Uber offered it to drivers. Airbnb did it for the hosts. Doximity now provides it to doctors, but with a much bigger egg.
In its IPO announcement on Friday, the healthcare technology company Doximity, often referred to as LinkedIn for doctors, said it was allocating up to 15% of its shares to doctors through a “reserved share plan”.
This means that qualified physicians can buy shares at the same price as a select group of institutional investors, who so often take advantage of the IPO popup because they get an early placement and do not have to wait for trading to begin. Doximity has not yet announced how many shares it plans to issue or at what price. To be eligible for the For program, members must meet certain activity thresholds.
“We aspire to be the technology company owned by the world’s largest physicians. Our IPO-reserved share program is designed to both thank our members and kick-start the process,” co-founders Jeff Tangin, Nate Gross and Shari Buck wrote in a letter to the founders. part of the prospectus.
Airbnb, released in December, has set aside up to 7% of its IPO stake for hosts on the platform. After the stock rose 112% in its debut, the homeowners who bought the maximum number of shares made a paper profit of more than $ 15,000 on the first day.
There is no guarantee that the shares will see such a rally. At Uber 2019 IPO, the travel company provided drivers with up to 3% of the offer. At the IPO price, buyers increased by only 14%, while the Nasdaq Composite increased by 74%. Meanwhile, Robinhood trading program announced last week that it is launching an IPO Access product that will give retailers more opportunities to trade at bid prices.
Founded in 2011, Doximity has been largely under radar, although it is located in San Francisco. It has not raised capital since 2014, bringing in a total of about $ 80 million in venture financing as a private company in its decade, spending very little on marketing. The company is also profitable. Net income increased 69% to $ 50.2 million in the last fiscal year.
Doximity grew rapidly, becoming the default site for doctors across the country to connect with each other and stay informed of new research. It has also been a valuable tool for medical collectors. The presence is now used by 1.8 million medical professionals from all 20 top hospitals և health systems, according to the prospectus.
Revenues rose 78% last year to $ 206.9 million. Sales and marketing accounted for 30% of total revenue, most of which was “staff costs, sales commissions, travel and other expenses”, with a small percentage spent on Google և Facebook ads. Last year, only $ 2.6 million was allocated to advertising.
While Doximity does not do much through promotion, it does generate healthy revenue from medical companies that use the program as a way to reach doctors. All 20 top drug companies use the service to educate medical professionals about their products. The company announced that its marketing solution products, which are paid for through subscriptions, accounted for more than 80% of revenue in the last financial year.
Most of the rest of the revenue comes from renting solutions used by healthcare և recruitment companies to contact Doximity doctors.
Doximity says it has more than 600 subscribers, including 200 who spent $ 100,000 in fiscal year 2021. 29 of them spent at least $ 1 million. Subscriptions accounted for 93% of total revenue.
Doximity also introduced the health product last year, as Covid-19 forced patients to stay home and communicate remotely with their doctors. The company just started paying for telecommunications service in early January.
“We have seen the rapid adoption of our Telehealth Solutions among our healthcare clients through the organic use of existing Doximity members who have previously used our productivity tools,” the company said in a statement.
Doximity said it was competing with LinkedIn for members. In terms of recruitment այն recruitment, it opposes staff, while in the telecommunications market it faces competition from Teladoc և American Well, as well as the general-purpose Zoom video chat program.
WATCH Robinhood will allow users to buy IPOs