Doctors’ social networking site Doximity has filed a request to raise up to $ 100 million in an initial public offering – and it hopes to get doctors to invest.

While the San Francisco-based company has yet to disclose its price or the number of shares it plans to issue, it has released some of the details of a large allocation for doctors.

Through a reserved share program, Doximity will set aside up to 15% of its shares for member physicians at institutional investor rates, the company said in its IPO filing. This program is similar to those seen at two leading companies, Airbnb and Uber, although both have awarded fewer shares.

When Airbnb went public in December, it reserved around 7% of the shares for hosts on the platform. The company’s shares jumped 112% in its early days, and hosts who bought the maximum number of shares made a profit of more than $ 15,000 on the first day, according to CNBC.

However, this result is not guaranteed. Uber has reserved up to 3% of its 2019 offer for drivers. However, buyers “at the IPO price rose only 14%, while the Nasdaq Composite jumped 74% during this period,” according to the CNBC article.

Business book

Described as a “LinkedIn for Physicians,” Doximity was founded in 2011 by entrepreneurs Jeff Tangney, MBA, and Nate Gross, MD. The company said in its IPO filing that it had more than 1.8 million medical professional members as of March 31 and that its membership included more than 80% of physicians in all 50 states and all specialties. medical.

However, the company did not indicate a specific number of physician members or how the statistic was calculated.

Neither the American Medical Association nor the American Hospital Association had figures on physician or hospital utilization, respectively, when contacted by MedPage today.

Doximity said in its dossier that its cloud-based platform is designed to help its members collaborate with colleagues, coordinate patient care, conduct virtual visits to patients, keep abreast of news and of medical research and to manage their careers.

While membership is free for physicians, the business is profitable.

Doximity’s revenue-generating customers – including pharmaceutical manufacturers, healthcare systems and medical recruiting firms – pay for business solutions that enjoy wide use by physicians, the company said in its filing .

For the years ended March 31, 2020 and March 31, 2021, the company reported revenue of $ 116.4 million and $ 206.9 million, respectively, representing growth of 78% from a year over year, depending on the record. For the same years, Doximity’s net income was $ 29.7 million and $ 50.2 million, respectively.

The company said in its file that its customers purchase subscriptions for its marketing, hiring and telehealth solutions. In fiscal 2021, Doximity reported having more than 600 subscribed customers, of which 200 contributed at least $ 100,000 in subscription revenue.

Of those 200 customers, 29 contributed at least $ 1,000,000 in subscription revenue, the company noted in its file. In fiscal year 2021, 93% of revenue was generated from subscriptions. Marketing accounted for 80% of these subscriptions.

The company cited growth milestones that include forming a partnership with American News and World Report in 2014.

Potential business challenges include not keeping existing members or adding new members, failing to attract new customers and losing one or more key customers, the company said in its file. They also include growing competition for its solutions and the ongoing pandemic.

Product use

Last year, Doximity launched its first telemedicine offering. The company said at the time that the offer allows doctors to video call their patients while still being HIPAA compliant.

In its IPO filing, the company noted the potential for growth into other new areas of service.

Doximity said it plans to use the proceeds from its IPO, along with existing cash, equivalents and marketable securities of around $ 142 million at the end of March, for working capital. , for other general purposes, and to fund its growth strategies and make ongoing investments in its business.

The company added that it could also use part of the proceeds to acquire or invest in complementary businesses, solutions, services, technologies or other assets. He did not specify the areas of interest.

Doximity has yet to say which exchange it will trade on, but has said in its file that its ticker symbol will be DOCS.

As to which physicians can benefit from its reserved share program, the company said in its filing that physicians must meet criteria based on their activity on the platform or their attendance at member advisor meetings.

Doximity has decreased MedPage Today request for comment due to the IPO silent period.