first and foremost, our core goal here. Now we started out really as a LinkedIn for doctors. We started out as pretty much the place where a doctor could have their profile. A lot of doctors called it their online glory wall, right? So it was all of their credentials where they went to college, all of their publications, et cetera. And they were able to use it to network with other doctors, find jobs, send referrals via secure messaging, et cetera. So that's really how it started. And over time, it's evolved into more of a Bloomberg for doctors. So we really focused on where can we solve the key pain points for physicians. And we've learned more and more that one of the biggest pain points is communication, right? Like physicians are still using the fax machine, which is crazy. Like why is the one profession that's the busiest and their time is most important is still using the fax machine. So for us, we're really focused on building out our workflow tools. So we focus a lot on having a suite of products such as telehealth, digital fax, digital signature, now scheduling with Amion, where physicians can essentially swap shifts all by our mobile app. So that was something that we've really focused on because what we're aiming to do here is make that physician more productive to provide better care for their patients.

Right. And I think you have like 80% of the doctor universe, 90% of the medical students, residents, nurse practitioners or 50% may be there, so you have the right eyeballs. But maybe we'll go into the different parts of the business. Talk about a lot of your models online advertising for the pharmaceutical companies, med tech companies. Maybe we could start to get into some of the core businesses there. So maybe talk to us about how they find having access to that doctor network very valuable.

Sure. Yes. More than 80% of our revenue comes from a marketing solution. That's really our bread and butter. So what we're doing is we're connecting health systems and pharmaceutical manufacturers as well as med tech and diagnostic companies into our platform, so they can market to our physicians. And they can keep physicians up to date, the latest clinical trials, your cutting-edge research, new wings at a health system, for example, new life-saving treatments and life-saving drugs. So they're utilizing our platform in order to get their marketing content in front of physicians. And so with over 80% of physicians, it delivers a very high ROI for our customers. They're on average -- sorry, median, our median ROI for pharma manufacturers is over 10:1, and our median ROI for health systems is over 13:1. So they're realizing tremendous value, and we're really focused on making sure that their content is reaching the right physician at the right time.

Can you just talk a little bit more about how does that ROI? How do you guys measure that? Is it in terms of case studies? How do you know -- and in the past, it's actually gone up even higher than that 10:1 in certain quarters. Just tell us a little bit more about how you measure that.

Sure. It's pretty scientific. So on the pharmaceutical manufacturing side, we work with IQVIA, which has third-party claims data. And essentially, what they're doing is we're able to measure the prescription lift of the physicians that saw the content versus the control group of the physicians that did not see the content. So we're pretty scientifically able to measure that via IQVIA claims data. On the health systems side, we use LexisNexis. And we're also similarly able to measure the referral lift from the doctors that saw the content versus the doctors that did not see the content.

Okay. Great. And then just stepping back a little bit because there's been this transition to digital and online advertising, but health care has been way behind. How is that going? And do you think that it's -- we sometimes get questions that, yes, it was great. COVID, everyone took advantage of that. But do you see that slowing down? Or is it just -- are we in the early stages there?

Yes, sure. We're certainly in the early stages. I think pre-pandemic of the data we have is that health care spent maybe 17% of their budgets digitally. During the pandemic, we like to say that we think pharma and health systems really did 3 years' worth of shifting to digital in 1 year for the past 2 years. But today, that still means that there are only about 25%, maybe to 30% of their total spend is digital. There's still so many dollars spent on sales reps. And the same sales reps that no longer are able to get into doctors' offices during the pandemic. And I think what we've seen is habits have permanently changed, both on the physician side and the way they want to consume their content and then also on the customer side, where they've been hesitant to try digital. Obviously, this is a regulated industry. These are slow-moving ships. And the last 2 years really forced them to adopt more digital strategies, and what they've seen is the ROI of digital is incredibly high. And especially as we go forward, while we don't believe that we're going to see 3 years worth of shifting to 1 year, we're going to maybe more see kind of a steady 1-year worth of shift in 1 year. We think that in the next 5 to 10 years, digital should be 50% of their overall spend.

And have you seen -- you haven't really seen much of a slowdown, I would think. I mean we can talk about the quarter a little bit later. But in general, that's not something that you have seen any sort of a slowdown with?

From a demand perspective, demand remains strong. I mean, we saw once again a massive acceleration in demand the last 2 years. So we're not seeing that same acceleration in demand, but our demand remains really strong. I mean, if anything, we actually had our Physician Advisory Board, our first -- sorry, our Pharma Advisory Board. We also had our Physician Advisory Board, but our Pharma Advisory Board about a month ago, so it was our first time getting together with our pharma clients live. And in that meeting, what we heard more and more was that they're so grateful to have the platform that Doximity is to be able to get their messages across digitally. And so if anything, they're leaning into digital now just as much as they ever have before. But that said, listen, there are some live events happening. Sales reps haven't gone away. They're still important to the process, and we're not seeing this massive acceleration, but we're still seeing that one-way street demand shift.

Sure. And maybe that's -- we can talk about the mega brands because some of the things that were happening recently, you're getting larger accounts, you had $4 million, $5 million accounts that you've never seen before, and now you have mega brands. So can you just talk to us about some of these mega brands and how you see that sort of evolving in the future?

Sure. So we like to use mega brands as a decent proxy for TAM. The definition of a mega brand is essentially a brand with over $100 million in U.S. sales. And I say a decent proxy for TAM because there are a ton of brands that aren't in that bucket that do market on our platform because they're launching. So imagine if you're launching, you have $0 in sales, you're marketing very heavily at that point. So these mega brands aren't a perfect proxy for TAM, but they're a decent proxy for TAM. So about a year ago, there were around 350 mega brands in the U.S. That's grown at about 18% over the last year. So as of this past year, there's about 415 mega brands in the United States. And I think what's interesting is that, that is actually growing on an absolute number of brands basis, faster than we're actually able to sign up those brands. So that universe of mega brands grew faster than the number of mega brands that we signed up last year. So that, I think, just speaks to the opportunity that we have ahead, and the FDA pipeline has never been stronger. So it speaks to the opportunity that we have ahead with our TAM there. And I think the other thing with the mega brands that's interesting is historically, it's been very concentrated in the top 20 pharmaceutical manufacturers. And over time, what we've seen more and more in the past few years, especially as medicine becomes more specialized and sub-specialized, we've seen non-top 20 really take share there. So non-top 20 was maybe about 30% of the mega brands 3 or so years ago. As of today, non-top 20 is about 40% of the mega brands. So we see a huge opportunity there in non-top 20 where we're not as penetrated to go after for the longer tail. And I think Jeff spoke to the Biohaven NURTEC example on our earnings call, where many of these new brands are launching with a digital-first strategy. So these brands don't have this preconceived sales force that they have to worry about laying off or this preconceived marketing strategy that's so ingrained in the sales reps. They're able to launch this new drug and really start from scratch. And we're seeing a lot of digital first launches. So that's another thing that I think is really interesting as this universe of mega brands expands.

Well, that's interesting, too, because in the past, I think you've given your TAM at about $18.5 billion, but this is much larger than, like we're talking like several times larger, like in the $40 billion or something.

Well, this is a subset. So this is maybe about $7 billion of TAM or so just focusing on the pharma HCP market because they're only spending a portion of what the revenue is on, on marketing doctors.

Okay. No, no. That sounds very interesting. So okay, so we get a lot of questions about, yes, the online advertising part of the business, but we do get questions on your other parts of the business, the staffing as well as the telehealth parts of the business. So maybe you could just talk a little bit about that.

Sure. Yes, as I mentioned earlier, marketing is over 80% of our business. Telehealth is less than 5% of our business, and then hiring kind of makes up the remainder there. So kind of just to level set on that. But yes, those other parts of our business are doing really well. Hiring was actually our very first business at Doximity. I mean that was one of the kind of core points of the LinkedIn for doctors is to help them find jobs. And for us, we've had a lot of success there, especially as we've expanded into the locum space. So locums is really gig docs, so it's temporary physician staffing. And in the same way, we all love being more hybrid. So do doctors, if a doctor is a week off, they might want to go do a shift on the cruise ship and make a ton of money. And that's something that we've seen a lot of success with. So the locum space, we actually reported last quarter, our Curative business grew over 100%. So we're seeing a ton of success there, especially as we have the tech advantage, right? We have a stable of physicians. So we have a tech advantage into kind of a more white glove recruiting system. So that's on the hiring side. On the telehealth side, our -- we never expect telehealth -- I'll level set we never expect our enterprise telehealth offering to be more than 5% of our revenue. And that was very intentional for us. We find a lot more value in growing our footprint and the utilization of our telehealth tool and making sure it's very accessible. And that then helps the flywheel effect of our business and is indirectly helpful to our marketing solution. So we're all really proud of the fact that we had a 99% renewal rate for telehealth. We were just ranked best-in-class. We're much more focused on that being kind of a product that's accessible to as many physicians as possible.

Right. And it keeps the doctors on the platform longer. It helps them. They seem to like it. So that's great. So the macro environment, we talked a little bit about possible, not being as much acceleration, but are you seeing anything in particular? You didn't feel like you were maybe there. Obviously, everybody is dealing with labor, wage, some wage inflation, people coming back to work, you mentioned. But when you look at the macro horizon, are you worried about anything in particular related to Doximity or...

I think for us, we actually feel pretty good about our relative position in the macro environment, and that's because as we've seen before, we're dealing in an industry, mostly pharma, that's recession-resistant. We also can look back and see the chart in 2008. And I mean like if you look at pharma eye shares, I think Perry and I were just might be surprised to see that it's still close to all-time highs, right? It's a very, very healthy industry. And if anything, I think the first thing to go if there is a recession for example, I'm sure we're all going to be more prudent in a recession, of course. I'm not going to pretend they're just going to spend that kind of money. The first thing to go won't be 10:1 ROI digital, like they'll become more prudent on their investments and probably channel it to the most cost effective and that is channels like Doximity at 10:1 ROI. So we're not really concerned there. On the labor inflation side, I think inflation, we have a pretty low-cost business. We're able to generate 40%-plus adjusted EBITDA margins and similar free cash flow. So not as concerned on the wages side. On the labor side, actually, I think we're, if anything, excited about the opportunity that we have to attract top talent to Doximity as we're seeing the industry really shift, and we're seeing a lot of companies have to do layoffs. I think it's an opportunity for us to get some of those top engineers that we would have had to compete very heavily with before and our financial profile allows us to do so.

That's great. And we've heard that from other companies, too, that maybe it's easing up a little bit. You're able to get some better people. So that's excellent. And one of the things we heard on the call, some people were asking about biotech funding, like if that's affecting you at all. It didn't seem to be affecting some of the other companies. I think Veeva was asked the question. But yes, so you're not seeing that either. You deal with the larger brands, for the most part.

Correct. Yes.

Okay. No, so that's great. So now we're going to turn to the quarterly results. Obviously, since you've been public, you've delivered some very strong results. For the year, 66% revenue growth, 132% organic growth in EBITDA. Obviously -- and your GAAP EPS was even very strong. You announced a buyback. Everything seemed to be pretty good. In general, the one thing that maybe surprised people was your guidance for the current quarter. So is it seasonality? I mean is it what you expected now we're getting -- we're well into June? Do you still feel the same way as it seasonality? Just any color on that?

No, sure, I'm glad you asked about it. I think it's important to kind of level set how our business works. There is a component of our business that when a customer books a program, it doesn't just turn on and start the launch right away, so recognizing revenue right away. We're in an industry that's highly regulated. Every piece of content has to go through med legal review. We actually have an entire team of medical writers that write the content, and that's by design, not to make sure we keep it clinical and looking very similar to other content in the field so that physicians are more likely to engage. So there's a component of -- things have to launch. And it's not just you flip the switch, renewal happens and we start recognizing revenue right away. So what we've seen historically is some seasonality really around kind of the spring time. Jeff called them the Spring Break effect. What it really is, is just pharma doing a lot of their annual meetings. So when we're all at a conference like this for a week, we're not sitting in front of our computer and going through in-depth med legal reviewing every piece of content. So there's a little bit of a delay there. So we've seen that historically. About 3 years ago, we saw an 18% decline between Q4 and Q1. About 2 years ago, we saw about a 9% decline in our subscription revenue between Q4 and Q1. And then last year, we were in the height of the pandemic. So everyone was in their seat, improving things really quickly. So we saw the opposite. We saw about a 9% increase. And then this year, we're kind of seeing some of that seasonality reemerge. Some of the historical seasonality is reemerging as now live events are happening again. And it was kind of a perfect storm, I'd say, of the pandemic ending very abruptly here. And I like to believe that ending is what I'm going to go for there, ending very roughly, the flurry of live events happening. And that's kind of contributed to some of the historical seasonality that we're seeing now reemerge. Going forward, though, I think if you just look at the trend, the 18%, the 9%, now the 4% or so, we're getting increasingly efficient at working with our customers and launching those programs. So I think you'll see much probably a little bit of seasonality around annual launches but much less pronounced going forward.

That's good. So -- and can we assume you're comfortable with your guidance for the quarter and the year and no change?

Sure. When we think about our guidance, as we've said on our earnings call, because we're selling subscriptions, we have about 60% of our subscription-based annual guidance already under contract as of the beginning of the fiscal year, so as of April 1. So that's pretty much locked and loaded. Then we expect about 35% to come from renewals and upsells of existing customers and then only about 5% to come from truly new customers that we've never worked with before. And that's very consistent with what we've seen in prior years. So we have decent line of sight into about 95% of that subscription-based guidance that we gave on our call. So yes, we feel good about the year.

Right. And the renewals, that's sort of just a process, an ongoing process, right, with your contracts in different [indiscernible]?

Exactly. I mean we have a deep relationship with these customers where if they've been working on our platform to 1 ROI, they're very likely to renew. And in many cases, most cases, they're likely to upsell as well. So they're likely to maybe they start with 1 module just, say, a standard news module in our feed, and then maybe the next year, we upsell them with a video module as well because that helps increase their reach because just like we're all different in how we want to consume, some doctors are more interested in reading kind of more of the long-form article and some are more interested in a 30-second video. So that actually helps increase the ROI because it helps increase the reach and engagement. So we're able to upsell additional modules for many of our customers there. And then also they increase audience sizes, there's multiple vectors we could upsell customers.

Right. And your net revenue retention rate was, I mean, at one point, even 171% for the year, I think it was 150%. I mean longer term, like have you given any guidance? Where do you see that going? And also, when you approach the sales process, do you go in and you just work with maybe a single brand manager? Are you going higher up if you don't -- I mean, if you can give us any color on that. And then do they expand it? I guess it depends on the pharma company.

Yes, I'll answer the last part of your question first. Yes. Landing the first brand at a pharma company is always the hardest. So we get that MSA signed, so that every additional brand is just simply an SOW. So we land that first brand, we do a program with them. It's a year-long program, measure the ROI, which maybe takes about 6 months because we need time to see the prescription lift. And then after that 18 months, we're really able to use our ROI as our selling tool, and we're able to expand to other brands. Like we used to joke pre-pandemic phase, our sales rep was able to simply walk across the hall and sign up other brands because of the ROI-based selling. So we're able to expand there. But it really is a brand manager by brand manager decision like that is something that's very important for pharma, and it's led to a little bit more fragmented buy in some cases because sometimes we'll have investors who'll ask, why aren't you just at 100% of this one company? And it's just not that simple. It's just not that simple, and it takes time. And we'll get there, but it takes time.

Well, also may be siloed. You never know what you're walking into, right? Sometimes it's like there's competition between maybe the brand manager so you know...

Yes.

So I mean, everybody wants to do well, but you never know what you're walking into different clients. And the other thing, too, is a lot of people didn't realize at least I didn't realize you deal with pharma clients, but you're working with med tech, too. You can make brochures. Just tell us a little bit about that because I was surprised at your graphic design capabilities and everything else that you're doing.

Yes, I think -- so med tech is interesting because it's a space that hasn't been as -- it hasn't been as logical for med tech to market our platform historically. And the reason is, in many cases, med tech is -- that's a device in many cases. So the doctor has to see and he has to feel it. It's a very -- it's actually a very sales rep-oriented selling process and a lot of times we're selling to hospital procurement, which makes a ton of sense. What we've done is because we have this great team of HTML content producers, we've actually helped our med tech customers create 30-second short-form videos on how the device works. And in many cases, that's almost as good as seeing it in person, right, seeing the live demo in person. So we've had a lot of success with med tech being attracted to our video product and buying more and more events with diagnostic companies. So we actually have announced over this last year, we have 2 7-figure clients in the med tech and diagnostics space. So we're certainly seeing a ton of traction there. That said, once again, pharma is our largest opportunity, but it's a nice add.

Sure. No, absolutely. Yes. Even at our private conference, we were talking to people with virtual reality, then somebody was an orthopedic surgeon was able to make training with virtual reality. You wouldn't think that there's not enough cadavers or whatever, they need more hours. So it's great. And so one of the things I still get like who do you see as your competitors? Because I -- there's not really a direct competitor that I have seen that's in the doctor space that's doing all the different things that you're doing. But who do you consider your competitor?

Yes, it's a good question. On the network side, I think we have very strong competitive moats. There's no one else out there that is doing what we're doing from a place for news feed, network connection and then workflow suite, like there's nothing else out there that exists. And that's why we have over 80% of physicians, over 90% of graduating med students and over 50% of MPs and PAs as members on our platform. So on the network side, there's nothing that's all encompassing, like we can name a bunch of different fragmented parts and pieces together, but there's nothing that's all encompassing. On the business side, it's a little bit different. There's a couple of players in the space. A lot of like online medical journals is a good example, too. And during the pandemic, what our customers -- what we've heard from our customers is that they adopted a very widespread digital strategy. So they put their dollars to as many different digital options as they could. And what we're seeing now is now they've had 2 years to really see, okay, which one of these marketing platforms have -- we've seen the highest ROI from and they're funneling those dollars there. So what we're hearing more and more from our customers is that not only is the digital pie growing, but we're actually gaining share within digital because of the high ROI.

Yes. And I would think that since we are having that overall transition, even if there are some like [Indiscernible] taking a little bit or it's a very small, a different kind of company, though, certainly going for maybe more generics or different things like that or properties in the sort of business space that there would be enough room for more than one player.

Sure. Yes. I think -- but I think what we've seen from pharma, for example, when I think if you look at Veeva IQVIA, it is an industry that's okay with dominant players, and it's -- I think the -- especially with something newer like digital, they want to be with something that they're getting consistent returns with and is really a key strategic partner. So I do think it will emerge over time where it is an industry with maybe there's 1 or 2 dominant players.

Great. So in general, I mean, you don't have that much competition. You have a great TAM. You seem like your numbers are very, very strong. What do you think people are missing about Doximity? And then secondly, what is your best -- what are you most proud of in the company? That's 2 big ones.

I'll start with the most proud of. I think -- I know, obviously, we're running a business here. But at the end of the day, our ability, especially over the past 2 years, to help our physician members, and in turn, help the general public is something that we're incredibly proud of. So for example, when the pandemic started, we didn't actually have a video telehealth tool. We had a voice telehealth tool. We didn't have a video telehealth tool. We spun that up within 30 days and gave it away for free. So our doctors could reach patients. And we made it as patient-friendly as possible. So no download needed, which was a big hurdle for older patients in the pendemic. We added the ability to add an interpreter, which was a big hurdle for non-English-speaking patients during the pandemic. So I think we're just really, really proud of our ability to help in the last 2 years and make these physicians who are now really mobile workforce in many cases, allow them to still conduct their jobs from home. So I'd say that's the thing we're the most proud of probably on the patient side. On the biggest misconception side, I think there is a misconception that because we have over 80% of U.S. doctors, how do you grow? And I think those who understand our story better, we're an average revenue per user story. We're not a pure user growth story. And I think that's just very important to get across. We have a ton of room for growth in our average revenue per user. And we have the ability to expand within these pharmaceutical manufacturers and within these health systems and continue to add new modules over time. So I think that's, I would say, the one of the things that's the biggest misconception. The other thing that I'd say is probably the most underappreciated is just our financial profile. I think if you actually look at the universe, especially as we're going into this uncertain period from a macro perspective, if you look at the universe of companies that have over 30% revenue growth, over 85% gross margins and over 40% adjusted EBITDA margins, it's a really, really small space. And so for us, I think our financial profile is something that I think might be a little bit underappreciated.

Right. Well, even your EBITDA margins, like at one point, it seemed like people were just stuck like thinking it was going to be in the 30% range last year, and then you kept going over 40. You almost hit 48%. So your guidance, in general, you said over 40%, but you are doing over, 41%, 42%. And then longer term, could you see yourself because your gross margins are actually almost 90%. I mean, could you see that ticking up to -- staying in the mid- to high 40% range over 5 to 10 years?

Sure. I mean we haven't necessarily commented on that publicly. But what I will say is that we generate most of our revenue from these very low friction upsells and renewals. And we are mostly a people-oriented business, and we have over 800 employees. And so we don't need a ton of incremental investment to be able to grow our top line. I mean we've done a really good job, I think, building out the product over the past 10 years and making it as sticky as possible for our physician members and then also we have these deep relationships within health systems and pharma that really don't take a ton of sales rep activity on our end in order to continue to grow. So yes, I mean I think north of 40% is absolutely something that we'll be able to maintain for the long term.

Right. And you do have an excellent cash position as well. I mean I think you have about $800 million, you're going to go to close to $1 billion, maybe not there. You have a buyback in place. Could you see that -- I mean, again, I know you haven't commented on it, but how do you see that rolling out? Maybe we could get into the M&A landscape. I've asked that of most companies. Like is that of interest? I know you've done Amion, but just how that might play out?

Sure. Yes. I mean, like, I think it goes back to the fact that, first and foremost, we see our organic opportunity for growth as massive. And so we're not interested in acquisitions for revenue. What we are interested in is acquisitions for products. So Amion's a great example. For those who might not know, Amion is a physician scheduling tool. So it's not patient scheduling, but it gives the ability to the physician to check when they're on call, swap shifts with other physicians, et cetera. So it's really kind of a daily use case for many physicians. So it fits in really nicely with our physician cloud that we're building out and suite of workload tools. So yes, I think for us, from an M&A perspective, we're constantly looking at that. I mean Nate has never been -- our Chief Strategy Officer, has never been busier. And if the right opportunity comes along, yes, we'd be interested in it. But it's also a build-versus-buy question. And I think we have proved over the past decade that we're a company that does a pretty good job building. And I think the best example, once again, is the telehealth product, like we were able to roll that out within more than 30 days, and our network allows us a lot of optionality to do things like that. So I want to think of M&A as a key growth driver for us by any means.

And partnerships in general, like you sort of you're doing it yourself. So I guess there's always things on the table. But again, it's more you guys are not self-contained, but you've sort of...

Well, we have our 50 API partners. We have a partnership with U.S. News, where we're the exclusive polling booth for the U.S. News World ranking for the best hospitals. So they used to do a lot of that via paper ballot. And now you can only vote on Doximity, which was a really nice add for us in our strengthening partnership. So yes, we're very focused on -- partnerships are very important for us, absolutely. So we'll continue to lean in there.

It's great. Okay. So what -- and I guess for 2023 or 2022, and then your year-end is March, so 2023, what are you most excited about? What's the thing that we -- or the catalyst, what should we look forward to?

Sure. I mean, high level, obviously, it's continuing to provide these and enhance these tools for our physician members. But I think one thing that we're looking forward to is -- and kind of back to the misconception question is that while we absolutely were a pandemic beneficiary, like we are not pretending we weren't, we saw a huge acceleration of demand during the pandemic, we're not just a pandemic only growth story. Like this shift to digital is happening. It's real. There's still so much room to grow. It's a one-way street. So I think what we're really excited about is the ability to continue aiding our customers in that shift to digital and continuing to invest in our suite of modules and continue to build out new modules for our customers. I think Jeff highlighted 1 or 2 on the earnings call. But I think that's a key focus point is really working with our customers as they kind of, I'll call like the last few years, Phase 1 of digital shifts like as they enter the Phase 2 of the digital shift.

That's great. And you had said at one point, what keeps you up at night was like keeping doctors engaged, but you have these incredible physician panels. Is there anything else? Like what -- so it sounds like things are going pretty well, but is there anything that keeps you up at night or...

Well, I'm glad you brought up the physician panels. I think one thing that's been critical to our success at Doximity is that our physician members really do help inform our product road map. We do annual physician advisory board. We are luckily able to do our first one again in person about a month or so ago. And some of our best ideas for products have come from our physician members. So I think treating it more like a partnership with our members has really helped us as we've kind of continued to grow our network and grow the engagement of our network.

With the pharma panels, which I didn't even know you did, that could be a nice like sort of interaction as well.

Customer panels is our way to pharma, we do health systems on both the marketing and the hiring side. It's really important for us to be a key strategic partner for our customers, and that is something that we lean into heavily.

Great. Well, no, it sounds like things are going well. So maybe we have a few more minutes. I'll just look around if I can see if anyone has any questions or -- okay. Well, yes, I guess the last one then, I would just have -- you've been involved with Doximity for a while now. How do you see health care in general evolving, whether it's digital or whether it's for your business, but I asked this of a couple of companies. I'm just curious to see what everyone says across the board.

Yes. I think health care is obviously, it's very fragmented and it's very costly. And so at Doximity, what we're trying to do is in order -- by helping our physicians be more productive and saving them time, we think that ultimately, that provides less fragmented care. And then also, it provides cost savings in many cases. Like if you're a patient and you have a rare disease and you are being like batted around between specialists and doctors. And historically, a doctor might have only known 1 specialist in their rolodex to refer you to, and now you have a platform like Doximity, where you're able to connect with other doctors that could be across the world -- sorry not across the world, across the country and be a very unique specialty that can save the patient and save the industry money and making it so much more efficient that connection. So I think for us, that's what we're trying to do. We're not going to solve the entire of the issue, but I think that's our main goal.

Yes. Well, physicians first has kind of always been the mantra there. And I think -- I mean, we believe health care technology wins if you can enable physicians better patient outcomes and lower cost. So clearly, starting with physicians, physicians can't help the patients, then it doesn't really matter about the cost, results in better outcomes. So that's great. Well, thank you so much, and we really appreciate you being here, and thanks to all of you. So I guess we can stop there. But thanks again. Really appreciate it.

Thanks for having me. It's been so fun. Thank you.