Specialist
Former board member at Doximity Inc
Agenda
- Doximity’s (NYSE: DOCS) operating environment, including digital health utilisation stickiness post-coronavirus
- Making platform sticky for physician users, including announced acquisition of Amion
- Potential attractive end-market adjacencies and user demographic expansion, highlighting growing nurse demographic and medical device opportunity
- Competitive moat from eventual competition and market position defensibility
- 2022 outlook – management and company culture commentary, and strategic assessments
Questions
1.
How would you outline Doximity’s current operating environment, including any recent trends or drivers post-IPO?
2.
One would assume the historically tight labour market and clinician burnout would serve as tailwinds for Doximity’s hiring solutions and medical staffing customers. Are there any other impacts on the business from the tight labour market, considering its user base, business model or otherwise?
3.
What are your thoughts on increasing digital marketing spend, particularly among pharmaceutical companies? Is the old model of sales reps pushing drugs on providers becoming increasingly outdated, and what’s the trickle-down effect on Doximity’s business?
4.
How has Doximity managed to get 80% of physicians and 90% of medical students on its platform? What makes its offering to physicians so unique?
5.
What are your thoughts on Doximity’s proposed tuck-in acquisition of Amion for USD 88m to acquire physician scheduling capabilities? How does this fit into the greater inorganic growth strategy of increasing the platform’s functionality and enhancing user stickiness?
6.
If we assume Doximity will continue the growth strategy to improve platform functionality inorganically, are there any other attractive bolt-on acquisitions to improve the platform’s usability and value proposition?
7.
Despite Doximity’s high user retention, there seem to be fairly low switching costs for providers to move from one platform to another. Considering this, how exposed is the company to provider churn, despite its first-mover advantage?
8.
What are the keys to enhancing patient engagement on Doximity’s platform? What is the company doing to better engage with its current user base, and how does this translate into more marketing spend and higher ROI for the advertiser customers?
9.
What is Doximity doing to increase membership and engagement with nurses? The company has about half of nurse practitioners on the platform, who are becoming an increasingly important demographic as labour shortages increase and wages skyrocket.
10.
How much of a risk are general declines in drugs under patent to Doximity’s pharma client revenue, given most pharma marketing spend is to promote visibility of new drugs still under patent?
11.
Could you compare the most attractive service offerings to expand into, and juxtapose Doximity’s relative market opportunity?
12.
President Biden has discussed shortening the FDA approval window before generics can be produced, which could lead to a significant rise in generic volumes. How might this potentially impact pharma spend on a platform such as Doximity? What might be the net-net effect of a higher mix of generics?
13.
Do you have any insight into the ROI advertisers are seeing on the Doximity platform?
14.
What are your thoughts on user adoption of Doximity’s telehealth offerings, and how should investors think about the product’s monetisation potential?
15.
You said Doximity is providing the telemedicine service for free. To what extent is there any competitive overlap with Teladoc or an Amwell, who are not providing the same service for free and don’t have the same penetration within the clinician base?
16.
Is it common for clinicians to use multiple telehealth IT platforms or do they stick to one? Would there be any impact on Teladoc or Amwell’s physician recruitment efforts from clinicians not wanting to use multiple platforms?
17.
How do you assess Doximity’s cross-selling approach, particularly in its health system demographic? How is the company maximising revenue and utilisation for existing customers?
18.
What would it take for Doximity to improve its cross-selling strategy?
19.
How are you viewing Doximity’s prospective growth runway in life sciences? Could this ultimately be a prominent revenue driver longer term?
20.
Do you see more synergy or monetisation potential in the medical device market, given surgeons’ decision-making power? Is this actually a highly underappreciated opportunity?
21.
What are some more attractive user bases for Doximity to expand its service offerings into next, considering synergies with current or future end market advertisers? Additionally, how can the company better monetise its current user base?
22.
Do you think Doximity will have to adjust its marketing strategy to expand into adjacent user bases, such as physical therapists and telepsychiatrists? The company relied heavily on word-of-mouth historically, but how does it build brand equity and stickiness with personnel outside the core clinician, medical student and nurse demographics?
23.
One of Doximity’s most valuable assets is its first-mover advantage. When provider network competition eventually materialises, where might it come from and how defensible is the company’s position?
24.
Is there any material risk from the capped number of users Doximity can recruit to its platform? How much could that limit the company’s growth longer term as the accessible user base saturates?
25.
How do you assess Doximity’s penetration prospects in ex-US markets? What might be some pain points around entering international markets and recruiting a physician base abroad?
26.
How do you think going public has impacted Doximity’s team culturally? Could there be any pain points transitioning from a start-up mindset to a post-IPO corporation?
27.
What are your views on Doximity’s management team, including CEO Jeff Tangney and CFO Anna Bryson? Does the company have the right team in place to meet some of the lofty growth projections?
28.
What do you believe are the 1-2 biggest risks to Doximity’s continued growth trajectory over the next five years and why?
29.
Is there anything else we haven’t discussed that might be especially important to highlight about Doximity?
